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Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved1 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved1
Operational Demonstration of Space Solar Power (SSP):
Economic Analysis of a First Revenue Satellite (FRS)
Mr. A.C. Charania
President, SpaceWorks Commercial
ac@sei.aero | 1+202.503.1752 | 1+202.503.1751 (Fax)
Mr. Dominic DePasquale
Director, Washington D.C. Operations, SpaceWorks Commercial
dominic.depasquale@sei.aero | 1+202.503.1753 | 1+202.503.1751 (Fax)
Dr. John R. Olds, P.E.
CEO, SpaceWorks Enterprises
john.olds@sei.aero | 1+770.379.8002 | 1+770.379.8001 (Fax)
Version C | 08 June 2011
ISTS2011-q-01 | 28th International Symposium on Space Technology and Science (ISTS) | Okinawa, Japan | 05-12 June 2011
A Division of SpaceWorks Enterprises, Inc. (SEI)
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved2 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved2
SPACE SOLAR POWER (SSP) CONCEPTS
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved3 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved3
SPACEWORKS COMMERCIAL SSP INTEREST
- The viability of Space Solar Power(SSP) to compete and supply
electricity for consumption on the Earth has been debated for quite
sometime.
- SpaceWorks Commercial has been analyzing the economics of SSP
- Past experience in space economics and transportation analysis of SSP
(Fresh Look, SERT, etc.)
- Presentation at Space Power Canada IAC 2008/9
- Assisted in 2010 IAA study on SSP (J. Mankins)
- Review of previous economic analysis (1970s to today)
- Some new analyses (parametric for full-scale system and more in-depth for
pilot plan)
- Updated 2011 analysis using new CABAM2.1 model with new SpaceX F9 costs
- Specific Analysis
- Full scale economic analysis
- Top level economic analysis for a notional Space Solar Power company (full up
system) and analyzing breakout between space transportation costs and all other
costs (terrestrial markets)
- Global electricity price analysis including niche customer analysis (humanitarian,
remote sites, military, etc.) to determine price points and quantity/schedule of
demand
- SSP First Revenue Satellite (FRS) economic analysis
- Hybrid public-private system, interim 1-2 satellite system
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved4 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved4
FIRST REVENUE SATELLITE (FRS) PHILOSOPHY
– Full-scale (~GW) systems may not be viable as full commercial
programs (SpaceWorks general observation)
– Demonstration of operations important part of proof-of-concept
FIRST REVENUE SATELLITE (FRS)
– SSP First Revenue Satellite (FRS) as a potential better model
for sustainable SSP development
– FRS would be a mid-power (~1-20 MW) in-space to ground
demonstrator of SSP
– Would also demonstrate operations (multiple years after
demonstration phase)
– Turn over to commercial operator for public/private service
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved5 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved5
POTENTIAL GLOBAL NICHE MARKETS
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved6 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved6
CAMP LEMONNIER (DJIBOUTI)
– United States Africa Command base (2 km2)
– Six 1500 kW Generators Delivered in 2007
– 333K Gallons of Fuel Consumed for Base Support in June 2008
– $1.05 / KWh (est. base energy costs)
Sources:
http://www.gao.gov/products/GAO-09-300
http://www.navy.mil/search/display.asp?story_id=32715
https://portal.navfac.navy.mil/portal/page/portal/navfac/navfac_formedia_pp/navfac_publications_pp/cec%20biweekly/new%20cec%20biweekly%20format/cec%20biweekly%2006mar2008/
mobil%20utilities%20experts%20complete%20expeditionary%20power%20plant
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved7 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved7
POWER REQUIRED FOR US FORCES IN FORWARD-DEPLOYED REGIONS
Note: Electric power required is calculated using fuel consumption of 4 gallon/hour.
Note: Camp Lemonier data slightly inconsistent based upon different data sources
Source: GAO 09-300, DOD Needs to Increase Attention on Fuel Demand Management at Forward-Deployed Locations
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved8 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved8
U.S. DOD FORWARD OPERATING BASE (FOB) POWER COSTS
– Forward bases rely on electrical generators, externally delivered fuel
– A single typical 60-kilowatt generator burns 4 ~ 5 gallons per hour
– Cost of Fuel (fully encumbered)
– Iraq: $13.80/gallon, Afghanistan: $17.44/gallon
– Other sources (Roger Leonard: $200/gallon, Tauri Group: $400/gallon, both at IAC
2010 Session IAC-10.C3.1) for Forward Operating Base (FOB)
– Source: Joint Force Quarterly #57 (2nd Quarter, April 2010)
– Estimate for Electricity Cost using fuel + terrestrial generators:
– Iraq (JFQ #57): $0.92 / kWh
– Afghanistan (JFQ #57): $1.16 / kWh
– Leonard Estimate (FOB): $13.3 / kWh
– Tauri Estimate (FOB): $26.7 / kWh
– SpaceWorks (for Camp Lemonnier ) $1.05 / kWh
– Space-Based Solar Power Report by National Security Space Office
– “When all indirect and support costs are included, it is estimated that the
DoD currently spends over $1 per kilowatt hour for electrical power
delivered to troops in forward military bases in war regions.”
