PV plant in Campardo Landfill how to put together several municipalities in a joint project PVPP linked to the lighting systems Alessandro ing CHIES Veneto.

PV plant in Campardo LandfillPV plant in Campardo Landfillhow to put together several municipalities in a joint project how to put together several municipalities in a joint project

PVPP linked to the lighting systemsPVPP linked to the lighting systems

Alessandro ing CHIES Alessandro ing CHIES Veneto Municipality Reference GroupVeneto Municipality Reference Group

Valencia, 07 September 2010Valencia, 07 September 2010

The group of municipalities

• CIT – Consortium for the waste management – www.bacinotv1.it– Born in 1983– Joins 44 municipalities– All the north of Treviso province

Veneto Region

The main idea

• CIT Manages a medium landfill which is in post-mortem state.

• Building a PV system on the landfill can be an interesting bussiness activity for the consortium.

• A choice: one single big plant (1-2MW) managed and owned entirely by the consortium or…

... the cooperative choice

• Divide the landfill in several parts and build 40 to 50 PV plants < 20kWp each.

• Each plant will be owned by one of the associated Municipality

• The incentive tariff is always maximum (PA exception for the incentive tariff).

• The CIT collects the incentive tariff, the municipalities owns the energy.

The landifll

• 39.549 sqm

• Status:post mortem

• Very lowpolluted liquids

• Very lowmethane production

The PV power plant

• 50 PVPP up to 20kWp each

• Low voltagegeneration

• One singlegrid injection point

• One single power transformer

The PV power plant

• Panels disposedin order to leaveaccess to thepumps and wells

• Proper southorientation

• Poly-Si standard technology

The incentive tariff for 2011• Giving the ownership to the municipalities,

will gain the maximum incentive tariff for that size of PVPP (always integrated - financial law 2008).

• The 20kWp is the best trade off between the size of the plant and the value of the incentive tariff.

01/01 – 30/04 01/05 – 31/08 01/09 – 31/12

kWp ROOF other ROOF other ROOF other

1<P<3 0,402 0,362 0,391 0,347 0,380 0,333

3<P<20 0,377 0,339 0,360 0,322 0,342 0,304

20<P<200 0,358 0,321 0,341 0,309 0,323 0,285

200<P<1000 0,355 0,314 0,335 0,303 0,314 0,266

1000<P<5000 0,351 0,313 0,327 0,289 0,302 0,264

5000<P 0,333 0,297 0,311 0,275 0,287 0,251

The power utilization• Public lighting system was abandoned for

several years.

• The state of the art is much ahead compared to the state of the lines…

• Introducing LED, LEP and alhogenuric lamps can decrease significantly the amount of power required.

The new lightning system• LEDs or LEP based

– Very high efficiency (>100 lm/W) & Very long life (>50.000 hrs)

• Smart dimming (with no human presence light will be reduced to up to 80%)

• Digital communication and remote monitoring on optical fiber in the pipes.

• Advanced vibration monitoring (giroscope) for ground movements detailed sampling

Join the strengths• Electric energy production during the day

and injection into the grid at the maximum energy value;

• Use electricity from grid for lighting during the night when its cost is very low;

• PVPP of 20kWp can provide energy for up to 200 LEDs street lamps (SMART DIMMING, SMART LIGHTNING).

Specific benefits• The Public Administration always has the

higher PV incentive tariff (for that class of plant size)

• +5% in incentive tariff if in landfills thanks to the actions of PVsInBloom

• +5% if the plant is owned by a small municipality (<5000 citizens)

Specific benefits

• +20% if the owner of the plant will provide to the grid manager the quantity of energy injected the next day with an uncertainty of up to 10%.

Business model

• CIT makes completely the investment (this help the municipality that cannot invest so easily now (stability pact);

• Cit will keep entirely the incentive tariff (in this way will obtain 0.377 + 5% + 5% = 0.4156 instead of 0.314 + 5% = 0.3297 €/kWh

Business model

• The municipalities owns the energy thanks to a law that allows for the municipalities to inject power in a site different of the utilization one.

Cash flow• A single 20 kWp PVPP has this incomings:

Year Production Incentive tariff Energy utilization MEE  [kWh] [€] [kWh] [€]1 24.340,09 10.115,74 24.340,09 4.502,922 24.279,24 10.090,45 24.279,24 4.682,553 24.218,54 10.065,22 24.218,54 4.869,364 24.157,99 10.040,06 24.157,99 5.063,625 24.097,60 10.014,96 24.097,60 5.265,62

… … … … …

20 23.209,58 9.645,90 23.209,58 9.468,5721 23.151,56   23.151,56 9.846,3022 23.093,68   23.093,68 10.239,1123 23.035,94   23.035,94 10.647,5924 22.978,35   22.978,35 11.072,3625 22.920,91   22.920,91 11.514,08Tot 590.592,19 197.581,13 590.592,19 187.259,88

x 50 Plants Production Incentive tariff MEE Total INs

Tot 29.529.609,5 9.879.056,5 9.362.994,00 19.242.050,50

Business return• A single 20 kWp PVPP has this cash flow:

Self financed With Bank Finance With Leasing[€] [€] [€] [€] [€] [€] [€]

Year MOL RAI Flow RAI Flow RAI Flow

0     -88'000.00   0.00   -4'400.001 13'778.66 -74'221.34 -74'221.34 -78'469.08 2'370.57 2'547.47 -1'412.532 13'912.00 13'912.00 -60'309.34 9'644.03 4'874.48 2'680.82 1'708.293 14'052.06 14'052.06 -46'257.28 10'186.84 7'518.45 2'820.87 4'969.174 14'199.09 14'199.09 -32'058.19 10'759.35 10'309.45 2'967.90 8'377.075 14'353.38 14'353.38 -17'704.81 11'363.12 13'254.75 3'122.20 11'939.27

… … … … … … … …

20 17'771.60 17'771.60 222'064.07 17'771.60 195'983.19 17'771.60 188'952.2321 9'125.31 9'125.31 231'189.38 9'125.31 205'108.50 9'125.31 198'077.5422 9'500.09 9'500.09 240'689.47 9'500.09 214'608.59 9'500.09 207'577.6323 9'890.09 9'890.09 250'579.57 9'890.09 224'498.69 9'890.09 217'467.7324 10'295.93 10'295.93 260'875.49 10'295.93 234'794.61 10'295.93 227'763.6625 10'718.24 10'718.24 271'593.73 10'718.24 245'512.85 10'718.24 238'481.89Tot 359'593.73 271'593.72   245'512.85   247'281.89  

x 50 Plants Self Financed Bank Leasing

MOL RAI RAI RAI

Tot 17,979,686,50 13.579.686,0 12.275.642,50 12.364.094,50

Business return• Budget indicators on a single 20 kWp

plant:Capital Budgeting Benchmark

With self financingYears

Years

20 25 20 25€ 81'743.82 € 94'011.94 VAN OK OK

15.75% 16.08% IRR OK OK  7 PBT  

12.62% 12.35% ROI OK OK12.62% 12.35% ROE OK OK

With Bank financing€ 67'326.39 € 77'430.75 VAN OK OK

13.19% 13.30% IRR OK OK  --- PBT  

12.62% 12.35% ROI OK OKWith Leasing

€ 69'719.83 € 81'435.12 VAN OK OK13.58% 13.90% IRR OK OK

  --- PBT  12.62% 12.35% ROI OK OK

Business breakeven• The breakeven of the investment is:

8 years

Conclusion

Thanks for the attention