Recording and presentations: DEWA’s 700 MW CSP project update

25 March 2020

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Automated transcription (it may contain errors)

Belén Gallego 0:47
Good morning, everyone. I just wanted to let you know that you’re in the right place that we’re here we’re going to talk in this online session about the windows 700 CSP projects and we will Literally in in one minute. So in the time that we have while we’re waiting, I’d like to invite you to use the chat to introduce yourself, your company, and also telling telling us where you’re based essentially. And just introduce myself I’m Belinda, from Ata Insights and I am contacting you, from Madrid and from my home because as you know, all the Spanish people were working from home. These days were under lockdown.

Good morning, ladies and gentlemen, and welcome to this online session, we’re going to talk about the largest CSP project to date and is one that is like very close to my heart because as you know, concentrated solar power, what it does is it collects the sun, the sun’s heat, and he can actually store it for a very long period and in the case of Giga 700, we have 15 hours of storage, and he is then dispatched when it’s needed. So we’re going to hear more about this mammoth project and how it’s coming along is still going to take a few months you know, before it comes online, and of course, we do have to bear in mind one thing and that no one was expecting and is this whole covert crisis. I am sure you know it’s going to be harder in terms of the project updates and how much information we have because as we know, the whole world has come to a standstill. But we’re gonna see what is prejudice today. So I’d like to welcome everyone and I’d like to introduce you to the two experts that are going to be speaking today. And I’d like to introduce yourselves Maryam and Manuel. So Miriam First, if you can unmute your microphone, introduce yourself and your company.

Unknown Speaker 3:28
Hello, everyone. Hello, Bill. And thank you for

Unknown Speaker 3:32
the invitation. It’s a an honor for us also to participate in this webinar. So my name is Marian benzene, I am with Aqua power for almost eight years now. And as part of business development team, I have led the development of the D word CSP PV hybrid project, and I would be happy to answer questions today.

Belén Gallego 3:58
Thank you very much. Or they said something very interesting. We are going to be talking about hybrid technology approach. But Marian What are you based today?

Unknown Speaker 4:06
So I’m based at home by right? Yes, I’m basically Dubai. But here also we started to look down. Yes. So I’m on top.

Belén Gallego 4:17
Yeah. Okay. This is one of the advice. I’m gonna give everyone stay home. All right, Manuel, could you please introduce yourself and the company a little bit?

Unknown Speaker 4:29
Yeah. Hello. Good morning or good afternoon, everybody. And it’s Martin. I’m located in Seville right now. Hi, Tom. Like most of you, I suppose. I’d be working in the in Angola for 17 years more or less. Always in the sort of technology department right now. I’m the sort field engineering manager for the do appreciate. I appreciate your invitation and I will be a pleasure to to share with you about this project.

Belén Gallego 5:00
Excellent, thank you very much. Okay, so this is the way this panel is gonna go. Miriam is going to speak first give a presentation then Manuel, and then we’ll take some questions as well. And that is like to welcome everyone you know, I see there are people from Lebanon, you know, from Egypt from Tunis from everywhere. France, Germany, Netherlands, UK, Spain. So welcome everyone stay at home. I hope you working from home. As you know, you know, this is this is not probably like the right time to be out there. I hope you’re all keeping safe. Right, Miriam, why don’t you share your presentation? Make sure you unmute your mic. And was Marian does that just like to remind you a lot of you already know our webinars very well and have been here before. But for those who haven’t. Just It was very simple. Miriam is going to speak them and well then we’ll have the questions. You can send the questions through the q&a box at the bottom and your bottom will use the chat just introduce yourself and we use the q&a to attend to the questions thereafter. We are recording the session so you don’t have to worry, you know, you will get the slides and you will also have the ability to to see the entire presentation and then watch the whole thing again. So, Miriam, you’re ready? Yes. Okay. We can see this perfectly. So go for it. Okay.

Unknown Speaker 6:23
Perfect. So, yeah, I think it’s important to, to talk about hi big project. So last year, I think it’s, again, I think it’s around a year ago, we had a webinar also about hybrid project, and that case, it was PV and CSP, where the project of our time was still under development, and it was not yet financially closed. And last year, we discussed more about

Unknown Speaker 6:55
how we reached the hybrid PV project, yet UCSB solar project, and why what were the reasons? What were the challenges faced are the early stage of development and how the project has evolved from the RFP stage, let’s say the tender issue went by diva and till the signature of the PPA. And this was explained in a webinar last year. But everyone who is here in the webinar today, you can ask questions because I’m not sure if people are following when the details of the projects are during development and how we used it or not. So please feel free to to ask questions. And today I’m going to focus more on what’s happened during the later stage of development, how we have how we have closed the project, what are the key information related to the project because sometimes we think that we know projects, but we don’t have to details like who are the stakeholders? What is the reality of this project? Exactly. And I’m going to give you an overview of this today, and then also discuss on what’s happened during 2019, the key milestones that were achieved and the challenges that were faced up to the end of 2019 and the beginning of 2020.