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved9 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved9
FIRST REVENUE SATELLITE (FRS)
FINANCIAL ANALYSIS
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved10 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved10
FRS MODELING OVERVIEW
– SSP First Revenue Satellite (FRS)
– 5 MW SSP for niche markets where there is limited access to electricity
– 10 years operations without refurbishment for a satellite
– Financial analysis modeling
– Investigating economic viability for both government and commercial
customers with different pricing options
– Based on CABAM2.1 (SEI financial analysis tool)
– Two price capability (Commercial & Government), Commercial price is set
to a Market Price (currently only government market)
– Government contribution would be evenly distributed and not same to actual cost
of DDT&E or Acquisition each year, only total amount is considered to calculate
contributed amounts
– Equity / Debt Financing Model: Equity Financing = Staged Input Variables
– Price Optimization for Zero NPV along with inputs for Government
Contribution, Launch Cost, and Government-Commercial Sales Proportion
– Examine various government contribution scenarios
– No contribution
– 100% of DDT&E cost
– 100% of DDT&E cost + 100% of acquisition cost
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved11 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved11
NOTIONAL FRS:
NAVAL RESEARCH LAB (NRL) 5 MW SSP CONCEPT
1. Microwave antenna: 1-km
diameter.
2. Assuming overall efficiency of
10% (intercepted sunlight to
Earth electric power)
3. Two solar arrays area: 18,300 m2
or 152 m diameter
4. Two arrays are fixed to the
primary truss structure on the
back of the transmit antenna
facing the north-south axis.
5. Flat solar reflectors in elliptical
165-m 240-m rims rotate about
this axis to track the Sun.
6. Mantech SRS reflectors are of
space-qualified polyimide with
94% reflectivity and an NRL-
patented edge treatment that
prevents distortions in the large
areas of material.
7. Both the antenna structure and
the reflector rims are NRL large
structures
Source: Space-based Solar Power: Possible Defense Applications and Opportunities for NRL, October 23, 2009, W. Neil Johnson
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved12 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved12
MASS ESTIMATE OF NRL 5 MW SSP CONCEPT
1. Developed Non-recurring cost estimate for Naval Research Lab (NRL) Space Solar Power
(SSP) 5 MW system
1. System includes LEO-GEO transfer system
2. Use of NAFCOM 2007 for non-recurring cost assessment
1. Transmission system separated from spacecraft bus (used active microwave spacecraft CERs)
2. Assessment is deemed to be conservative estimate
3. Weight-based direct CER analogies for NASA historical satellites
4. Note: Preliminary Estimate
Source: Space-based Solar Power: Possible Defense Applications and Opportunities for NRL, October 23, 2009, W. Neil Johnson
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved13 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved13
NON-RECURRING COST OF NOTIONAL FRS CONCEPT
Naval Research Lab (NRL) Space Solar Power (SSP) 5 MW system
Notes:
130% STH on all hardware elements
Fee: 10%, Program Support: 10%, Contingency: 20%,
in-space dry mass = 39,404 kg
Item
DDT&E
Cost
(in $M, FY2010)
Acquisition
Cost
(in $M, FY2010) Notes
Technology Development (to TRL 6) $0.0 $0.0 Assumed to be 0
Phase A/B $60.1 $18.4 3% of total main hardware
TOTAL MAIN HARDWARE $2002.8 $612.3
Spacecraft Bus $982.6 $285.4
Transmission $518.9 $192.9
Systems Integration $501.3 $134.0
TOTAL WRAPS $936.2 $288.5
Fee $207.2 $63.8
Program Support $228.0 $70.2
Contingency $501.6 $154.5
GROUND SYSTEM $20.0 $15.0 Estimate
TOTAL $3,109.1 $1,546.2
1. DDT&E Cost per kg (in-space dry mass) = $78,396 / kg
2. Acquisition Cost per kg (in-space dry mass) = $38,859 / kg
3. DDTE + Acquisition Cost per kg (in-space dry mass)
= $117,255 / kg
Space Hardware Cost Comparisons:
-SSP-ISS Demo E: $90,909$/kg
- ISS: $115,259/kg
- NEAR: $181,083/kg
