UNDA RENEWABLE ENERGY ESCWA PIPELINE PROJECTS · Page 2 UN Development Account Project UNDA PROJECT CLOSING WORKSHOP: “Renewable Energy UNDA project conclusions and way forward”,

Economic And Social Commission For Western Asia

Mr. Abdel Ra’uof Sheikh SamihGeneral Manager

Hebron Electric Power Company

UNDA RENEWABLE ENERGY

ESCWA PIPELINE PROJECTS

/ United Nations Economic Commission for Europe

UNDA PROJECT CLOSING WORKSHOP:

“Renewable Energy UNDA project conclusions and way forward”

13-14 December 2017, Beirut - Lebanon

UNDA PROJECT ON “PROMOTING RENEWABLE ENERGY INVESTMENTS

FOR CLIMATE CHANGE MITIGATION AND SUSTAINABLE DEVELOPMENT”

Hebron Municipality/ Hebron Electric Utility - Palestine

• RE6: 1 MW Solar Energy project - distributed

• RE7: 1 MW Solar Energy project – Ground Mounted

• RE8: MSW Gas Generation: 1000KW (Solid waste plant)

Page 2

UN Development Account Project

UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy

UNDA project conclusions and way forward”, 13-14 December 2017

ESCWA provided technical assistance for 3 RE Projects

developed by Hebron Electric Utility for Hebron

Municipality – Palestine : RE -P6 , RE- P7 and RE- P8

• RE-P6: 1 MW Solar Energy project - distributed

• RE-P7: 1 MW Solar Energy project – Ground

Mounted

• RE-P8: MSW Gas Generation: 1000KW (Solid waste

plant)

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RE-P6 PALESTINE✓1 MW Solar Energy project in Hebron, West Bank,

Palestine involving installation of roof top PV on Industrial, Commercial and Residential buildings.

✓The project is initiated by Hebron Electric Power Company. The aim is to reduce the bills paid to the electricity supplier to Hebron and supply part of the electricity from RE sources.

✓The main beneficiary will be the Municipality of Hebron

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PV Solar roof top project: covers open roof tops of:

• Residential buildings and houses in Hebron Citymainly those who are near Israeli settlements.

➢ Total number of houses benefiting from the project:100 houses of 3 kW each

➢ Total number of industrial customers benefitting fromthe project: 20 sites of 20 kW each

➢ Total number of commercial building benefitting fromthe project: 15 of 20 kW each

• All these projects to be connected to the gridindividually via Net Metering on the LV system

Total power =1 MWp

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Assumptions

Discount Rate 8%

Exchange rate ($/LC) 0.28

Installed capacity 1 MWpAnnual production 1500 MWh

Annual degradation 0.5%Net production 1500 MWhDepreciation period 15 yearOPEX in % of investment 3% % of investment

$ LCProject cost 1,500,000 5,357,143 Tariff $/MWh 110.00 392.86 LCOE $/MWh 126.42 451.51

Finance scenarios5% equity 95% grant 5% equity 45% loan 50% grant

Loan interest 1.25% 1.25%Loan tenor - Year 15 15 Grace Period -Year 1 IRR on total investment 137% 4%Cum disc cash @ year 20 in $ 891,169 450,318 min DSCR 0 1.83

RE-

P6

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RE-

P6

Income statement

USD 5% equity 95% grant 5% equity 45% loan 50% grant

Net electricity generation (MWh) 28,617 28,617

Electricity consumed for own uses 28,617 28,617

Tariff 1

Revenue (Bill saving) 2,833,069 2,833,069

Tariff 1

Expenditure 2,400,000 2,400,000

Operating expenses 900,000 900,000

Depreciation 1,500,000 1,500,000

Operating income 433,069 433,069

Financial expenses 63,281

Total expenditure 2,400,000 2,463,281

Net income before taxes 433,069 369,787

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ESCWAProject Name RE6

Financing Interest rate

Loan duration

reimbursement period

per yearGrace period

Net incomebefore taxes

IRR project (based on total investment)Equity Soft Loan Grant

5% 95% 0% 6% - 7 to 9% 15 Years 4 per year 5 Years 943,840 21%

Amend 1 5% 0% 95%1.25% - 7 to

9% 15 Years 4 per year 1 Year -239,040 3%

Amend 2 5% 45% 50%1.25% - 7 to

9% 15 Years 4 per year 1 Year -465,045 -2%

5% 25% 70%

HEPCO


Loan duration





5% 95% 0% 6% - 7 to 9% 15 Years 4 per year 5 Years -1,728,752 ?

Amend 1 5% 0% 95%1.25% - 7 to

9% 15 Years 4 per year 1 Year 433,069 137%

Amend 2 5% 45% 50%1.25% - 7 to


5% 25% 70%

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RE-P7 PALESTINE✓1 MW Solar Energy project in Hebron, West Bank, Palestine:

Installation of ground mounted PV South of Hebron near waste

water treatment plant.

✓The project is initiated by Hebron Electric Power Company. The

aim is to reduce the bills paid to the electricity supplier to Hebron

and supply part of the electricity from RE sources.

