20MW SOLAR (C&I) PROJECT IPP IN SOUTH SUMATRA


$ 15.500.000



20MW SOLAR (C&I) PROJECT IPP IN EAST JAVA – FS COMPLETED AND AWAITING CORP PPA – $16m TOTAL INVESTMENT COST

 

Project type:   SOLAR POWER – C&I

Investment cost: US$15.5 Million

EPC cost/status:  Est $15m/ EPC contract already assigned.

Off-taker :  Large cement company

Project Stage:  Awaiting PPA signing – proposal agreed

Time to PPA:   Estimated 1 month from providing proof of funds..

Expected tariff/term: IDR 1050kwh /20 year term

Tariff escalation rate:  3%

Annual Sales (est) $2,100,000

Annual Cash flow (est)   $1,720,000

BOOT/BOO                                         NA

Technology:  Bifacial 540w Panel

Off-taker demand: The cement facility  is based in South Sumatra. Demand growth is well supported by infrastructure development and general commercial construction activity in the region. The overall power consumption of the facility is over 50MW peak demand. As such, 20MW is at limited risk of being in surplus.

Management Background: The founder has installed over 120 MW of Solar in Indonesia having been a senior figure in one of the country’s largest solar EPC businesses. Since setting up this new enterprise, they have installed 5MW to date and have a total pipeline of 150MW in C&I Solar projects in final stage negotiations for PPA.

Debt finance:   Local IIF interest rate anticipated to be 10% with a tenure of 10 years. With the help of European ECA support the best we have seen is 8% and 12 years of tenure.

Unlevered IRR:10.1%

Investor IRR : 12.45% assuming 30% equity/ 70% debt and a 20% local partner shareholder loan

Investor Payback Period :8 years.