- Mars Pathfinder: $430,787/kg
- Lunar Prospector: $340,569/kg
- Landsat-7: $252,941/kg
- Iridium Satellite: $7,257/kg
- 1970 DOE/NASA SPS: $356/kg (w/o DDT&E)
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved14 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved14
CABAM2.1 FINANCIAL MODEL FOR SSP FRS
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved15 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved15
INPUT VARIABLES: PROJECT SCHEDULE
Program Schedule
Program Start Year 2015
Initial Operating Year 2020
Program End Year 2029
DDT&E Schedule
DDT&E Start Year 2015
DDT&E End Year 2017
Production/Acquisition Schedule
Production/Acquisition Start Year 2018
Production/Acquisition End Year 2019
Facility Development Schedule
Facility Development Start Year 2018
Facility Development End Year 2019
Fiscal
Year
Equity
Financing
Debt
Financing
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved16 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved16
INPUT VARIABLES: SYSTEM & COST
SSP System Characteristics
Power per Solar Power Satellite 5 MW
Efficiency to Grid 100.0%
Nominal Duty Cycle 100.0%
Total Power Operating 5 MW
Launch Mass
Base mass of each SPS 59.4 MT
Refurbishment % per year 0.0%
Number of SPS per year 1
Total Number of SPS 1
Total Launch Mass 59.4 MT
Transportation Cost
Earth-to-Orbit $ 5,694 /kg
In-Space: LEO-to-GEO $ 0.00 /kg
Cost Structure : Year of Cost = 2014
Recurring Non-Recurring
Amounts per SPS Operating
In-space
Transport
DDT&E
Production
Acquisition
Facilities Disposal
Space Segment $M 5.00 0.0 2,989.1 1,531.2 0.0 0.0
Ground Segment $M 1.45 0.0 20.0 15.0 0.0 0.0
SpaceX Falcon 9 ETO Launch Vehicle
(6 launches @ 10.45 MT/launch to LEO, US$59.5M/launch)
Sensitivity Analysis with
0~100% Government Contribution
Ground power storage and other facility costs
are assumed to be provided by the market user.
Ground receiver refurbishment cost : $100K
Ground receiver system labor: 5 x $150K
Ground operations labor: 3 x $200K
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved17 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved17
Financial Results for SSP FRS
First Revenue Satellite (FRS) CABAM2.1 Financial Modeling Outputs: Price ($/kWh) at Break-Even Point
- 15% discount rate, cost of equity = 20%
Government
Scenario
Contribution
Amount ($M)
Equity
Investment
Price
No Contribution $0 M
$300M total for
first three years
$ 23.18 / kWh
100% DDT&E $3,072 M
$300M total
acquisition
$ 7.18 / kWh
100% DDT&E
100% Acquisition
$4,651 M
No Equity
Investment
$ 0.15 / kWh
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved18 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved18
Government Contribution = 100% DDT&E
(Equity Investment = $300M total during acquisition)
Break-Even Price = $7.18 /kWh
MillionDollars
MillionDollars
SSP FRS: FINANCIAL PROJECTIONS FOR GOVT. DDT&E CASE
Program Year
Program Year
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved19 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved19
OBSERVATIONS
– First Revenue Satellite (FRS) philosophy is an appropriate mid-
scale SSP demonstrator (several MW class)
– Government demonstrator turned over to operator
– Potential niche customers may exist at this MW class
– Notional, non-optimized SSP FRS system yields ~$7/kWhr
versus ~$1/kWhr for sample niche markets
– Further technical refinement needed (open to community sources)
– Further cost analysis needed
– SSP FRS technical solutions could be constrained for mid term
launch vehicles:
– 53MT in LEO for use in GEO using a single SpaceX Falcon Heavy
launch
– 70MT, 100 MT, or 130 MT in LEO using a single notional NASA Heavy
Lift Launch Vehicle (HLLV) launch
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved20 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved20
w w w . s e i . a e r o
SpaceWorks Commercial
A Division of SpaceWorks Enterprises Inc. (SEI)
1701 K St. NW | Suite 750 | Washington, D.C. 20006 U.S.A.
Phone: 1+202.503.1750 | Fax: 1+202.503.1751
www.spaceworkscommercial.com | E-mail: commercial@sei.aero
SpaceWorks Enterprises, Inc. (SE)
