Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
PROGRAM
MESIA suggestions
Agenda
1. Context & Objectives
2. Suggestions
3. Financial Study
4. Regulatory Concerns
5. Technical Clarifications
Context
Dubai Shams programme objective
Support the diversification of Dubais energy mix by promoting the use of clean and
renewable energy sources to build a sustainable future for the Emirate.
Potential customers
Objectives
Obtain DEWAs feedback on our technical concerns
To provide the industry with
a uniform understanding of
the DEWA codes,
regulations and processes
Contribute in lowering
the peak load on the
UAE grid
2. Suggestions
Suggestion Overview
The Dubai Shams programme opens exciting opportunities for MESIAs stakeholders.
The following slides provide MESIA suggestions to DEWA to open the doors for a
successful programme which has the potential to make of Dubai the worlds leading
market for Distributed Solar PV.
Considering the current regulations and costs of Solar installations, investment returns
for Shams Dubai would vary between 5,5% and 8,5%. Considering the long-term risks
over commercial customers investors are expecting much more attractive returns. A
market enabling an addition of 50 MW per year is the most that can be expected.
In order to get drive success of 150MW+ per year further technical clarifications and
regulatory support are needed.
Suggestion Summary
Technical suggestions
Regulatory suggestions
3. Financial Study
Financial study
The financial study has been prepared based on the
current understanding of the DEWA regulations
The study presents the expected costs, prices and return
on investment for three sample PV system sizes
Residential: 10 kW connected on low voltage (LV)
Commercial: 150 kW connected on low voltage (LV)
Industrial:
400 kW connected on medium voltage (MV)
Financial study
MESIA
member
feedback
required
Solar PV equipment pricing depending on the installation size
Capital Cost
Item
BASE PV SYSTEM COST
Modules
Inverters
Mounting System
Basic Monitoring System
Installation
BOS Electrical and Misc
Duties & Taxes
EPC Margin (range)
SUBTOTAL BASE PRICE
SPECIFIC DEWA COSTS
DEWA Connection Fee
Remote Control Provision
Remote Monitoring
Interface Protection
MV Connection
EPC Margin (range)
SUBTOTAL BASE PRICE
TOTAL PRICE
10 kW LV PV System
10 kW
Price
(USD)
% of Total
Price Per
Watt ($/Wp)
$5 400
$1 800
$1 400
$100
$2 000
$1 200
$473
$2 183
$14 556
37%
12%
10%
1%
14%
8%
3%
15%
100%
0,54
0,18
0,14
0,010
0,20
0,12
0,05
0,22
1,46
$327
$58
$384
2,2%
0,0%
0,0%
0,0%
0,0%
15%
2%
0,03
0,00
0,00
0,00
0,00
0,01
0,04
$14 941
102,6%
1,49
150 kW LV PV System
150 kW
Price
(USD)
% of
Total
0,2%
0,0%
0,0%
0,0%
0,0%
$58
15%
$384
0%
100,2
$196 337
%
400 kW MV PV System
Price Per
Watt (USD/
Wp)
400 kW Price
(USD)
% of
Total
Price Per
Watt ($/Wp)
0,53
0,13
0,12
0,008
0,17
0,11
0,04
0,20
1,31
$208 000
$40 000
$40 000
$2 000
$60 000
$40 000
$15 840
$71 619
$477 459
44%
8%
8%
0%
13%
8%
3%
15%
100%
0,52
0,10
0,10
0,005
0,15
0,10
0,04
0,18
1,19
0,00
0,00
0,00
0,00
0,00
0,00
0,00
$327
$58
$384
0,1%
0,0%
0,0%
0,0%
0,0%
15%
0%
0,00
0,00
0,00
0,00
0,00
0,00
0,00
1,31
$477 843
100,1%
1,19
Financial study
General assumptions
Project
Parameters
Site Parameters
Meteorological
data
Dubai
Angle of panels
Azimuth of panels
Tariff
Annual
Production
Estimated soiling
loss
5%
Panel
Degradation
PV system
production
1600 kWh/kWp
Performance
Ratio
$112,0/MWh
AED 411/MWh
15 MWh/year
0,7% / year
2,50% year 1
80%
This study was made based on the customer leasing the equipment
from a financing company at 10% below DEWA peak tariff, and
consuming all of the power produced.