Unknown Speaker 8:29

Unknown Speaker 8:32
last year, we have shown how we reach the hybrid PV and CSP and then within Aqua power, how we moved from the first project that we had in PV. And the first as I said, we have in CSP in terms of tariff and competitiveness and where we were at the time of the phase four. So now I have a small update because we have also deal with phase five, which has been a while just to acquire powers. So, in terms of, of projects in the UAE within the same solar Park, only NPV we have moved from 5.8 cents dollar per kilowatt hour to 1.69 cents dollar per kilowatt hour which is more than about 70%. of, of lower tariffs. While in the CSP within only equal power, we have reached more than 60% of lower tariffs between the first project that we had in CSP, which is in South Africa book port and d’Ivoire, phase four in in Dubai. So, this project is important for us, because since last year, we’re talking about the energy transition toward a global energy with zero carbon emissions and then this project is a huge project that is really supporting this transition using usable energy. So no one we go to the details of the project. So the project is implemented and owned by a company who is named nor energy one, which is a company created here in the UAE in Dubai. And as you may know, here in Dubai, you need to to set a company specific to each project because of the requirements of the law here in the UAE. And so this is the company who is in reality owning the project is an entity owning the project. And the project is part of the fourth phase of Mohammed bin Rashid solar Park, where we have before that the D phase phase two projects which have been awarded to us and we currently have D were phase five also. So the project is not just a 700 megawatt project. It is Hundred megawatts CSP project plus the 250 Pv project. So it’s a total of 950 megawatt. It’s not just a 750 megawatt and a total of 950 megawatts is dispatchable to the grid in Dubai. So, one of the key points to retain about this project and the achievement is that it is to know that it’s the largest single project as a one project using CSP technology, which is a unique in it of its kind having four units of CSP unit. So, it has also considered 7.3 cent of tariff so 7.3 cent US dollar per kilowatt hour, which is a world record in terms of CSP, and it has not been seen before in other projects. And it has also competed with with fossil fuel, electricity which is you know here in the UAE especially, it is using that source of the country and Dubai is using was used to use mainly CGT and fossil fuel plant. So this project is there to compete purely with the conventional parts of power plant here in the UAE. And so this project also we have to know that it’s provide 24 hour energy purely from solar energy. So it’s a it’s solar and ephemeral storage and using the largest tower in the world. So, it has one unit which is a CSP tower unit of 100 megawatt and the the tallest tower in the world is of 260 meter. And in addition to part of lecture of units, which are three units there, and each of 200 megawatt totaling 600 megawatt one The most important t record, but the project has reached. It’s also like considered as the largest renewable project in the world in terms of investment, which is a huge, it’s huge, I mean, compared to the capacity of the project and given the 24 hour, the 24 hour year dispatch, the total investment is of $4.3 billion.

Unknown Speaker 13:32
Okay, the budget was, you know, the project was tendered by the government of Dubai, which is the world as part of the banking strategy to achieve 25% of its energy from renewables by 2030. Here on the right and in the presentation, you would see the concept of CSP but are used here in in our project, which is a central tower one unit On the right on the top and then parabolic trough below it.

Unknown Speaker 14:10
So, now, I would like to give you an overview on the project itself in terms of who are the stakeholders and some other details that you may not know right now. So, the as we said the project is owned by New Energy one, it is a 700 megawatt and 250 megawatt hybrid. It is an IPP project as a standalone Greenfield, the off taker is is de la which is Dubai, electricity and water authority and in Dubai and the sponsors who are forming actually the projects company which is New Energy one, our viwa is 51% event that is up Power and Silk Road fund. So here in the UAE also in Dubai, the government needs to have the majority should need to be the majority shareholders. What we have here deal with 51%. I said before and this project is also part of the same solar part that I will show you later on in layout. So you can have an idea on how is a solar package distributed. And our scope as developer was to develop, build and operate so it’s a beautiful structure, capacity and as we said, so 950 CSP PV hybrid with 100 megawatts of central tower and three units of 200 megawatt parabolic trough with a total thermal storage of 15 hours so it means that it reaches 24 Ours dispatch, whenever it is required to dispatch there is always energy to to dispatch and the 250 megawatt AC photovoltaic, the EPC contractor we use in this project Given the importance of the project and the the high investment cost of the project in terms of EPC price and then the risks behind it we needed an EPC contractor that is quite robust technically and also financially very important to get also the lenders to approve the EPC contractor and in this case we have to shangai Electric group company that is currently doing the construction of the project. As owner contractor, we have no Mark who is a company owned by Aqua power and experienced in CSP operation project And who is currently operating for instance number one, two and three in Morocco CSP project and also book port projects in South Africa. In terms of technology providers, as we said, we have three units of parabolic trough and one unit of central tower and we have also the PV there. So, we needed to have the best technology in terms of I mean, technically and also in commercially. So the technology we choose for this project was coming from bright source in for for the city, which is the central tower. So there has been a JV found by bright souls and Shanghai electric for this purpose. And then for the parabolic trough. We have used Abengoa and then there has been also a JV formed by I’ve been gone and shanga Electric.

