Economic Feasibility Study For Electricity Generation from Sea Waves Energy

Table of Contents Preface Project Description Likely Project Clients Chapter One: Sources of Electrical Energy Generation Used in the Egyptian Network 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Hydraulic Generating Stations Steam Generating Station Internal Combustion Engines Generating Stations Compound Generation Stations Wind Power Generating Stations Solar Energy Generating Stations Nuclear Generating Stations

Chapter Two: Estimation of the Investment Costs and Calculation of the Elements of Income of the Project 2.1. Project Investment Costs 2.1.1. Estimation of the Cost of Land, Infrastructure and Buildings 2.1.2. Equipment and Tools 2.1.3. Transportation 2.2. Project Running Costs 2.2.1. Labor Cost 2.2.2. Cost of Production Components 2.2.3. Cost of Station Building 2.2.4. Other Production Requirements 2.2.5. Cost of Packing:
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2.2.6. Liabilities Interests 2.2.7. Cost of After Sales Service 2.3. Estimation of Income 2.4 Costs of a Unit of Production 2.5. Project Income Statement 2.6 Project Cash flow Statement Chapter Three: Indicators of the Project Economic Feasibility 3.1. The Present Net Worth for the Cash Flow 3.2. Payback Period for the Project 3.3. Internal Rate of Return 3.4. Measuring the Relative Advantage of the Project 3.4.1 Cost of Kw.h. Using Diesel Generator 3.4.2. Cost of government electrical power 3.4.2.1. The cost of domestic use 3.4.2.2. Prices for Commercial Uses 3.4.2.3. Prices for Industrial Uses 3.4.3 Cost of Generated Electricity from the Project Station

Introduction Preface During summer Egypt becomes exposed to hot waves where ambient temperature exceeds 450c during the day time and this forms a threat of power station failures due to the excessive electrical demand loads to operate air conditioning units to overcome such temperatures. This is expected to increase to reach temperatures in the Gulf area during the upcoming years. The Egyptian ministry of Energy and electricity resorted to disconnecting electrical power from some districts for periods of half hour to one hour to prevent electrical network failures in Egypt. Also, the ministry of Electricity asked the citizens to participate in solving the electrical power crises during peak hours and also to reduce consumption particularly in using air conditioning which is widely used as a result of the large financial facilities offered by the producing companies. The electrical power demand in Egypt have increased such that the peak loads increased from 3206 megawatt in 1980/1981 to 22750 megawatt in 2009/2010 and this was accompanied by an increase in generated power from 20 billion Kw h to 129 billion kilowatt hour in the same period of time. This requires increased investments in constructing power generating stations, transformers and distribution networks. The increase in generating power for a number of power stations requires investments of 20 billion Egyptian pounds (USD 3.5 billion) to cover the peak periods only. The present electricity market in Egypt may be considered in the form of energy container where there is one buyer and one seller which is the transmission company which buys all the produced electricity from the production companies and then sell it to the distribution companies and to the clients.

From the above, it becomes important to search for other sources of generating electricity that is economical in production and utilization by consumers. Project Description The invention is a device which transfer sea waves energy into electrical energy and the can transform more than 90% of the sea wave internal energy of the motion into kinetic energy whereas the capability of the other sources in transforming the internal energy into kinetic energy does not exceed 20%. The invention obtained an Egyptian Patent number 27404 on 2/6/2010 and is registered internationally according to the following 1. PCT Application: International application number: PCT/EG2007/000014 Title: SEA WAVE ENERGY CONVERTER Inventor: EL-Fikky, Alaa ElDeen Hassan (EG/EG); 6 El Negma Street, Heliuopoliss, P.O. 11351, Cairo(EG). International publication date 6 November 2008 International publication Number: WO 2008/131786 A1 International Patent Classification: F03B 13/18 (2006.01) International filing date: 29 April 2007 EPO Application number 07722738.7 USPTO: Application number 12451216 Also, it has obtained patent number 24707 from the Egyptian Office of Inventions The feasibility study is based on study and analysis of the financial indicators for the economic utilization of the project through the production of a generating station which has a capacity of1000 kw.hr working on the sea waves internal energy.

