Thailand’s 73 MWdc Solar Energy Project

Project applied under EGAT PPA
  NED’s (55 MW) has already
been approved and signed the
PPA on March 2010
  1 project (30 MW) has already
been approved
  7 projects (451 MW) are still
under approval process
Project applied under PEA PPA
  51 projects (7,674 MW) with SCOD
  340 projects (1,604.7 MW) obtained the approval
with PPA signed
  60 projects (187.7 MW)  were approved
  114 projects (544.6 MW) is still under approval
process
   LAND - Securing 1,140 rai or 2 km2 land
option for project site with ~ 5 kWh / SQM /
day solar resource
1/3 1/3 1/3   PPA - 55 MW Net AC (signed with EGAT), &
8 MW (signed with PEA)
  Adder – fully allocated for 55 MW and 8
MW
  Financing – Signed with ADB (USD70
million and three domestic lenders – KBank,
73 MW 8 MW Bangkok Bank and Siam Commercial Bank
Solar Solar
  Flat Panel Technology Supply &
Project Thailand Solar Project Construction Contract with SHARP &
ITD
Location Central Thailand (2hr drive from
BKK)   EIA Report Completed. 4 public hearing
conducted with high acceptance level.
Capacity 73 MW DC (55 MW Net AC)
  BoI Certificate Obtained with full
Off-take Non firm EGAT PPA with Adder
privilege includes foreign ownership and tax
Adder THB 8 / kWh for 10 year exemption.
Total Tariff USD 0.36 / kWh (on-p); USD 0.3 /   CDM - Asiatica engaged as CDM advisor
kWh (off-p)

Financial July 2010

Close

CoD Phasing CoD from Nov 2011 to Apr

2012
Site solar conditions are critical to overall economics / viability of the project

Resource Assessment involved the following:

•  Source for the available & reliable solar radiation data, 3 reliable resources NASA SEE (global), Meteonorm (Global) and TMD (local)

•  Obtain the raw data from NASA and TMD

•  Installed 2 onsite solar monitoring station, installed & collected by consultant which completed 6 month review in March 2010
•  Evaluate the reliability, long term record, etc to establish the optimal reference data for project

Overall view
•  The result from 3 sources above is well correlated with
the onsite measurement
•  When assessing irradiation data, it is recommended to
have a long term (10-20 y) to assess the variability of
the solar resource and to be able to have a reliable
average with a clear assessment of its variation
•  IE have recommend to use the combination of
available resource as shown in table
•  IE doesn’t mention onsite data due to a very short
term period, onsite just only indicative to reference
with other sources and collect for the future use.

“The weighted average result combines data sets consisting of 57 years of measurement, taking
into account the advantage of longer-term satellite data, which contribute to about 60% of the
final value, and terrestrial data ” 4
Land Area: 1100 rai or 172 ha
 Csi TF
Panel area 1.49m2 1.42m2
Total panels 541,926 350,208
Total panel area 52ha 77ha
Panel rating 210W 128/135W
Total DC rating 73..54 73.16
Annual MWh AC 108,283 111,339
Technology Thin Film Polycrystalline
Resource Assumptions
Panel Tilt2 Degree 10 15

Average Annual Solar Radiation3 kWh / m2 / day 5.18 5.20

Annual Average Temperature Deg C 25.6 25.6

Technology Assumptions
Number of Panels / Dishes 541,926 270,400
Rated Capacity per Panel / Dish Watts DC 135 270
Temperature Coefficient % -0.24% -0.47%

Total Rated Capacity MW DC 73.16 73.01

Area per panel m2 1.42 1.94

Total Area m2 770,446 524,671

Approximate Land Required Rai 861 676

Output Calculations
Solar Radiation to Hit Solar Farm kWh / day 3,988,695 2,727,777
Conversion Efficiency (to DC) % 9.50% 13.92%

Loss Assumptions
Efficiency Factor Adjusted for Temp 87.78%
Inverter Efficiency 97.00% 98.40%
Incident Irridation Loss 98.00% 99.00%
Loss Due to Dirt 98.00% 98.00%
PV Loss Due to Irradiance Deviation 99.00%
DC Wiring Loss 98.00% 98.98%
Module Array Mismatch Loss 96.50% 98.00%
AC Wiring Loss 99.92%
Transformer Loss 96.6% 97.71%
Total efficiency 80.57% 78.57%

Net AC MW 58.94 57.36

Annual Power Generation kWh 111,339,475 108,814,993

Capacity Factor % 17.37% 17.01%

Weighted Rating
Factor (%)

Weighted Factor
Si 1 Si 2 TF CPV
10
•  Solar Manufacturing Industry
•  EPC contracting is a foreign concept
•  When dealing with most manufacturers/ suppliers, it is
difficult to explain the rationale of an EPC contract
•  Concept of 100% liability for the full contract price is a new
risk scenario
•  Liquidated damages (LDs) for events of default is
problematic at best
•  Warranty periods for suppliers tend to be fairly short, getting
them to accept 2 years minimum with another 4 or 5 years
latent defect liability is met with great resistance.
•  Forming a Consortium
•  Finding a partner that the manufacturer can trust
•  Consortium leader? One with the highest value contract or
the one with most experience?
•  Joint and several liabilities – can the manufacturer’s senior
management / shareholders commit to this?
•  And what actually does it mean? (manufacturers very unclear
and distrustful)
•  Splitting contracts into off-shore and on-shore contracts. Do
suppliers understand the tax implications of their contractual
arrangements?
•  Negotiating a contract
•  400 page contract document not like a Purchase Order.

•  Getting the concept across that clauses are Lender’s

requirements as well as Owner stipulations is a challenge.

•  Use of experienced law firms to enable better understanding of

what is going on?

•  In-house lawyers new to these clauses - tend to be difficult and

can prolong discussions leading to loss of contract

•  Constantly having to refer back to senior management for

decisions
The End