Welcome to Don Rodrigo Europe's first subsidy-free …...Europe's first subsidy-free utility-scale...
Transcript of Welcome to Don Rodrigo Europe's first subsidy-free …...Europe's first subsidy-free utility-scale...
Europe's first subsidy-free utility-scale Solar Project
Welcome to Don Rodrigo
Dr. Benedikt Ortmann, Director Solar Projects
Introduction of BayWa
Case study: a utility-scale subsidy-free plant in Spain 2
Don Rodrigo – Europe's Solar Milestone
Cooperative
of bavarian
farmers
Listed on German
Stock Exchange
Largest German
Agricultural Company
Market leader
in Smart Farming
Founded
in 1923
Turnover 2017
€17 billion
EBIT 2017
€171.3 million
Employees
17,550
Locations
More than 3,000
locations in 40 countries
19231930
1947
1960
2018
3
BayWa r.e. – dynamic growth and sustainable profitability
Turnover 2018
Founded
1.4 billion €
2009
Gathering our combined
market experience under the
BayWa r.e. umbrella
EBIT 2018
Experience
75 million €
3,000 MW
Development and realization
of projects in the area of solar,
wind power, bioenergy and
geothermal energy
Employees
Company
1,500
Wholly owned subsidiary
of BayWa AG
our stable parent company
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BayWa r.e. location
Active in the market
Wind power projects and services
Geothermal energy (Germany only)
Trading in solar components
Bioenergy
Energy tradingH
PV projects and services
H
Our Global Footprint
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Don Rodrigo – Europe's Solar Milestone
Grid Parity is happening
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In 2012 we started Europe’s solar milestone
project on a green field
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The selection of the country1. The story of Don Rodrigo – How we achieved Europe‘s Solar Milestone Project
Why Spain?
As we planned to build this project unsubsidized, there was no concern major about politics in Spain
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Stable
currency
Stable
economyOECD
countryIdeal solar
irradiation zone
The selection of the site
1. The story of Don Rodrigo – How we achieved Europe‘s Solar Milestone Project
Don Rodrigo – Europe's Solar Milestone
Land Requirements
The decent site characteristics offered the optimal basis to build this extraordinary project.
No major
compensatory
measures required
Relatively flat
underground
Reasonable
price for the
lease
270 ha Spatially
coherent
No environ-
mental limits
for flora
and fauna
Grid con-
nection nearby
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Detailed and comprehensive project design from the start1. The story of Don Rodrigo – How we achieved Europe‘s Solar Milestone Project
Approval steps
Request to Red Eléctrica
for grid connection capacity
The planning process was following the same process as for a conventional power plant
Environmental
impact
declaration
Permitting process at
ministerial level & a grid
extension was required
Soil group
compatibility
statement
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Shutterstock: 148095986
Local community Commitment is a key element
Benefit for the community
Local support and local commitment was a key element of the project success
– more than 200 new jobs were created and local workers are employed.
Don Rodrigo – Europe's Solar Milestone
Yearly local tax of up to 4 Mill. €
will remarkably lift incomes
Our Partners
Ansasol S.L., Prodiel,
the local municipality
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Optimized technical planning process for most efficient use of land1. The story of Don Rodrigo – How we achieved Europe‘s Solar Milestone Project
String inverters and fixed-tilted technology
▪ Simple module exchange, simple maintenance
▪ Independency from the manufacturer for 20 years
▪ No standardized pavement needed, more flexibility
for module tables
▪ 2,000 flexible string inverters adapting to the specific
land conditions
▪ Flexibility, simplicity and independence means lower costs
▪ 1-axis would have brought less than 155 MW
➢ Availability, performance and reliability of string
inverters optimize the quality of the plant‘s
production and lower the total costs of
ownership significantly
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Overall state-of-the-art System Design1. The story of Don Rodrigo – How we achieved Europe‘s Solar Milestone Project
The electricity are transformed on-site
up to 220kV by its own substation
Decentral inverter concept leads to
▪ A maximum of availability
on PV-plant-level
▪ Ease of maintenance,
low risk for replacements
▪ Reduced cost
Specific string construction in the
lower row and one in the upper
row minimizes shading losses
at dusk and dawn
Strings deliver the produced
electricity to a string inverter
Module tables with 2 module
rows each
Overhead cable lines with an
approx. length of 2.6 km will be
connected to an existing substation
owned by the transmission
grid operator Red Eléctrica
de España (REE)
27 – 29 panels
assembled in strings
Substructure Zimmermann
InvertersHuawei 60 KTL
and 100 KTL
Panel type Crystallin
Panel
manufacturerAstronergy & GCL
Don Rodrigo – Europe's Solar Milestone
We leveraged the full potential of our site’s advantages
by designing a perfectly tailored system.
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Don Rodrigo – Facts & Figures1. The story of Don Rodrigo – How we achieved Europe‘s Solar Milestone Project
Sevilla – Andalucía, Spain
▪ Europe’s 1st subsidy free Solar Project of its scale
▪ Capacity: 175 MWp
▪ Equivalent to the consumption
of 93.000 average Spanish households
▪ 198.000t CO2 emission reduction annually
▪ Largest subsidy-free project in Europe
▪ 1.500V DC and connection to REE’s substation at 220kV
▪ 3000km DC cable, 160km AC cable, 7,000 tons structure, more than
500,000 modules were processed (800 containers)
▪ Site has a size of approx. 270 ha, equivalent to 190 football fields
▪ First project in Spain with a long term PPA of 15 years together with
Statkraft, one of Europe’s largest generators of renewable energy
▪ Commissioning is planned for Q2/2019
Don Rodrigo – Europe's Solar Milestone
Simon KornekHead of Continental long-term
Portfolio at Statkraft
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Don Rodrigo was fully erected in 9 months
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All about Grid Parity – and how Photovoltaic Energy is disrupting the market
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What is grid parity?
