Feasibility Studies and Economic Analysis
India:
Location:
Maharashtra, India
Project:
Evaluate project feasibility and perform in depth economic analysis for developers of two potential solar installations of 15MW and 30MW. Offtaker was the Local Ministry of Power which had issued a RFP to buy solar power for a 20 year PPA.
Project Cost:
SOE performed this function in exchange for a 10% share of the project costs and with the understanding that SOE would be the project manager with TATA managing construction. The value of that potential equity was $1MM to $2.5MM depending on the number of projects funded.
SOE Responsibility:
- Interpret RFP to identify compensation plans and bid requirements.
- Evaluate annual power production for each site over a twenty-year term.
- Quantify complete cost of land purchase, transaction costs, equipment and construction costs.
- Develop timelines for site acquisition and construction, including high voltage transformers and circuits to interconnect with grid for export.
- Assess risk of project including physical economic and foreign exchange rate risk.
- Present findings to potential investors on behalf of developer, assist in acquisition of investment.
Paige Steel- NYSERDA RFP
Project:
Steel Equities is a major developer of large commercial properties in the New York Metro Area. NYSERDA is the New York Authority that provides incentives for renewable energy projects in New York. NYSERDA offered a complex incentive program that required detailed feasibility studies for the costs and power production for a Steel Equities Property called Paige Steel in Greenpoint, Brooklyn. The project required a complete feasibility analysis of the proposed NYSERDA incentive plan, evaluation of the cost for the equipment and construction, estimation of power production, and make recommendations for system size.
Project Cost:
SOE performed this function with the understanding that SOE would perform construction and maintenance. The project was 800kW of solar and the price was $2.6MM.
SOE Responsibility:
- Interpret RFP to identify compensation plans and bid requirements.
- Evaluate annual power production for a 20 year term.
- Develop 20 year financial pro-forma for Steel Equity (client).
- Review and refine financials and risks with Steel Equities VP finance.
- Negotiate with Steel Equity tenant (Time Warner Cable) to accept 20 Year PPA with Steel Equity to purchase power output from Solar System.
- Complete response to NYSERDA RFP.
- Perform engineering, procurement, and construction.
- Manage maintenance and monitoring systems for billing to tenant.