20150504-PPT-IE-Energy
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This document summarizes David Vallejo's presentation on the global solar energy business. It discusses the types of solar technologies, including thermal, photovoltaic, CPV and CSP. It describes Solarig's experience developing solar projects in Italy between 2008-2011, including the development, construction, and O&M phases. It also discusses trends in the global energy and solar industries, barriers to renewable growth, the potential role of battery storage, and outlooks for key solar markets.
20150504-PPT-IE-Energy
- 1. David Vallejo The Solar Business in the Global Energy Perspective: A personal experience in the business development worldwide Photograph by NASA/GSFC/SDO 5th of May, 2015 Madrid
- 2. 1.Introduction 2.Types of Solar Energy 3.Solar Business Activites: Development and Construction Italy Experience 4. O&M Services 5. What卒s next? 6. Q&A. 2
- 3. 1. Introduction dvallejo@student.ie.edu @DavidVallejo76 es.linkedin.com/in/dvallejom Solarig is an Spanish SME Only specialized in Photovoltaic Solar Energy Started its activities in 2005 and already in China in 2006 Offices in Greece 2007. Offices in Italy, Bulgary, Korea, USA in 2008 3
- 4. Evaluating Solar Opportunities around all the world. Succeed tremendously in Italy. Construtions in France & Belgium Touch the market in India, USA, South America. Construction in UK in the coming years. What is next? 4
- 6. Thermal or Solar Thermal Electrical Production CPV: Concentrate Photovoltaic CSP: Concentrated Solar Power Photovoltaic (PV) Thermal panels mainly on roofs Only for heating water Shorter life than PV modules CPV technology very unsuccessfully so far CSP complex technology, huge capital reqs PV easiest, reliable (>30 years), profitable Thin-film developed was interrupted due to reduction in Crystalline technology Very punctual advantages of thin-film Thin-film Crystalline (Mono/Poly) 2. Types of Solar Energy 6
- 7. Thermal or Solar Thermal 7
- 8. CPV: Concentrate Photovoltaic Fraunhofer ISE, Levelized Cost of Electricity - Renewable Energy Technologies, www.ise.fraunhofer.de/de/veroeffentlichungen/veroeffentlichungen-pdf-dateien/studien-und- konzeptpapiere/studie-stromgestehungskosten-erneuerbare-energien.pdf (2013). LCOE (Levelized Cost of Energy) for irradiations Cost Outlook: Comparison between different techs 8
- 9. CPV: Concentrate Photovoltaic 300 M$ Investment 9
- 10. CPV: Concentrate Photovoltaic Source: http://www.greentechmedia.com/articles/read/French-CPV-Hopeful-Soitec-Exits-the-Solar-Business Emcore bankruptcy. Sharp, very bad economical situation. Soitec Technology was only valid for very high irradiation areas. Not reliability yet. Even if potentiality is there 10
- 11. CSP: Concentrated Solar Power Source: https://energypedia.info/wiki/Concentrating_Solar_Power_(CSP)_-_Technology 11
- 12. CSP: Concentrated Solar Power Complex and expensive civil works. Several needs: Isolated areas (flat, mirrow reflections, water availability) Not commercialized in small scale (minimum needed 50-100 has, 25-50- 100MW) When feasible, profitability higher than PV 12
- 13. PV: Photovoltaic: Thin-film Only 3 big players remain. Huge cost reduction in Crystalline technology limit its growth Lower efficiency (12% vs 18%) Better performance in some climate extreme conditions Nicer frame and image than crystalline roofs. 13
- 15. PV: Photovoltaic: Thin-film Less than 10% PV share & decreasing from 2009 80% installed in USA & Japan 15
- 17. PV: Photovoltaic European facts with high subsidies policy: 1st Feed-in-tariff Germany 2004. Big bubbles: Spain 2007. Italy 2010. 17
- 18. PV: Photovoltaic: Crystalline Mono-crystalline: These are produced from silicon wafers or single cylindrical crystal of silicon. They are noted for their high silicon content. Pros: Most efficient panels Cons: More expensive. Poly-crystalline: They are produced from molds of melted and recrystallized silicon. They contain lower silicon content than the mono-crystalline. Pros: Perform better in high temperatures, cost less to produce. Cons: Less efficient than the mono- crystalline 18
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- 21. Italy: 2008-2011 2008 Start up business Local partnerships 2009 2010 Start construction Secure pipeline EPC full capacity Preparing O&M and financing 2011 New opportunities? 21
- 22. Activities managed Development: PLAs 6-24 months Construction: EPC Operation & Maitenance (O&M) 3-18 months 20 years at least Shovel / Ready for construction Connection: COD 22
- 23. Elements of a Photovoltaic Project: PLAs Feasibility Study and site visit Secure Land Rights Secure Grid Connection Get other local, regional, etc.. permits Permits, Licences and Authorisations (PLAs) that allow to start construction, operate during 20 years and get the subsidies Evaluate civil cost, cleaning, road access, shadows, drainage Solar production Distance to the grid connection Tentative quotation from utility and land owner Right of surface or land purchase option. Easement rights (access and connection) Check mortgages, inheritance Official Cadastral Records vs Land Owner Records Technical conditions. Quotation / milestones Who make it? Time schedule Secure the F.I.T. Environmental Impact Assessment (EIA). Archaeological Construction License Agricultural Land Conversion Forest Land Around 30-40 permits (some N/A) 23
- 24. Time Schedule: Financial Dpt Development: PLAs 6-24 months Construction: EPC Operation & Maitenance (O&M) 3-18 months 20 years at least Shovel / Ready for construction Connection: COD Due Diligence Financing 24