Corporate Office
1040 Crown Pointe Parkway | Suite 950 | Atlanta, GA 30338 U.S.A.
Phone: 1+770.379.8000 | Fax: 1+770.379.8001
www.sei.aero | E-mail: info@sei.aero
A Division of SpaceWorks Enterprises, Inc. (SEI)
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved21 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved21
APPENDIX
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved22 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved22
GLOBAL ELECTRICITY RETAIL PRICE (2009, 1Q)
Chinese Taipei
Household: $ 0.086/kWh
Industry : $0.067/kWh
South Korea
Household: $ 0.089/kWh
Industry : $0.060/kWh
USA
Household: $ 0.114/kWh
Industry : $0.070/kWh
UK
Household: $ 0.232/kWh
Industry : $0.146/kWh
Source: Key World Energy Statistics, IEA (excluding red colored fonts)
France
Household: $ 0.169/kWh
Industry : $0.060/kWh
Mexico
Household: $ 0.096/kWh
Industry : $0.126/kWh
New Zealand
Household: $ 0.164/kWh
Industry : $0.071/kWh
Spain
Household: $ 0.218/kWh
Industry : $0.125/kWh
Turkey
Household: $ 0.165/kWh
Industry : $0.148/kWh
Nigeria
Household : $ 0.059/kWh
Industry : $ 0.065/kWh
South Africa
Domestic: $ 0.055/kWh
Uganda
Domestic: $ 0.23/kWh
Brazil
Household: $ 0.153/kWh
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved23 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved23
ELECTRICITY RETAIL PRICE IN AFRICA (2009)
Source: Comparative study of electricity tariffs used in Africa – December 2009, UPDEA
CentsperkWh
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved24 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved24
CASE STUDY 1:
UGANDA - ENERGY FOR RURAL TRANSFORMATION APL-2
Organization The government of Republic of Uganda
Region Uganda (2009 ~ 2013)
Purpose To increase access to energy in rural Uganda, rural
energy infrastructure (electricity distribution). small scale
renewable energy generation plants, household and
institutional solar PV system and related technical
assistance and training
Price N/A
Loan Details 30-years term with no interests, Credits do carry a small
service charge of 0.75 % on disbursed balances.
Source: the World Bank (http://web.worldbank.org)
Total Project Cost $105 M 100.0%
International Development Association $75 M 71.4%
Foreign Private Commercial Sources $25 M 23.8%
Borrower (Republic of Uganda) $5 M 4.8%
Financing
Case Study Overview
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved25 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved25
CASE STUDY 2:
BOTSWANA - MORUPULE B GENERATION AND TRANSMISSION PROJECT
Organization Botswana Power Corporation
Region Botswana (2009 ~ 2014)
Purpose Developing reliable supply of electricity and promoting
alternative energy sources for low-carbon growth,
Construction of a 600 MW (4 x 150 MW) coal-fired
power station, Preparing a low-carbon growth strategy
(50MW Solar targeted by 2016)
Price 5 cents/kWh (20 cents/kWh for Solar Power)
Loan Details 40-years term with no interests (IBRD), 20-years term
with 1.336% interests (ADB), Financial IRR = 6.7%
Source: African Development Bank (http://www.afdb.org)
Total Project Cost $905.4 M 100.0%
IBRD – World Bank $98.2 M 10.8%
African Development Bank (ADB) $139.3 M 15.4%
Middle Income Country Trust Fund Grant $0.6 M 0.1%
ICBC – Standard Bank $535.7 M 59.2%
Borrower (The Government of Botswana) $131.6 M 14.5%
Financing
Case Study Overview
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved26 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved26
CASE STUDY 3:
ARGENTINA - RENEWABLE ENERGIES IN THE RURAL MARKET (PERMER)
Organization Argentina Secretary of Energy
Region Argentina (1999 ~ 2011)
Purpose Providing electricity for lighting and radio & TV to about
70,000 rural households and 1,100 provincial public
service institutions, installation of solar home system
and decentralized energy supply, installation of Wind
Home System (WHS) units in 2 small rural communities
Price $8 ~ 10 per month, receiving 3 kWh monthly, (With
Equipment Cost of about $3.56/month, $1.48/kWh per
month)
Loan Details 15-years term with 0.87% interests ($30M from IBRD),
30-years term with no interests ($50M from IBRD)
Source: Source: the World Bank (http://web.worldbank.org) & Renewable Energy Information by Eric Martinot
(http://www.martinot.info)
Total Project Cost $170.5 M 100.0%
IBRD – World Bank $ 80.0 M 46.9%
GEF (Grant) $ 10.0 M 5.9%
Government’s Fund (FEDEI) $ 26.5 M 15.5%
Concessionaires $ 43.2 M 25.3%
Customers (Households or Institution) $ 10.8 M 6.3%
Financing
Case Study Overview
Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved27 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved27
CASE STUDY 4:
CHINA - 1.9 MW POWER STATION AT A COKING PLANT
Organization The Dongying Shengdong EMC (Commercial
Company)
Region China (2004)
Purpose Building power stations that are capable of burning
waste gases, provided by customers for free or at very
low cost
Price 3.65 ~ 5.47 cents per kWh
Loan Details 1 year term, 90% of loan was guaranteed by GEF
(Global Environment Facility) Funds with World Bank
Source: ESMAP website (http://www.esmap.org) , Financing energy efficiency: lessons from Brazil, China, India,
and beyond
Total Investment $900 K 100.0%
Loan from Commercial Bank $850 K 94.4%
Internal Funding $50 K 5.6%
Financing
Case Study Overview

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Space solar power (ssp) concepts

