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Solar Project Proposal ENG
Solar Project Proposal ENG
TITLE
Submitted by
COMPANY
Version Date of submission: Summary of required changes /made compared to previous version
1 dd/mm/yyyy -------
Project proposal submitted as part of the Energising Development Rwanda promotion of village grids
COMPANY TITLE 01/06/16
Content
List of acronyms.....................................................................................................................................6
1. Project presentation.......................................................................................................................7
1.1. Qualitative description of the project.....................................................................................7
1.2. Summary table.......................................................................................................................8
2. Information about the developer...................................................................................................9
2.1. General information...............................................................................................................9
2.2. Information about technical and financial capacities.............................................................9
3. Socio-economic analysis...............................................................................................................10
3.1. Description of the village(s)/cell(s).......................................................................................10
3.2. Public institutions.................................................................................................................10
3.3. Commercial activities............................................................................................................10
3.4. Existing infrastructure & development projects...................................................................11
3.5. Evidence of local support.....................................................................................................11
4. Technical proposal........................................................................................................................12
4.1. Demand assessment.............................................................................................................12
4.2. Overview of the system........................................................................................................14
4.3. Powerhouse..........................................................................................................................15
4.4. PV Area.................................................................................................................................15
4.5. Solar charge controller.........................................................................................................15
4.6. Batteries...............................................................................................................................16
4.7. Inverter.................................................................................................................................16
4.8. Diesel Generator (if applicable)............................................................................................16
4.9. Monitoring and protection system.......................................................................................16
4.10. Wiring and auxiliary installations..........................................................................................16
4.11. Distribution network and consumer connections.................................................................16
5. Business model.............................................................................................................................18
5.1. Commercial management....................................................................................................18
5.2. Technical operation..............................................................................................................19
5.3. Business environment..........................................................................................................19
6. Financial proposal.........................................................................................................................20
6.1. Investment costs (CAPEX).....................................................................................................20
6.2. Source of Financing..............................................................................................................21
6.3. Operational costs (OPEX)......................................................................................................22
6.4. Tariff revenues......................................................................................................................22
6.5. Cash flow projection.............................................................................................................23
6.6. Financial performance and debt analysis.............................................................................24
7. Work plan.....................................................................................................................................25
8. Additional documents and certificates.........................................................................................26
8.1. Eligibility Certification...........................................................................................................26
8.2. Additional documents and certificates.................................................................................26
8.3. Photos, Technical drawings & Specifications........................................................................26
8.4. Pro-forma invoices and cost offers.......................................................................................26
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COMPANY TITLE 01/06/16
It is very important to check the consistency of the information provided at any stage of your
proposal development; if inconsistencies persist in the final document, EnDev Rwanda will assume
the most disadvantageous information available, hence affecting negatively the final score. This is
particularly true for the data presented on power demand, tariffs and revenues in the tables 2, 7 and
13.
For the financial proposal (chapter 6), you need to complete first the sections on CAPEX, OPEX,
financing and revenues in the respective sub-chapters 6.1, 6.2, 6.3, and 6.4. In a second step, you
need to conduct your cash flow projection over a ten year period (sub-chapters 6.5), as well as the
assessment of the financial performance and debt (sub-chapters 6.6). For this analysis, you will not
consider the contribution of the results-based funding provided by EnDev Rwanda. We expect that
NPV and IRR are possibly low highlighting the existing viability gap, which is why you are applying for
EnDev support in the first place. However, a project needs to show that it is a cost efficient
investment and that the gap is not unrealistically large. In any case, we will not accept any project
that is not able to cover its operational costs through collected revenues.
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COMPANY TITLE 01/06/16
Please approach UOB if you would like to use the EnDev village grid cash flow spread sheet for this
exercise. After submission of your application, the cash flow projection, financial performance and
debt analysis will be repeated by UOB using the EnDev village grid cash flow spread sheet to calculate
the amount of RBF funding your projects requires and qualifies for.
Before submitting your project proposal, you can delete this section “How to use this Project
Proposal Template” from the project proposal. After a final check for completeness, please also
delete all grey explanatory text in the chapters. The application should be submitted to UOB
electronically only in MS Word (.docx) format.
We require you to submit a number of legal documents as well as photos, technical drawings and
specification sheets. These documents need to be inserted into the chapter 8 of the project proposal.