✓The main beneficiary will be the Municipality of Hebron

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RE-

P7

Name PV Solar Power, 1MW ground mounted

Country Palestine

Organisation Hebron Electric Power Company

Assumptions

Exchange rate ($/LC) 0.28

Discount rate 8%

Installed capacity 1 MWp

Annual production 1500 MWh

Annual degradation 0.5%

Net production 1500 MWh

Depreciation period 15 year

OPEX in % of investment 3% % of investment

$ LC

Project cost 1,500,000 5,357,143

Tariff $/MWh 110.00 392.86

LCOE $/MWh 126.42 451.51

Finance scenarios

5% equity 95% grant 5% equity 25% loan 70% grant

Loan interest 1.25%

Loan tenor 15

Grace period 1

IRR on total investment 137% 3%

Cum disc cash @ year 20 in$ 891,169 646,251

min DSCR 3.29

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RE-

P7Income statement

in USD5% equity 95% grant 5% equity 25% loan 70% grant


Electricity consumed for own uses 28,617 28,617

Tariff 1

Revenue (Bill saving) 2,833,069 2,833,069

Tariff 1

Expenditure 2,400,000 2,400,000

Operating expenses 900,000 900,000

Depreciation 1,500,000 1,500,000

Operating income 433,069 433,069



Net income before taxes 433,069 397,912

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ESCWAProject Name

RE7

Financing Interest rate Loan duration

reimbursement periodper year

Grace periodNet incomebefore taxes

IRR project (based on total

investment)Equity Soft Loan Grant

5% 95% 0% 3% - 7 to 9% 15 Years 4 per year 5 Years 1,017,963 24%

Amend 1 5% 0% 95%1.25% - 7 to


Amend 2 5% 45% 50%1.25% - 7 to


5% 25% 70%

HEPCO

Financing Interest rate Loan duration

reimbursement periodper year

Grace periodNet incomebefore taxes

IRR project (based on total

investment)Equity Soft Loan Grant


Amend 1 5% 0% 95%1.25% - 7 to


Amend 2 5% 45% 50%1.25% - 7 to


5% 25% 70%

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RE-P8 PALESTINE✓1 MW MSW Gas Generation project South of Hebron, Yatta Landfill

in Hebron, West Bank, Palestine

✓ involving installation of gas collection system for the gas produced

from the landfill and gas engines to generate power.

✓ The project is initiated by Hebron Electric Power Company. The aim

is to reduce the bills paid to the electricity supplier to Hebron and

supply part of the electricity from RE sources.

✓The main beneficiary will be the Municipality of Hebron.

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RE-

P8

Name MSW Gas Generation of 1000 kWCountry PalestineOrganisation Hebron Electric Power CompanyAssumptionsExchange rate ($/LC) 0.28Discount rate 8%Installed capacity 1 MWAnnual production 3000 MWhAnnual degradation 0Net production 3000 MWhDepreciation period 15 yearOPEX in % of investment 3% % of investment

$ LCProject cost 2,250,000 8,035,714

Tariff $/MWh 110.00 392.86 LCOE $/MWh 91.56 327.01 Finance scenarios

16% equity 84% grant 16% equity 84% loan Loan interest 2.00%Loan tenor 15 Grace period 1 IRR on total investment 10% 2%IRR on equity 75% 55%Cum disc cash @ year 20 in $ 2,226,264 1,054,637 min DSCR - 1.16

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RE-

P8Income statement

in USD 16% equity 84% grant 16% equity 84% loan


Electricity consumed for own uses 60,000 60,000 Tariff 1

Revenue (Bill saving) 6,600,000 6,600,000 Tariff 1

Expenditure 3,600,000 3,600,000

Operating expenses 1,350,000 1,350,000 Depreciation 2,250,000 2,250,000 Operating income 3,000,000 3,000,000



Net income before taxes 3,000,000 2,640,900

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ESCWA

Project Name

RE8

Financing

Interest rateLoan

duration





5% 95% 0% 3% - 7 to 9% 15 Years 4 per year 5 Years 2,218,135 55%

Amend 1 16% 0% 84%1.25% - 7 to

9% 15 Years 4 per year 1 Year 8,035,714 10%

Amend 2 16% 84% 0% 2% - 7 to 9% 15 Years 4 per year 1 Year 6,753,214 2%

HEPCO


Loan duration






Amend 1 16% 0% 84%1.25% - 7 to

9% 15 Years 4 per year 1 Year 3,000,000 10%

Amend 2 16% 84% 0% 2% - 7 to 9% 15 Years 4 per year 1 Year 2,640,900 2%

Economic And Social Commission For Western Asia

THANK YOU FOR YOUR ATTENTION

Link to UN DA project: https://www.unescwa.org/node/94046

/ United Nations Economic Commission for Europe

UNDA RENEWABLE ENERGY ESCWA PIPELINE PROJECTS · Page 2 UN Development Account Project UNDA PROJECT CLOSING WORKSHOP: “Renewable Energy UNDA project conclusions and way forward”,

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