Power plant construction free market regulated market

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Power Plant Construction Free Market Regulated Market Operation *The approach to the scenario was made to facilitate the demonstration of the impact of 1 year of the power plant in the free market in order to amortize part of the initial investment, so is considered a lower CAPEX and the current scenario of the table is used only for a estimate. Power Plant in the Free market 1 year, energy sales price: 120 R$/MWh Revenue R$ 28 Million Power Plant in the Free market 1 year, energy sales price: 120 R$/MWh Revenue R$ 28 Million Close to the scenario with CAPEX of R$ 2.90/Wp* Close to the scenario with CAPEX of R$ 3,57/Wp* Case 1 - Scenario 2020 Imported Module Nominal CAPEX: R$ 3.19/Wp TIR Required: WACC+2% WACC 2019: 12.43% IRR in the Table: >14.68% Case 2 - Scenario 2020 Local Module Nominal CAPEX: R$ 3.78/Wp TIR Required: WACC+2% WACC 2019: 9.73% IRR in the Table: >11.92%
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Using the Tables 2017 2018 2019 Condition 1 Condition 2 Auction Auction 2020 Power Plant Construction 2021 Regulated Market Operation Power Plant Construction Free Market Regulated Market Operation Energy Sales Price in 2019: 220 R$/MWh Energy Sales Price in 2019: ~220 R$/MWh Energy Value in 2017 *: 211.03 R$/MWh Energy Value in 2017 *: ~211.03 R$/MWh * The corrected energy value for 2017 - auction date - recede the IPCA of 2018 The IPCA of 2019 shall not be considered because the disbursement is made at the beginning of the year and the model already considers the delivery of the corrected energy for 2021. Case 1 - Scenario 2020 Imported Module Nominal CAPEX: R$ 2.90/Wp TIR Required: WACC+2% WACC 2019: 12.43% IRR in the Table: >14.68% Case 2 - Scenario 2020 Local Module Nominal CAPEX: R$ 3.57/Wp TIR Required: WACC+2% WACC 2019: 9.73% IRR in the Table: >11.92%
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Using the Tables Conclusions It is noted that some strategies can help to reduce the energy sales price at the actions, considering some estimates. The intention of these analyses is to compare the presented scenarios and evaluate the pros and cons of constructing and starting up the power plant before the delivery deadline, so it can anticipate the energy generation, creating additional revenues to the project , in case it is allowed. Other exercises can be made with the spread sheet. The worse CAPEX condition for private funding are similar to the best CAPEX conditions for funding by development bank, which shows the advantages of the development bank. Some points to be noted about some strategies: Constructing power plants before the deadline can be a good strategy to reduce the energy sales price at the auction, but should be consider the feasibility of providing modules and EPC companies available to conduct the work within the time limit set. Consider the participation of development banks to guarantee a lower bid is also a risk, due to great uncertainty of approval and availability of the resource. In our scenarios with funding provided by development bank was not considered the delay for credit concession, which often leads to a bridge loan in order to cover the cash flow of the project. That implies a financial cost which was not considered in our scenarios.
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GREENER INSIGHTS Our vision for cost-effective projects !
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Scenarios !
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