Unknown Speaker 18:09
So, when when when we say a total investment of $4.3 billion, and you can imagine that having senior debt of $2.4 billion is very challenging. So, the developer at the time of development, meaning during 2018, we have worked very, very closely with many lenders, many banks, as you can see here. There are many banks that we have used because we needed to have the depth assured by several banks, in order to make sure that we could meet the requirements of the RFP. So, as banks here we can give an example of standard charter. We can also see ICBC, Bank of China Union National Bank etc. So in addition to the senior debt, we have used also an EB L, which is equity bridge long for our projects and has also use this money for the PPA, I’m not sure if people are aware of this, but it is the longest PPA that we have seen in this technology in CSP of 35 years. So, meaning that we have the construction of each unit and then we reach a cod commercial operation date of the project and from commercial operating date of the project will have 35 years of PPA to dispatch energy until the end of the term of this PPA, which is quite which is something very specific to this project, but we have managed to get to warranties and get also the lenders and clients conferred on this

Unknown Speaker 20:06
So as I was saying on the solar Park you can see where where is where the project is located. So this is the phase four of de la, which is this ESP NPV hybrid here. On that side, we have the solar part is the red. So we have phase one, which was this small one of 13 megawatts PV, which is operational. It was a small project based on EPC. It’s not an IPP that has been built as the first project as a pilot project, let’s say in the solar Park. Phase Two is the 200 megawatt which is also operational now. And in it is a project that has been awarded by 2050 to us, and then we have phase three, which is based on three Solar fields. So three units, each unit is have. So there is 200 303 hundred megawatts each totaling 800 megawatts PV. And then there is phase four, which is our projects, also the 700 plus 250 megawatt hybrid. And then there is phase five and other future projects in that area.

Unknown Speaker 21:36
So, another view on the technical side

Unknown Speaker 21:41
and I’m not sure if I mean I will repeat things but you can ask him other questions if if you would like more

Unknown Speaker 21:52
more details of course, and so the site is very well accessible because you know, we are located in Dubai is not very far from the port There are roads here, the roads conditions aren’t very good. So the accessibility of the project is very good. And it is around 70 kilometers from Dubai and 90 kilometer from the port of Jebel Ali. And very well connected to two roads from the solar Park. So from different accesses the technology as we said, So, there is a central receiver tower and with molten salt parabolic trough with thermal or any water storage and also the photovoltaic portion and export capacity is off, as I said before 950 megawatt net with 250 ac pv 600 megawatt net of public trough and 100 megawatts of central power for The solar field. So we have used, as I said before, both Abengoa and Brightspace technologies for the two, the two technologies is ESP technologies. So we use the halo stuff lH 2.5, by a bright source for the central tower, and then we use the St. 8.2 collector, by Abengoa for all the three units. So we have the same technology used in the three units, which makes engineering and execution a little bit easier for us.

Unknown Speaker 23:33
For the PV facilities, we have PV for both internal consumption

Unknown Speaker 23:41
which is not allowed to be dispatched, and we have the PV 250, which is allowed to dispatch to the grid. So there are two different PV facilities in the project with the one that we talked about in 250 megawatt is the one that is going to dispatch to the grid only. The rest is done for only in conception and is not counted in the meter for the molten salt receiver we are using CMI technology for the central tower and for the thermal storage, so, we are considering 15 hour for the central tower unit and then 12.5 hours for each of the parabolic troughs unit the cooling system we are using air cooled condenser because you know here there is no water. So, we have no other choice then using the air cooled condenser and interconnection to the grid we have So, within the project we have substations, we have several switching stations. And then we have to connect from our switching stations to the substation at 400 kV. So, you know, given that the huge area of the project is around 44 kilometer square, square kilometer sorry. So it’s very far to connect one unit from one side to the other side. So that’s why we have similar switching stations which are under construction in the project advisors. So, given the complexity of the project, in terms of, I mean, technically and financially and even contractually, also, we have considered different set of advisors. So there were some advisors related to Aqua power, I mean from our side, as a developer, we can see there’s technical, legal tax and insurance advisors and for the local and for the International ones, and we have also lenders advisors, so which are which are hired by the lenders. So they use also the saying that our technical legal tax and insurance advisors On the lender side and then there is also the one off taker who has their own advisors in the same way. So, there was a huge amount of advisors checking and reviewing the project making sure that this project is sustainable and is physical. From the solar resource assessment, you know that we as we have our projects there already, which is the phase two, and we had already a metal station which has been installed about time that as in a project, and then we could have our DHCP from satellite and the ones measured on site. In addition to that diva has provided also DNI images on site. So, we did a combination of all these in order to have the best assessment. Okay, operational life of the project is offered 35 years from initial acceptance of the plants as explained previously, and one of the of the important point to highlight in this project is that they were the project had some benefits and two benefits of this is that we had savings in carbon emissions. So we have more than 1.6 million tons per year of saving in carbon emissions. And we have also we are planning to power also and more than 320,000 residential units in Dubai. So this is the positive side of the project having renewables here in Dubai.

Unknown Speaker 27:43
Okay, when it’s come to the contractual timeline, so many, many people think that, okay, you have one project, but you have to start a new project and then you finish the whole project. So from zero to 915 ago, it’s not this project is having For unit different unit, so, each unit would have its own date of initial acceptance, and then there would be an initial acceptance for the whole project as 950. So, the NTP was issued by December 2008. So, by the end of the year or And finally, nose was reached by March 2019. And then after that there is each unit having its own initial acceptance. So, starting by the public trough, which is the first one by August 2021. And after that, there is the central tower by November 2021 and then the two other projects will follow by April and December 2020. Once all the all the units are achieved, are accepted then there Is the plant initial acceptance which is planned for December 2022. So, in case there is a delay in one of the unit, then the plants UD is not going to be achieved unless all the units have reached that initial acceptance.

