Goals of Efficiency, Energy Cost Savings and Positive Environmental Impact
While many companies have achieved significant improvement in energy efficiency last decade, there are technological limits, so a continued high level of investment leads to only marginal improvements compared to past years. The next meaningful step in order to reduce costs and achieve the goals of sustainability is to switch usage of conventional to green and smart energy. This switch will have an immediate and dramatic impact on the CO2 footprint of the company;
Switching to renewable energy may be effected in various ways. Two of them are investing in RES production of electricity at the production sites (so called “Energy for Self-Consumption”) or long-term leasing of a photovoltaic system for producing of electric energy.
The Consumer’s options to source solar energy for its needs
- Rooftop or ground-based PV system, connected to the consumer via direct cable
The system can be owned or leased under a long term (e.g. 20 years) lease agreement
- Build-Own-Operate (BOO) a solar power plant not connected via direct cable at a location of its choice
Land may be purchased or leased
The PV system may be purchased or leased
- Purchase green electricity from a solar new-build (Option 3). Electricity might be sourced under short term or long- term power purchase agreements (so called Private PPAs).
Operation Principle of Rooftop Systems for Self-consumption
- PV panels capture the energy from the sun and convert the solar energy into electricity.
- The inverter converts the direct current (DC) power into alternating current (AC).
- During the day the electricity generated is used to power the onsite equipment. A smart meter provides information in real time for the total electricity consumed onsite.
- If the energy produced by the PV system is not sufficient to cover the energy consumption, the shortage is covered by DSO
Illustration of roof top supporting structure
Principle of “Long-term Rent Agreement”
- Solarpro invests in development and EPC of a PV power plant within the territory of the Electricity Off-taker
- All system costs related to the installation and operation of the system are covered by Solarpro Holding AD;
- The electricity Off-taker provides its ground or roof area required for the installation of the PV plant
- A 10/15/20- year Rent agreement is signed with Solarpro, where the Rent is based on the Electricity consumed x Fixed price EUR/MWh
- There is an option of acquiring of the ownership of the PV system
Benefits of PV system for self-consumption via direct cable
If the Consumer is willing to invest, the PV system is typically purchased through an Engineer-Procure-and-Construct (“EPC”) Contract. The EPC Contractor delivers a turn-key solution, and the Buyer (Consumer) owns and operates the installation, at its own cost.
- Cost saving: in most of the cases no payment of network fees and obligation to society fee, no commissions for energy traders
- Typical payback of the system around 5-7 years in most part of the Europe
- The Buyer effectively replaces the cost for electricity with depreciation of the PV system
- Opportunity to store excessive electricity using:
– Flexible load management of the main consumers – boilers, coolers, heaters, etc.
– Chagrin stations t = > EV (Electric véhicules)
– Energy storage systems (usually using Li-Io batteries)
If the Consumer prefers not to invest in the PV system, it can be acquired through a long-term lease agreement (e.g. for 20 years) in which case the cost of electricity is replaced with rent payments sized to correspond to the amount of electricity consumed, at a pre-determined price
- No CAPEX to acquire PV system
- Cost saving due to not paying electricity network fees, obligation to society, etc.
- Ability to lock-in an attractive electricity price for a long period (typically 10/15/20 years)
- Predictability of costs for long periods of time.
Fixed price EUR/MWh excl. VAT
Assuming 1kWh = 0.93 kg CO2