“Combining Solar Panels with Agriculture
Makes Land More Productive”
Proposal of Modern 100 MWp Solar
Power Plant
Complementary With Integrated
Agro Activities
Chief Aim Sdn Bhd
August 2020
Location
Lot 9098
PT4067
Lot size
322.11 Acres
Mukim
Beriah
District
Kerian
Bukit Merah
Perak DR
BOT Turkey Contractor
CMIE/CMEC, China
E. P. C. + F.
PROJECT OBJECTIVES
1. Renewable energy
The Government of Malaysia (GoM) aims to raise the proportion of
renewable energy in the national energy mix, from the current 2% to 20%
by 2025. Enforced in 2011, the Renewable Energy Act is aimed at
increasing the contribution of clean and renewable energy sources such
as solar photovoltaic, biomass, biogas and hydro in Malaysia’s electricity
generation mix. An important driver of the renewable energy industry is
the feed-in-tariff mechanism, implemented and managed by the
Sustainable Energy Development Authority of Malaysia. The mechanism
supports the growth of the renewable energy industry by providing
guaranteed long-term contracts for power generated by renewable energy
sources.
2. Agriculture
Agriculture is an important sector of the Malaysian economy. The GoM
aims to turn Malaysia into a significant part of the global agriculture supply
chain. The development of agriculture-based SMEs is an important focus
area under the National Agricultural Policy. Therefore, initiatives that
support the development of agro-entrepreneur (smallholder farmers) have
the potential to increase the number of jobs, elevate rural incomes and
create more value-added products in the market.
Chapter 1 Project Overview
1.1 Project name
Agro-photovoltaic (APV) Perak D.R.
1.2 Propose project address
Plot 11, Lot 9098, PT 4067, Mukim Beriah. District Kerian. Perak D.R.,
Malaysia
1.3 Project construction scale
The solar photovoltaic complementary modern photovoltaic agriculture project
in Perak D.R., Malaysia belongs to a large-scale elevated power station project,
covering a total area of 322 acres, and a total of 260 agro-ecological solar
greenhouse photovoltaic greenhouses were built; a single roof shed on the roof
was installed with 100MWp solar photovoltaic modules.
1.4 Source of project funds
The total investment capital of this project is RM$ 300 million, and the source
of funds is international investment institutions.
1.5 Project construction period
The construction period of the project is from mid-2021 to mid-2022.
1.6 Project Introduction
The project adopts the combination of photovoltaic and integrated agriculture,
and adopts the form of elevated photovoltaic power generation support. The top
of the elevated support is covered with photovoltaic components and the bottom
is planted with high-valued return efficiency crops. The photovoltaic agriculture
integrates grid-connected power generation, combining high-value integrated
facility agriculture. On the one hand, the photovoltaic system can use
agricultural land to generate electricity at low cost. The solar cells can be
arranged at intervals or use certain photovoltaic modules with higher light
transmittance where the main light sources required for the growth of animals
and plants can be penetrated to. In addition, infrared light can also be stored
with thermal energy, increase the temperature of the greenhouse, and is
conducive to the growth of animals and plants in cooler temperatures to save
energy.
The project will be benefitted with the most advanced technology, experience
and talents in the fields of solar energy, system integration, intelligent control
technology, facility agriculture, agricultural planting, etc. With solar facility
agriculture integrated grid-connected power stations as the core, the station will
be utilized for various purpose such as solar power generation, agricultural
optoelectronics engineering application,
modern agricultural planting and
breeding, processing and comprehensive utilization, agricultural planting and
breeding technology exchange and promotion, talent training, sightseeing
agriculture, Lohas agriculture, agricultural product logistics, contract farming
and other functions as a high-tech agricultural industrial base.
The photovoltaic agricultural house is a new type of photovoltaic system project
that combines with agricultural production that has solar power generation on
the roof and agricultural production in the shed. As a new model of modern
agricultural development, it realizes clean energy power generation through the
construction of rooftop photovoltaic power projects and eventually merges into
the national grid.