Unknown Speaker 29:22
So, as you can see in this slide and there are some key and key milestones that we have reached during the development and just to give you an idea on how the project was developed. So, the tender was issued in 2019 sorry 2017 in January 2017. The bids were submitted based on two towers of 100 megawatts each as base proposal in June 2017 where the bidders had the right To submit a proposal which is alternative, so, we could change the technology or bring something which is providing a better LTV to the client. And with a certain value of course, as alternative proposal and this is what has been accepted by our clients. So, we we have worked with our client and we have been awarded not the base proposal, but the alternative proposal. After that, there was a okay PPA signature which was happening before the ceremony then we had the ceremony with His Highness in March 2018. We have signed after that the EPC contract by April 2018. In Shanghai, and and you can see also here that the project has played a very important political political I mean politically was very important. So, the head of state in the UAE and China have met and then they have highlighted this project and discussed it during the meeting. And there was also in Spain, the head of state also have met between Spain and and China and they have discussed also this project. So, from a political perspective is very important and is bringing a lot of advantage in terms of collaboration between the three countries. After that, so, we have issued in NTP by as we said before, December 2018. And during all that time, there is a construction and till initial acceptance and then there will be a final acceptance after three years

Unknown Speaker 32:00
Now we can go to the contractual structure. So

Unknown Speaker 32:05
we always hear Okay, this is a project of diva or Aqua power, but we don’t know who is really behind that. So, here it would give you maybe an idea on how it is structured in detail. So, the one is the off taker as we said, and there is Aqua power and diva who created each a company called a hot company. So within the diva hot company, it owns 51% as we said, and for Aqua power hold company, there is a power and also secret fund forming a company together, each of them having 51% and 49% within this company and entering into a shareholder agreement between the work and upper power walls to form the projects company So the project company is no energy one, which which is formed by both companies and sign has signed a PPA with the Y directly as an off taker. In the meantime, it’s the project company who enters into the financing document with all the lenders with a big number of lenders in this project given their high amount of investment. And it enters also in the meantime with the EPC contractor shunga Electric, where shanga Electric itself has subcontractors. In this case, one of the key subcontractors are the technology providers. So there’s a bingo assignment on the public trough and then there is also breakthroughs on the central tower. The project company also entered into an OEM contract which is with no magic in it with In the project company, so the RFP imposes that each project company has an owner engineers in order to verify and review all the works related to the EPC part. So, in our case here, no energy one has appointed one person to be the owners engineer who is going, who is currently actually reviewing all the projector documents in terms of EPC. Okay, so, for the key achievement during 2019, up to enter 2019, or let’s say, January 2020. So there were from the financial side, and there is a financial close which was achieved in the first quarter of 2019. That’s the extent before so it was a little bit challenging because of the complexity of the project. Not Only the amount required for the project to be a loan from the lenders, but also the contractual structure and the technologies that have been used and the mix between the technologies and the risk allocation in each unit and how it is distributed contractually. So it was challenging in terms of achievement to get it fine. Important point that we have achieved during 2019 is the CBI climate bond certificate, which is the first in the GCC and the Middle East for a project which is a project finance, renewable project finance project. And so we are very proud and very happy for having achieved that. That means that and that in the future if we want to have any restructuring of the finances Or any refinancing in our case, it would attract much more lenders with with with more competitive Yes, of course. And given that liquitex has been certified already were with the by CBI for the climate

Unknown Speaker 36:18
from the execution site and the first key

Unknown Speaker 36:24
the key milestone that have been achieved in 2019 is that the central tower, I mean, the concrete tower, the civil construction part has been achieved. And that was a very important point. So currently we are erecting the MSR on lower and then the lifting is going to start by May 2020. So, that’s going to that’s going to be I mean another very important milestone to be achieved in 2024. The solar fields it is ongoing As per schedule, so, it has started ahead of time because we had we had the engineering that started earlier. So, we could we could do many works which were, which were ahead of time and we have completed the procurement of major equipment. So, that is that that is a very critical point which was very challenging at the beginning. Because, you know, when you have one project only one unit only have 100 or 200 megawatt CSP is not an issue to achieve the procurement of major equipment and issue the POS, but when you have four unit with different different technologies, and when we would need a large amount of heat exchangers have many turbines of Transformers of main pumps of molten salt and considering that we are Talking about the 24 hour dispatch meaning that for for example, for the thermal storage, you would need a lot of much, much more quantity of equipment then and then the normal CSP projects of two three or four hours of storage, then that was very, very challenging and we are very happy that we have achieved that in 2019. So, for the public trough, the the map has been completed. So, the manufacturing facility for the job is completed and then we have started the attraction and erection on site I will show you later on the photo. And we have also reached and three 3200 employees on site in total as of now, I mean not as of now, but as of the beginning of 2020 So, no, it must be more. And so, within these 303,200 employees, we have reached more than two 4.2 million safe man hours, which is a key point in terms of safety in the project. Okay, when it comes to challenges faced during, during the construction, so after financial clothes, and you know, but this is a new, this is a unique project for us and for our EPC contractor. So, are the patient to the site was a challenge at the beginning.