Probable Customers for the Project It is expected that the probable customers are from the projects closer to the north coast where the sea waves are high and suitable to operate the station and therefore it is possible to be useful for: Coastal Villages Coastal Hotels Installation of stations for the distribution companies owned by the Electrical Distribution Holding Company as a giant project which will cover the gap in the current demand between the loads and the generated electrical energy.

Chapter One Sources of Electrical Energy Generation Used in the Egyptian Network 1.8 Hydraulic Generating Stations

These stations are in the High Dam, Aswan Dam, Esna and Naga Hamady. The generation of electricity is based on the difference in water levels between two points and by using the potential energy resulting from the water fall, the turbines are rotated which in turn rotates the generator to supply the electrical power. The source of energy generated is the cleanest and cheapest source, however, it cant be relied on greatly specially in summer as the power form these station relies on the irrigation water discharge which is determined by the Ministry of Water Resources in addition to the negative effect of temperature rise during the summer season as well as the aging of a large proportion of these stations which has been in operation since the sixties. Therefore the hydraulic power represents only 9.2% of the total power in 2009/2010. The following table shows the saving in the use of fuel as a result of relying on water sources in generating electricity. The following table shows the saving in fuel as a result of relying on water sources in generating electricity in 2009/2010 Hydraulic Energy Generated Mw.h. Rate of fuel usage (gm/Kw.h. generated) Quantity of Fuel Oil Saved using hydraulic power (Equivalent of 1000 ton fuel) Value of Equivalent fuel oil (Million Pounds) 12862 21506 2773

612

Source: Annual report of the electrical company in Egypt 2009/2010

1.9

Steam Generating Station

Steam Power Stations rely on obtaining steam in its gaseous form (Superheated Steam) resulting from boiling water using natural gas. The steam is ejected through valves which will rotate the turbine which then rotates the generator. These stations use different types of the available fuels like coal, liquid petroleum, and natural or synthetic fuel gas. The steam stations are large and their costs are low relative to their large capabilities and have the advantage of the possible use in desalination. This dual function makes it useful in places where there is lack of nonsaline fresh water and therefore it is usually built closer to sea coasts. Also, they are built near rivers. Stations are built closer to electrical energy consumption centers to save the costs of constructing transmission lines. In Egypt, these stations are in Shoubra Al Khaima west Cairo Korimat Sidi Kirir Abu Qir while the consumption centers are in the cities and populated areas, commercial centers and industrial areas. The stations of this type generate 38.5% of the total power generated from generating stations. 1.10 Internal Combustion Engines Generating Stations Power plants using Internal Combustion use fuel oil or natural gas which burns in combustion chambers after mixing with a certain portion of air. The resulting combustion gases have high pressures which will move a piston as in the diesel engines or it will rotate a turbine as in the case of gas turbine. This type of power plants is in Wadi Hoof and is usually of small power 1.11 Compound Generation Stations This combines the gaseous and the steam generation and is based on using the exhaust of the gaseous units as a heat source for boiling the water for generating steam and the system is the most economic generating system.