If you only have print copies of these documents, we ask you to scan them (scan in text mode to
keep the files small). In case the final proposal document gets too big (in terms of MB), you can select
a picture in your document, click on Picture Tools (Format) on the top bar, then Compress Pictures.
There, untick the option “Apply only to this picture” and select Print (220 ppi). This will reduce the
size of pictures in this document.
In case this is not working, consider to submit two separate documents, which are:
The project proposal (chapter 1-7);
Chapter 8, which is composed of all additional documents and certificates needed for the
assessment.
For the final signing of the RBF contract with UOB, the project proposal will be printed out, signed
and attached to the RBF contract. Any legal documents need to be provided in original only at this
occasion.
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List of acronyms
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COMPANY TITLE 01/06/16
1. Project presentation
Complete this chapter (composed of 1.1 and 1.2) once you have finished the rest of the proposal and
make sure that the information provided is consistent with the information provided elsewhere!
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COMPANY TITLE 01/06/16
Customers
Item Power demand Daily Energy
Number
Customers (kW) demand (kWh)
Households
Social and community institutions
Business customers
TOTAL -
PV Plant
Installed PV capacity [Wpeak] Total battery capacity @ C20
[kWh]
Total Inverter capacity [kW] Diesel generator capacity* [kW]
* If applicable
Distribution network
Distance from powerhouse to furthest 1-phase customer [m]
Distance from powerhouse to furthest 3-phase customer [m]
Total extension of 1-phase distribution [m]
Total extension of 3-phase distribution [m]
Metering system Meters and/or load limiter
Prepaid/postpaid, flat rate
Tariff system
or metered
Contact
Project developer Name, phone number, e-mail
Local chief(s) Name(s), phone number(s)
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COMPANY TITLE 01/06/16
Attach the following documents in Section 8.2 Additional documents and certificates:
RDB Certificate of domestic company registration;
RSSB certificate of social security clearance;
RRA certificate of tax clearance;
Fill in the company self-certification of compliance with the requirement using the template in
paragraph 8.1 – Eligibility Certification
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COMPANY TITLE 01/06/16
3. Socio-economic analysis
Fill in table 1 below to define and cluster households, commercial activities and public/social
institutions by village. It should include the total numbers of households, business activities, social
and community institutions (and not only those you are willing to electrify).
BUSINESS ACTIVITIES
Type 1
Type 2
…
SOCIAL AND COMMUNITY INSTITUTIONS
Type 1
Type 2
…
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COMPANY TITLE 01/06/16
Also, demonstrate support at local level by attaching the following documents in Section 8.2:
Additional documents and certificates:
Expression of interest from the local chief(s) to benefit from the electricity service against
payment of fees. The letter needs to be certified by the respective cell authority.
Letter from the District authorising the project.
OPTIONAL: List of names and phone numbers of targeted future customer
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4. Technical proposal
For the development of the technical design, please consider the “EnDev Rwanda Quality and Safety
Guidelines for solar village grids” which are provided as part of the application package. We can
provide all recommended free literature and manuals upon request. Additionally, we are also sharing
our checklist for project commissioning that will give you an idea what we are looking for during
commissioning.
community
institutions
Type 1 … # W W W
Type 2 … # W W W
… … # W W W
STEP 2: Discuss the result of your demand assessment and the presented load curve. You can easily
calculate the average power demand by adding the electricity consumption of each 24 hour interval.
Be aware that this load curve does not give you a safe estimation on your possible peak load but only
the average load demand! To safely estimate your peak load, you need to assume that all your
customers use the maximum power you allow them to use at the same time. So you can calculate the
possible peak load by multiplying the total power demand in column E of table 2 by multiplying each
cell with the number of customers in this category as proposed in table 3 (column C).
STEP 3: Summarise the result of your demand assessment in table 3 below. Use for column B the data
of column E of table 2. Explain any technical measures taken to safeguard that max power demand of
specific customer groups and customers is respected (load limiters, MCBs, other control systems). In
case you plan to include virtual customers (see section 4.11) please add these customers in their
respective category as an extra customer group.
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COMPANY TITLE 01/06/16
Demand-supply management
Please discuss your load management strategy below. How do you limit the maximum power use
stated above in table 3 for each customer (load limiter, MCB)? What is the reaction speed and
accuracy of these devices (most thermal MCBs have a poor accuracy and are slow, which could result
in a break-down of your network before the MCB is triggered)?
