Case Study of a 3rd Party Rooftop-mounted Solar Provider for a Philippine Government Building aProf. Ari Luis Halos UPOU FMDS Outline ● Philippines DOE Department Circular 2023-12-0035 ● Preliminary Design of Roof mounted Solar Facility at UPOU TLH ● Discounted Cash Flow Assumptions ● Initial Findings of Case Study on UPOU TLH Philippines DOE Department Circular 2023-12-0035 Objectives of DC 2023-12-35 a) Attain 35% RE share by 2030 and 50% by 2040; b) Attract investments in RE thru innovative business models c) Empower End-Users in using roof-mounted RE systems d) Decongest distribution thru decentralization e) Alternative compliance mechanisms to EEC Act & GEMP; and f) Streamline processes requirements of roofmounted solar projects Business Models Business Model Power Buyer Approvals Supply Contingency Roof owner Excess - Distribution Utility (DU) City/Municipal Engineer Distribution Utility ERC Lease to Generate Distribution Utility City/Municipal Engineer Distribution Utility ERC Restricted Peer-toPeer Roof owner exclusively City/Municipal Engineer Distribution Utility (if grid tied) ERC Preliminary Design of Roof mounted Solar Facility at UPOU TLH RSF for UPOU TLH Design Parameters ● Current Power Supply ○ 3 phase 13.6kV from Meralco step down to 230V AC via 3 x 37.5 kVA transformers ○ 3 phase 125 kVA Backup Genset ● Load ○ Offices ○ Mostly airconditioners, computers & lighting RSF Equipment 1. PV Modules: a. Longi 580W LR572HTH-580M x 144 = 83.52 kW Inverters: b. SolarEdge SE82.8KAU00IBNV4 x 2 c. Battery Bank: None Discounted Cash Flow Assumptions DCF Assumptions 1. Values for i a. Government = 10% b. Private = 14.97% 2. Start operation = year 2 3. Service life = 20 years 4. UPOU absorbs all solar on workdays 5. DAED = 10% of projected RSF cost 6. RSF annual maintenance = $31/kW 7. 1% degradation per year Initial Findings Initial Findings Business Model UPOU RSP Supply Contingency P11.33/kWh (Max) 6.334/kWh (Min) 69.88MT/year ave P86.47/sqm/year (Min) P332.03/sqm/year 73.55MT/year ave P11.42/kWh 8.99/kWh (Min) Lease to Generate (at P7.444/kWh) Restricted Peerto-Peer (Max) CO2 Savings (Max) (market rate only P2-3.1/sqm/yr) 48.97 MT/yea ave Initial Conclusions 1. Economically viable for government facilities to engage 3rd party RSPs even at minimal savings from DU rates 2. It makes sense for RSPs to supply to government even at rates lower than that of the DU 3. The lease to generate business model may need to be elucidated further to facilitate implementation Thank you! aProf. Ari Luis Halos UPOU FMDS