1.12 Wind Power Generating Stations Egypt enjoys a relatively steady wind activity and a speed reaching (8 to 10 m/s) in the Suez gulf area and the red sea coast between Ras Ghareb and Safaga as well as in Sharq El Owinat. Wind Power generating plants have been installed in Hurgada and Zafarana for a total power of 145 Mw, saving up to 125 thousand tons of equivalent petroleum fuel per year which reflects positively on the economics of the renewable energy projects. The total electrical power generated from the wind power plants reach 1122 Mw.h (0.08% of the power generated from other plants) and this has a running cost of 172 Million pounds where the average cost is EGP 0.15 per kw.h. from Zafarana plant and 1.07 from Hurgada and is being sold to distribution companies at EGP 0.142 per kw.h. where the Government subsidize the price difference. The New and Renewable Energy Organization incurred losses of EGP 129 million during 2009/2010 after the addition of EGP 241.5 million to its expenses, being the interests on debts resulting from financing its investments using local and external finances, which reflects the high costs of these investments which exceeds EGP 2 billion and contributes only 0.08% of the generated energy. 1.13 Solar Energy Generating Stations The number of hours of sun shine in the typical areas for using solar energy in Egypt is between 2300 to 4000 hours yearly. A solar power station has been constructed in Korimat in the south of Cairo at a cost of USD 125 million with a total power of 125 MW. The solar energy will now be used in solar heating for domestic purposes or for industrial purposes and also for generating electricity from photo-cells using solar energy as a source for water boiling which is similar to steam generation. 1.14 Nuclear Generating Stations Nuclear Power stations are one type of the thermal generating stations as it works on the same principle of generating steam using thermal energy. The generated steam will subsequently rotate the turbines which in turn will rotate the electrical generator to finally generate electrical power.
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The difference in the nuclear power stations is that instead of the chamber where the fuel ignites there is a nuclear reactor where heat is generated as a result of uranium atom splitting due to the impacts of the electrons moving in the outer layer of the atom. This huge thermal energy is used in boiling water in water boilers and evaporating it into a very high pressure and temperature steam. Egypt started to construct the first nuclear reactor in " EL Dabaa " . Distribution of generated power according to the type of generation (Kw.h.) Mw.h. Hydraulic Power Plants Thermal Power Stations distributed as follow: Steam Gas Combined Cycle Wind Generated Energy station in Zafranaa Kw.h Power purchased from the industrial companies Power Generated from private sector BOOT The power generated from the power plants not connected to the distribution net works Total generated power
Source: Annual Report of the Egypt Electricity Company for 2009/2010

12,862 111,576 53,520 11,429 46,621 1,122 26 13,184 218 139000

The process of generating and production of electrical power is in fact a process of transforming one source of energy to another according to the sources of available energy and according to the energy requirements. This determines the types of generating stations, the type of fuel and its sources which affect the type of plant, its location and capacity.

Chapter Two Estimation of the Investment Costs and Calculation of the Elements of Income of the Project In this chapter, the investment costs for the project are estimated in order to reach the required capital necessary to start the project then measuring the elements of costs of the product followed by measuring the income according to the volume of expected demand from the product of the project in order to determine the benefits from the project. 2.1. Project Investment Costs 2.1.1. Estimation of the Cost of Adminstration Building: It is a place characterized by easily accessible and is located in the middle of a classy and an area of 200 m and estimated price per meter comprehensive finishes and trims the necessary and appropriate about 4000 pounds, total value 800.000 L.E 2.1.2. Equipment and Tools: The project relies on installing production line to assemble the purchased equipment components procured from the suppliers and hence needs the following equipment and tools. Item Unit Number Unit Total Price 1,600 8000 750 11,250 30,000 30,000 3000 12,000 61.250

Oak Benches 1.5 X 3 m No. 5 Tool kits German or Italian Set 15 Admin. Furniture No. 1 Computers No. 4 Total Equipment and Tools

10

2.1.3. Transportation The project needs Transportation Cost - 2 Toyota Busses, 14 Passenger Each. a total cost of EGP 440.000

Adminstration Building Equipment and tools Transportation Total Add: Cash for starting the activities Add: 10% contingency for estimation errors Total Investment Cost 2.2. Project Running Costs The running costs consist of:2.2.1. Labor Cost

800.000 61.250 440.000 1.301.250 6000.000 130.125 7.431.375

The study estimates the costs according to the level of experience and skills required for the project and the salaries have been determined according to the average actual salaries in Cairo, Giza, 6 October, Fayoum and Alexandria Governorates (including the owner contribution in social security). In the first year of the project, these are: Description of No. Employee Job Mechanical Engineer Production Engineer Skilled Technical 2 1 4 Skill Level High High High
11

years of Monthly Experien Salary ce 3-5 4,000 3-5 3-5 3,000 2,000

Total Monthly expenses 8,000 3,000 8,000

Worker Unskilled (Ordinary) Worker Marketing Engineer Security Person Drivers

2 3 2 2

Average High High High Total

3 5 3 5

1,000 3,000 750 1,200

2,000 9,000 1500 2400 33.900

Salaries have been calculated for the period of the study years according to the following assumptions: Average rate of yearly increase in salaries is 15%. Medical Care for workers according to regulations for health insurance. Hours of daily work (one shift) is 8 hours including one hour rest.

