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Curacao the solar energy caribbean paradise
 

Curacao the solar energy caribbean paradise

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What is a solar energy paradise: In technical terms, a paradise in solar energy is the region with a combination of … HIGH SOLAR IRRADIATION and HIGH ELECTRICITY PRICES. But in “financial ...

What is a solar energy paradise: In technical terms, a paradise in solar energy is the region with a combination of … HIGH SOLAR IRRADIATION and HIGH ELECTRICITY PRICES. But in “financial terms”, a solar energy paradise needs another keystone …
LOW “WACC” (Weighted Average Cost of Capital), which means the combination of
Relative low “Cost of Debt”, Moderate to Low “Return of Equity”and Adequate Credit/Equity Ratio. Let's see if the island of Curaçao meets these requirements

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    Curacao the solar energy caribbean paradise Curacao the solar energy caribbean paradise Presentation Transcript

    • Curaçao,  “the  Solar  Energy   Caribbean  Paradise”   Dr.  Arnoldus  M.  van  den  Hurk  Mir   arnold@vandenhurkmir.com   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy   Caribbean  Paradise"   1  
    • “Insert  de  Video”   …  only  2  minutes   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   2  
    • Comments  about  the  video   •   ...  970  Trillion  of  kWh  of  energy  falling  from  the  skies  every  day  ...   •  That  means  about  ....  200  Trillion  USD  falling  from  the  skies  every   day  (in  a  Curaçao’s  feed-­‐in  tariff  price)   –  Or  …  3.13  Ymes  2011’s  world  GDP   •  That  means  about  ...  6,200  Trillion  every  month     –  Or  about  …  100  Ymes  the  2011’s  world  GDP   •  That  means  about  ...  52  quadrillion  of  US  dollars  falling  every  year   –  Or  about  …  800  Ymes  the  2011’s  world  GDP   •  During  25  years  of  the  average  of  an  investment  Solar  PV  project,     –  over  than  1.3  quinYllion  of  dollars  of  potenYal  income  are  waiYng  for   investors   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   3  
    • What  is  a  solar  energy  paradise?   •  In  technical  terms,  a  paradise  in  solar  energy  is  the  region   with  a  combinaYon  of  …   –  HIGH  SOLAR  IRRADIATION   –  HIGH  ELECTRICITY  PRICES   •  But  in  “financial  terms”,  a  solar  energy  paradise  needs   another  keystone  …   –  LOW  “WACC”  (Weighted  Average  Cost  of  Capital),  which  means   the  combinaYon  of   •  RelaYve  low  “Cost  of  Debt”   •  Moderate  to  Low  “Return  of  Equity”   •  Adequate  Credit/Equity  RaYo   •  Let's  see  if  the  island  of  Curaçao  meets  these  requirements   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   4  
    • What  are  the  key  points  to  become  a   Solar  Photovoltaic  Paradise  ?   •  The  following  keystones  must  be  mastered  in  order  to  succeed  in  the   investment  of  a  solar  photovoltaic  plant   1.  2.  3.  4.  5.  6.  7.  8.  9.  10.  •  Solar  Resources  -­‐  IrradiaYon  kWh/m2   Electricity  Prices,  present  and  future   Right  selecYon  of  type  of  solar  energy  technology  and  EPC   A  good  system  Performance  RaYo   Professional  OperaYon  &  Maintenance   Land  /Rookop  Rental   Insurances   Corporate  and  Income  Tax   Loan  amounts  and  interest  rates   Debt  /  Equity  RaYo  and  WACC   Would  you  like  to  know  how  these  key  issues  affect  the  Internal   Rate  of  Return  on  an  investment  in  a  1  MWp  installaYon  at  Curacao?   –  Shall  we  go!!   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   5  
    • 1.  Solar  Resources:  kWh/m2   •  The  model  is  based  on  1  MW  installaYon   –  Debt/Equity  RaYo  of  50/50%   –  Cost  of  Debt  5.72%  -­‐  Return  of  Equity  11.43%   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   6  
    • 2a.  Electricity  current  Prices   •  Average  electricity  prices  can  be  derived  for  market  segments.  In  general,  electricity   prices  are  a  funcYon     –  of  fuel  cost,  capital  cost,  labour  cost,  grid  cost,  energy  taxes,  energy  subsidies,  greenhouse  gas   (GHG),  emission  cost  and  profit  margins  of  generaYon,  transmission  and  distribuYon  companies.     •  We’ll  compare  how  the  electricity  tariffs  of  other  ciYes  would  affect  the  IRR  in  a  PV   Solar  Curaçao   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   7  
    • 2b.  Electricity  Prices  …  future  trends   •  Future  trends  on  electricity  price  in  Curaçao   –  Based  on  tariff  evoluYon  of  last  decade,  the  current  tariff   prices  trend  points  to  a  yearly  basis  increase  of  4.793%   during  next  25  years   •  How  sensible  it  would  be  the  IRR  to  other  changes  in   tariff  evoluYon  in    1  MW  PV  Solar  plant?   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   8  
    • 3.  SelecYon  of  the  appropriate  solar   energy  technology  and  EPC   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   9  