Unknown Speaker 39:40

Unknown Speaker 39:43
So, considering that there are genes, I’m not sure if you have an idea on on how the site is but it’s almost full of genes and when we say jeans is not just one or two meter jeans, it’s around like 30 meter jeans. So it was very challenging for the beginning to start to start working on the site leveling, so which strategy we have to use, which subcontractors are and are familiar with this. So we have to take some subcontractors present them to the EPC contractor in order to work on on the juice leveling and using also the cheapest way and the best effective way in order to get rid of the GS because you know for CSP is not like PV for CSP, you need to be especially for the public trough, you need to have a very flat area with a very small angle. So that was one of the changes the weather conditions. It was also the first time for our EPC to work here in Dubai. And so it was a little bit slow at the beginning because they had to get used to the weather conditions. When they can work and when it was summer when it was Ramadan here, so it was a bit of a challenge. And then also the local requirements. So here that given again that it’s the first time for our EPC contractor and to have a project here in the UAE and in Dubai and so, the local requirements like for instance, or the permit or or the approvals that are required for the project, what is allowed to be done what what to do who to contact, it was a bit of a challenge of the beginning. The second point is related to coordination. I mean, you know, the project is, has a central unit has several technology providers and has many subcontractors and suppliers of equipment. So coordination between all of them was was challenging because we had an our VPC also had to understand, to whom to talk when we said proving what we have also different engineering companies. So, they were using for instance and precarious Agra brothers for the engineering review and then that is in the meantime, our super our our people from the project company from energy one, there are also the owner engineer to being taken in consideration to review and approve. So, all that has taken a little bit of a learning curve for first not only engineering, but also for and the execution during the first month of the project. So, we had also to to see what the EPC contractor and especially I mean, the EPC contractor has had to find out who are the best contractors who who need to work on this project. So we needed some subcontractors which are experienced Not, not all in the technology. So there were some subcontractors in was important to get them experience in the UAE in Dubai in terms of, for example of its works for example, and there are some other subcontractors that had to be experienced in the technology itself. So, those who are doing the erection and other aspects of the project. So that was a little bit challenging at the beginning, but once we settled on the the lemon core, then it was easier to go smoothly after that and just work on the execution of the project. And it is to note also that the engineering coordination with various parties considering that the EPC is Chinese, the project company is from Dubai and the technology technology providers are from Spain or UK and and there are other options. So, other subcontractors and key parties in other locations. So, coordinating between all of them, it was at the beginning little bit hard but then it went smoothly out same as for other items.

Unknown Speaker 44:19
And the last point, which was very challenging also is the amount as I said before, if we have a big number of of equipments to be ordered, then maybe availability in the market is not enough or the market is not used to provide such availability of equipment. So, we had to work very hard at the beginning together with EPC contractors to ensure that manufacturing is going as per plan and issue the peels on time, especially for the key equipment, which are free

Unknown Speaker 44:54
to the project

Unknown Speaker 44:57

Unknown Speaker 45:04
So, um, I have

Unknown Speaker 45:08
before going to that maybe I would just add that from the contractual side.

Unknown Speaker 45:14
We had I mean, the complexity of project had to consider also that it’s not, it’s not just one project team that okay it has a PPA, it has an EPC contract, and it has a no one contract. And then it has just some some subcontractors and now the project had to take in consideration that we needed a robust EPC, the EPC had to be financially and technically capable of executing the project. The project is a key project for us and for the government of Dubai also. So there is no way that we could mess around it. It’s a very costly projects. It’s a very high investment project. So the risk allocation is not like in a small project where if you lose, for example, a portion of it, it’s not an issue, it’s not a problem. At the end, it’s not much money here, we’re talking about $4.3 billion where any and any issue in the project would cost us a lot of money and because the EPC also a lot of money, and so, there have been many, many bonds that have been structured with the EPC contractor and at different levels during during the development of the project during the execution of the project. And also during the operation the first three years of operation of a project which is over it is done by Noma and EPC contractor had to provide some bonds in order to ensure the performance of the project during three years.

Unknown Speaker 46:48
There were some mechanism work of in, in in the contractual part in terms of

Unknown Speaker 46:58
plant unit performance and termination etc. And there have been also the use of different technology providers and also the use of PV which was a PV either for internal consumption PV for dispatch, and there was also at which level we had to put the PV for the dispatch metered and then how to separate the PV for the internal consumptions without putting it on the meter, etc. So, it’s not a simple project that we talked about like one thing, but now we have to think about all these aspects in order to structure and make the project acceptable to us acceptable to diva as off taker and also acceptable to the lender, especially because, and the amount of senior debt that we got from the lenders of 4.2 point four billion dollar was a very large amount, which is not which the lenders are not used to provide.

