SOLAR LEASING & WHEELING IN JORDAN By: Omar Sadder November 13, 2018
AGENDA • Jordan Market Overview • About YDE • About Solar Wheeling in Jordan • About Solar Leasing • WAA Case Study 2
JORDAN’S ENERGY MIX BY 2020 • Jordan aims for 22% renewable Fossil Fuels energy , 14% of which are solar, in 11% its energy mix by 2020. • The country’s favourable solar wheeling regulation facilitates Renewable Energy rapid expansion of solar plants 22% around the country. • YDE is well positioned to Natural Gas leverage favourable wheeling 67% regulation and market conditions to maintain its market leadership. 3 Source: Jordan Ministry of Energy and Mineral Resources
ABOUT YELLOW DOOR ENERGY
OUR VISION “ Yellow Door Energy’s vision is to power emerging economies reliably, efficiently and sustainably. Our dedicated team of professionals are working hard to reach $1 billion worth of solar plants in the region. We hope you will join us on this journey.” Jeremy Crane CEO & Co-Founder Yellow Door Energy 5
OUR STORY A FOCUSED MISSION We provide our customers with reliable, efficient and sustainable energy solutions. We do this by investing in distributed solar and energy efficiency infrastructure for commercial and industrial businesses in the Middle East, Africa and South Asia. EXPERIENCED PARENT COMPANY Yellow Door Energy was founded in 2015 as a spin-out from Adenium Energy Capital, a leading solar investor in the Middle East with $500 million of solar assets worldwide. MARKET LEADERSHIP IN JORDAN AND THE UAE We are the first mover and market leader in Jordan and the UAE for solar leases. We are investing in solar lease projects which help commercial and industrial customers reduce their electricity costs. 6
ACHIEVEMENTS TO-DATE We were founded in 2015 and have since grown to a team of >20 professionals specialized in solar PV and energy efficiency projects. 57 MWp CONTINUED GROWTH SOLAR LEASE ENERGY SAVINGS IN MARKETPLACE PROVIDER CONTRACTS We have signed over 57 MWp We provide solar leases to We provide shared energy of solar contracts in Jordan help customers go solar savings contracts to help and the UAE. Our exceptional with no upfront investment building owners save money reputation propels our growth. and no operational risk . and reduce GHG emissions. 7
COMPANY VALUES Quality Innovation We strive for quality in everything we do, We welcome innovative ways of doing business. such as providing high quality work and procuring high quality equipment. Sustainability Reliability We strive to reduce our carbon footprint and We do what we say we do. Our customers consider our impacts on the surrounding can rely on us for years to come. environment and community, and help our customers do the same. Efficiency We manage our resources and time efficiently. Similarly, we manage our investors’ capital efficiently to maximize their returns. 8
THOUGHT LEADERSHIP & INDUSTRY ASSOCIATION Yellow Door Energy’s representatives regularly speak at industry conferences to share best practices in developing successful solar and energy efficiency projects in MEA and beyond. We’re proud members of leading industry associations to advance the sustainable energy transition. 9
EXISTING MARKETS: JORDAN & THE UAE With 57 MWp of solar contracts signed and 6 MWp of projects already operating, we are well positioned to continue our leadership in existing markets. STATUS JORDAN UAE TOTAL Operating 3.96 MWp 2.13 MWp 6.09 MWp Construction 4.35 MWp 12.40 MWp 16.75 MWp Signed 30.64 MWp 3.52 MWp 34.16 MWp Total 38.95 MWp 18.05 MWp 57.00 MWp 10
JORDAN PROJECTS – DIVERSIFIED PORTFOLIO CUSTOMER SYSTEM SIZE INDUSTRY STAGE Specialty Hospital 2,090 kWp Healthcare Operating Istiklal Mall 1,870 kWp Retail Operating Taj Mall 4,350 kWp Retail Construction Jabri Restaurants 1,250 kWp Food Signed Jordan Hospital 1,850 kWp Healthcare Signed Aseza AQABA 5,500 kWp Government Signed Special Economic Zone Classic Fashion 5,540 kWp Retail Signed GID 16,500 kWp Government Signed 11
SOLAR WHEELING IN JORDAN
BUSINESS CHALLENGES IN JORDAN Doing more with less money and fewer resources Coping with rising and uncertain utility prices Managing stakeholders’ increased awareness and expectation for sustainable business practices 13 311 kWp Rooftop Solar Plant in Dubai Investments Park – Elcome International