Photovoltaic agricultural houses focus on the combination of agriculture,
ecology and tourism, using idyllic landscapes, agricultural production activities,
agro-ecological environment and eco-agricultural business models, to attract
tourists from surrounding cities to make short-term stays on weekends and
holidays with characteristic tourism projects that are close to nature. With the
maximization of resource usage, it gives advantages of agricultural and
complementary tourism to promote the rapid development of the local tourism
industry.
This project is propose located Mukim Beriah, District Kerian, Perak D.R.,
Malaysia, with longitude of 1.4854° N and latitude of 103.7618° E, belonging to
a tropical rainforest climate. The average altitude is 2 meters, and the conditions
of light, water, humidity and heat are excellent. Annual average temperature of
30 ◦C, annual average sunshine 12.2 hours. The rainfall is abundant, and the
annual rainfall is 2355.5 mm. The rainy season is mainly concentrated in the
flood season during the October to January of the month, which is very
beneficial to the development of tropical agricultural production conditions.
The project is planned for 322 acres, which is mainly used for the construction
of agricultural houses, roof photovoltaic power generation (solar energy), and
plans to build 260 agricultural and solar complementary houses. Each
photovoltaic agricultural house project covers an area of about 2400m2,
agricultural houses 100% of solar photovoltaic modules are laid above the top,
and the photovoltaic modules are at least 3.2 meters above the ground, which
belongs to the demonstration project of facility agriculture. Photovoltaic highefficiency planting house is a combination of solar photovoltaic power
generation and agricultural planting. The house is equipped with plant to fill light
to achieve green, high yield, and high efficiency of agricultural planting. The
building structure is a frame-shear structure, the structural design service life is
expected to be 30 years, and the building seismic design category is category
C.
No
Item’s name
1 PV modules
2
3
4
5
6
7
8
9
10
11
12
Unit
set
Quantity
Specification
312498 Polycrystalline TSM320PD14
(320Wp, Di. 1956 × 992 × 40
mm, effi: 16.5%). Total area
for installing PV module
arrays is 101 ha (249,7acres)
Optimum tiled angle
degree
17o
Pitch of PV module array
m
6.51
(w=3.91m, D=6.51m,
GCR=0.6)
Inverters and AC
set
45
Sunny Central 2200
Subsystems (power
medium voltage station
with transformer
0,4/33kV switchgear
preinstalled)
combiner boxes with
set
45
string monitors
integrated
33/230kV Switchyard
ha
2
230kV overhead line
km
4
Internal roads
km
6.75
Surface width of 4m
Management and
m2
640
operation house
Guard house
m2
400
Material and equipment
m2
400
store
Fence
km
4.67
Table 1.1 -Main parameters or equipment of the project
No
Main Items
1 Total area for installing PV module
arrays, inverters with transformers
0,4/33kV and Internal roads
2 33/230kV Switchyard
3 PMU / Management and Operation
area
4 Standby area
Total = Project boundary
Land –occupied area
103.9 ha
256.73 acres
2 ha
0.6 ha
4.94 acres
1.48 acres
4.8 ha
128 ha
11.86 acres
322 acres
Table 1.2 – Land –occupied area of main items of the project.
No
Task name
1 Receiving Investment
License/Certificates (MOA, PPA,
BOT,)
2 Getting Letter of Commitment of
Funding
3 EPC contractor selection, and site
preparation
4 Construction period
5 Testing, commissioning, and COD
6 Expected commercial operation day
Schedule
March 2021 -July 2021
Notes
4 months
July 2021 – Nov 2021
4 months
Nov 2021 – Dec 2021
2 months
Jan 2022 – Dec 2022
12 months
Dec 2022 -Jan 2023
2 months
First quarter of year
2023
Table 1.3 – Master schedule for project preparation and execution stages
No. Descriptions
A DIRECT CAPITAL COST
1 PV Module
Inverters and AC Subsystem (power medium
2 voltage station with transformer 0,4/33kV
switchgear preinstalled)
3 BOS
Structural BOS for Mounting structure and Structural
installation included ground leveling site preparation,
3.1
foundations of inverters, transformers, buildings,
fence /security system, fire fighting system, etc.
