[PDF] - COGENHAN PROJECT 1 Company Profjle ADVANCING TOGETHER TOWARD A PDF Document

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ENERGY THAT EMPOWERS YOU

COGENHAN PROJECT

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Our strategic vision is to let our clients stay focused on their own business activities while we deliver full-service energy solutions. We offer to our customers a comprehensive assessment of their energy needs, deliver the most accurate analysis of electrical utility rates, electrical loads and best available state-of-the-art reliable technologies.

Company Profjle

ADVANCING TOGETHER TOWARD A SUNNY FUTURE

PrimeSolar is a leading renewable energy company, developing innovative solutions with

particular focus on architectural integration and cost optimization. PrimeSolar is also specialized in solar powered water pumping and desalination solutions, and solar-grade silica sand production.

Headquartered in Palermo (Italy)
Branches in Malta, Bulgaria, South Africa, Senegal and Egypt
Global team of experienced professionals
Wide network of contracted installers

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In-Progress Projects and Activities

Distribution of solar systems to engineering compa- nies, installers, EPC contractors with over 50MW of modules and components delivered since 2011 Project development, having secured strategic land surface rights in South Africa, Malta, Senegal, Ka- zakhstan (construction to begin in April), in partner- ship with investors EPC contract work for customers’ solar systems

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Solar Energy Sector in Kazakhstan

Kazakhstan has adopted a new policy to support the growth of its renewable energy sector. The country has been working in the past sev- eral years on the required legal framework set- ting up the necessary stimulus for investments in the sector. Best practices have been duly in- troduced and implemented in the course of the long collaboration established between EBRD and Kazakhstan Ministry of Industry and New Technologies and the Ministry of Environmental Protection. The adopted in June, 2014 feed-in-tariff for electricity generated through solar technology is set at 34,61 tenge/kWh (approx. 14 eurocents), subject to annual indexation for infmation. The term for which the above price shall apply is fjxed and guaranteed by Kazakhstan government to a term of 15 years. The above renewable energy support scheme is aimed to further advance on the ambitious plan of the Government to increase the share of renewable sources in electricity generation from less than 1 % today to 50 % by 2050. With an area seven times larger than Germany and a population equal to the German state of North Rhine-Westphalia, Kazakhstan has enormous potential to generate energy from wind, sun, and water resources. The Kazakh economy is overall more energy inten- sive than the economies of the countries in the EU. Industry is the key consumer of electricity in Kazakh- stan (oil industry, metallurgy, mining, chemical industry, energy and machine construction), followed by households and transportation industry. Current- ly, there are 71 power stations in the country, includ- ing 5 hydropower plants. Wind and solar electricity today account for less than 0.03 % of the total ca-

pacity. About 80 % of the energy consumed by the

country is generated from coal. This has led to the increased greenhouse gas emissions that the Gov- ernment now pledges to cut down to 15% below 1992 levels - in line with the ambitious targets for increase of renewable energy production set out to be achieved by 2050. Being a stable and rich in natural resources country, Kazakhstan shall host for the fjrst time in 2017 the World Expo exhibition, dedicated to “Future Ener- gy”. The above fully evidences the political will for a drastic change of governmental policy to support of the renewable energy sector and provides a great potential for investments in the sector by far exceed- ing 2030.

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COGENHAN PROJECT

100 MW SOLAR POWER PLANT, TARAZ, JAMBYL PROVINCE, KAZAKHSTAN Cogenhan Project is allocated in Taraz Region in the center of the Jambyl Province, south Ka-

zakhstan. The solar irradiation is averaging

above 1500 kWh/kWp (as per measurements taken regularly since February 2014), thus making the project site particularly fjt for optimum net energy generation. The envisioned plant life cycle of Cogenhan Project is minimum 30 years, for the fjrst 15 of which the approved by the government feed-in-tariff of 0.14 €/kWh

Brief Project Overview

Plant Capacity (kW): 100,000 Yearly Energy Yield (kWh/kWp): 1,560 Plant Life Cycle (Years): 30 Yearly Degradation: 0.80% Mean annual electricity production (MWh): 139,185 Project life electricity production (MWh): 4,175,554 PPA (per kWh): € 0.14 PPA duration (Years): 15 Project Surface (ha): 221 (subject to annual indexation for infmation) applies. Considering the constantly rising electricity price globally and the increasing demand for electricity, it is expected that after the expiry of the government guaranteed 15 years, the purchase price for the electricity generated by Cogenhan Project would be even higher. At the same time, the annual wear

ut of the project solar panels is less than 1 %, en-

suring almost a constant energy output throughout the entire Project life.