WHEELING IN JORDAN Wheeling creates an opportunity for businesses to be more efficient, and thus competitive locally and internationally. Cost Comparison Utility vs Solar 1 2 3 USD/kWh 75 50 25 0 • What is Wheeling? Utility Solar 1. Customers would like to benefit from solar energy, BUT they are limited by the amount of • Lack of national carbon resources Jordan space available on their premises. means electricity is relatively expensive 2. Wheeling legislation allows customers to install • Lots of sunlight makes solar energy a solar on land far outside the city, and connect very competitive source for power using the grid with a small fee for grid use • World-class legislation allows for private 3. Clean affordable electricity means that customers to benefit from solar energy Jordanian companies are more competitive 14
WHY IS SOLAR POWER IMPORTANT? POTENTIAL CHALLENGES HOW SOLAR POWER CONFRONTING BUSINESSES TODAY ADDRESSES SUCH CHALLENGES Doing more with less money Switch to a and fewer resources clean source of energy Coping with rising and Lower utility bills uncertain utility prices by 10-30% Managing stakeholders’ increased Reduce CO 2 emissions awareness and expectation for and enhance sustainability sustainable business practices 15
HOW DOES IT WORK? A healthy number of committed customers allows YDE to build a portfolio of high value commercial off-takers. 1 3 We are building mini The energy is allocated solar plants to customers through throughout Jordan long-term solar leases 2 Utilizing wheeling regulations, we deliver energy to a portfolio of consumers 16
ABOUT SOLAR LEASING
OUR OFFER: SOLAR LEASING WHAT IS IT? WHY IS IT IMPORTANT? Aperformance-based long-term contract which Provide no upfront investment and only pay does not expose you to any technical or when the plant starts producing electricity; performance risk on your solar plant. Yellow Door Energy manages all stages of the Focus on your core business and entrust solar plant and you pay a monthly solar bill the solar plant to Yellow Door Energy; once the solar plant starts producing electricity. This is a Build-Own-Transfer structure so the Manage electricity costs in the long-term solar plant belongs to you at the end of the with a known solar electricity price, which is lease. lower than the local utility’s tariff. 18
WADI AL ASH CASE STUDY
OPERATING PROJECTS IN JORDAN The Specialty Hospital & Istiklal Mall 3.96 MWp Wheeling Solar Project Ground-mounted with tracker Commissioning Date: October 2018 Wadi Al Ash Valley, Jordan 20
OPERATING PROJECTS IN JORDAN 21
AMMAN MAYOR ATTENDED OPENING CEREMONY His Excellency Yousef Al-Shawarbeh, Mayor of Amman and His Excellency Engineer Farouq Al Hiary, Chairman of Board of Commissioners, CEO of the Energy and Minerals Regulatory Commission (EMRC) in Jordan attended the Yellow Door Energy Solar Park Opening Ceremony on October 16, 2018. 22
PROCESS IN JORDAN Jordan solar wheeling permitting process is well-defined. Expected Step Requirements Applicable to Time Utility Initial Submit request to utility including size, Utility 1 month Approval location and consumer Environmental assessment on land Land Permitting Municipality 1 month Municipal zoning approval on land Grid Impact Submit technical package to utility Utility 2 months Study (GIS) Interconnection Produced by utility in standard template Utility 1 month Agreement Signed by consumer Submit interconnection agreement, Land permits, technical package, and all EMRC Licence EMRC 1 month approvals Total Time: 6 months 23
CHALLENGES AND POTENTIAL SOLUTIONS Captive solar provides many benefits to customers. However, there are some challenges to be addressed. CHALLENGES SOLUTIONS EXAMPLES Policies and Net Metering; Shams Dubai; Regulations Wheeling Wheeling in Jordan Financial No Upfront Investment; YDE Funds Installation Costs; Challenges Known Solar Tariff Agreed-upon Solar Tariff Technical Hire Solar Experts with YDE’s Technical Team; Challenges Relevant Experience Approved Contractors and Suppliers Business Entrust to Third Party YDE’s Services Focus 24
THANK YOU! OMAR SADDER Business Development Manager Yellow Door Energy Omar.Sadder@YellowDoorEnergy.com +971 50 622 0398
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