WHAT IS THE POTENTIAL OF AN INVESTMENT IN SMALL HYDRO POWER PLANTS IN REPUBLIC OF MACEDONIA Sotir PANOVSKI Gordana JANEVSKA Faculty of Technical Sciences, Bitola, R. Macedonia
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
CONTENTS 1.
SHORT OVERVIEW ON HYDROENERGETIC SITUATION AND POSSIBILITIES FOR BUILDING SHPP
2.
ACTUAL SITUATION – GIVING CONCESSIONS FOR BUILDING OF SHPP
3.
TENDER DOCUMENTATION
4.
SOME ADVANTAGES OF AN INVESTMENT IN SHPP
5.
EXAMPLE OF AN INVESTMENT
6.
CONCLUSION
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
SHORT OVERVIEW ON HYDROENERGETIC SITUATION AND POSSIBILITIES FOR BUILDING SHPP Republic of Macedonia, as a mountain country with
continental climate, has a beneficial hydro stage Present situation 8 large HPP - 495 MW 20 SHPP (up to 5MW) - 30 MW
Study about possible small and mini HPP in the
Republic of Macedonia, 1982 406 SHPP
-
258 MW
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
ACTUAL SITUATION – GIVING CONCESSIONS FOR BUILDING SHPP
1. Public tenders I - February 2007 II - July 2007
60 SHPP 28 SHPP
About 40 firms with more than 160 bids applied on these tenders: • • •
domestic companies foreign companies (Austria, Germany, Slovenia, Luxembourg etc .) consortium (domestic and foreign companies )
Till now, Concessions for 41 locations were given
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
ACTUAL SITUATION – GIVING CONCESSIONS FOR BUILDING SHPP
Some of the tender characteristics model
DBOT (Design, Build, Operate and Transfer ) Design 1 year Build 3 years Operate (Transfer ) 20 years Deadline for collecting tender documentation Deadline for submission of bids
30 days 90 days
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
TENDER DOCUMENTATION
Tendering procedure Financial and economic capabilities of Bidder Composition of the offer Needed documents Freedom of the technical solution
(technical data for the locations were given)
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
TENDER DOCUMENTATION
Needed Guarantees : Tender Security Bank Guarantee for the upfront fee Performance Security
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
PAYMENT OBLIGATIONS Upfront concession fee EN: 1.
EN = MED + U
Minimal upfront fee MED MED [MKD] = 4.500 [MKD/kW] x Pi [kW] for SHPP with Pi up to 1000 kW (61,3 MKD = 1 EUR)
MED [MKD] = 2.700 [MKD/kW] x Pi [kW] for SHPP with Pi > 1000 kW
2.
U =? mark-up on the minimum upfront fee as offered by the Bidder (significant factor into the formula: ranking criterion )
Annual concession fee 2% of the annual production
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
EXAMPLE
Pi = 277 kW MED= 4.500 x Pi = 4.500 x 277= =1.246.000 MKD = 20.334 EUR EN = MED + U = 20.334 EUR + U (?) Present experience U = 500 - 20.000 EUR
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
RANKING CRITERION
C = 12.500 x Pi + U [MKD] Pi
[kW]
- declared, in the Bid, value for the
electricity generation capacity at the border of the HPP U [MKD] - mark-up on the minimum upfront fee EXAMPLE: C = 12.500 x Pi + U = = 12.500 x 277+ 81.529 = 3.544.029
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
PURCHASE OF PRODUCED ELECTRICAL ENERGY
Feed in tariffs Market Operator guarantees the purchase of
produced electrical energy
Table 1
Unit Monthly furnished Annual furnished Feed in tariffs [€ cents/kWh] electricity [kWh] electricity [kWh] I
1-85000
1-1020000
12,00
II
85001-170000
1-2040000
8,00
III
170001-350000
2040001-4200000
6,00
IV
350001-700000
4200001-8400000
5,00
V
above 700001
above 8400001
4,50
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
EXAMPLE OF AN INVESTMENT IN SHPP
H n = 45 m Q i = 0,583 m3/s P i = 277 kW E god = 932.963 kWh
L k = 1.050 m D k = 800 mm L c = 187 m D c = 560 mm
IVR = 353.163 EUR - Investment value
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
EXAMPLE OF AN INVESTMENT IN SHPP
Annual gross income (feed in tariffs) 94.605 € Annual costs
18.921 €
Net income
75.684 €
Unity price
1.275 €/kW
Average price of generated electricity
0,10 €/kWh
What is the Potential of an Investment in Small Hydro Power Plants in Republic of Macedonia
CONCLUSION In RM the first Concessionaires just have been chosen. According with the Development Programme, it is expected that every 6 months the Government of RM will announce calls for tender applications for 30-40 SHPPs
Some advantages of an investment in SHPP in RM : There is guarantee purchase of produced electrical energy (feed in tariffs)
In RM, there are qualify engineers capable for efficient projecting,
supervision and building SHPPs The civil works can be completely covered by the domestic resources.
There is one factory for production of steel pipes and also there are two factories for production of plastic pipes in RM. The prices of the civil works are relatively low.
Our hope is that till next Hidroenergija 2010, i.e. in the next 2 years , the firs concessionaire SHPPs will be build, so then we will be able to present the firs experiences.