As solar radiation is limited to and varying over the day hours; you need to model the supply demand
match using software such as Homer or PVsyst to determine the least cost-mix of PV installation,
battery storage and possible use of a diesel gen-set. You should also consider a modular and
expandable infrastructure that enables you to expand your PV module or battery capacity to cater to
possible future demand growth.
If the total cost of the systems gets too high to cater to the identified mix of local demand and
purchase power, you could consider the following options to reduce investment costs:
Reduce the power offered to specific customer groups: reducing the size of the MCB, have
them shared among different customers (for example, 1 A MCB every 4 households, or use
the power availability in terms of hours per day);
Reduce the number of customers: you have to balance the cost of the distribution network
for remote customers; in case of supply constraints you can improve your profitability by
focussing on customers in a close range to your power plant.
Use active load management: by shifting power demand to the day hours (as far as possible
e.g. for productive use) you can reduce the required storage capacity.
Design a modular system: by designing a modular system (e.g. by oversizing the power-
house to store more batteries in the future), you will be able to add capacity in case the
demand of your customers increases above your present availability.
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COMPANY TITLE 01/06/16
Please describe here the selected overall technical design and configuration of the PV power plant. In
case a diesel generator is used, explain mode of operation (back-up or parallel operation).
Installed PV capacity
Installed Inverter capacity
Battery capacity @ C20
Diesel generator capacity (if
any)
Environmental analysis
Please provide a description of the measures you will put in place to mitigate potential environment
hazards (e.g. leakage of batteries, spilling of diesel).
Also, please state whether you received an exemption (environmental clearance) for the EIA
(Environmental Impact Assessment) or not.
Attach RDB environmental clearance or approved EIA in Section 8.2: Additional documents and
certificates
4.3. Powerhouse
Please provide a description of the general layout (rooms and functions), materials (floor, walls, roof,
and doors), dimensions (height, length, and width), and the ventilation systems (number and location
of openings/windows).
Indicate the position of all electrical equipment in the powerhouse.
Finally, please state how safety and long-term operations will be ensured (how to avoid trespassing,
presence of lightning rod and grounding system, internal lights, no danger in respect of floods and
landslides, others to be specified by the PD)
Insert calculations and measures here.
Attach technical drawings in Section 8.3: Photos, Technical drawings & specifications
4.4. PV Area
Please provide a description of the PV module type, technical specifications and total size.
Explain the layout of the PV module array set-up, mounting structure, foundation and wiring.
Explain positioning of combiner boxes and wiring to the power house.
Insert calculations and measures here.
Attach technical drawing and location photos in Section 8.3: Photos, Technical drawings &
specifications
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COMPANY TITLE 01/06/16
4.6. Batteries
Please provide a description of the brand, type, size, and number of batteries proposed.
Provide calculations and explanation for design and selection here.
Attach specs sheet in Section 8.3: Photos, Technical drawings & specifications
4.7. Inverter
Please provide a description of the brand, type, size, and number of inverters proposed.
Provide calculations and explanation for design and selection here.
Attach specs sheet in Section 8.3: Photos, Technical drawings & specifications
Distribution network
Please describe the overall concept including a description of how safety of power distribution will be
ensured. In particular, the following aspects need to be covered:
Distribution cables are out of reach;
Poles are well placed and stable;
Risk of landslides is prevented for any components;
All wires and connections are insulated
All electric sockets are grounded;
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COMPANY TITLE 01/06/16
Insert a map here identifying the location of the powerhouse, the village(s) and the (main) customers
indicating distances in metres. If you do not have a high resolution map of the area, use google earth
and mark the position of main components.
Please describe how you will meet the EARP design standards and guideline as mentioned in the
Quality and Safety Guidelines for solar Village Grids.
Consumers connections
Please provide information on how you will ensure safety for the customers.
Attach specs sheet in Section 8.3: Photos, technical drawings & specifications
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COMPANY TITLE 01/06/16
5. Business model
Metering system
Please explain the metering system adopted, whether it is post-paid, pre-paid, or hybrid (based on
the type of customer).
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COMPANY TITLE 01/06/16
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6. Financial proposal
A clear financial proposal is crucial to analyse the commercial viability of the project without and with
the Results-Based Financing offered by EnDev. High quality and accuracy of provided cost data will
ensure that your project qualifies for bank financing and reduce risk of the long term commercial
operation.
Please enter all available information on CAPEX, OPEX and your financing resources in the
tables of section 6.1, 6.2, 6.3, and 6.4.