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Technical Data

Project area

The available land ensured by Kazakhstan Govern- ment is approximately 3,000,000 sq. meters and the costs for its lease / acquisition could be waived as a State investment support measure (subject to additional negotiations currently underway). The topographical and geological surveys have been completed, and the positioning of the panels is being designed, will occupy 2,100,000 sq. meters (making use of the best parts of the parcel, having fmatness and the right inclination.

Location

The site coordinates are 42.8°N and 71.4°E at the altitude of 660m. The Meteonorm shows hor- izontal solar radiation 1506 W/sq.m and aver- age annual temperature 11.6 degC. The Year to Year variability of Meteonorm data is 7,3%. Using PVSYST 6.2.5 a simulation has been provided for the possible energy generation.

System used for the simulation

PV modules BenQ, Solar PM250M01_260, 260

Wp at STC

Inverters Solo 500, Woodward IDS
Metal structure HDG, fjxed
Asimuth 0°
Tilt 37 °
Raw distance 10m
Modules per string 23, 167 strings in parallel,

total power 999 kWp

Detailed losses

External transformer losses 1,4%
Soiling losses 3%
System unavailability 1%

Simulation results at P50

Specifjc production at the end of the power

plant 1425 kWh/kWp

Performance ratio 81,8%
The results at P80 and P90 are respectively

1331 kWh/kWp and 1283 kWh/kWp

Tilt angle optimization

Another simulation has been completed with seasonal change of the tilt angle as follows

From 1.10 till 31.01 - 50°
Form 1.02 till 31.03 - 32°
From 1.04 till 31.07 - 25°
From 01.08 till 30.09 – 32°

The energy production shows 3% increase due to the tilt angle optimization. The tilt angle, period of change and raw distance can be further

ptimized, but we do not expect additional sub-

stantial change in the production. Cogenhan Project shall be connected to the 220 kV line on the south side of the site, less than 1 km away from the project land plot.

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Corporate tax – 20 % on profjt Dividends – 15 % Interest – 15 % on all paid interest Royalties to non-Kazakhstan residends – 15 % withholding tax Technical service fees – 15 % withholding tax for non-Kazakhstan entities Property tax – from 0.1 % to 1.5 %

All state taxes and fees, as well as custom duties, are subject to exemption upon conclusion of an Investment Agreement between Cogenhan and the respective governmental authority by February 2015. Exemptions in this regard include but are not limited to:

i. Custom duty waiver on manufacturing equipment, spare parts, raw materials – for

the fjrst 5 years following the conclusion of the Investment Agreement;

ii. Guarantee against application of any newly amended tax provisions;
iii. Tax preferences for priority investment projects , such as:
a. Reduction of the sum of the calculated corporate income tax by 100 %;
b. Application of a 0 coeffjcient to land tax rates;
c. Calculation of property tax on a rate of 0 % to the tax basis;

The period for which the above exemptions apply is determined in the Investment agreement.

iv. Investment subsidy as a compensation of up to 30 % of the actual expenses for

installation, construction works and equipment acquisition without VAT – pursuant to a resolution by the Government of Kazakhstan to this effect. Investments in the energy fjeld on the territory of the Republic of Kazakhstan benefjt from the additional automatic protection under the Energy Charter Treaty and the Bilat- eral Investment Treaty for enhancement and mutual protection of investments.

Taxes:

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PrimeSolar S.r.l. Viale Regione Siciliana, 9847 90147 Palermo Website: www.primesolar.it E-mail: information@primesolar.com Phone: +39 091 8888555

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