Unknown Speaker 48:08

Unknown Speaker 48:10
as photos I mean you can see here the city tower, which has been finished I think the concrete part is of around 220 or 22 meters I think for for the concrete part and then after that there would be the MSR is it is here and sorry if the photo is little bit about this is what we have for now. So, the MSI would be lifted up and in there as we said and plan to be lifted by May 2020. And on the right there is the city power block just to give you an idea of how it is and then below we have the parabolic trough solar field and the parabolic trough prog rock. So, what you see here is mainly the the molten salt tanks

Unknown Speaker 49:08
and here is a photo for the central unit

Unknown Speaker 49:16
with the tower and also the the Helio stat

Unknown Speaker 49:21
and here is one for the PT one unit. So, PT two and PT three when I say PT it means the parabolic trough. So, the two other units are not yet

Unknown Speaker 49:35
I mean we did not start

Unknown Speaker 49:38
this will all feed yet so, for now the priority is for the central tower and the parabolic trough

Unknown Speaker 49:49
and as I said before

Unknown Speaker 49:57
when when the concrete tower Have the central tower ahead of schedule. And the project has also won the power deal of the year during the PFA ceremony for the Middle East and Africa.

Unknown Speaker 50:16
Yeah, and that was all, sir. Thank you very much. I think it’s awful.

Belén Gallego 50:21
Thank you very much very muted. You did. But you know what, I didn’t stop you because it was very interesting. And I actually so that you know what we’re talking, I said to people, we are going to stay longer if we need to, we just want to hear both presentations, because I think this is very interesting. So thank you very much for that. Can you please stop sharing at the top of your screen? And I’m gonna ask Manuel to share his screen. We had some technology issues at the beginning. I hope we don’t have them now. But if we do, we’ll deal with them. Then. Thank you very much. Marian, you’ve gone into a lot of detail has been really interesting. There are some questions and I’m going to extend the panel, you know, so that Manuel can do his presentation, but we’re unlikely to have time for Questions and Answers. So I would ask you, if you don’t mind to go into the q&a and respond to them like in writing. Thank you very much. Thank you. Amen. Well, we can see your, your screen and you’re good to go. Okay, take your time as you know, as we said, we already advised everyone will take whatever time you need, thank you,

Unknown Speaker 51:20
I will try to ensure that I was ready to do this presentation in 15 minutes. So, I I hope to be based on some information I wanted to share was very well explained by Marian so I it will be easier for me because I will save some time with so wonderful presentation from my my colleague. So, in this with this license, I will like to introduce the the power plan that we are constructing. I will do a very brief summary on 10 of the sign because I have told Marian also did This this explanation and I will give an update of the of the status of the project in terms of the parabolic trough construction and design and this is live, you can you can see the location of the brilliant disclose to deny that it was already mentioned, the plan is comprised by by three parabolic transplants and one central receiver plan all of them CSP technology and also a PV plant. The ABC constructor is Shanghai electric and the scope of Abengoa in this project is limited as the knowledge provider and parabolic trough solar field contractor. In this sense, I will like to, to share with you that, that the main difficulty that we we are facing in this project is the coordination of all the parties unlike explain by marrying, there are many, many players in this huge project. And it’s not easy to coordinate all these it is as lesson lessons, I can say that in terms of direct coordination, it is really time consuming to to have several companies worldwide doing this, this project engineering, it is difficult to homogenize the design conditions of the project if if many, many product companies are working together doing a connected engineering, but work in verify one from the others and different cultures, even between the companies and it is also very, very difficult to coordinate a And to clarify the battery limits between one company and the other company that is the the main message that I can I can throw to you today in terms of coordination and the plant concept, you can see in the screen the main the main components of the plan, we have our central receiver channel plan, we have three PT CSP plans of 200 megawatts is one and we have PV plans. One of the question of the of one participant What if their thermal storage system was distributed or centralized is the duty there are different thermal storage systems for each CSP plants. And indeed, the the parabolic trough plants are three identical and repeated power plants with different power blocks that like we will see in the in the plots. In some slides ahead. In the in the case of the PV plants there are like two kinds of pea plants, there is one huge PV plant just for electricity production that is designed just to produce electricity to increase the production from the CSP plants. A limited obviously to the sunny hours that is where, when the PV plant is able to, to produce is 250 megahertz in the case, but there are also four additional auxiliary PV plants that are designed and are going to operate to cover the parasitics of the of each of the CSP plants and the main driver to go to PV plants as I see this obvious for me One is the low cost of the of this technology right now and it is it is a good way to lower they lcV of the of the solar energy.