2.2.2. Cost of Production Components Direct Production Components for the Number Station Components for 56 transformation of energy Control Units Motion Transmission Sets Generator Crine1/2 ton equipment for 56 3 1 1 1 Cost 1,172,293 360,000 350,000 500,000 15.000 2.397.293

Total Cost of Direct Production Components

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2.2.3. Cost of Station Building This is the building which houses the equipment which transforms the motion energy extracted from the wave motion with a total number of 56 pieces in addition to the generator which transforms the mechanical motion into electrical power. The building is concrete, prepared to install the equipment and is constructed of sea water and environment resisting materials to resist also the weather conditions in coastal areas. The building will be constructed inside the sea at a distance between 5 to 50m from the shore over an area of 400 Square meters, at 4 m height above sea level. The cost per square meter for these specifications including finishes and preparations for installing the equipment is estimated at EGP 3000 per square meter with a total of EGP 1,200,000 2.2.4. Other Production Requirements Building Maintenance - For administrative buildings EGP 20 per Square meter, i.e. a total of EGP 8000 for 400 Square meters. - For production buildings EGP 5 per Square meter, i.e. a total of EGP 4000for 800 Square meters. Equipment, Machines and Vehicle maintenance: - Calculated at a rate of 2% in the first year, then at 2.5%, 3%, 4%, 5,5%, 7%, 8% and 9% in the following years - Petrol for motor vehicles at 400 km/day for the two cars, consuming 240 liters of fuel at EGP 1.1, i.e. EGP 264 per day and a total of EGP 79,200 in 300 days per year. Production Capacity / day is determined according to the level of demand in the market.

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2.2.5. Cost of Packing: Packing materials consists of pallets (for every two units) and wood estimated at 0.02% of the selling value of a unit of production according to the average cost of packing of equipment. 2.2.6. Liabilities Interests The study estimates that the project owner will borrow 30% of the investment costs from banks at a rate of 16% which include the cost of: interest, commission of highest debit, government relative stamps fee, and that the loan will be paid from the project income on 5 yearly installments, starting from the second year of its operation. 2.2.7. Cost of After Sales Service: These are the maintenance services which the project is obliged to do during the year after selling and is estimated at 5% of the selling value of the sold units.

2.3. Estimation of Income There is no determined price for selling the product as there are no similar products in the market presently, however, it can be determined primarily as the production cost + (8% - 10%) profit margin only. For the production capacity of the project per year, the production process of the project has two main parts: - The first part is the assembly of the parts of the equipment which requires a long time it is possible to finish 56 pieces in less than a week - The second part is the installation of the station in the planned location including the construction of the building and installation of equipment and generator and this process takes 4 month approximately
14

Therefore it is possible to start the process of supply and installation of several stations in different locations and hence continue in the process of producing equipment and the related processes to absorb the fixed costs of the project. The number of stations which the project can produce and sell each year can be estimated to be TWO stations in the first year, rising gradually in the following years.

2.4 Costs of a Unit of Production Table 3 shows the unit production cost which includes the direct variable cost and the previously estimated fixed cost. The portion of cost for the unit of production from the fixed cost is estimated based on the average available energy for the project through the years of its useful life, less 20% as a contingency which represents the ability of the project to sell all its planned products and therefore the fixed cost can be spread over 6 stations per year. 2.5. Project Income Statement Table 4 in the attachment shows the project income in 8 years and the following assumptions are taken into consideration The rate of inflation and growth for each element of the income and expenses. Calculation of yearly taxes on the project at a rate of 20% of the net profit. Depreciation of the fixed assets at an average rate of 5% for buildings and 10% for equipment and transportation, for the use of the fixed assets through the useful life of each asset. 2.6 Project Cash flow Statement Table" 5" in the attachment shows the cash flow development of the project which expresses the net cash inflow and has a special importance in
15

understanding the liquid cash in the project during the years of its work and also the exposure of any form of unbalance in the financial structure of the project. It also gives the scenarios for the decrease in income and its effect on the project obligations.

