SHUDUS ENERGY JV COTTON STAR
ENERGY (PTY) LTD PROJECT
EXECUTIVE SUMMARY
Solar Power Generation Plant with Battery System
Mr Mashudu Thathaisa
tmashudu@shudusenergy.co.za
Shudus Energy JV Cotton Star Energy
Middleburg Solar Project
Executive Summary 01 April 2023
Solar Project Executive Summary
Introduction
Shudus Energy (Pty) JV Cotton Star Energy Ltd is a joint Venture that have identified business
opportunities in the renewable energy sector particularly in the design, development,
construction and operation of Solar Power Generation plants with battery storage facilities. We
have formed strong partnership to strategically position ourselves as the competitive developer
and role player in the renewable energy sector. Our objective is to construct and implement our
projects with the best technology in the sector and choose our partners and associates well. Our
projects developments foundation is based on Strong feasibility study showing high profitability
success, Tailored model indicating adequate future cash flows, and Superior risk mitigation plan.
Project Type
Our project is Grid Solar Power Generation Plant Solar photovoltaic cells that convert sunlight into
electricity that is backed up with battery storages
facilities.
Energy Background in South Africa
South Africa is having more than five
thousand
(5 000)
energy
shortage
challenges and this is opening doors and
opportunities for new developers in to the renewable energy sector. The government made this
possible by removing red tapes for speedy development and construction of power generation
plants by independent power producers and developers.
Project Site and Location
The project is located at Middleburg under Inxuba Yethemba Local
Municipality in the Eastern Cape province through Municipal Power
Purchase Agreement. Inxuba Yethemba Local Municipality is a Category
B municipality situated in the Chris Hani District. It is approximately
240km north of Nelson Mandela Metropolitan Municipality. It is one of
six municipalities in the district, making up a third of its geographical area.
SHUDUS ENERGY JV COTTON STAR ENERGY (PTY) LTD
PROJECT EXECUTIVE SUMMARY
Shudus Energy JV Cotton Star Energy
Middleburg Solar Project
Executive Summary 01 April 2023
Project Capacity and Size
This 100 MW project is a single-axis tracking solar system that is located adjacent to municipal
substations for simple grid connection. It also includes a 60 MW battery storage facility. It will be
put into service in five phases, each of 20 MW.
Project Investment and Operational Model
The project will be supplying all power that will be generated to Inxuba Yethemba Local
Municipality based on the signed Power Purchase Agreement at R1.50 per Kwh rate that will be
increased by the approved annual rate of regulating body which is Nersa. The project is
guaranteed by the following key operational elements and mechanisms:
1. We will install smart electrical prepaid meters in the whole community of Inxuba
Yethemba Local Municipality as part of the project and will be managed by ourselves as
the developer to manage and control tempering and licks.
2. All the sales will be through our Trust Bank account / (Escrow Account) which will also be
managed by us as the Developers and payments will be made once per month to the
Municipality and to us as the Developer.
3. We will run the project for a term of twenty-five (25) years with the potential of an
extension on municipal property. The National Treasury or the Municipal Balance Sheet
will not provide any guarantees for the project; instead, the two aforementioned
mechanisms will do so.
