THE GROUP Engineering & Consulting - PowerPoint PPT Presentation

THE GROUP Engineering & Consulting – worldwide Developments and lessons learned of Utility scale PV plants in the Middle East, including storage Fabian Kuhn Consultant Photovoltaics, Wind Power & Hybrid Systems September 26, 2017, Conrad Dubai, UAE

Table of Content 1. Fichtner Intro 2. Lessons Learnt Large Scale PV IPPs 3. Pushing the limits with Electrical Energy Storage 2 2

The Fichtner Group  Established in 1922 and family-owned ever since  Germany’s biggest independent engineering and consultancy enterprise for infrastructure projects  More than 1500 employees worldwide – over 500 of these in our Home Office  Project experience in 170 countries  Over 1800 ongoing projects – 600 of these in our Home Office  Total turnover of €285 million in 2015  Capital investment volume now under planning in the home office: €180 billion – of which some €53 billion is in renewable energies 3 3

Fichtner Group Companies Fichtner GmbH & Co. KG (home office), Stuttgart Fichtner Bauconsulting GmbH, Stuttgart Fichtner Carbon Management GmbH, Stuttgart Fichtner IT Consulting AG, Stuttgart Germany Fichtner Management Consulting AG, Stuttgart Fichtner Oil & Gas GmbH, Stuttgart Fichtner Mining & Environment GmbH, Essen Fichtner Solar GmbH, Stuttgart Fichtner Water & Transportation GmbH, Stuttgart Fichtner Water & Wind GmbH, Hamburg GefaÖ mbH, Walldorf IKG Fichtner GmbH, Ludwigshafen Ingenieurbüro Floecksmühle GmbH, Aachen P&S Consulting GmbH, Duisburg SPE Unternehmensberatung GmbH, Mannheim Fichtner Consulting Engineers Ltd., Manchester Fichtner Environment SRL, Bucharest Europe Fichtner Italia s.r.l., Genoa Fichtner Management Consulting AG Schweiz, Zurich Fichtner Swiss GmbH, Zurich RESA - Recuperación de Energía S.A., Barcelona With our Home Office in Stuttgart, Fichtner Asia Consulting Pte Ltd., Singapore 24 subsidiaries and affiliates as well as Asia Fichtner Consulting Engineers (India) Pvt. Ltd., Chennai over 100 branch and project offices, we are present Fichtner Pacific Engineers Inc., Taipei In 60 countries worldwide. Fichtner Vietnam Company Limited, Hanoi 4 4

Range of Engineering and Consulting Services Analysis and Conceptual Design Feasibility studies • environmental impact and siting studies • economic and technical analyses • masterplans • integrated infrastructure concepts • plant concepts • preliminary planning and conceptual engineering • operation management concepts • IT concepts Engineering and Contract Award General planning • basic engineering • permit engineering • detail engineering • plant and functional specifications • tendering • bid evaluation • contract award recommendation • contractual negotiations • contract formulation Implementation Check of drawings • shop acceptances • specialist site management and supervision • coordination of commissioning • final acceptance • documentation • trial operation and warranty support • interface coordination • project steering • general project supervision • health and safety coordination • staff training Operation Process optimization • environmental, risk and quality management • maintenance scheduling • optimization of deployment • operation, management and environmental information systems Business Consultancy Market analyses • tariff studies • project development • strategy and organization • financial modeling • project financing • project management • lender’s engineering • due diligence • mergers & acquisitions • IT consultancy • sectorial IT solutions 5

Total Turnover of Fichtner Group, 2015 By business sector Energy 185.8 m € Environment 21.9 m € Water & Infrastructure 55.5 m € Consulting & IT 21.8 m € Total turnover 2015 285.0 m € By region Germany 97.6 m € Europe and CIS 59.4 m € Africa 40.2 m € Middle East 36.8 m € America 9.7 m € Asia, Australia 41.3 m € Total turnover 2015 285.0 m € 6

Photovoltaic Project Map Fichtner PV Experience  Fichtner realized more than 420 PV projects with a capacity of >17,000 MW, among others:  200+ lenders engineering projects  20+ owners engineering projects  30+ studies in connection with PV  Technical Advisor on many large scale PV IPP Projects (KSA, Egypt, Jordan, Dubai, Abu Dhabi, Oman)  PV Hybrid Projects (PV, Wind, Diesel, Electrical Storage, etc.) 7

Fichtner PV project experience (GW / Continent) Americas: Europe: South East: 0.17 GW 2.76 GW 0.9 GW Latin America: Africa: Middle East: Asia: 1.6 GW 3.94 GW 6.3 GW 2.14 GW 8 PV Power Plant_en