Implement the cash flow projection and financial performance & debt analysis. EnDev offers
a spreadsheet cash flow tool to calculate the cash flow and prepare the financial data
required in the table 6.5 and 6.6 of this chapter.
The calculation of the RBF contribution will be implemented after proposal submission by
Urwego Opportunity Bank (UOB)/EnDev Rwanda.
Equipment explain
Other explain
Total -
TOTAL
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COMPANY TITLE 01/06/16
Equity
Project Developer Equity
Connection fee contributions
Credit
Commercial bank loan
Other loan
Grant
Grant by district or other donor
Total Funding
Explain what annual cost increase of your operational costs you expect (price inflation)
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COMPANY TITLE 01/06/16
metered tariff). Enter the value for the estimated monthly energy consumption for all customers,
regardless if flat fee or metered fee!
A B D E F
C
# Monthly flat Metered fee Monthly Total
Customer group Total flat fee
fee (per kWh) energy metered Fee
(A*B)
consumption (A*D*E)
Households
Type 1 RWF RWF RWF kWh RWF
Type 2 RWF RWF RWF kWh RWF
… RWF RWF RWF kWh RWF
Commercial customers
Type 1 RWF RWF RWF kWh RWF
Type 2 RWF RWF RWF kWh RWF
… RWF RWF RWF kWh RWF
Social institutions
Type 1 RWF RWF RWF kWh RWF
Type 2 RWF RWF RWF kWh RWF
… RWF RWF RWF kWh RWF
Total monthly fee RWF RWF RWF
(-) Fee collection rate 90% RWF
(-) VAT 18% RWF
Total monthly revenues RWF
Annual revenues RWF
EBITDA 0 0 0 0 0 0 0 0 0 0
Net Profit 0 0 0 0 0 0 0 0 0 0
Net Profit Margin % % % % % % % % % %
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COMPANY TITLE 01/06/16
Year
(000 RWF)
1 2 3 4 5 6 7 8 9 10
Net Profit 0 0 0 0 0 0 0 0 0 0
Total Depreciation (+) 0 0 0 0 0 0 0 0 0 0
Loss carried forward (+) 0 0 0 0 0 0 0 0 0 0
Loan Repayment (-) 0 0 0 0 0 0 0 0 0 0
Net Cash Flow 0 0 0 0 0 0 0 0 0 0
Liquidity Reserves (5%) 0 0 0 0 0 0 0 0 0 0
Tax on dividends (15%) 0 0 0 0 0 0 0 0 0 0
Total Dividend Pay-out 0 0 0 0 0 0 0 0 0 0
Payback (years) 0
Internal Rate of
%
Return (%)
Net Present Value
0
(000 RWF) xx% WACC
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COMPANY TITLE 01/06/16
7. Work plan
Remember that once the contract is signed, companies have one year to finish constructing the
village grid. Please fill in the boxes in the table below identifying the delay needed for each activity (if
applicable).
Also, please try to avoid building structures (especially civil works) during the rainy season.
Activity 1 2 3 4 5 6 7 8 9 10 11 12
Month
ADMINISTRATIVE DOCUMENTS
Environmental Impact Assessment (RDB)
Simplified Licence for Isolated Grids (50-100 kW, RURA)
FINANCIAL CLOSE
Getting loan guaranty and bank loan
CIVIL ENGINEERING WORKS
Set-up of construction site
Procurement of materials
Adaptation of access road
Construction of powerhouse
Construction of foundation and mounting structure for PV
Securing of the system
ELECTROMECHANICAL EQUIPMENT
Procurement of equipment
Installation of equipment
Wiring
GRID
Procurement of equipment
Excavation
Pose of poles
Installation of the distribution grid
CONNECTIONS AND COMMISSIONING
Testing
Connection of customers
Commissioning
Closing of construction site
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COMPANY TITLE 01/06/16
I, [names], as [Title] of [name of the company], declare that by signing this project proposal for and on behalf
of [name of the company] I am certifying that all information contained herein is accurate and truthful.
I am also committed:
i. To comply with the rules and obligations governing RBF funds and
ii. To provide all data related to the RBF program and accept checks and cross-check that could be conducted by
the program
iii. To fund all activities before the reception of the incentive
iv. To maintain the connection for the period of at least 5 years
v. To keep record of project monitoring data and share them with the program
vi. To provide information and participate in interviews
I understand that any wilful misstatement or leaving out information may lead to my disqualification and
legal prosecution.
_________________________________________________ (Seal)
(Signature)
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