kouga wind farm - stellenbosch university tanton.pdf · 9/9/2010 · works,epc, etc.) negotiation...
TRANSCRIPT
Financing Wind
Overview
• Market
• Project promoters
• Project phases and associated finance availability
• SA context
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹2›
Global investment in Wind power in 2009
$67 billion, 56 % of RE invest
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹3›
Market overview
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹4›
Market overview
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹5›
Market overview
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹6›
Comparative market overview
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹7›
Project promoters
• Developer/Entrepreneur
• Land owner/community
• Utility
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹8›
Project promoter- Entrepreneur
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹9›
Project promoter- Community
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹10›
Project promoter - Utility
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹11›
Phases in wind investment
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹12›
Pioneer Stage
Investment
- Local manufacture – new technology
- Wind development co. (new entrants)
Venture Stage
Investment
- Established wind development co.
- Niche markets – Consultants (wind mapping, masts etc), O&M co.
Utility Stage
Investment
- Permitted wind farm
- Construction co. (towers)
Project phases
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹13›
Siting Development Authorisation Pre-construction Construction
Te
stin
g
Micro-siting
Preliminary turbine specification
Energy yield assessment
Apply forauthorisations
Site prospecting
Sign lease option agreements with landowners
Mast installation
and wind
measurement
Site surveys:
Geotechnical
Road access
Land rezoning
EIA (incl.
specialist
studies)
Civil aviation
Grid connection
Sign long-term power
purchase agreement
Sign financing
contracts
Sign turbine supply
contracts
Implement hedging
positions
Sign construction
contracts
Final turbine
specification
Selection of
suppliers
(turbines, civil
works, EPC, etc.)
Negotiation of
construction
contracts
Negotiation of the
financing contracts
Construction and
installation
offered by
turbine
manufacturer on
full turnkey
basis.
Construction
risk principally
borne by the
EPC contractor.
Turbine manufacturer
oversees first approx.
500 hours of operation
Owner takes delivery of
the wind farm by signing
memorandum of
acceptance
Operation commences
Operations &
Maintenance
O&M contracts signed with
turbine manufacturers or
3rd party service providers,
who warrant wind farm
performance and
availability
Generation license application
Power purchase agreement application
Project phases
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹14›
Siting Development Authorisation Pre-construction Construction
Te
stin
g
Micro-siting
Preliminary turbine specification
Energy yield assessment
Apply forauthorisations
Site prospecting
Sign lease option agreements with landowners
Mast installation
and wind
measurement
Site surveys:
Geotechnical
Road access
Land rezoning
EIA (incl.
specialist
studies)
Civil aviation
Grid connection
Sign long-term power
purchase agreement
Sign financing
contracts
Sign turbine supply
contracts
Implement hedging
positions
Sign construction
contracts
Final turbine
specification
Selection of
suppliers
(turbines, civil
works, EPC, etc.)
Negotiation of
construction
contracts
Negotiation of the
financing contracts
Construction and
installation
offered by
turbine
manufacturer on
full turnkey
basis.
Construction
risk principally
borne by the
EPC contractor.
Turbine manufacturer
oversees first approx.
500 hours of operation
Owner takes delivery of
the wind farm by signing
memorandum of
acceptance
Operation commences
Operations &
Maintenance
O&M contracts signed with
turbine manufacturers or
3rd party service providers,
who warrant wind farm
performance and
availability
Generation license application
Power purchase agreement application
Project phases
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹15›
Siting Development Authorisation Pre-construction Construction
Te
stin
g
Micro-siting
Preliminary turbine specification
Energy yield assessment
Apply forauthorisations
Site prospecting
Sign lease option agreements with landowners
Mast installation
and wind
measurement
Site surveys:
Geotechnical
Road access
Land rezoning
EIA (incl.
specialist
studies)
Civil aviation
Grid connection
Sign long-term power
purchase agreement
Sign financing
contracts
Sign turbine supply
contracts
Implement hedging
positions
Sign construction
contracts
Final turbine
specification
Selection of
suppliers
(turbines, civil
works, EPC, etc.)
Negotiation of
construction
contracts
Negotiation of the
financing contracts
Construction and
installation
offered by
turbine
manufacturer on
full turnkey
basis.