Fichtner Services Negotiation Call for Commis- and contract Tenders sioning award Feasibility Conceptual Construction and Operation Study Engineering Phase Testing Permitting Phase Phase Fichtner‘s Services as Owner‘s Engineer Check of Project Management / Project Specification, Evaluation of Documen- Control Collection, Invitation to Tenders, tation Review and Tender Negotiations Analysis of Monitoring Conceptual Handling of Available Data Design Review Commis- Engineering Punch List sioning Assistance Items Preliminary Compilation during Permit Design of Permit Site Supervision / Approval Optimization Application Construction Management Procedure Measures Receipt Provisional Project Planning Preliminary Contract Award to EPC, Check on of Tenders Idea Decision Investment NTP, Completion Takeover Decision Partial Permit Fichtner‘s Services as Lenders Engineer Full Due Diligence Post Financial Close Due Diligence / Construction supervision as LTA Pre-Financial Close Due Diligence 9

Project Constellation, Objectives, and Services Owner‘s Engineer Technical Support / Investor Insurance Claim Lender‘s Engineer Insurance company Lender Equity Loans Policies Techn. Assistance during developm. PV Project Operation Project Special Purpose Developer Management Contract Rights Vehicle / Project Company Techn. Assistance Power purchase O&M Contract during operation agreement EPC Contract Utility Service Company Grid Studies/ EPC contractor(s) Technical Advisor EPC Assistance 10

Table of Content 1. Fichtner Intro 2. Lessons Learnt Large Scale PV IPPs 3. Pushing the limits with Electrical Energy Storage 11 11

Structure of Tender Processes Typical Structure of an IPP scheme Feed-in-tariff (FIT), e.g. EU in the past Utility / Offtaker IPP Tender Rounds • Sites to be secured by developer kWh LCOE , e.g. South Africa, KSA, Chile, India deemed energy = f (solar irrad., [$/kWh] plant availability, • Pre-developed site available for bidder grid availability) PPA e.g. Dubai, Abu Dhabi, Egypt, KSA, Morocco, Jordan (Ma’an) • Site studies (e.g. topo, geotech, EIA screening) • PR guarantee? • Grid impact and compliance study at the POC • Capacity guarantee? • Capacitor factor guarantee? • Permitting (to the extent possible) With or without government shareholders IPP Guarantees: PR, availability, Unsolicited Bids with PPAs with state utility workmanship, inverter service agreement, etc. e.g. Jordan, others EPC O&M Contractor Contractor Private projects Product guarantees e.g. Chile, Spain, KSA Supplier 1 Supplier 2 Supplier n / subcontract / subcontract / subcontract 12

Alternative IPP Tender Rounds Option 4 and Option 5 Option 1 Option 2 Option 3 Tend. 1 Tend. 2 Tend. 3 Tender Tender Tender Tender Devel. 1 Devel. 2 Devel. 3 Developer Developer Developer Project Project Project Project Project Project Comp. 1 Comp. 2 Comp. 3 Company Company Company EPC EPC EPC EPC EPC EPC Contr. 1 Contr. 2 Contr. 3 Contractor Contractor Contractor EPC EPC EPC EPC EPC EPC EPC Contract EPC Contract Contr. 1 Contr. 2 Contr. 3 Contr. 1 Contr. 2 Contr. 3 Module Module Module Module Module Module Module Module Module Module Supplier 1 Suppl. 1 Suppl. 2 Suppl. 3 Supplier 1 Supplier 2 Supplier 3 Suppl. 1 Suppl. 2 Suppl. 3 Summary for Opt. 1: + lower procurement cost - concentration risk (example) + no interfaces with others - market development risks ($$) + high security for EPC contractor - complex financing with multiple bank groups + synergy effects - response from the market limited to the “big players” + single operator advantage 13

What is requested? Dubai – MBR Phase III Abu Dhabi – Sweihan •Defined area of around 20km² •Defined area of 7.8 km² •Defined power 800MW ac at point of connection •Grid connection max. 2 x 600MW ac at point of connection •DEWA as 60% Shareholder of the future IPP •ADWEA as 60% Shareholder of the IPP Parameters Parameters •Comply with technical, legal, financial requirements •Comply with technical, legal, financial requirements •Weighted tariff • Lowest tariff • High power / electricity generation •Phased commissioning Target Target •Increased tariff during summer months (high demand) •Fix east-west installation •1-axis tracking system •Cleaning “robots” •About 1,000 MW dc •Approx. 1,177 MW dc / 935 Mw ac (1.5 MWdc/Ha) •2.99 USct/kWh Result Result •2.46 USct/kWh charge rate (LCOE similar to DEWA Phase 3) Different parameters and targets lead to different optimized concepts and layouts in the bids: fix east-west   horizontal 1-axis Source: Krinner (300MW Cestas) Project specific optimization is required to win projects! 14