“PV Framework Assessment for
Argentina”
Objectives and study design!
Jan Knaack,
Senior Project Manager
Buenos Aires, Dec. 15th, 2015
“PV Framework Assessment for Argentina”
Basic project data
2
SUPPORT
Financed by the German Foreign Office, Sept.
to Dec. 2015
LOCAL SUPPORT
PARTNERS
BSW-Solar, eclareon, EPSE, SAPEM Energía
© BSW-Solar
Starting point: Grid or Generation parity
as basis for many business models
In many countries, solar energy is cost competitive
with many other energy sources, but potential
investors do not know …..
6
• Is it legal to use it?
• Is it profitable?
• What is the right business model to maximize
benefits?
– Do I consume and/or sell the electricity?
• Where do I get the components and the know how?
• How / where is financing available?
• How do I structure a project?
• And what is the situation like in Argentina?
– What has been reached?
– Where are the challenges?
© BSW-Solar
BSW-Solar - Format “Enabling PV”
Barrier-Analysis &
Political
recommendations
Web-Database with
process analysis of
project development
ENABLING PV:
Investor guide for
special markets
Description PVbusiness models:
Economics,
Sensitivities,
Processes
7
BSW-Project PV Legal-Result: Bureaucratic
processes (barriers) have high effects on costs of a
project in Europe
PV project development: Legal-administrative Cost Share (over total project development costs in %)
•
The share of legal-administrative costs over total project development costs (in %)
can provide an idea of the economic burden that project developers have to bear
•
This burden is normally reflected in national PV system prices
•
http://www.pvgrid.eu/home.html
BSW-Solar Project:
Generic business models applicable
http://www.solarwirtschaft.de/en/international-activities/newbusiness-models.html
Is any of the business models applicable in Argentina?
Objectives and study design
•
•
Development of guiding questions?
Desk research for analysis on the
– market framework,
– (market) actors,
– business models applicable (in 2 different provinces)
•
In-depth telephone interviews with
– Policy makers / legislators at national and provincial level
– NGO, actors in the Argentinian market
– Project developers
– Others (e.g. economic divsion of embassy)
•
Involvement of local partners – EPSE / SAPEM for
local research and contact distribution
11
© BSW-Solar
Possible (legal) and profitable (?)
business models
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Power Purchase Agreements
(PPA)
(Basic concept)
- Production of electricity at large
scale
- Sale to utility or private off-taker
- Long term contract (>15 years or
more)
Net-Metering
(Basic concept)
- Self consumption of a part
generated electricity
- Monetary payments for excess
energy (like FIT)
- Or net billing (kWh consumed
vs. kWh produced)
© BSW-Solar
Business Model analysis
Questions asked
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General questions on the market
- Actors, Laws, Technologies,
System sizes
- Project development process
- Contractual issues
- Grid connection issue
- Certifications and
requirements
- Rentability analysis
(parameters)
- Sensitivity analysis
(parameters)
- Other information
© BSW-Solar
Based on the information given, business cases will
be described, recommendations given
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- Steps and procedures
as given in the
legislation
- Information on the
procedures based on
interviews and
experience (delays,
barriers)
- Basis for development
of recommendation or
review of business
processes
© BSW-Solar
Based on parameters given, cash flows and
sensitivies are analysed and described
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Project Cash Flows
Investment and Cash Flow for Equity
Cash Flow for Equity
Equity Investment
Cumulative Cash Flows
2.000.000
1.500.000
1.000.000
500.000
0
USD
-500.000
-1.000.000
-1.500.000
-2.000.000
-2.500.000
-3.000.000
Equity Investment
Cash Flow for Equity
Cumulative Cash Flows
10
11
12
13
14
15
-
360.067
335.917
317.305
298.679
285.430
261.368
242.676
223.955
210.448
186.410
1.661.969
1.643.092
1.629.268
1.605.189
1.586.153
(2.766.117)
-
(2.438.783)
1
(2.161.166)
2
(1.922.770)
3
(1.718.769)
4
(1.541.539)
5
(1.394.004)
6
(1.269.472)
7
(1.164.996)
8
(1.075.745)
9
(1.003.876)
(421.366)
102.174
574.115
996.811
1.376.523
(2.766.117)
Operations Year
© BSW-Solar