  • 1. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved1 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved1 Operational Demonstration of Space Solar Power (SSP): Economic Analysis of a First Revenue Satellite (FRS) Mr. A.C. Charania President, SpaceWorks Commercial ac@sei.aero | 1+202.503.1752 | 1+202.503.1751 (Fax) Mr. Dominic DePasquale Director, Washington D.C. Operations, SpaceWorks Commercial dominic.depasquale@sei.aero | 1+202.503.1753 | 1+202.503.1751 (Fax) Dr. John R. Olds, P.E. CEO, SpaceWorks Enterprises john.olds@sei.aero | 1+770.379.8002 | 1+770.379.8001 (Fax) Version C | 08 June 2011 ISTS2011-q-01 | 28th International Symposium on Space Technology and Science (ISTS) | Okinawa, Japan | 05-12 June 2011 A Division of SpaceWorks Enterprises, Inc. (SEI)
  • 2. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved2 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved2 SPACE SOLAR POWER (SSP) CONCEPTS
  • 3. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved3 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved3 SPACEWORKS COMMERCIAL SSP INTEREST - The viability of Space Solar Power(SSP) to compete and supply electricity for consumption on the Earth has been debated for quite sometime. - SpaceWorks Commercial has been analyzing the economics of SSP - Past experience in space economics and transportation analysis of SSP (Fresh Look, SERT, etc.) - Presentation at Space Power Canada IAC 2008/9 - Assisted in 2010 IAA study on SSP (J. Mankins) - Review of previous economic analysis (1970s to today) - Some new analyses (parametric for full-scale system and more in-depth for pilot plan) - Updated 2011 analysis using new CABAM2.1 model with new SpaceX F9 costs - Specific Analysis - Full scale economic analysis - Top level economic analysis for a notional Space Solar Power company (full up system) and analyzing breakout between space transportation costs and all other costs (terrestrial markets) - Global electricity price analysis including niche customer analysis (humanitarian, remote sites, military, etc.) to determine price points and quantity/schedule of demand - SSP First Revenue Satellite (FRS) economic analysis - Hybrid public-private system, interim 1-2 satellite system
  • 4. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved4 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved4 FIRST REVENUE SATELLITE (FRS) PHILOSOPHY – Full-scale (~GW) systems may not be viable as full commercial programs (SpaceWorks general observation) – Demonstration of operations important part of proof-of-concept FIRST REVENUE SATELLITE (FRS) – SSP First Revenue Satellite (FRS) as a potential better model for sustainable SSP development – FRS would be a mid-power (~1-20 MW) in-space to ground demonstrator of SSP – Would also demonstrate operations (multiple years after demonstration phase) – Turn over to commercial operator for public/private service
  • 5. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved5 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved5 POTENTIAL GLOBAL NICHE MARKETS
  • 6. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved6 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved6 CAMP LEMONNIER (DJIBOUTI) – United States Africa Command base (2 km2) – Six 1500 kW Generators Delivered in 2007 – 333K Gallons of Fuel Consumed for Base Support in June 2008 – $1.05 / KWh (est. base energy costs) Sources: http://www.gao.gov/products/GAO-09-300 http://www.navy.mil/search/display.asp?story_id=32715 https://portal.navfac.navy.mil/portal/page/portal/navfac/navfac_formedia_pp/navfac_publications_pp/cec%20biweekly/new%20cec%20biweekly%20format/cec%20biweekly%2006mar2008/ mobil%20utilities%20experts%20complete%20expeditionary%20power%20plant
  • 7. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved7 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved7 POWER REQUIRED FOR US FORCES IN FORWARD-DEPLOYED REGIONS Note: Electric power required is calculated using fuel consumption of 4 gallon/hour. Note: Camp Lemonier data slightly inconsistent based upon different data sources Source: GAO 09-300, DOD Needs to Increase Attention on Fuel Demand Management at Forward-Deployed Locations
  • 8. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved8 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved8 U.S. DOD FORWARD OPERATING BASE (FOB) POWER COSTS – Forward bases rely on electrical generators, externally delivered fuel – A single typical 60-kilowatt generator burns 4 ~ 5 gallons per hour – Cost of Fuel (fully encumbered) – Iraq: $13.80/gallon, Afghanistan: $17.44/gallon – Other sources (Roger Leonard: $200/gallon, Tauri Group: $400/gallon, both at IAC 2010 Session IAC-10.C3.1) for Forward Operating Base (FOB) – Source: Joint Force Quarterly #57 (2nd Quarter, April 2010) – Estimate for Electricity Cost using fuel + terrestrial generators: – Iraq (JFQ #57): $0.92 / kWh – Afghanistan (JFQ #57): $1.16 / kWh – Leonard Estimate (FOB): $13.3 / kWh – Tauri Estimate (FOB): $26.7 / kWh – SpaceWorks (for Camp Lemonnier ) $1.05 / kWh – Space-Based Solar Power Report by National Security Space Office – “When all indirect and support costs are included, it is estimated that the DoD currently spends over $1 per kilowatt hour for electrical power delivered to troops in forward military bases in war regions.”
