WIND POWER PROJECT
| Windpark
Pushkin Pass — E-Connection Commercializing modern wind energy conversion systems requires concerted investment action by governments, NGOs, scientific community and Diaspora. The Pushkin Windpark seeks $2.5 million equity from Armenian Diaspora to allow bilateral and multilateral funding to fall in place. Company: Windpark Pushkin Pass Ltd (To be established by E-Connecton Project BV) Amount: $2,500,000 Tenor/Terms: Equity (10% of total needed financing); preferably from Diaspora Documentation: 1. Memorandum of Understanding between the Governments Armenia & the Netherlands; 2. Wind Development & Business plan; 3. Wind resource assessment report. Use of funds: Purchase and install wind turbines, foundations & electrical infrastructure. Legal Status: Shareholder-company. Local Strategic Partners: Several thousand jobs are expected to be created during the construction of this wind park, in close co-operation with Energy Strategy Centre of Armenia. Armenian companies and staff will be selected for fabricating the steel towers, foundations and electrical infrastructure. Current Operations: Monitoring masts at 5 sites in Armenia since August 1999: wind data at 30m and 50m height; wind resource analysis according IEC- & IEA-standards. Sales and Marketing Plan: Power Purchase Agreement (PPA) of 0.045 US$/kWh with Energy Commission of Armenia. Business Plan: Installation in 2003 of a 20 MW grid-connected windpark at Pushkin Pass with a production of 62.2 million kWh. Investment, Capital Cost and Financing Structure Proposed: Gross investment: $24.7 million; Equity Diaspora + E-Connection: 10% =$2.5 million; Equity-subsidy (The Netherlands): 35%= $8.6 million; Loans sought (e.g. IFC/EBRD) 55%=$13.6 million Loan conditions: interest 12% & period 10 yr Income electricity-sales: $2.8 million/yr Income CO2-credits: $0.3 million/yr Expenses O & M & Insur. $0.4 million/yr IRR after 15 years = 15.3% Regulatory Considerations: Land-lease-agreement, construction license and grid-connection from the Armenian government; Power Purchase Agreement (PPA) of Energy Commission of Armenia; Other project information and details: E-Connection, established in 1986, is an independent private project developer of wind parks, with 12 experts and a net turnover of US$1.2 million (gross $12.5 million). It initially focused on wind energy projects and became market leader in The Netherlands with: • Contracted windfarm-investments: USD 80 million. • Windfarm developments in the Netherlands totalling 150 MW. • Windfarm developments in United Kingdom totalling 50 MW. • Supervision & operation: 10 windfarm sites, approximately 80 turbines, 27 MW. E-Connection has carried out projects in Poland and Armenia commissioned by Senter, Agency of the Netherlands, Ministry of Economic Affairs. The windpark proposed is to be installed under the responsibility of E-Connection, which will also educate and train local Armenian staff for the day-to-day maintenance and operations. If wanted by the other equity-partners or financiers E-Connection will take responsibility for the exploitation of the wind resources also. As soon as Windpark Pushkin Pass is successfully commissioned, the next windpark investment will be sought at another potential site already dentified -- Karakhach Pass for installing 125 MW capacity at an estimated US$153.5 million. The production of turbine-towers, foundations and electrical infrastructure in Armenia offers an opportunity for exports to windpark-projects in neighbouring countries. With Lagerweij 750 kW-wind turbines from the Netherlands (Dutch content condition for 35% equity-grant) a bench-mark analysis has shown that this wind turbine would be cost-competitive. The turbine-towers, roads, foundations, electrical components and installation works will be tendered to Armenian companies. On Pushkin Pass the suitable sites for erection of a wind park are limited due to the steep slopes at both sides of the pass. The site-investigation concluded that a total wind park-row-length of approx. 3 to 4 km is suitable for erection of wind turbines. The wind-measurements at Pushkin Pass have shown that wind only comes from a narrow sector of 45¡ from either NNE or the 180 ¡-opposite SSW direction through the pass (see Wind resource assessment report). Therefore the wind farm design should consists of WNW-ESEturbines( s) perpendicular to the both prevailing wind directions. Given this narrow wind direction-sector the distance between the wind turbines can be as low as 2 rotor diameters so that the Pushkin Pass site can be used optimally. For the LW50/750 with a rotor diameter of 50 m, this mutual distance (perpendicular to the prevailing wind direction) can be as low as 100 m - 150 m. Taking into consideration the reasonable accessible ridge length of 4 km and the gaps in the wind turbine-row at the crossings of the HV-lines, road and TV-tower, a row with 27 wind turbines of 750 kW could be installed at Pushkin Pass -- a wind park of 20 MW. Taking into consideration the reduction due to the 20% lower air density in the mountain pass, the expected average electricity production is 2,6 million kWh/year (as documented in the Wind Resource Report). Near each wind turbine of 750 kW a 690 V/ 10 kV-transformer will be built. A 110kV/10kV- or 220kV/10kV-transformer is proposed to be installed on the site transporting the electricity to the nearby HV-station of Vanadzor. The HV-station of Vanadzor offers connection options to two 110/220kV-transformers with a capacity of each 125 MVA. The most important aspects of both windparks are summarised in the Table: Aspect Windpark Pushkin pass Windpark Karakhach pass Windspeed at 30m height (average): 8,2 m/s 8,2 m/s Number of windturbines (of 750 kW): 27 166 Total installed power: 20,3 MW-el 124,5 MW-el Net electricity production: 62,2 million kWh/year 376,7 million kWh/year HV-line distance to HV-station: 10 km (Vanadzor) 30 km (Gyumri) Gross investment: 24,7 million US$ 153,5 million US$ Investment grants (MILIEV/ORET): 8,6 million US$ 53,7 million US$ Net investment: 16,1 million US$ 99,8 million US$ Financial scenario: tariff 0,045 $/kWh & loan: interest 12% / period 10 yr: Pay-back period: 9,4 yr IRR over 10 yr: 4,5% IRR over 15 yr: 15,3% Pay-back period: 9,7 yr IRR over 10 yr: 2,5% IRR over 15 yr: 14,4% Total emission-reductions during lifetime of 20 years: 704 million kg CO2 2.264 million kg CO2 Employment Generation: In thousands, for construction, installation, and maintenance. In thousands, for construction, operation, installation and maintenance. Point of Contact: Mr. Henk J. den Boon Engineer E-Connection P.O. Box 101 Bunnik, Ut. 3980CC Netherlands Tel: 31-30-659-8000 Fax: 31-30-659-8001 Den.boon@econnection.nl |