- 25. Due Diligence Technical Legal Financial: Business Plan Insurance Third party verification that allow the company the assessment of the risks involved in the operation in order to satisfy stakeholders (shareholders, lenders, etc) Credibility of the assumptions expressed and the feasibility in terms of: Time Constrains suppliers chosen. Costs Legal bond that secure that all rights to start the construction, connect, and exploit the project for at least 20 years Credibility of the solar production P75, P90. Financial terms (tenor, leverage, spread, swap) Deviations admitted and bank requirements According to IPP, EPC and lenders requirements: Construction. Operation & Maintenance 25
- 26. Construction Phases Engineering Procurement Construction Engineering, Procurement and Construction (EPC) of Solar Photovoltaic Projects must comply with legislations and national technical standards, provide enough warranties to lenders and investors Compliance with the project constrains. Topography survey after preliminary design. Executive design to be submitted to the different entities, technical advisors, EPC and IPP. Negotiation of: Technical data sheets Warranties Payment terms and Delivery terms. Bottleneck: Downpayment and construction period of substations Other suppliers max 16 weeks Delays for: Bad engineering and procurement Legal issues. Weather constrains Sudden Events Keep in mind buffer schedule Utility connection queue very difficult to schedule And after construction? Who will make the O&M? Warranty of the EPC. Take over from EPC to O&M contractor 1-2 years. 26
- 27. PV: Photovoltaic Materials Contractors: Manpower Modules / Panels Inverters / Power Conditioners Mounting System / Structure Transformation Center Substation (if applicable) String boxes, cable, etc Electrical Works Civil Works 27
- 28. How it works: Utility & Residential Scale 28
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- 31. O&M: Country Organigram SOLARIG JAPAN COUNTRY MANAGER DIRECTOR Administration Dept. RRHH Dept. Legal Dept. Quality Dept. STAFF DEPARTMENTS Tohoku Kanto Kansai Chugoku ChubuHokkaido Shikoku Kysushu ZONE MANEGER Operations Manager Customer Service Dept. Facility Management Dept. Monotoring System Dept. Operations Dept. System & Control Dept. MAIN DEPARTMENTS TechnicianTechnician TECHNICIAN Technician Technician Technician Technician Technician Technician 31
- 32. O&M: Who verify the quality of the service Some of the Technical Advisors with whom we are working. Banks Technical Services Technical Management Production Control Due Diligence Due Diligence on site Ancillary ServicesManagement of Security and Communication Services Facility Management Analisys and reports Insurance and contract managenemt Administrative and Accounting Services Legal Management 32
- 33. O&M Activities Monitoring Control 24 hours/365 days Corrective Maintenance Response time in less than x hours from failure notification On site visit repair/checks. Close the incident report and introduce in the CMMS Monthly Report Monthly production detail Tasks made on the plant Corrective actions carried out Including photograpies Why is so important a periodical control of the plant? Fail detection in a beginner phase Reduction in the number of urgent interventions Improvement of the availability and productivity of the plant Manufacturers warranties and guarantees preservation. 33
- 34. O&M: Premium services Production study Modules Test( Thermography inspection and IV Test) Hot spots Snail tracks Etc, Design mistakes study Report including all the improvements to be done Production improvement study Intervention proposal (Quotation&Planning) Improvement Works & Production comparative IV Test Thermography inspection 34
- 35. Facility Assets Management Administrative and Accounting Control Legal Management Insurance policy management Knowledge of the main risk factors of a PV Plant Incidents management 35
- 36. What卒s next? 36
- 37. Global Energy Sources Data from IEA World Energy Outlook 2011 37
- 38. Global CO2 Emissions Is it relevant the renewables contribution to reduce this CO2 emissions? 38
- 39. CO2 Emissions 1990-2013 Mainly Global Financial Crisis Effects 39
- 40. CO2 Emissions Forecast 2035 Source: http://www.bp.com/en/global/corporate/press/bp-magazine/conversations/chief-economist-on-energy-outlook.html Shall we do something more? 40
- 41. Main Barriers for the Renewables Grid Connection Constrains Slow Storage Development No long term policy across nations Not clear commitment that all members believe Very high cost for the short term & together with nuclear dismantling 41
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- 44. Why home batteries are so good Reduce impact of peak production & peak consumption Make the consumption more predictable Better maintenance of the grid connection Avoid shortages 44
- 45. Batteries Price Projections Many different technologies competing. Different purposes. Many big players onboard 45
- 46. USA: Grid parity & Residential Potential Tax incentives Battery Outlook Economic Outlook & policy incentives New Installations Solar Outlook 46
- 47. Facts: Small Relative Contribution Not included all the saved energy due to batteries 47
- 48. For the debate Outlook in China, India, Japan, Australia The competitive advantage of solar & battery storage in the islands Divergencies in European National Policy. Role of the Nuclear Energy Relevance of the Smart Grid Technology and other disruptive innovations may arise Competitive approach: Feed in tariff policy vs tenders (South Africa and Germany examples) 48