Construction
risk principally
borne by the
EPC contractor.
Turbine manufacturer
oversees first approx.
500 hours of operation
Owner takes delivery of
the wind farm by signing
memorandum of
acceptance
Operation commences
Operations &
Maintenance
O&M contracts signed with
turbine manufacturers or
3rd party service providers,
who warrant wind farm
performance and
availability
Generation license application
Power purchase agreement application
Project phases
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹16›
Siting Development Authorisation Pre-construction Construction
Te
stin
g
Micro-siting
Preliminary turbine specification
Energy yield assessment
Apply forauthorisations
Site prospecting
Sign lease option agreements with landowners
Mast installation
and wind
measurement
Site surveys:
Geotechnical
Road access
Land rezoning
EIA (incl.
specialist
studies)
Civil aviation
Grid connection
Sign long-term power
purchase agreement
Sign financing
contracts
Sign turbine supply
contracts
Implement hedging
positions
Sign construction
contracts
Final turbine
specification
Selection of
suppliers
(turbines, civil
works, EPC, etc.)
Negotiation of
construction
contracts
Negotiation of the
financing contracts
Construction and
installation
offered by
turbine
manufacturer on
full turnkey
basis.
Construction
risk principally
borne by the
EPC contractor.
Turbine manufacturer
oversees first approx.
500 hours of operation
Owner takes delivery of
the wind farm by signing
memorandum of
acceptance
Operation commences
Operations &
Maintenance
O&M contracts signed with
turbine manufacturers or
3rd party service providers,
who warrant wind farm
performance and
availability
Generation license application
Power purchase agreement application
Project phases
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹17›
Siting Development Authorisation Pre-construction Construction
Te
stin
g
Micro-siting
Preliminary turbine specification
Energy yield assessment
Apply forauthorisations
Site prospecting
Sign lease option agreements with landowners
Mast installation
and wind
measurement
Site surveys:
Geotechnical
Road access
Land rezoning
EIA (incl.
specialist
studies)
Civil aviation
Grid connection
Sign long-term power
purchase agreement
Sign financing
contracts
Sign turbine supply
contracts
Implement hedging
positions
Sign construction
contracts
Final turbine
specification
Selection of
suppliers
(turbines, civil
works, EPC, etc.)
Negotiation of
construction
contracts
Negotiation of the
financing contracts
Construction and
installation
offered by
turbine
manufacturer on
full turnkey
basis.
Construction
risk principally
borne by the
EPC contractor.
Turbine manufacturer
oversees first approx.
500 hours of operation
Owner takes delivery of
the wind farm by signing
memorandum of
acceptance
Operation commences
Operations &
Maintenance
O&M contracts signed with
turbine manufacturers or
3rd party service providers,
who warrant wind farm
performance and
availability
Generation license application
Power purchase agreement application
Project phases
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹18›
Siting Development Authorisation Pre-construction Construction
Te
stin
g
Micro-siting
Preliminary turbine specification
Energy yield assessment
Apply forauthorisations
Site prospecting
Sign lease option agreements with landowners
Mast installation
and wind
measurement
Site surveys:
Geotechnical
Road access
Land rezoning
EIA (incl.
specialist
studies)
Civil aviation
Grid connection
Sign long-term power
purchase agreement
Sign financing
contracts
Sign turbine supply
contracts
Implement hedging
positions
Sign construction
contracts
Final turbine
specification
Selection of
suppliers
(turbines, civil
works, EPC, etc.)
Negotiation of
construction
contracts
Negotiation of the
financing contracts
Construction and
installation
offered by
turbine
manufacturer on
full turnkey
basis.
Construction
risk principally
borne by the
EPC contractor.
Turbine manufacturer
oversees first approx.
500 hours of operation
Owner takes delivery of
the wind farm by signing
memorandum of
acceptance
Operation commences
Operations &
Maintenance
O&M contracts signed with
turbine manufacturers or
3rd party service providers,
who warrant wind farm
performance and
availability
Generation license application
Power purchase agreement application
SA Context
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹19›
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹20›
Conclusion
• Technology mature but market in SA not
• Legislative/policy uncertainty significant β
• Significant opportunity in SA
9 September, 2010 Copyright © 2009 Red Cap Investments (Pty) Ltd ‹21›