  • 9. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved9 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved9 FIRST REVENUE SATELLITE (FRS) FINANCIAL ANALYSIS
  • 10. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved10 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved10 FRS MODELING OVERVIEW – SSP First Revenue Satellite (FRS) – 5 MW SSP for niche markets where there is limited access to electricity – 10 years operations without refurbishment for a satellite – Financial analysis modeling – Investigating economic viability for both government and commercial customers with different pricing options – Based on CABAM2.1 (SEI financial analysis tool) – Two price capability (Commercial & Government), Commercial price is set to a Market Price (currently only government market) – Government contribution would be evenly distributed and not same to actual cost of DDT&E or Acquisition each year, only total amount is considered to calculate contributed amounts – Equity / Debt Financing Model: Equity Financing = Staged Input Variables – Price Optimization for Zero NPV along with inputs for Government Contribution, Launch Cost, and Government-Commercial Sales Proportion – Examine various government contribution scenarios – No contribution – 100% of DDT&E cost – 100% of DDT&E cost + 100% of acquisition cost
  • 11. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved11 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved11 NOTIONAL FRS: NAVAL RESEARCH LAB (NRL) 5 MW SSP CONCEPT 1. Microwave antenna: 1-km diameter. 2. Assuming overall efficiency of 10% (intercepted sunlight to Earth electric power) 3. Two solar arrays area: 18,300 m2 or 152 m diameter 4. Two arrays are fixed to the primary truss structure on the back of the transmit antenna facing the north-south axis. 5. Flat solar reflectors in elliptical 165-m 240-m rims rotate about this axis to track the Sun. 6. Mantech SRS reflectors are of space-qualified polyimide with 94% reflectivity and an NRL- patented edge treatment that prevents distortions in the large areas of material. 7. Both the antenna structure and the reflector rims are NRL large structures Source: Space-based Solar Power: Possible Defense Applications and Opportunities for NRL, October 23, 2009, W. Neil Johnson
  • 12. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved12 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved12 MASS ESTIMATE OF NRL 5 MW SSP CONCEPT 1. Developed Non-recurring cost estimate for Naval Research Lab (NRL) Space Solar Power (SSP) 5 MW system 1. System includes LEO-GEO transfer system 2. Use of NAFCOM 2007 for non-recurring cost assessment 1. Transmission system separated from spacecraft bus (used active microwave spacecraft CERs) 2. Assessment is deemed to be conservative estimate 3. Weight-based direct CER analogies for NASA historical satellites 4. Note: Preliminary Estimate Source: Space-based Solar Power: Possible Defense Applications and Opportunities for NRL, October 23, 2009, W. Neil Johnson
  • 13. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved13 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved13 NON-RECURRING COST OF NOTIONAL FRS CONCEPT Naval Research Lab (NRL) Space Solar Power (SSP) 5 MW system Notes: 130% STH on all hardware elements Fee: 10%, Program Support: 10%, Contingency: 20%, in-space dry mass = 39,404 kg Item DDT&E Cost (in $M, FY2010) Acquisition Cost (in $M, FY2010) Notes Technology Development (to TRL 6) $0.0 $0.0 Assumed to be 0 Phase A/B $60.1 $18.4 3% of total main hardware TOTAL MAIN HARDWARE $2002.8 $612.3 Spacecraft Bus $982.6 $285.4 Transmission $518.9 $192.9 Systems Integration $501.3 $134.0 TOTAL WRAPS $936.2 $288.5 Fee $207.2 $63.8 Program Support $228.0 $70.2 Contingency $501.6 $154.5 GROUND SYSTEM $20.0 $15.0 Estimate TOTAL $3,109.1 $1,546.2 1. DDT&E Cost per kg (in-space dry mass) = $78,396 / kg 2. Acquisition Cost per kg (in-space dry mass) = $38,859 / kg 3. DDTE + Acquisition Cost per kg (in-space dry mass) = $117,255 / kg Space Hardware Cost Comparisons: -SSP-ISS Demo E: $90,909$/kg - ISS: $115,259/kg - NEAR: $181,083/kg - Mars Pathfinder: $430,787/kg - Lunar Prospector: $340,569/kg - Landsat-7: $252,941/kg - Iridium Satellite: $7,257/kg - 1970 DOE/NASA SPS: $356/kg (w/o DDT&E)
  • 14. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved14 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved14 CABAM2.1 FINANCIAL MODEL FOR SSP FRS
