2nd Annual Power & Desalination Summit – Riyadh
Case Study: Private Sector Participation in the Solar Power O&M Industry Riyadh – March 18, 2013
2nd Annual Power & Desalination Summit – Riyadh
NOMAC – An Independent Arabian O&M Company • • • •
• •
NOMAC is an ACWA Power subsidiary established in 2005. NOMAC is dedicated to the safe and efficient operation of power and desalinization plants in order to deliver exceptional performance and outstanding results. Currently NOMAC has full operational responsibility for seven mega projects: Rabigh IPP, Shuaibah IWPP, Shuaibah Expansion IWP, Shuqaiq IWPP, Qurayyah IPP, Barka 1 IWPP and participates in the Marafiq Jubail IWPP. Additionally, NOMAC is fully responsible for the operation and maintenance of two, barge-mounted, self-supporting desalination plants, which are currently located at Yanbu, Saudi Arabia. NOMAC also provides for the turnkey operation of renewable projects and is currently operating a 60 MW photovoltaic utility scale generation facility In total, NOMAC is responsible for the operation of a portfolio of 10,137 MW of power generation and 2.2 million cubic meters per day of desalinated water production.
2nd Annual Power & Desalination Summit – Riyadh
Consistent portfolio growth NOMAC formed in time with the launch of KSA’s privatisation program for water & power sector
Signed O&M agreement for 3927 MW -Qurayyah IPP
Succesfull offers for for O&M of Marafiq IWPP followed by Shuqaiq IWPP 2005
Bowarege achieves PCOD
2007 2006 Shuaibah Expansion IWP is added to the O&M portfolio
Successfully bid for O&M of Shuaibah IWPP in just the first 6 months of opérations
2009
2011 2010
2008 Successfully bid for O&M of Rabigh IPP
NOMAC Oman assumes operation of Barka 1 IWPP
2012
SunE NOMAC starts solar operation in Bulgaria
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NOMAC Today A formidable competitor in the Power and Water O&M Sector Project Cost (in MUSD)
Contracted Power (in MW)
Contracted Water (in 000’ m3/day)
Contract Type
PCOD
Shuaibah IWPP
2,450
900
880
20 YR
1Q 2010
Shuqaiq IWPP
1,831
850
212
20 YR
2Q 2011
Marafiq Jubail IWPP
3,359
2,744
800
20 YR
4Q 2010
Shuaibah Expansion IWP
233
-
150
20 YR
4Q 2009
Rabigh IPP
2,506
1,204
-
20 YR
2Q 2013
Bowarege
99
-
52
3 YR
2Q 2008
Barka 1 IWPP
415
442
91
15 YR
1Q 2003
Qurayyah IPP
2,846
3,927
-
20 YR
2Q 2014
180
60
-
20 YR
2Q 2014
13,919
10,127
2,216
Project Name
Karadzhalovo IPP Total
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A Saudi Arabian Company Expanding Overseas
2004
2017-2018
2nd Annual Power & Desalination Summit – Riyadh
Our Involvement in Renewable Energy The KSA solar opportunity constitutes a very large capacity commitment • 44,000 MW in 20 years • 18,000 MW photovoltaic • 26,000 MW concentrated solar Introduction of solar generation will permanently transform existing assumptions regarding the future composition of the generation fleet in the KSA • Participation of thermal generators is likely to flatten-out and remain constant in medium and long term Our approach to renewable energy is no different to that for fossil fuel based production • Relentless focus on achieving the lowest cost at that given time Using Photo Voltaic Technology: • We own and operate a 60MW PV plant in Bulgaria ;and • Have submitted a tender for a 100MW PV at Makkah Using Concentrated Solar Power (CSP ) technology: • We are in financing in South Africa on a 50MW plant (SolAfrica) • We are in financing in Morocco of a 160MW plant (Ouarzazate)
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Karadzhalovo PV IPP
•
•
•
The Solar PV Plant located in Karadzhalovo, Bulgaria is rated at a capacity of 60MWp and expected to produce 81,000 MWh per annum It has been operating since March 2012 and dispatching electricity to the Bulgarian power grid vide an off-take arrangement for a 20 year term on a Feed in Tariff framework with the state-owned Natsionalna Elektricheska Kompania The plant operation and maintenance activities by NOMAC and Sun Edison with equal shares of ownership. The plant is expected to avoid approximately 48,600 tonnes of CO2 emissions per annum
Location
Karadzhalovo, Bulgaria
Offtaker
Natsionalna Elektricheska Kompania (National Electric Company)
Power
60 MWp
Configuration
Solar Photo-Voltaic (PV)
Project Cost
SAR 652 Mn, USD 174 Mn
Commercial Operational Date
Q1 2012
Acquisition Date
July 2012
ACWA Power Share
42%
Contract Type & Term
PPA-BOO 20 years
Operator
SunE NOMAC
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Ouarzazate CSP IPP
8
•
•
•
The 160 MW Ouarzazate CSP Project is a greenfield Independent Power Project (IPP) developed for the Moroccan Agency for Solar Energy (MASEN) located approximately 200 KM south of Marrakesh. On 19 November 2012, the Moroccan Agency for Solar Energy (MASEN) and the consortium, led by ACWA Power, signed the Power Purchase Agreement for the value of USD 1 Billion, for the sale of the net electricity output of the Ouarzazate CSP Independent Power Project The project will be operated by NOMAC under a 25 year O&M agreement
