Recently there seems to be more buzz around various parties interested in developing solar power plant deals. Often, we get queries asking us about costs, ROI, etc. Here’s an email exchange that you may find useful:
Dear Potential Partner:
Rule of thumb for area is roughly 5 acres (or approx 40 ropanis) per megawatt. Ideal sites are ones that are road-accessible (to transport equipment etc), fairly flat (terraced is fine), and close to an NEA substation / transmission line that is able to integrate the additional power generated by the solar power plant
Please let us know if we can help you further in this process
thanks and best regards,
On Sun, Feb 24, 2013 at 10:38 PM, Potential Partner wrote:
Dear Gham Power,
My apology for the delayed response and appreciate the information provided. Which I will look into. In the meantime, do we have thumb rule ratio for the land : Mw.
And have we also approached Nepal government for lease land. Pls do let me know and we could look into the possibility of working together.
On Feb 15, 2013, at 4:33 AM, Gham Power wrote:
Dear Potential Partner:
Usually you are looking at $2/watt or maybe a little less for cost of installation (i.e. a 10 mw plant will cost $20 million or less). Nepal doesn’t have a subsidized PPA for renewable sources like Solar, so by today’s policy, you will most likely get the same PPA a Hydro, maybe slightly better. The big difference compared to hydro is solar power plants are extremely fast to install, and plants of size 20 mw or under usually go online within 12 months of project start.
Depending on your location, you can also qualify for grant or soft loans to partially fund the installation, plus you can also get carbon credits once the plant starts producing power. IRR for these projects typically range between 12 to 15%, with a system/project life of 25 years, returns get better if you can get grant or soft loans.
If you have a site in mind, we will be more than happy to help you go through the process of obtaining a PPA and also explore investors on your behalf. Let us know how you’d like to proceed
On Mon, Feb 4, 2013 at 9:13 PM, Potential Partner wrote:
What is the thumb rule for investment in solar power minus the land acquisition or lease cost component?
Here’s another similar email exchange:
Hello Potential Partner
Thanks for your interst. Have you already identified a location, size of the power plant, and your PPA rates with NEA?
We carry panels from LDK, one of the top 3 tier 1 manufacturer of solar panels in the world. Here’s more detailed information on the panels — http://www.ldksolar.com/pro_module_overview.php — we also have access to other Tier 1 manufacturers.
As for prices, it depends on the size of the order. On multi-MW size shipments, today the price trends around $0.70 per Wp, but looking at cost/Wp alone is actually dangerous for planning a profitable power plant business. You have to get your cost/Kwh figured out, which includse a lot more variables, including panel efficienct, solar irradiation at your proposed site, etc. If you are interested, we’d be happy to collaborate with you on assessing the feasibility of the power plant project
Thanks and best regards,
On Tue, Mar 26, 2013 at 2:01 AM, Potential Partner wrote:
You have received a message from Gham Power. Message details are as follows:
Date and Time: Tuesday 26th March 2013 09:01:44
Message: Actually we are searching for reasonable solar plant.Can you send me the cost of different types of solar panels as soon as possible.