The 3 levels of grid parity
Cost o
f E
ne
rgy in
Con
ts/k
Wh (
$ 2
00
5)
Residential and Commercial Rates
Don Rodrigo – Europe's Solar Milestone
Source: US Department of Energy
The ultimate goal – to produce Solar Energy cheaper than conventional energies – has now reached!
Wholesale price level Production price level Consumer price level
Utility Generation
Consumer price level
Easiest to achieve as cost of energy
are similar to high end-consumers prices
Wholesale price level
Comparable to the regular price,
to which municipal utilities purchase energy
Production price level
Same cost of energy production as classic
electricity utilities companies
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Renewable Energy outperforms every other new energy form2. Grid Parity – Deep Dive
LCOE Comparison of Energy Technologies in Europe
Source: EU reference scenario 2020
13
11
8,5
6,3
5
4
0
2
4
6
8
10
12
14
New hydro New nuclear New gas New coal New wind New PV
Cent/kWh
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Renewable Energy outperforms every other new energy form2. Grid Parity – Deep Dive
LCOE Comparison of Energy Technologies in Europe
Source: EU reference scenario 2020
13
11
8,5
6,3
5
4
0
2
4
6
8
10
12
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New hydro New nuclear New gas New coal New wind New PV
Cent/kWh
Photovoltaic is the
cheapest power sourcein the history of mankind
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Ingredient No. 1: radiationZones with ideal grid parity conditions are spread north
and south of the equator
Don Rodrigo – Europe's Solar Milestone
North AustraliaSubsahara
North Africa
Mexico
Chile
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0,00
0,20
0,40
0,60
0,80
1,00
1,20
1,40
1,60
1,80
04.09.2009 09.10.2010 13.11.2011 17.12.2012 21.01.2014 25.02.2015 31.03.2016 05.05.2017 09.06.2018 14.07.2019 17.08.2020 21.09.2021
January 1st 2020
Ingredient No. 2: EPC cost
2020 : 20In 2020 panel prices will go below 20 Cent/Wp
Source: pvinsights weekly module price index China poly Index Interpolation
US$/Wp
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The panel remains at ~50% of construction costs
Source: NREL (utility-scale PV system costs benchmark summary (inflation adjusted), 2010 – 2017
2018ff: data projection BayWa
Comparison of the CAPEX Split for a PV installation
67%67%
51%46% 48% 51% 54%
49% 47% 47% 46% 46%
3,61
3,25
2,13
1,621,43
1,29
1,08
0,710,53
0,45 0,42 0,40
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
4,00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Module Inverter Hardware BOS Labour BOS
US-$ per Wp
1
Phase of panel shortage
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Ingredient No. 3: Sufficient electricity prices
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10
20
30
40
50
60
70
80
Average 18y: 37.7 €/MWhAverage 10y: 40.8 €/MWh
Average Spot Power Price Germany (EUR/MWh, real prices)
42,1 41,8 41,7 41,4 41,1 42,0 42,6 42,4 41,9 41,4 42,1 41,4 41,1 40,5 39,9
11,8
8,6 8,3 8,1 8,1 8,1 8,0 7,9 7,9 7,9 7,9 7,9 7,9 7,9 7,9
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
90,0
100,0
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LCOE development Don Rodrigo- real money 2019 (no inflation) -
Average LCOE 25 €/MWh
scenario: high
scenario: central
scenario: low
Power price forecast Spain 2018-2048- generation weighted, real money 2019 -
annual LCOE
depreciation
interests
operation & maintenance cost
€ / MWh
op. year:
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LCOE development Don Rodrigo
Annual Cost Of Electricity (ACOE)
What is particularly disruptive with solar energy?
… and many more
It does not harm the nature
(green field or roof)
It is made for decentralized energy grids
(rural electrification)
It is easy to install It is easy adopt to the landscape
It is durable
(40+ years of production)
It is the cheapest!
It does not effect people‘s life quality
(no emissions, not even shadows etc.)
It is easy to scale (every single cell is already
a generator of its own)
It is reliable
(very low volatility)
PPAs –new for renewables, but well known in
conventional energies
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Overview about PPA (1/2)3. PPAs – Our major contribution to support the European Energy Transition
Don Rodrigo – Europe's Solar Milestone
The more of the generated
power is taken off, the better!
A fixed price period secures
cash flows in the beginning of the
investment, which strengthens
the business case.
The duration of the PPA term
determines the possible duration
of the long term debt!
Secure the offtake of
the electricity generated
Maximize the term of
the offtake agreement
Have a fixed price period
in the beginning
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Overview about PPA (2/2)3. PPAs – Our major contribution to support the European Energy Transition
Don Rodrigo – Europe's Solar Milestone
Having a flexible pricing lateron helps both counterparties
Switch to a floor price scheme later
The offtaker is
secured against falling
prices over time
The producer is
secured against
the worst case
If prices rise,
both profit
Choose experienced and bankable counterparts
Provided guarantees by the producer
The bankability of the PPA is linked to the
insolvency risk of the offtaker
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Don Rodrigo – Europe's Solar Milestone
Future outlook on the PV market in Europe
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Many global companies have committed to a 100% renewable energy future
Don Rodrigo – Europe's Solar Milestone
4. The Future of utility-scale solar in Europe
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Transition to fully merchant market is in progress4. The Future of utility-scale solar in Europe
The study was performed 2016 by the Bequerel Institute, Brussels
Grid Parity spreads across Europe
The expected price developments of whole
sale electricity in each country
It based on
The solar irradiation map
Expected price developments in EPC
and material costs for photovoltaic
Grid connection costs
It does not contain
Possible differences in land and development costs
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