Electrical BOS (equipment of DC system, wiring,
cables, combiner boxes with string monitor,
3.2
protection, switchgear, High Voltage transformer,
SCADA,…)
3.3 230KV transmission line
4 Direct labor Costs
4.1 Labour for Installation, civil works and commissioning
4.2 Costs for cargo
4.3 Overhead & other for EPC
4.4 Contingency
B INDIRECT CAPITAL COST
1 Permits and environmental studies
2 Monitoring and Inspection
3 Grid interconnection
4 Engineering design
5 Overhead and other for Developer
Sub-total (A+B)
6 Land lease cost before O&M stage
Total investment cost
Cost (RM $)
270,000,000
30,000,000
300,000,000
No.
1.
2.
3.
4.
5.
Indicators
Value
Power purchase price (UScent/kWh)
0.041
NPVf (Million Dollar)
38.19
FIRR (%)
14.83 %
B/C
1.23
Payback Period (years)
11
Average Debt Service Coverage Ratio
6.
(DSCR)
1.37
Table 1.5 – Financial indicators of Perak Solar Power Plant project (for base
case)
Power purchase price (UScent/kWh)
13.0
NPVe (Million Dollar)
9.71
B/Ce
1.04
Table 1.6 Economic indicators of Perak Solar Power Plant project
No
.
1
2
3
4
5
6
7
8
9
10
11
12
13
Main characteristics
Values / Contents
Intended rated capacity
Investment form
Project economic lifetime
Location
Land lease area
Technological selection
100 MWp
BOT
25 years
Perak D.R. State
322 acres
Total 312.498 Poly-crystalline silicon
PV modules with 320Wp, efficiency
16.5% 45 Central inverter 2200kWac
(power medium voltage station with
transformer 0,4/33kV switchgear
preinstalled)
17o with GCR 0.6
RM$ 300 Million
160,129 MWh/year
Optimum tilted angle and GCR
Total investment cost
Annual Energy injected in grid
(50% probability)
Grid connection solution
Single 230kV transmission line to Bukit
Merah, Beriah Substation
Financial indicators at base
NPV = 38.19 million dollar
case (with power purchase price IRR = 6.72 %
of 13 cents/kWh)
Modified B/C = 1.23
Payback period = 11 years
Average of DSCR=1.37
Power purchase price
negotiated at least 13.08 US
suggested
cents/kWh
Expected commercial operation First quarter of year 2022
day
Chapter 2 Agriculture Products and Services
2.1 Product category
The products of the project are diversified, mainly vermicomposting, planted
with fruits and corn, various organic vegetables, organic moringa, dendrobium
officinale, golden squash, passion fruit, lemongrass etc.
1. Colored corn:
Colored corn has higher nutrient content than ordinary corn, plus simple
planting methods, is suitable for fresh food and processing and refining
anthocyanin. The economic benefits from the cultivation of colored corn is
multiple in compared to the ordinary corn cultivation. Therefore, the cultivation
and processing of colored corn is one of the agricultural projects with broad
development and utilization prospects in Malaysia and even Southeast Asia and
Asian markets. Fruit corn can be sold directly after harvesting or can be
processed by yourself. Processing methods range from simple to complex and
can be selected according to specific requirements. After years of development,
fruit corn has spread all over the world and has become a special fruit and
vegetable corn for mass consumption.
2. Organic vegetables:
Organic vegetables are currently an international reference to non-polluting,
naturally grown vegetables. It restricts the use of pesticides, fertilizers, growth
regulators, and other chemicals during the planting process, nor can they use
genetically modified technology, without the being certified by an independent
agency. There is an increasing demand for safe food, and the cultivation of
organic vegetables focuses on safe and natural production methods, which can
promote and maintain an ecological balance. Organic vegetables have no
chemical residues and have been proven to be more nutritious than ordinary
vegetables.