Unknown Speaker 56:13
Another important

Unknown Speaker 56:16
characteristic that aringo ice in this project providing is the performance model tool is essential in in, in a project of this size to have our performance model tools because it provides benefits in all the phases of the project. In the tendering project, it’s it is the right tool to estimate production and to have accurate figures and to to design and to finance the project in a good way. Then, during the engineering phase, it is really essential to have a outwardly even a lower step time. Production and parameters estimation to have a good design of the equipment and at good justification of all all the plan that is very important also and and then in the last phase during the operation It is also very important to check that the plan is operating right expected and it’s also very important to have a production forecast of the of the power plant and this is very, very important for for any negativity in the end performance cubes I will be very very brief, because I think it is more or less known that the the performance of the thermal storage in our CSP plan. In this in this project they did the design of the CSP plants and and all the The solar Park was was down with the guidelines of the of the gua they they they have some requirements I would try to cover all these requirements and you can see in the in the pictures in this in these two pictures they the winter expected performance cure and summer performance cure the the black line is the gross electric power. You can see that in winter, there are no production in midday between 6016 hours of the day. The CSP plan is off, but it’s different in case of summer in summer, the production is a base load production 24 hours for all the summer. So this is able to do a week CSP plants with similar storage is not possible to do with with PV plants that is very important that is the main the main capability of the thermal storage systems and we have taken that advantage from from the CSP and thermal storage in this plan to to cover the needs of the utility company. This is a all the performance of the p p plants not is not employed in the central receiver production in where we are in this in this in this moment about performance in the project. We are right now checking all the information from the vendors and the detail engineering because in the in the tendering process we are in go upper form Develop the software with estimated information from other projects and with the longest periods in the Abengoa half in this in this sector, but right now, we need to implement real information from vendors, real information for from detailed engineering to update the the figures and the values that they they are the plan is going to, to produce in the in the coming years that is really important. We have a contract with very serious guarantees in terms of production performance, and to share and verify that that every every purchase and engineering is going like, like expected is very, very important. And we are right now in in that point in terms of, of performance.

Unknown Speaker 1:00:56
Yeah, this is the sort of Phil plot of the solar pack. I wanted to share with you this blog just to see the magnitude of this of this project. There are three PT plans PT, one is the one top left and PT two MP two three on bottom of the plot and then the citrusy Where is a circle one a just to show you this. This magnitude I plot I draw on a smaller football ground top left in the in the PT one you can see that is the real size of approximately a football ground. And also you can see the footprint of our 50 megawatt PT plan with no storage. So we in this project we’re going to construct like a 1000 football ground area full of mirrors, just for PT plans, we are going to construct like 1950 megahertz PT plants like others in other locations. So, this is really challenging

Unknown Speaker 1:02:18
other order magnitudes

Unknown Speaker 1:02:23
in which the status of the project is is the the PT or the PT plants right now, the engineering is closed for PT one is closed for all the basic engineering for the three units is or more optimal almost mostly completely because it’s semantical but the detailed engineering is is finished for PT one and and we are working right now with the others. Where we we are in procurement phase the procurement for Angola and for solid fields pt pt is also completed, we have we closed all the purchases in terms of instructor mirrors, preservatives and control and so on for for this this product for the all the three units. And it was really, really challenging to close some of these purchases, because the contracts were really really huge. We have to analyze the production capacity of suppliers to to ensure that they were going to comply with the delivery terms with the all day they’re the unit that we need for this project. We are going to to construct this in 26 months so it’s not it’s not an easy task to to comply with this. What else in terms of logistics is is really really Important to analyze during the procurement phase how we are going to transport all this material because we’re talking of more than 8 million square meters of mirrors. We’re expecting to produce more than 150,000 songs of status Jupiter in spite of having a very optimized collector for this project with the minimum still needed for for the requirements of the project. We are we are going to have more than 150,000 pounds.

Unknown Speaker 1:04:43
Another sample receiver to use we are going to

Unknown Speaker 1:04:47
install more than 250,000 units of receiver tubes. The capacity production of the main manufacturing in the world is going to be awesome For this project for the next 26 months, it’s very important to have this thing in mind during during the construction and engineering phase. For example, are learning a learning lesson that we are have also taking is the the transport time and you can see the picture of the of some tractors moving their collectors in the solar field. You can imagine that from the workshop to the to the to the extreme of the of the PD Plan, it might be like six kilometers six kilometer moving a collector with a tractor is some it’s a long time and it is some officials it should be taken into account during a schedule in the project.

Unknown Speaker 1:05:57
What else

Unknown Speaker 1:05:59
you terms of manufacturing and assembly collectors and warehouse. What what are we facing right now like like Marian told the assembly of collectors started end of last summer. A they we’re right now, most mounting the collector for PT one the the advance of the project is is is good GUI we have completed the landing view of the of the assembly. This is really important for a party like this, to have into account to take into account the learning view of the of the of the workforce because we have contracted local people who is in and is clearly in this in this kind of manufacturing. They are also obviously supported by our NGO staff with long experience but may Most of the of the personnel is unskilled people more than 800 people are working right now in this in this huge factory 20 hours per day, say six day per week if needed to assembly sorry, more than 200 collectors per miles to comply with the schedule of the project. It is really challenging like you can imagine you take a look to the picture of the of the White House you can see the desktop that we that we need to to have all this factory in production. It is also very important in this way to house the the quality control the incoming registration, the traceability of the materials, the logistics needed to to load the all these tracks. Take a look to the fears we are we’re receiving like 500 trucks per month just for steel more than that, close to 200 containers per most for mirrors and an average with all the supplies like hydraulic units or receiver views or or all the components if we are we need to get in plan an average of 70 tracks everyday if you do make some numbers it is it is really challenging to to do this and very good infrastructure and personnel qualified people to go this is essential to comply with the with the product requirements in terms of engineering and water, what have we down in there for for this project in engineering. We have a real a We have performed a real 3d model of the of the PD plant and the HDF system, which is the scope of my company. This 3d model have real dimensional real information of all the equipment for this plan. This is very important to avoid interference during a construction to avoid any problem in all in all the construction also operation phase A to have a real modeling of the of the components in terms of mechanical civil wiring instrumentation and all the disciplines are integrated into our model. This model covers the solid field covers the tiger block and all the piping and it’s essential to work like this.