16

Chapter Three Indicators of the Project Economic Feasibility This chapter discusses calculating the economic indicators of the project which expresses the financial status of the project during a future financial period as determining the payback period for the owner to get the invested money back from the project profit, the present value for cash flow and the internal rate of return. 3.1. The Present Net Worth for the Cash Flow Is the present value of the cash flow of the project for a future period i.e. the present purchasing power of the cash flow that the project will gain in the future. The value of one EGP which will be gained in 2013 will be equivalent to EGP 0.23 in 2020 and can be calculated from the following formula: PV = (1/(1*1+D)k) Where A = Cash Flow, D = Discount Rate and K = Number of years The discount rate is used with a 20% to be equivalent to the expected annual rate of inflation during the study. Table 6 shows the discount rate for the cash flow during the years of the study and also the net present value for the current cash flow. 3.2. Payback Period for the Project Is the period required for the project owner to get back all what he paid of the investment costs and is calculated using the following formula: Payback period = Investment Costs / Average of the sum of the present net worth of the net inflow cash

17

The data of the present net worth table indicate that the project can pay back the capital invested (EGP 1.431 million) if the assumed sales values in the study are achieved, in a period of one and half year. If the payback period is calculated on the bases of discounting the real achieved values during the years, we find that the payback period not to exceed the fourth year of operation. 3.3. Internal Rate of Return The Internal Rate of Return is the discount rate for cash flow which makes the total present value for the net cash flow equal to the investment cost. Table number shows that the Internal Rate of Return is approximately 116% . 3.4. Measuring the Relative Advantage of the Project The relative advantage of the project is represented in the comparison between the investment cost and the running cost of the project with the alternatives of obtaining the same power from: Purchasing a 1000 kw.h. generator Or Government Electrical power This part answers the following question: how much is the return that the client who purchases the project station benefits from? 3.4.1 Cost of Kw.h. Using Diesel Generator In this section we address the cost of kw.h. when the beneficiary purchases 2 diesel generators 1000 kw.h each. Assuming each generators operates alone for 12 hours each day, for 365 days in the year to obtain electrical power for 24 hours all the year round. Cost Type Capital Costs Cost Elements Purchasing 2 Generators, 1000 kw.h. each Generators Room 60 Square meters Internal Connections + Control Boards
18

Value 3,300,000 50,000 200,000

Total Investment Cost Fuel: 100 liter/hour x EGP 1.1 per liter = EGP 110/hour For two generators = EGP 220/hour Oil consumption at a rate of 100 (liter/250 hour) x EGP 20 /Liter x 2 Generators= EGP 16/hour Periodic Maintenance and spare parts at an average of EGP 500/250 hours of operation = EGP 2 X2 Generators=4 per hour Depreciation at a rate of 10% yearly and this meets the Useful life of the equipment Cost of one hour work of the generators Cost of Kw.h

3.550.000 220

16

Running Costs

4 40.5 per hour 280.50/hour 0.280

3.4.2. Cost of government electrical power The cost of power sold to different users: 3.4.2.1. The cost of domestic use Kw.h/month First 50 Next 51 to 200 Next 201 to 250 Next 251 to 600 Next 601 to 1000 More than 1000 EGP/Kw.h 0.05 0.11 0.16 0.24 0.39 0.48

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3.4.2.2. Prices for Commercial Uses Kw.h/month First 100 Next 101 to 250 Next 251 to 250 Next 601 to 1000 More than 1000 3.4.2.3. Prices for Industrial Uses Peak Time Non Peak EGP/Kw.h EGP/Kw.h First: Industries Requiring High Consumption of Energy. (Cement Iron Aluminum Cupper-Fertilizers Petrochemicals) High Voltage Ordinary Voltage Medium Voltage Second: Glass Ceramic - Porcelain High Voltage Ordinary Voltage Medium Voltage Other Industries not in the above High Voltage Ordinary Voltage Medium Voltage EGP/Kw.h 0.24 0.36 0.46 0.58 0.60

21.7 26.3 35.8

0.226 0.395 0.538 0.158 0.192 0.262 0.1514 0.186 0.255

3.4.3 Cost of Generated Electricity from the Project Station The station works 24 hours for 365 days per year and assuming the client bought a standby generator in case there is a failure in the project station
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or times when the waves are inadequate to operate the station the following will be the results:

Type of Cost Capital Costs

Cost Elements

Value

Costs of purchasing 1000 kw.h. station 4.800.000 complete with all connections and preparations inside the station 1.775.000 + Standby Generator Total Capital Costs 6.575.000 Cost of maintenance contract with the supplying Company after the first year of operation complete with the service and spare parts EGP 50,000 / year/365 days/24 hours = EGP 5.7/hour EGP 5.7 /hour Depreciation at 10% yearly and this matches with the end of the useful life of the equipment Therefore, Depreciation per hour = 480.000/365days/24hours = EGP 54.80 /hour Cost of One Hour of Operation for the Project Station Cost of Kw/h. Average Cost of additional Kw.h using Diesel Generator assuming its loading and operation is 30% of the operating time = Current operating cost of fuel + Oil + Maintenance + Depreciation of 30% of normal depreciation = 110+8+2+6.07 = 126.03 EGP/hour equivalent to 0.132 EGP/Kw.h.

Running Costs

EGP 54.80/hour EGP 60.5 /hour EGP 0.06

EGP 0.126/hour

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Therefore the final result in the case when the client consumes 600.000 kw/.h per month the case of hotel accountable by 45 piasteirs / kw

Using the Government Electrical Power in Commercial + Standby Generator EGP 211.680

Using 2 Diesel Generators to operate for 24 hours

Using the Project Station + Diesel Generator covering 30% of operation EGP 47.200

EGP 168.600

The calculations are based on the following: Cost of using Government electrical power = (420.000 Kw.h x EGP 0.45) + (180.000 kw.h x EGP 0.126) = EGP 211680 Cost of Operating 2 Generators (one at a time, swapping one another) 12 hours each, the cost of operation = (Fuel EGP 220/hour) + (Oil EGP 16 /hour) + (maintenance EGP 4/hour) + (Depreciation EGP 40.5/hour)/1000 = EGP 0.281 /kw.h. x 600.000 Kw.h = EGP 168600 Cost of operating the project station + stand by generator covering 1/3 operating hours = (420.000 kw.h x EGP 0.060 ) + ( 180.000 kw.h x EGP 0.126) = EGP 47800 Consequently, the volume of savings in the month between the government and the electricity consumption of the station for the project proposed is equivalent to (211. 680 pounds 47.800 pounds) = 163 800 pounds / month, equivalent to 1.9656 million pounds a year. It then can the client (the hotel) to Payback of expenditures for the purchase of the station after 2.5 years (5 million pounds / 1.965 million pounds) on the assumption that the age of the station only ten years.
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If we assume that the age of plant of the proposed project 20 years, the volume of savings per year is about 2.11 million pounds and the customer can recover its expenses at the station after 2.4 years It is thus clear that the project achieves the client's big advantage in operating cost compared to other alternatives As far as the government is concerned, the ability of the project to generate electricity and the coefficient of transformation of energy are considered advantages, as in the overall scheme, the objective is to cover the gap in electrical power loads.

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Table "1" Project Total Investment Costs Item Adminstration Building 200 m2 Total Cost of Buildings and Construction Capital Equipment (Used in Production Wooden (Oak) Benches 1.5 x 3 m German or Italian Tools Set Adminstration Furniture Comuter Sets 5 15 1 4 1,600 750 30,000 3,000 8,000 11,250 30,000 12,000 Area 200 Unit Cost 4,000 Total 800,000 800,000

Total Cost of Buildings and Construction Transportation Cost - 4 Toyota Busses, 14 Passenger Each Total Investment Costs for the Project 2

61,250

220,000

440,000

1,301,250

10% Cash for Starting the Activity

130,125 6,000,000

Total Investment Costs for the Project

7,431,375

Table No "2" Direct Cost of Protioon of Electrical Generation Station First: Cost of the Components of an Apparatus for Transformation of Energy Transformation of Power 18 - 30 kw.h Parts UnitQuantitySource Motion Guides Motion Guide Rails Steel Sections 12 cm Flanges for Fixing the Steel Beams in the Concrete Columns Bolts for Fixing the Steel Sections in the Concrete Columns Moving Transformation Box no 40 Egypt 1 40 no 20 Egypt 6 120 m 8 Egypt 50 400 Unit Cost Value