Location
Ouarzazate, Agadir district, Morocco
Offtaker
Moroccan Agency for Solar Energy (“MASEN”)
Power
160 Mwe (and 3 hours of Thermal Energy Storage)
Configuration
Concentrated Solar Power using parabolic troughs and molten salt Thermal Energy Storage
Project Cost
SAR 3,083 Mn, USD 822 Mn
Commercial Operational Date
Q2 2015 (forecast)
Contract Type & Term
PPA-BOOT 25 years
Operator
NOMAC, with EPC Contractor oversight for the first 3 years after construction
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Bokpoort CSP IPP
• •
• •
The BOKPOORT CSP project in Northern Cape Province, 600 km west of Johannesburg in the Republic of South Africa is a CSP Greenfield Independent Power Project The project will be equipped with the largest thermal storage size ever adopted for a similar operational size and is among the most efficient solar plants in the world operating in this class of capacity and technology yielding a record high generation in excess of 200 GWh/year to support the power grid of South Africa. On May 21 2012, A consortium led by ACWA Power International (ACWA Power), was announced as preferred bidder NOMAC will operate the CSP project under a 20 year O&M Agreement
Location
Northern Cape Province, South Africa
Offtaker
Eskom Holdings SOC Ltd
Power
50 MW (net)
Configuration
CSP Parabolic trough with approx. 9 hours storage.
Project Cost
SAR 2,1303 Mn, USD 568 Mn
Commercial Operational Date
Q3 2015 (forecast)
Contract Type & Term
PPA-BOO 20 years
Operator
NOMAC (vide a management contract with the O&M Co.)
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Training of Saudi Arabian Solar power Operators • Development of national work force ensures long term sustainability. • NOMAC is a founder of the Higher institute for Water and Power Training in the KSA.
• Blessed by King Abdullah in January 2009. • A non-profit, industry focused, high-tech institute. • Training of Saudi Arabian staff starts 2 years ahead of PCOD date and continues on an annual basis for the life of the project. • NOMAC has started a 2 year associate program certified by TVTC to graduate Saudi Arabian photovoltaic and CSP operators • Student recruited from the area and are fully sponsored by NOMAC
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Sector Size & Growth Prospects • Solar will constitute 35% of the installed capacity in the KSA • Capacity expansion plans must be revised in order to properly asses system needs and effectively target business opportunities Power demand (GW)
Desal water demand (million cu M/Day) 12
140 120
Will double
120
100
10
9.0
8
85 80
11.0
Doubled
6
7.0 5.5
60 4
43 40 20
21
2 0
0 2000
2010
2020
2030
2000
2010
2020
2030
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Solar Project Technology Options • Current commercially concentrated solar
viable
technology
includes
12
photovoltaic
and
Technology
Based on the photo electric effect, using solar irradiation to generate a direct current
Based on the conventional Rankin steam cycle, thru heating a fluid by concentrating direct solar irradiation and then generating steam which is out thru a conventional steam turbine
Differences
As electrons are mainly produced, storage via battery only.
As steam is mainly produced, storage via media such as salt
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Solar Project Technology Considerations • Photovoltaic (PV) technology is well demonstrated and provides simplicity of operation • Utilization factors can reach 25% • 30MW per square kilometer • Cost of PV panels continues to drop making project economics very competitive
• Concentrated solar power (CSP) provides for energy storage capabilities to allow targeting the peak after sunset • Utilization factor can reach 40% with large storage • 40 MW per square kilometer • CSP present unique O&M requirements • Solar field management • High temperature oil collector systems • Salt storage systems • Maintenance requirements for steam turbines, and balance of plant
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PV installation, historical and forecast, 2007-2015 Historical
Forecast 51.5GW 44.3GW 35.7GW
28.7GW 30.4GW 18.2GW 6.6GW 7.7GW
2.8GW 2007 2008 2009 2010 2011 Western Europe Eastern Europe China India Source: Bloomberg New Energy Finance
2012 2013 Japan Rest of World
2014 USA
2015
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Global Solar PV Energy Trends
Source: K.A.CARE – 4th Saudi Solar Forum 2012
2nd Annual Power & Desalination Summit – Riyadh
Potential of PV in Saudi Arabia •
It must be noted that PV makes use of the Global Horizontal Irradiation (GHI) defined as: the total solar irradiance falling on a horizontal plane on Earth (which includes diffused and indirect irradiation)
•
Saudi Arabia has one of the highest potentials for PV in the world.