Unknown Speaker 1:09:57
It is also very important to do like this To call the nay all day all the parties like we say at the beginning, if we are working together some companies on this we need to have a common tool to integrate the design and to be sure that we are all working on the same page. Some figures about about the project, we are designing pipes up to 1.6 meters diameter, take a look to the picture, there are some pipes higher than Dagenham we dig kilometres we have to like 200 kilometers of high temperature to oil pipe in in the in the solar field. We have more than 3000 kilometres of widen and the inventory of asdf is over 55 thousand tonnes the production of the main manufacturers of oil in the in the world is all almost in this in this project for the next month. To finish I like to share with you have a picture of the overflow tank and oh photonics is a component of the HTF system, we have nine units like this for every PT project. So, there will be like the 27 units like this one. This is just to show you the the challenge that we are facing in during design and construction. Imagine the difficulty to to design in terms of mechanical and civil II issues for these kinds of equipment. Also, the difficult In terms of logistics to transport a 50 meters, tank, the in the bottom of the of the slide you can see an aircraft, this is an real aircraft with this enables a 320 inside the tank, so this time is is larger than an aircraft imagine is the kind of project that that we’re in for those of us that is that is my my message today that is really really challenging too. To be here it is an honor, honestly to to work for this kind of project. And I’m glad to be part of this, of this huge, huge project and on that’s what I can I can share with you the challenge that We we are for fast unfortunately. They are the it is going on it is successfully complying with with all all the needs of the project from the the Moscow.

Unknown Speaker 1:13:18
Thank you all of you.

Belén Gallego 1:13:20
Thank you very much one way. Okay, so maybe I’m and I have been doing the best we could respond to as many questions as possible. Can you take the presentation of By the way, awesome graphics, you know to see the tube next to the to the plane is amazing. And also to see the sheer size of that project. I mean, compared to the normal 50 megawatts so Nova. So we are obviously cannot get over the questions. Apologies to those that we haven’t answered. I mean, I try and answer some of the questions I knew the answers to as well, you know, just to hurry it along. But I just want to ask the question that came from me and Ian Bremmer is asking now. And someone else asked coronavirus in this project. And after that, we’ll just you know, say goodbye, but is this having any effect? Now can you tell already with this, this may have an effect in the middle longer term, you know, just to the two of you, Miriam, do you want to start?

Unknown Speaker 1:14:18
Yeah, so, um, I think for us, we have to take possession of our UPC is Chinese, but we were very lucky. But by the time I mean, once we have seen in the word is that the virus has spread after, in during after the Chinese New Year, mainly in other countries. So we were very lucky that all our EPC and E subcontractors they were working during that time so they did not go home for the Chinese New Year. So for now we have zero cases of,

Unknown Speaker 1:14:59
of Corona virus As our projects, which is a very good,

Unknown Speaker 1:15:04
very, very good for us. So it’s not impacting at all the execution of the projects in terms of people available to do the work from the other side, it is a challenge now and to be managed carefully, we don’t know I mean, what’s what’s happening and what is going to happen in the next month. We don’t know how long Sam is going to this is going to be continuing so we don’t know whether the suppliers would have any impact or not in the in the near future. Let’s say for now we don’t we we don’t have a confirmation for example, say we are having a delay. Now we know that there are some companies, contractors or manufacturers or things like that, that have stopped the work or partially stop the work. But still the project is on time. There is no no deal. For now, but I mean, we don’t know if this is going to, to stay for one month or for one year. It depends on how long time it’s going to take basically.

Belén Gallego 1:16:09
Yeah, I suppose no one really knows how long we’re gonna be indoors. So

Unknown Speaker 1:16:12
yeah, I think everyone is Yeah, everyone is just trying to think of solutions. But I mean, to be honest, there is no solution for all Yeah, yeah, we’re all in the same. We’re all having the same issue. We don’t know what’s going on our project. The good thing is that is is a very long project. So it’s not like a project of I don’t know of six months PV for example, or nine months PV, which would be really effective if you are saying that you have two months delay in the delivery of whatever equipment here we are talking about 32 months so we we will see what happened maybe in the next three months or six months, we would have a better idea on how to face it.

Belén Gallego 1:16:57
Excellent. Thank you very much Mary Manuel. Do you have anything to In terms of the equipment side,

Unknown Speaker 1:17:02
from the engineering I can say that we have up to now no impact by these because an earring team is located in Seville we we are not in the May in the headquarter so Flamingo are we at home but we can go along with our work out. So we we are working Goethe and construction team on site this also was in from their supplier the suppliers we have up to now we have no impact because it’s it’s a bit sewn but we have some Chinese supplies and in their deliveries so we we’re glad to, to say that that up to now we are in the same in the same situation and hope to be this way from the coming months.

Belén Gallego 1:17:59
So Thank you very much, both of you. You know, we’ve run out of a little bit out of time, but I think this was worth it. And thank you very much for everyone also in the audience, stay there. So Miriam, thank you very much, man. Well, thank you very much, and I will see you next time. Thank you.

Unknown Speaker 1:18:13
Bye bye.

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