Steel Sides of the Box 800x400x5 mm Base and Cover of the box 200x 800x 10 mm Bolts for Box Assembly

Kg

30

Egypt

180

Kg

30

Egypt

180

no

20

Egypt

40

Treated Cast Iron Roller for easy slidin including Rotation Axcel Assembly Components of the Box Rollers Chain Guiding Gears Including the Axis of Rotation Assembly Components of Chain Guiding Gears Including the Axis of Rotation

no

12

Egypt

40

480

no

24

Egypt`

0.2

4.8

no

Egypt

40

320

no

16

Egypt

0.2

3.2

Rotation Unidirection Fixation Unit Motion Directing Gears inside the Box Fixed to the Motion Direction Fixation Units Motion Direction Unit Steel Rollers to Maintain the Chain Position in Side the Box Steel Rollers Fixing Components Bolts for for Fixing the Rotation

no

Foreign

1200

2400

no

Egypt

120

480

no

20

Egypt

20

no

10

Egypt

25

250

no

20

Egypt

0.2

Motion Transmission Shaft Bearin Fixed in the Box Bolts fo Fixing the Bearing

no

Egypt

650

650

no

Egypt

Impact Receing Flanges in Top and Bottom of the Box Impact Absorbtion at bottom and Top of the Apparatus Steel Section 150 x 200 x 6 mm manufacture in a T Shape Flange for Fixing the Spring

no

Egypt

140

280

0.8

Egypt

100

80

no

Egypt

45

180

Bolts for Fixing the Flages Including Washers and Nusts Spring fir Shock Absorbing

no

24

Egypt

1.2

28.8

no

Egypt

40

120

Sping Guide Shaft Fixed in the Flange Motion Transmission Gears

no

Egypt

55

165

Lower End Gear to Fix the Chain Vertically Main Tranmission Gear Rotation Unidirection Fixation Unit with the Main Gear Fixed Motion Transmission Patrs

no

Egypt

120

120

no no

1 1

Egypt Foreign

120 1200

120 1200

Main Shaft for Motion Transmission from the Float to the Transformation Mobile Box to Main Motion Transmission Gear Transmission Gears from the the Main Rotation Shaft to the Transmitting Shaft Rotating Transmision Shaft to the Following Apparatus to Collect Energy of Several Main Rotation Shaft Connected

Egypt

60

240

0.5

Egypt

220

110

no

Egypt

200

600

Egypt

300

300

Connection with Several Axis Fixed at the End of the Rotating Shaft Bearings for Rotatin Shafts Including the Roller Bearings Chain Size 60

no

Foreign

220

220

no

Egypt

120

240

20

Foreign

40

800

Float

Float 2.5 m Diam. And 2 m height Negative Pressure Chamber Fixed below the Float 2m Diam and 2.5m Height Axial Connection to Fix the Vertical Transmission Shaft Connected to the Moving Box Chemical Treatment and Float Total Cost of Motion Generation Unit External Surface Paint of the

Kg 1100

Egypt

5500

Kg 600

Egypt

3000

no

Egypt

550

550

Egypt

1500

1500

20,934

Total of Station Apparatus (56 Units) 120,000 120,000 500,000 15,000

1,172,304 360,000 350,000 500,000 15,000

first : Control Unit Second:Transmision Assembly Unit Third: Electrical Generator Fourth:crin 1/2ton

no no no no

3 1 1 1

Total Cost of Direct Production of Station

2,397,304

Table "3" Cost of Production Unit

Item
First: Variable Cost of Production Direct Production Components Packing Materials Equipment and Transport Maintenance Building Maintenance Cost of After Sales Services for Sold Stations Vehicle Fuel Cost of Station Building Total Variable Production Cost Second: Fixed Production Cost Salaries Debit Interests Depreciation of Fixed Assets Total Fixed Production Cost

Value

2,397,304 19,200 10,025 4,000 480,000 79,200 1,200,000 4,189,729

101,700 89,177 22,531 213,408.00

Total Production Costs for the Station add : 25% Adminstrative costs
Total Production for the Project Producer and User Cost of kw.h - assuming 20 years Station life Cost of kw.h - assuming 10 years life time