  • 15. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved15 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved15 INPUT VARIABLES: PROJECT SCHEDULE Program Schedule Program Start Year 2015 Initial Operating Year 2020 Program End Year 2029 DDT&E Schedule DDT&E Start Year 2015 DDT&E End Year 2017 Production/Acquisition Schedule Production/Acquisition Start Year 2018 Production/Acquisition End Year 2019 Facility Development Schedule Facility Development Start Year 2018 Facility Development End Year 2019 Fiscal Year Equity Financing Debt Financing
  • 16. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved16 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved16 INPUT VARIABLES: SYSTEM & COST SSP System Characteristics Power per Solar Power Satellite 5 MW Efficiency to Grid 100.0% Nominal Duty Cycle 100.0% Total Power Operating 5 MW Launch Mass Base mass of each SPS 59.4 MT Refurbishment % per year 0.0% Number of SPS per year 1 Total Number of SPS 1 Total Launch Mass 59.4 MT Transportation Cost Earth-to-Orbit $ 5,694 /kg In-Space: LEO-to-GEO $ 0.00 /kg Cost Structure : Year of Cost = 2014 Recurring Non-Recurring Amounts per SPS Operating In-space Transport DDT&E Production Acquisition Facilities Disposal Space Segment $M 5.00 0.0 2,989.1 1,531.2 0.0 0.0 Ground Segment $M 1.45 0.0 20.0 15.0 0.0 0.0 SpaceX Falcon 9 ETO Launch Vehicle (6 launches @ 10.45 MT/launch to LEO, US$59.5M/launch) Sensitivity Analysis with 0~100% Government Contribution Ground power storage and other facility costs are assumed to be provided by the market user. Ground receiver refurbishment cost : $100K Ground receiver system labor: 5 x $150K Ground operations labor: 3 x $200K
  • 17. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved17 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved17 Financial Results for SSP FRS First Revenue Satellite (FRS) CABAM2.1 Financial Modeling Outputs: Price ($/kWh) at Break-Even Point - 15% discount rate, cost of equity = 20% Government Scenario Contribution Amount ($M) Equity Investment Price No Contribution $0 M $300M total for first three years $ 23.18 / kWh 100% DDT&E $3,072 M $300M total acquisition $ 7.18 / kWh 100% DDT&E 100% Acquisition $4,651 M No Equity Investment $ 0.15 / kWh
  • 18. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved18 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved18 Government Contribution = 100% DDT&E (Equity Investment = $300M total during acquisition) Break-Even Price = $7.18 /kWh MillionDollars MillionDollars SSP FRS: FINANCIAL PROJECTIONS FOR GOVT. DDT&E CASE Program Year Program Year
  • 19. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved19 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved19 OBSERVATIONS – First Revenue Satellite (FRS) philosophy is an appropriate mid- scale SSP demonstrator (several MW class) – Government demonstrator turned over to operator – Potential niche customers may exist at this MW class – Notional, non-optimized SSP FRS system yields ~$7/kWhr versus ~$1/kWhr for sample niche markets – Further technical refinement needed (open to community sources) – Further cost analysis needed – SSP FRS technical solutions could be constrained for mid term launch vehicles: – 53MT in LEO for use in GEO using a single SpaceX Falcon Heavy launch – 70MT, 100 MT, or 130 MT in LEO using a single notional NASA Heavy Lift Launch Vehicle (HLLV) launch
  • 20. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved20 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved20 w w w . s e i . a e r o SpaceWorks Commercial A Division of SpaceWorks Enterprises Inc. (SEI) 1701 K St. NW | Suite 750 | Washington, D.C. 20006 U.S.A. Phone: 1+202.503.1750 | Fax: 1+202.503.1751 www.spaceworkscommercial.com | E-mail: commercial@sei.aero SpaceWorks Enterprises, Inc. (SE) Corporate Office 1040 Crown Pointe Parkway | Suite 950 | Atlanta, GA 30338 U.S.A. Phone: 1+770.379.8000 | Fax: 1+770.379.8001 www.sei.aero | E-mail: info@sei.aero A Division of SpaceWorks Enterprises, Inc. (SEI)
  • 21. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved21 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved21 APPENDIX
  • 22. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved22 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved22 GLOBAL ELECTRICITY RETAIL PRICE (2009, 1Q) Chinese Taipei Household: $ 0.086/kWh Industry : $0.067/kWh South Korea Household: $ 0.089/kWh Industry : $0.060/kWh USA Household: $ 0.114/kWh Industry : $0.070/kWh UK Household: $ 0.232/kWh Industry : $0.146/kWh Source: Key World Energy Statistics, IEA (excluding red colored fonts) France Household: $ 0.169/kWh Industry : $0.060/kWh Mexico Household: $ 0.096/kWh Industry : $0.126/kWh New Zealand Household: $ 0.164/kWh Industry : $0.071/kWh Spain Household: $ 0.218/kWh Industry : $0.125/kWh Turkey Household: $ 0.165/kWh Industry : $0.148/kWh Nigeria Household : $ 0.059/kWh Industry : $ 0.065/kWh South Africa Domestic: $ 0.055/kWh Uganda Domestic: $ 0.23/kWh Brazil Household: $ 0.153/kWh