Financial study
Operating
costs
Construction
parameters
10 kW LV PV
System
150 kW LV PV
System
400 kW MV PV
System
DC Size (kWp)
10
150
400
AC Size (kWac)
135
360
14 900
196 500
476 000
260
3 900
10 400
Insurance* ($)
75
983
2 380
* Value for first year and subject to an expected annual inflation rate of 3%
Financial study
Investment Returns of PV system sizes
10 kW installation
Cumulated Free
Cashflow over 25 years
$750 000
$250 000
$20 000
$150 000
$10 000
400 kW installation
Cumulated Free Cashflow
over 25 years
$250 000
$50 000
$-
0
10
15
20
-$10
000
-$20
000
25
-$50 000 0
10
15
20
25
-$250 000
10
15
20
25
-$150
000
-$250
000
-$750 000
For a 10 kW installation:
Financial study
Conclusion
The values of the Internal rate of return and of the payback period imply that
either Solar PV will be only be a viable investment when:
Contracts are with long term owners or tenants that have a very low risk of
moving or bankruptcy, Or
Within a regulatory frame enabling the transfer of ownership of the
installation which could open a the market to contracting with mid-term
tenants
4. Regulatory Concerns
Regulatory concerns
It is expected that most Owners and Tenants will choose to lease rather than
purchase solar installations given the following:
- Tight economic period of the region reduce the ability of many businesses to
invest
- With high upfront costs for installing solar, businesses prefer to invest in their
core functions rather than solar
- Owners & tenants dont want to be responsible for owning and operating the
systems and would rather have the risks on a 3rd party
The following concerns are therefore related to financing solar:
Regulatory concerns
Concern 2 Customer Default
Customers are sure to move, close, change over the life of a solar plant. Given the long duration of
payback (over 10 years), how can DEWA support with the continuity of revenue?
1. Can a Solar financing lease be registered on a DEWA account to enable it continuity with a new
tenant when they assume an existing meter?
2. Can DEWA and a financier work together to collect missed payments from a customer?
5. Technical Clarifications
Technical clarifications
Topic 1 LV Connection point
1. Is the point of connection, and metering, the Contractors choice or is it mandated by DEWA?
Connection at the MDB vs SMDB
2. Can a system have multiple LV connections to MBD/SMDBs? If so, are multiple DEWA meters
required?
3. Can multiple solar meters be assigned to a single consumption account?
4. What is the specification and communication protocol for the connection to the DEWA Outsation ?
Technical clarifications
Topic 3 Inverters
1. Is it a requirement or recommendation from DEWA to oversize the inverter for reactive power
compensation?
2. Is it a requirement or recommendation for a motorized circuit breaker? Does the inverter meet this
requirement with the anti islanding function?
Topic 4 Cabling
1. Does DEWA limit the routing of cabling (AC or DC) in the building or underground?
2. Is Aluminium allowed for DC, LV, or MV cables ?
Technical clarifications
Topic 6 Mounting
1. What is the design wind speed to use in sizing the mounting system?
2. Will DEWA accept using ASCI standards for mounting system design?
3. Is it a requirement or recommendation to have a minimum distance between the skylight and the
array?
4. Is it a requirement or recommendation to have walkways between the array?
Technical clarifications
Topic 8 Inspections
1. Can the mechanical inspection happen after the electrical works have started?
2. What is the required notice period to book a site inspection with DEWA?
3. Does DEWA need to be present when the system is energized and connected to the grid?
4. What is DEWAs involvement in the performance test ?