4,403,137 1,100,784
5,503,921

0.031 0.063

Table 4: Project Income Statement

Item
No of sold production units Price of unit of production Total selling Value First:Variable Production Cost Direct Production Requirements Filling and Packing Material Maintenance of Equip. and Transport Buildings Maintenance Cost of after sales Servicing Sold Stations Vehicles Fuel Cost of Station Building Total of variable Production Cost Second: Fixed Production Costs Wages and Salaries Debit Interests Depreciation of Fixed Assets Total Fixed Production Costs Total Production Costs Net Result Income Taxes Net After Taxes

2013
2 4,800,000 9,600,000

2014
3 4,800,000 14,400,000

2015
5 4,800,000 24,000,000

2016

2017

2018
12 5,556,600 66,679,200

2019
15 5,834,430 87,516,450

2020
20 6,126,152 122,523,030

First: Income
7 10 5,040,000 5,292,000 35,280,000 52,920,000 Second: Cost 16,781,050 70,560 20,050 4,631 1,764,000 86,544 9,240,000 27,966,834 23,972,928 105,840 27,569 4,862 2,646,000 89,140 13,200,000 40,046,339

4,794,586 19,200 10,025 4,000 480,000 79,200 2,400,000 7,787,011 406,800 356,706 90,125 853,631 8,640,642 959,358 191,872 767,487

7,191,878 28,800 12,531 4,200 720,000 81,576 3,960,000 11,998,986 467,820.0 356,706 90,125 914,651 12,913,637 1,486,363 297,273 1,189,091

11,986,464 48,000 15,038 4,410 1,200,000 84,023 6,600,000 19,937,935 537,993.0 285,365 90,125 913,483 20,851,418 3,148,582 629,716 2,518,866

28,767,514 133,358 35,088 5,105 3,333,960 91,815 15,840,000 48,206,839 818,220.1 71,341 90,125 979,686 49,186,525 17,492,675 3,498,535 13,994,140

35,959,392 175,033 40,100 5,360 4,375,823 94,569 19,800,000 60,450,277 940,953.1 90,125 1,031,078 61,481,355 26,035,095 5,207,019 20,828,076

47,945,856 245,046 45,113 5,628 6,126,152 97,406 26,400,000 80,865,200 1,082,096.1 90,125 1,172,221 82,037,422 40,485,608 8,097,122 32,388,487

618,692.0 711,495.7 214,024 142,682 90,125 90,125 922,841 944,303 28,889,675 40,990,642 Third: Net Project Results 6,390,325 11,929,358 1,278,065 2,385,872 5,112,260 9,543,486

Table No "5" Cash Flow Statement Item Net Profit After Tax Add Annual Depreciation Subtract installement of Loan Pay Net Cash Flow 2013 767,487 90,125 857,612 2014 1,189,091 90,125 445,833 833,383 2015 2,518,866 90,125 445,833 2,163,158 2016 2017 2018 13,994,140 90,125 445,833 13,638,432 2019 20,828,076 90,125 20,918,201 2020 32,388,487 90,125 32,478,612

Cash Flow 5,112,260 9,543,486 90,125 90,125 445,833 445,833 4,756,552 9,187,778

Item Net Cach Flow Rate of Return Net Present Value of Cash Flow Average Present Value for Net Cash Flow

2013 857,612 0.833 714,676

Table No "6" Present Net Value For Incoming Cash Flow 2014 2015 2016 833,383 2,163,158 4,756,552 0.694 0.579 0.482 578,738 1,251,828 2,293,862

2017 9,187,778 0.402 3,692,362 3,311,310.20

2018 13,638,432 0.335 4,567,612

2019 20,918,201 0.279 5,837,887

2020 32,478,612 0.233 7,553,517

Table No "7" internal rate of return" ( 1+D )K 1/( 1+D )K PVE sum R 2.169 2013 2.169 0.461 395,395 2014 4.705 0.213 177,144 2015 10.204 0.098 211,987 2016 22.133 0.045 214,909 2017 48.006 0.021 191,387 2018 104.126 0.010 130,981 2019 225.848 0.004 92,621 2020 489.865 0.002 66,301 1,480,724