Curaçao,	
  “the	
  Solar	
  Energy	
  
Caribbean	
  Paradise”	
  
Dr.	
  Arnoldus	
  M.	
  van	
  den	
  Hurk	
  Mir	
  
...
“Insert	
  de	
  Video”	
  
…	
  only	
  2	
  minutes	
  

Arnold	
  Holding	
  Ltd.	
  (c)	
  2012	
  -­‐	
  Curaçao,	
  ...
Comments	
  about	
  the	
  video	
  
•  	
  ...	
  970	
  Trillion	
  of	
  kWh	
  of	
  energy	
  falling	
  from	
  the...
What	
  is	
  a	
  solar	
  energy	
  paradise?	
  
•  In	
  technical	
  terms,	
  a	
  paradise	
  in	
  solar	
  energy...
What	
  are	
  the	
  key	
  points	
  to	
  become	
  a	
  
Solar	
  Photovoltaic	
  Paradise	
  ?	
  
•  The	
  followin...
1.  Solar	
  Resources:	
  kWh/m2	
  
•  The	
  model	
  is	
  based	
  on	
  1	
  MW	
  installaYon	
  
–  Debt/Equity	
 ...
2a.	
  Electricity	
  current	
  Prices	
  
• 

Average	
  electricity	
  prices	
  can	
  be	
  derived	
  for	
  market	...
2b.	
  Electricity	
  Prices	
  …	
  future	
  trends	
  
•  Future	
  trends	
  on	
  electricity	
  price	
  in	
  Curaç...
3.	
  SelecYon	
  of	
  the	
  appropriate	
  solar	
  
energy	
  technology	
  and	
  EPC	
  

Arnold	
  Holding	
  Ltd.	...
4.	
  System	
  Performance	
  RaYo	
  
•  How	
  the	
  Performance	
  RaYo	
  affect	
  on	
  the	
  Profitability	
  
of	...
5.	
  OperaYon	
  &	
  Maintenance	
  
•  O&M	
  are	
  not	
  so	
  expensive	
  	
  than	
  in	
  other	
  power	
  
ele...
6.	
  Land	
  /Rookop	
  Rental	
  
•  How	
  land	
  rental	
  affect	
  on	
  the	
  profitability	
  
of	
  1	
  MW	
  PV...
7.	
  Insurances	
  	
  
•  How	
  cost	
  of	
  insurances	
  affect	
  on	
  the	
  
profitability	
  of	
  1	
  MW	
  PV	...
8.	
  Corporate	
  &	
  Income	
  Tax	
  

Arnold	
  Holding	
  Ltd.	
  (c)	
  2012	
  -­‐	
  Curaçao,	
  "The	
  Solar	
 ...
9.	
  Interest	
  rates	
  
•  How	
  the	
  interest	
  rates	
  affect	
  the	
  IRR	
  of	
  an	
  
solar	
  PV	
  inves...
10.	
  Debt	
  /	
  Equity	
  RaYo	
  
•  How	
  Debt/Equity	
  RaYo	
  affects	
  on	
  the	
  investment	
  
structure	
 ...
Savings	
  and	
  Real	
  Estate	
  implicaYons	
  
•  Some	
  Real	
  Estate	
  products	
  are	
  linked	
  to	
  
econo...
PV	
  Americas	
  Paradise	
  Map	
  2010	
  
•  GRAPHIC	
  OF	
  THE	
  STUDY	
  OF	
  Q-­‐Cells	
  

Curaçao	
  (0.235)	...
PV	
  Americas	
  Paradise	
  Map	
  2020	
  
Curaçao	
  (0.342)	
  

Arnold	
  Holding	
  Ltd.	
  (c)	
  2012	
  -­‐	
  C...
CONCLUSIONS	
  –	
  The	
  Candidates	
  and	
  
the	
  winner	
  is	
  …	
  
FRANKFURT	
   LOS	
  ANGELES	
  

BARCELONA	...
“Insert	
  de	
  Video,	
  again”	
  
…	
  for	
  for	
  those	
  who	
  have	
  been	
  late	
  

Arnold	
  Holding	
  Lt...
Coming	
  back	
  to	
  video	
  
• 
• 

• 

• 

• 

• 

	
  ...	
  2.70	
  billion	
  of	
  kWh	
  of	
  energy	
  fall	
...
EPILOGUE:	
  Alexander	
  &	
  Diogenes	
  	
  
Corinth,	
  Greece,	
  340	
  B.	
  C.	
  
	
  
Alexander	
  the	
  Great	...
Mi	
  sYma	
  Kòrsou!!!	
  
Dank	
  u	
  wel	
  
Thank	
  you	
  
Gracias	
  
Gràcies	
  
Obrigado	
  	
  

Danki	
  !	
  ...
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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 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

  1. 1. 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  
  2. 2. “Insert  de  Video”   …  only  2  minutes   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   2  
  3. 3. 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  
  4. 4. 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  
  5. 5. 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  
  6. 6. 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  
  7. 7. 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  
  8. 8. 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  
  9. 9. 3.  SelecYon  of  the  appropriate  solar   energy  technology  and  EPC   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   9  
  10. 10. 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  
  11. 11. 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  
  12. 12. 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  
  13. 13. 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  
  14. 14. 8.  Corporate  &  Income  Tax   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   14  
  15. 15. 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  
  16. 16. 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  
  17. 17. 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  
  18. 18. 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  
  19. 19. PV  Americas  Paradise  Map  2020   Curaçao  (0.342)   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   19  
  20. 20. 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  
  21. 21. “Insert  de  Video,  again”   …  for  for  those  who  have  been  late   Arnold  Holding  Ltd.  (c)  2012  -­‐  Curaçao,  "The  Solar  Energy  Caribbean  Paradise"   21  
  22. 22. 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  
  23. 23. 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  
  24. 24. 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  

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