PDF Publication Title:
Text from PDF Page: 005
characterized by the type and location of the project, the risk sharing arrangements and the investor’s cost of capital. The IRR is defined as the rate of discount which makes the net present share, 25-year economic lifetime, 0% grant, and 21¢/kWh electricity price. A sensitivity analysis was run to investigate the elasticity of the annual debt service coverage ratio (ADSCR) CF (t)−Tax(t) ADSCR(t)= Pr eFin PLCR(t)= LLCR(t)= CFPrefin D Dservice Drepay taxinc t’ [1] [2] [3] and the internal rate of return (IRR) as a function of the project capital structure (percentage of equity). The results of this sensitivity analysis are depicted in Figure 2. The various coverage ratios often bind in the first years of operation and restrict the amount of low-cost debt that can be used by the project. The equity share represents a crucial figure for a financially feasible project. In Figure 2 it is evident that financial success — mainly represented trough the IRR — is strongly dependent on the equity share. If lenders continue to require restrictive coverage ratios, front-loading of contract payments and/or a back loading of debt payment could help to achieve a higher debt leverage (Wiser, 1996). INDEPENDENT POWER PRODUCERS The concept of independent power producers (IPP) originated in the United States in the 1970s as a result of the 1972 Public Utility Regulatory Policies Act (PURPA). PURPA provided a mechanism to allow for the development of the first private non-regulated power projects. The first international IPP project was completed in the Dservice(t) t0,comoper+Tlife−1 ∑ PreFin inc (t ′′ )) ⋅ (1 + r )t − t ′ ′ −1 ] (t ∗ ) t′=t [(C F (t ′′ ) − t a x Equations 1-3. Debt Coverage Ratios NPV = − CO&M (t) )+ (t −t ) t=T (1+ IRR) 0 = 0 [4] D − ∗ t −0,5 ∑ D repay t0,comope∑r+Trepay−1[(CF Pr eFin inc t′′=t (t′′)−tax 0,5 (t′))⋅(1+ r)t−t′−1] (t ∗ ) t =t 0,comoper D − t −∑ repay t∗=t 0,comoper = Pre-finance cash flow = Total debt at the start of commercial operation = Debt service (interest and principal for the period) = Principal repayment of debt = Income tax = full year period, value (NPV) zero. To calculate the NPV, we discount expected future payoffs by the rate of return offered by comparable investment alternatives. This rate is also referred to as the hurdle rate, or opportunity cost of capital. It is called the opportunity cost because it is the return foregone by investing in the project rather than investing in securities (Brealey, 1991). IRRs of 16%–20% are generally expected from IPP projects, although depending on specific project risk, significantly higher IRR may be required. The formula for calculating the IRR is shown in equation 4. To better explain the important financial parameters to the debt and equity investors, we performed a detailed financial analysis for a proposed 25-MW parabolic trough plant to be located in Spain with a cash-flow model developed at the Plataforma Solar de Almería. The project assumes a 100% solar early 1980s in Turkey and was named after the Turkish Prime Minister at that time “Özal-Model”. IPPs — long-term power projects “independent” of public funds — are gaining more and more importance in the today’s power market, not only in developing countries but also in the industrialized countries. The global power market has seen a record amount of new IPP projects in recent years. For instance, from the beginning of the fourth quarter of 1995 through the end of the third quarter of 1996, 51 power projects were financed privately worldwide, totaling more than $20 billion. This is nearly twice the previous year’s $10.87 billion, and more than double 1994’s $9.48 billion. These impressive figures indicate a vigorous global IPP marketplace, where projects are proceeding to financial closing in numerous countries. Forecasts indicate that after the new millennium the ∑11 C (t i construc ∑T [R−[C (t)+D+tax)]] t O&M ser stake of IPP projects will account for 40%– 50% of worldwide power sector investments. With their high investment requirements, the success of independent renewable power projects will primarily depend on the ability to attract private investors, commercial lenders, and international development agencies. As a first step, the European Commission has pushed its member countries to give renewable IPPs a market chance by incentive laws that facilitate and reward the private generation of renewable power. D t * = half year period i=1 comoper = fix & variable O&M costs = Investment costs of cost category I = Revenues during commercial operation tconstruc = Construction period, Tcomoper= Start of commercial operation Ci (tconstruc ) t0 = Base year for all econ. assumpt., Equation 4 : IRR / NPV calculation Rt comoper T = End of com. operation Copyright © 1999 by ASMEPDF Image | Financing Solar Thermal Power Plants
PDF Search Title:
Financing Solar Thermal Power PlantsOriginal File Name Searched:
25901.pdfDIY PDF Search: Google It | Yahoo | Bing
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
IT XR Project Redstone NFT Available for Sale: NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Be part of the future with this NFT. Can be bought and sold but only one design NFT exists. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Turbine IT XR Project Redstone Design: NFT for sale... NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Includes all rights to this turbine design, including license for Fluid Handling Block I and II for the turbine assembly and housing. The NFT includes the blueprints (cad/cam), revenue streams, and all future development of the IT XR Project Redstone... More Info
Infinity Turbine ROT Radial Outflow Turbine 24 Design and Worldwide Rights: NFT for sale... NFT for the ROT 24 energy turbine. Be part of the future with this NFT. This design can be bought and sold but only one design NFT exists. You may manufacture the unit, or get the revenues from its sale from Infinity Turbine. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Supercritical CO2 10 Liter Extractor Design and Worldwide Rights: The Infinity Supercritical 10L CO2 extractor is for botanical oil extraction, which is rich in terpenes and can produce shelf ready full spectrum oil. With over 5 years of development, this industry leader mature extractor machine has been sold since 2015 and is part of many profitable businesses. The process can also be used for electrowinning, e-waste recycling, and lithium battery recycling, gold mining electronic wastes, precious metals. CO2 can also be used in a reverse fuel cell with nafion to make a gas-to-liquids fuel, such as methanol, ethanol and butanol or ethylene. Supercritical CO2 has also been used for treating nafion to make it more effective catalyst. This NFT is for the purchase of worldwide rights which includes the design. More Info
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
Infinity Turbine Products: Special for this month, any plans are $10,000 for complete Cad/Cam blueprints. License is for one build. Try before you buy a production license. May pay by Bitcoin or other Crypto. Products Page... More Info
CONTACT TEL: 608-238-6001 Email: greg@infinityturbine.com (Standard Web Page)