Financial Information
CONTRACT TYPE:
CONTRACT TERM (YEARS):
FINANCIAL CLOSE:
CONSTRUCTION PERIOD (MONTHS):
FIRST PHASE COMMISSIONING:
PPA
25
30 May 2023
9
01 December 2023
SHUDUS ENERGY JV COTTON STAR ENERGY (PTY) LTD
PROJECT EXECUTIVE SUMMARY
Shudus Energy JV Cotton Star Energy
Middleburg Solar Project
Executive Summary 01 April 2023
Project Investment Summary
Description
Amount
EPC Full Turnkey
1 550 000 000,00
Smart Prepaid Electrical Meters R
14 544 000,00
Project Management / Consulting
R Engineers
72 720 000,00
Development Cost – Arranging and
R Structure Fees
92 112 000,00
Commitment and Transaction Fees
R Costs
63 024 000,00
Construction Interest Reserve R
4 848 000,00
Commissioning and Completion R
673 872 000,00
Development and Procurement Management
R
TOTAL CAPEX (Financed)
R
8 670 000,00
2 479 790 000,00
Five Years Income and Expenditure
Sales
Expenditue
Net Profit After Tax
Year 1
18 177 000,00
Year 2
18 086 115,00
Year 3
17 995 684,43
Year 4
17 905 706,00
Year 5
17 816 177,47
1 935 850,50
37 071 360,04
37 216 355,24
37 371 500,10
37 537 505,11
203 317 421,88
192 639 156,21
208 177 411,95
224 803 345,59
242 593 094,59
SHUDUS ENERGY JV COTTON STAR ENERGY (PTY) LTD
PROJECT EXECUTIVE SUMMARY
Shudus Energy JV Cotton Star Energy
Middleburg Solar Project
Executive Summary 01 April 2023
Production Plan Summary
TECHNICAL DATA
Solar Plant Output
Capex
2 479 790 000,00
Solar Degradation
Plant Production Period
0,50%
25 Years
EQUITY STRUCTURE
Equity
5%
Debt
95%
Internal Rate of Return
15%
CONTRACT INFORMATION
Tariff / Contractual (PPA)
R1.50
Annual Escalation
Contract Term Generated Energy
7%
4 808 176 528,78
SHUDUS ENERGY JV COTTON STAR ENERGY (PTY) LTD
PROJECT EXECUTIVE SUMMARY
Shudus Energy JV Cotton Star Energy
Middleburg Solar Project
Executive Summary 01 April 2023
Five Years Financial Projections Summary
Year 1
Project Capacity in Kwh
Year 2
Sales fpr Solar Plant
Sales for Battery System
Other Income
TOTAL INCOME
Year 4
Year 5
10000 MWp
Annual No. Kwh (11400X14hoursX365) 18 177 000,00
Battery System (60MW)
Year 3
18 086 115,00
17 995 684,43
17 905 706,00
17 816 177,47
29 174 085,00
31 216 270,95
33 401 409,92
35 739 508,61
310 370 085,00
332 095 990,95
355 342 710,32
380 216 700,04
37 071 360,04
37 216 355,24
37 371 500,10
37 537 505,11
2 042 185,95
2 185 138,97
2 338 098,69
2 501 765,60
29 174,09
31 216,27
33 401,41
35 739,51
273 298 724,97
294 879 635,71
317 971 210,21
342 679 194,93
175 200 000,00
27 265 500,00
262 800 000,00
290 065 500,00
-
TOTAL EPENDITURE
1 935 850,50
Operations and Maintanance
1 908 585,00
Loan Repayment
-
Macelonous
-
Land Lease
-
Construction Cost / CAPEX
-
Aministration Cost
27 265,50
-
Net Before Interest
288 129 649,50
-
TOTAL
2 404 608,00
2 404 608,00
2 404 608,00
2 404 608,00
2 404 608,00
Depretiation
2 404 608,00
2 404 608,00
2 404 608,00
2 404 608,00
2 404 608,00
270 894 116,97
292 475 027,71
315 566 602,21
340 274 586,93
75 850 352,75
81 893 007,76
88 358 648,62
95 276 884,34
195 043 764,21
210 582 019,95
227 207 953,59
244 997 702,59
192 639 156,21
208 177 411,95
224 803 345,59
242 593 094,59
185 755 965,92
191 004 099,73
196 270 773,00
201 560 216,24
Loan Interest
-
Other
-
NET Profit
285 725 041,50
-
Less Tax 28%
80 003 011,62