    • 4.  System  Performance  RaYo   •  How  the  Performance  RaYo  affect  on  the  Profitability   of  a  PV  System  and,  consequently,  the  IRR:   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   10  
    • 5.  OperaYon  &  Maintenance   •  O&M  are  not  so  expensive    than  in  other  power   electricity  generaYon  opYons  (wind,  fossil  fuels,  etc.)   –  This  factor  also  implies  a  lower  impact  over  the  IRR  than  in   other  studied  variables   Sensi&bily*analysis*O&M*vs*IRR* 35,00%) 30,00%) 25,00%) 20,00%) 15,00%) 10,00%) 5,00%) 0,00%) Scenario)1) Scenario)2) Scenario)3) Scenario)4) O&M)(%)Net)Income)) 9,50%) 7,04%) 3,52%) 2,50%) IRR) 28,75%) 29,54%) 30,23%) 30,98%) Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   11  
    • 6.  Land  /Rookop  Rental   •  How  land  rental  affect  on  the  profitability   of  1  MW  PV  system  at  Curaçao?   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   12  
    • 7.  Insurances     •  How  cost  of  insurances  affect  on  the   profitability  of  1  MW  PV  plant   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   13  
    • 8.  Corporate  &  Income  Tax   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   14  
    • 9.  Interest  rates   •  How  the  interest  rates  affect  the  IRR  of  an   solar  PV  investment  in  …   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   15  
    • 10.  Debt  /  Equity  RaYo   •  How  Debt/Equity  RaYo  affects  on  the  investment   structure  for  1  MW  PV  and  the  WACC  rate:   –  5.33%  cost  of  debt  and  10.66%  return  on  Equity   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   16  
    • Savings  and  Real  Estate  implicaYons   •  Some  Real  Estate  products  are  linked  to   economic  business  development  (e.  g.  an  Hotel,  a   warehouse,  etc.)   •  An  hotel  like  the  Marrioq  with  an  installaYon  of  1   MW  of  solar  would  supply  between  25  –  30%   total  amount  o  electricity  during  25  years   –  With  SAVINGS:  more  than  21  million  $US   –  REAL  ESTATE:  increase  of  5.6  million  $US  in  yearly   hotel  valuaYon  (that  balances  the  price  o  the  PV   facility)   •  Isn’t  amazing?  This  is  the  power  of  the  Sun   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   17  
    • PV  Americas  Paradise  Map  2010   •  GRAPHIC  OF  THE  STUDY  OF  Q-­‐Cells   Curaçao  (0.235)   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   18  
    • PV  Americas  Paradise  Map  2020   Curaçao  (0.342)   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   19  
    • CONCLUSIONS  –  The  Candidates  and   the  winner  is  …   FRANKFURT   LOS  ANGELES   BARCELONA   CURAÇAO   1.  RadiaYon   4   2   3   1   2.  Electricity  Prices   3   2   4   1   5.  O&M   3   4   1   2   6.  Land  costs   4   1   2   3   7.  Insurances   3   4   1   2   8.  Corporate  Tax   3   4   2   1   9.  Interest  Rate   1   2   4   3   10.  Debt  /Equity   2   1   4   3   76,19%   100,00%   RATIO   69,57%     80,00%     Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   20  
    • “Insert  de  Video,  again”   …  for  for  those  who  have  been  late   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   21  
    • Coming  back  to  video   •  •  •  •  •  •   ...  2.70  billion  of  kWh  of  energy  fall  from  the  skies  every  day  to  Curaçao  …    ....  850  millions  of  USD  fall  from  the  Curaçao’s  skies  every  day  (current  Curaçao’s   Feed-­‐in  Tariff)   –  Which  means  the  30%  of  the  Curaçao  GDP  (2008)   ...  24.8  billion  of  dollars  every  month     –  Which  means  close  to  12  Ymes  the  Curaçao  GDP.     –  Or  close  to  200  million  dollars  per  capita  (Curaçao)   ...  302,54  billion  of  dollars  every  year  to  Curaçao   –  Which  means  …  0.5%  of  2011’s  world  GDP  with  only  the  0.002%  of  the  world   populaWon   –  Or    2,153  million  dollars  per  CAPITA  (Curaçao)!!   During  25  years  of  the  average  of  an  investment  Solar  PV  project,  over  than  7.56   trillion  of  dollars  will  fall  to  Curaçao  Island  in  terms  of  potenYal  solar  electricity  at   current  prices     –  Thanks  to  the  energy  of  the  sun,    during  next  25  years,  the  11.6%  of  current   World  GDP  will  fall  in  this  Caribbean  Paradise  named  Kursao.     Good  we  can’t  see  it  –  Bad  we  don’t  use  it   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   22  
    • EPILOGUE:  Alexander  &  Diogenes     Corinth,  Greece,  340  B.  C.     Alexander  the  Great  addressed   Diogenes  with  greeYngs,     and  asked  if  he  wanted  anything  …     Diogenes  replied     "Yes,  stand  a  li]le  out  of  my   sunshine.”     And  then,  Alexander  says:   If  I  were  not  Alexander,  I  should   wish  to  be  Diogenes   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"     23  
    • Mi  sYma  Kòrsou!!!   Dank  u  wel   Thank  you   Gracias   Gràcies   Obrigado     Danki  !     arnold@vandenhurkmir.com   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   24