•
PV is highly economical across North Africa, South Africa and Turkey.
2nd Annual Power & Desalination Summit – Riyadh
Potential of CSP in Saudi Arabia •
CSP only makes use of the Direct Normal Irradiation which is: is the solar irradiance measured at a given location on Earth with a surface element perpendicular to the Sun's rays, excluding diffuse insolation (the solar radiation that is scattered or reflected by atmospheric components in the sky)
•
A DNI higher KWh/m2/year
•
High dust and humidity in the GCC region implies CSP is most economical in limited areas of the GCC specifically North West Saudi Arabia
than
2,400
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Annual Peak Load in the KSA - 2012 MW 2,500 MW used for less than 100 hours/ year!!!
50 % of maximum load
25,000 MW
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Solar and Load Curve Patters - Makkah • Daily Load Curve for Makkah – 2012 Load Pattern • Solar PV can fill 300 MW peak block
3100 3000
Production time - CSP
Production time - PV
2900 2800 2700 2600 2500 2400
0:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00 4:30 5:00 5:30 6:00 6:30 7:00 7:30 8:00 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 19:00 19:30 20:00 20:30 21:00 21:30 22:00 22:30 23:00 23:30
2300
2nd Annual Power & Desalination Summit – Riyadh
First Utility Scale Solar Power in Saudi Arabia On 5th January, 2013, the First Utility Scale Solar Power IPP Tender in the Kingdom of Saudi Arabia was submitted The IPP tender – 100 MW PV to the Municipality of Makkah ACWA Power/NOMAC proposal: at 12 US cents/KWh 4500
1.6
4000
1.4
3500
2500 2000 1500 1000
Million Barrel / year
Barrel / day
3000
1.2 1 0.8 0.6 0.4
500
0.2
0
0
2nd Annual Power & Desalination Summit – Riyadh
Solar Project O&M Considerations • Over the life of the solar plant the O&M constitutes 30% of the cost • Our experience is that on the first project itself >40% of the EPC value and up to 90% of the O&M can be delivered more cost effectively from local content • Challenging availability requirements…PV asset owners require 99% performance versus expected electricity generation at inverter level • Robust Information Technology and Data Analysis capabilities are fundamental and provide clear competitive advantages • Performance monitoring and reporting system • Remote on-line data gathering, analysis and diagnostics provides for immediate identification of availability or efficiency losses on individual panel strings • Immediate dispatch of local maintenance crews
• Challenges include panel cleaning frequency and water consumption • Fully automated robotic cleaners and pressured water solutions provide alternatives for dry and dusty locations
2nd Annual Power & Desalination Summit – Riyadh
O&M Services Scope as Part of Turnkey Contract • O&M contractor assumes responsibility for all aspects of the operation and maintenance of the facility:
• Labor and third party contractors • Chemicals • All consumables including CSP high temperature fluid and salt • PV Spares including PV modules, inverters and transformers
• CSP spares such a mirrors, collectors, steam turbine parts • Cleaning robots and equipment • Preventive and predictive maintenance • Corrective maintenance
• Major overhauls • Services • Training • Environmental Health and safety
• Plant performance reviews and optimization • Compliance with the local requirements for localization and training
2nd Annual Power & Desalination Summit – Riyadh
Renewable Projects and Desalinization Options • Concentrated solar is well suited to be paired with desalinization
2nd Annual Power & Desalination Summit – Riyadh
The Way Forward – Solar Desalinztion • Concentrated solar is well suited to be paired with desalinization on an integrated basis • Solar boiler • Thermal desalination
• Improving RO efficiencies and likelihood for decreasing membrane costs provide compelling case for solar powered RO projects • Maximize solar plant utilization factor by choosing optimum sites based on solar intensity • Deliver power to RO site using transmission lines • Water tanks may serve as energy storage devices under certain scenarios
• Optimum solution is the one which delivers the lowest power and water tariff to the off taker • Introduction of solar power results in a parading shift in the power and water generation industry in the KSA
Thank You for Your Attention 25
Julio Torre Gutierrez Chief Executive Officer
[email protected]