-
Net Profit After Tax
205 722 029,88
Net Present Value
203 317 421,88
Closing Bank Balance
NPV
205 722 029,88
SHUDUS ENERGY JV COTTON STAR ENERGY (PTY) LTD
PROJECT EXECUTIVE SUMMARY
Shudus Energy JV Cotton Star Energy
Middleburg Solar Project
Executive Summary 01 April 2023
Financial Ratio
Net Profit Percent B/Tax
98,50362815
87,28100099
88,06942441
88,80626872
89,49490827
Net Profit Percent A/Tax
70,92261227
62,84232071
63,40998557
63,94051348
64,43633395
7,09
20.90
20.91
20.92
20.93
Gross Profit %
Break Even Point Sales
2237550.77
2237550.78
2237550.79
2237550.80
2237550.81
Fixed Assets to Debt Ratio
142,666328
161,1147448
159,5254681
158,0682482
156,7302238
Debt Service Ration
145,5367368
0
0
0
0
Current Assets Turnover Ratio
142,666328
159,1284327
157,7038681
156,3953659
155,1919451
Total Assets Turnover Ration
19,33028501
20,71657477
22,20234013
23,79472336
25,50137986
Return On Investment
19,30
19,30
19,31
19,31
19,32
Return On Equity
12,07364854
11,53550904
12,3584796
13,22382633
14,1326486
Return On Sales
70,92261227
62,84232071
63,40998557
63,94051348
64,43633395
Return On Assets
13,69
Internal Rate of Return (IRR)
13,00
14,06
15,19
16,41
15%
25 Years Financial Projections Summary
Annual Kwh
Revenue / Sales
Y 1-5
Y 6-10
Y 11-20
Y 21 -25
89 980 682,90
87 753 548,80
169 044 828,30
81 397 468,77
428 176 528,78
1 668 090 986,31
2 339 583 899,81
7 883 703 091,79
6 454 985 771,72
18 346 363 749,62
Total
Equity
-
Loan
-
Total Income
Operations & Maintanance
Loan Repayment
Administration cost
Depreciation
Total Expenditure
Net Before Tax
1 668 090 986,31
2 339 583 899,81
7 883 703 091,79
6 454 985 771,72
18 346 363 749,62
10 975 774,21
15 394 091,12
51 873 516,38
42 472 782,94
120 716 164,65
140 000 000,00
140 000 000,00
61 375 294,00
156 796,77
219 915,59
741 050,23
606 754,04
1 724 516,64
12 023 040,00
12 023 040,00
24 046 080,00
12 023 040,00
60 115 200,00
163 155 610,99
167 637 046,71
138 035 940,61
55 102 576,98
523 931 175,29
17 822 432 574,34
-
341 375 294,00
1 504 935 375,32
2 171 946 853,10
7 745 667 151,18
6 399 883 194,74
Less Tax 28%
421 381 905,09
608 145 118,87
2 168 786 802,33
1 791 967 294,53
4 990 281 120,81
Net After Tax
1 083 553 470,23
1 563 801 734,23
5 576 880 348,85
4 607 915 900,21
12 832 151 453,52
Cash Flow
1 071 530 430,23
1 551 778 694,23
5 552 834 268,85
4 595 892 860,21
12 772 036 253,52
NPV
1 083 553 470,23
1 489 334 984,98
5 058 394 874,24
3 980 491 005,47
10 557 042 757,72
SHUDUS ENERGY JV COTTON STAR ENERGY (PTY) LTD
PROJECT EXECUTIVE SUMMARY
Shudus Energy JV Cotton Star Energy
Middleburg Solar Project
Executive Summary 01 April 2023
Permits and licenses
NERSA licensing is exempted on this capacity
EIA is exempted on this capacity
Project PPA is signed
Land lease is to be signed once successfully rezoned
EPC is identified and general terms and conditions of contract is to be finalized
Conclusion
We are looking forward to source project long term investment loan of up to 8% annual
interest, or 30% equity investment partner. Please feel free to contact us or arrange for a
video call meeting for the purpose of full project background including future projects.
SHUDUS ENERGY JV COTTON STAR ENERGY (PTY) LTD
PROJECT EXECUTIVE SUMMARY