Organic food is hailed as a "sunrise industry" and has a broad market. An
analysis of a report published by the Food and Agriculture Organization of the
United Nations shows that in the past 10 years, in the markets of some countries,
the annual growth rate of sales of organic agricultural products has exceeded
20%. This is in stark contrast to the stagnation of some conventional food
markets. In Europe and America, organic vegetables are the fastest growing
industry. In the past six years, sales have increased at a rate of 20% per year.
According to the climate conditions and natural environment of Perak D.R. State,
there are many cultivable vegetable varieties. We will focus on selecting new,
high-yielding, and good-efficient vegetable varieties for cultivation according to
local conditions.
3. Vermicomposting earthworm
Vermicomposting has gained popularity in both industrial and domestic settings
because, as compared with conventional composting, it provides a way to treat
organic wastes more quickly. In manure composting, it also generates products
that have lower salinity levels.
Chapter 3 Benefit Analysis
3.1 Economic benefits
The installed capacity of the project is 100MW, with an average annual power
generation capacity of 325 million kWh in 21 years. The minimum electricity
price in Malaysia is 4 cents/kWh, and total revenue of RM$ 560.910 million in
21 years of electricity sales is estimated. A total of about RM$ 57.3077 million
in tax revenue was created for Perak D.R. State.
3.2 Social benefits
(1) The construction of this project can develop low-carbon economy, promote
energy
conservation
and
emission
reduction,
alleviate
energy
and
environmental crises, realize industrial structure adjustment and industrial
upgrading opportunities, implement the scientific development concept, and
realize the social benefits of sustainable development in Perak State.
(2) The project construction can obtain social benefits of coping with climate
change and participating in international cooperation and competition.
(3) This project can expand the domestic demand for photovoltaic products,
promote the healthy development of the photovoltaic industry and related
industrial chains, and ease the social benefits of the negative impact of the
international economic crisis on my country's photovoltaic industry.
(4) This project will accelerate the sustainable development of the economy of
Perak D.R. State and improve the people's living standards, which thereby
obtain the social benefits of strengthening the unity of the people, ensuring
social stability and building a harmonious environment.
(5) The completion of the house in this project will improve the agricultural
productivity level of the project location, transforming the planting mode of one
year to all year round’s uninterrupted planting. The crops will be transformed
from single planting to diversify planting. In addition, animal husbandry may be
appropriately introduced to accelerate the development of the agricultural
economy in Perak D.R. State.
(6) After the completion of the construction of some agricultural houses in this
project, the agricultural companies can hire locals for planting and breeding.
The agricultural companies hiring increases the local employment rate (the
project can increase more than 300 local jobs); transform individual agriculture
into collective agriculture and improve agriculture production efficiency, while
increasing state and local government revenue.
Attached: Opinions
No
Description
Unit
Value
Project analyse
1
Capacity
MW
100
2
Operation period
Year
25
3
Investment
RM$
300,000,000,000
4
Unit/Price
$/W
2.7
5
Yearly average production
KW.h
144976000
6
Average tariff yearly
$/KW.h
0.1722
7
Income
RM$ M
24,964
8
Operation cost (plus land)
RM$ M
?
9
Operation profit
RM$
13,662
10
ROI
Year
10
11
Yearly internal return（FIRR）
%
7.08
1. The model only considers photovoltaic power plants, without taking into
account the income and costs of agriculture;
Calculation table of energy saving and emission reduction of solar
photovoltaic system
Item
Unit
Value
Generate capacity
Annual average power
generation of the system
Annual saving of raw coal
Annual savings of
standard coal
Reduce CO2 emissions
every year
Annual reduction of S02
emissions
Reduce nitrogen oxide
emissions annually
Reduce carbon emissions
every year
KW
100000
Ten thousand KWh
13029.28
Kg
Kg
72962.53
52117.13
Kg
129901.95
Kg
3908.78
Kg
1954.39
Kg
35439.65
2. According to the current electricity purchase price in Malaysia and our
calculation model, the internal rate of return (IRR) of this project is 7.08%.
3. According to the investment amount of RM$ 2.318/W, the data is a bit
conservative. It is necessary to consider the related cost before obtaining the
PPA.