  • 23. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved23 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved23 ELECTRICITY RETAIL PRICE IN AFRICA (2009) Source: Comparative study of electricity tariffs used in Africa – December 2009, UPDEA CentsperkWh
  • 24. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved24 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved24 CASE STUDY 1: UGANDA - ENERGY FOR RURAL TRANSFORMATION APL-2 Organization The government of Republic of Uganda Region Uganda (2009 ~ 2013) Purpose To increase access to energy in rural Uganda, rural energy infrastructure (electricity distribution). small scale renewable energy generation plants, household and institutional solar PV system and related technical assistance and training Price N/A Loan Details 30-years term with no interests, Credits do carry a small service charge of 0.75 % on disbursed balances. Source: the World Bank (http://web.worldbank.org) Total Project Cost $105 M 100.0% International Development Association $75 M 71.4% Foreign Private Commercial Sources $25 M 23.8% Borrower (Republic of Uganda) $5 M 4.8% Financing Case Study Overview
  • 25. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved25 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved25 CASE STUDY 2: BOTSWANA - MORUPULE B GENERATION AND TRANSMISSION PROJECT Organization Botswana Power Corporation Region Botswana (2009 ~ 2014) Purpose Developing reliable supply of electricity and promoting alternative energy sources for low-carbon growth, Construction of a 600 MW (4 x 150 MW) coal-fired power station, Preparing a low-carbon growth strategy (50MW Solar targeted by 2016) Price 5 cents/kWh (20 cents/kWh for Solar Power) Loan Details 40-years term with no interests (IBRD), 20-years term with 1.336% interests (ADB), Financial IRR = 6.7% Source: African Development Bank (http://www.afdb.org) Total Project Cost $905.4 M 100.0% IBRD – World Bank $98.2 M 10.8% African Development Bank (ADB) $139.3 M 15.4% Middle Income Country Trust Fund Grant $0.6 M 0.1% ICBC – Standard Bank $535.7 M 59.2% Borrower (The Government of Botswana) $131.6 M 14.5% Financing Case Study Overview
  • 26. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved26 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved26 CASE STUDY 3: ARGENTINA - RENEWABLE ENERGIES IN THE RURAL MARKET (PERMER) Organization Argentina Secretary of Energy Region Argentina (1999 ~ 2011) Purpose Providing electricity for lighting and radio & TV to about 70,000 rural households and 1,100 provincial public service institutions, installation of solar home system and decentralized energy supply, installation of Wind Home System (WHS) units in 2 small rural communities Price $8 ~ 10 per month, receiving 3 kWh monthly, (With Equipment Cost of about $3.56/month, $1.48/kWh per month) Loan Details 15-years term with 0.87% interests ($30M from IBRD), 30-years term with no interests ($50M from IBRD) Source: Source: the World Bank (http://web.worldbank.org) & Renewable Energy Information by Eric Martinot (http://www.martinot.info) Total Project Cost $170.5 M 100.0% IBRD – World Bank $ 80.0 M 46.9% GEF (Grant) $ 10.0 M 5.9% Government’s Fund (FEDEI) $ 26.5 M 15.5% Concessionaires $ 43.2 M 25.3% Customers (Households or Institution) $ 10.8 M 6.3% Financing Case Study Overview
  • 27. Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved27 Copyright ©2011, SpaceWorks Commercial, A Division of SpaceWorks Enterprises, Inc. (SEI) All Rights Reserved27 CASE STUDY 4: CHINA - 1.9 MW POWER STATION AT A COKING PLANT Organization The Dongying Shengdong EMC (Commercial Company) Region China (2004) Purpose Building power stations that are capable of burning waste gases, provided by customers for free or at very low cost Price 3.65 ~ 5.47 cents per kWh Loan Details 1 year term, 90% of loan was guaranteed by GEF (Global Environment Facility) Funds with World Bank Source: ESMAP website (http://www.esmap.org) , Financing energy efficiency: lessons from Brazil, China, India, and beyond Total Investment $900 K 100.0% Loan from Commercial Bank $850 K 94.4% Internal Funding $50 K 5.6% Financing Case Study Overview