Business Plan:Project funding for 10 MW Solar Power Plant,Turkey.

Project Summery

The borrower company need financial support for their 110 MW – PV solar power plant. Their objectives:-

Within “110 MW – PV SOLAR POWER PLANT’’, In the provinces that have irradiation level above 1600 (kWh/m2 year), setting up one company for each 10 MW and getting permissions for 10x1 unlicenced power plant establishing and totaly establishing 11 companies for 110 MW. Within this project each company will have 10x1 MW unlicenced powe r plant in one land and totally; 11 companies will have 110 MW that belongs to 1 investor.

Company’s vision is to provide energy diversity without compromising quality of production and marketing stages. To help their country to become a trustable and leading country in the world energy sector.

Project Location

The proposed project is located in Arkana,Turkey.

Site

The Project will be launched in the provinces that have irradiation level above 1600 (kWh/m2 year), Within unlicensed terms of electricity production; 10x 1MW x11 ; 110

MW Unlicenced power plant establishing.

The Business

Business Location: Ankara,Turkey

Date Of Incorporation: 2012

Relevant Experience: The borrower company have built over 100 solar farms and

they are linked to the Turkish government.

The Market

Target Market & Marketing Strategy:

THE MARKET

The market for this Project is Turkey National Electricity Grid because of 10 year PPA (Power

Purchase Agreement - US$0.133 per kilowatt-hour). After ten years the market can be free market.

MARKET RESEARCH

Solar power in Turkey

Turkey is located in an advantageous position in Europe for solar energy. Compared to the rest of Europe, insolation values are higher and conditions for solar power generation are comparable to Spain. The government is aiming for at least 3 gigawatts (GW) by 2023.

MARKETING STRATEGY

The produced electricity will be sold to Turkey National Electricity Grid because of 10 year PPA (Power Purchase Agreement - US$0.133 per kilowatt-hour). After ten years the market can be free market.

COMPETITOR ANALYSIS

The all energy producers sell their energy to Turkey National Electricity Grid and the price is fixed.

(Power Purchase Agreement - US$0.133 per kilowatt-hour).

The Finances

TOTAL LOAN AMOUNT REQUESTED: $145million

TYPE OF LOAN: Debt/Equity

INEREST RATE: 4%-6%

TIME PERIOD: 10 Years

Total Cost (110 MW)
Land Cost / 4.729.120 USD
Project / Application / Taxes / Fees / 5.675.010 USD
SPP Investment Amount / 127.166.820 USD / 116.573.228 EUR
VAT (%18) / 22.890.010 USD / 20.983.164,9 EUR
Total Investment Cost / 160.460.960 USD
Scrap Cost (10 years later) / 38.150.090 USD / 34.972.008,7 EUR

The Project's Annual Cost and Return

The project investment cost and income statement and the related investment in the 10x1 MWp x11 Photovoltaic power plant implemented in a total of 110 MWp investment costs and income are calculated. Net will emerge with Budget billing.

Power Plant Details
Installed Capacity (kWp) / 110.000
Net Annual Power Generation (kWh) / 170.500.000
Electricity Production Decrease Rate (%year) / 0,80%
Electricity Use Ratio (%) / 2%
Operating Expenditures
Personnel Expenses (annual) / 1.650.000 USD
Maintenance and repair expenses
(annual) / 550.000 USD
Insurance Expenses (annual) / 550.000 USD
Other Expenses (annual) / 550.000 USD
Total Cost
Land Cost / 4.729.120 USD
Project / Application / Taxes / Fees / 5.675.010 USD
SPP Investment Amount / 127.166.820 USD / 116.573.228 EUR
VAT (%18) / 22.890.010 USD / 20.983.164,9EUR
Total Investment Cost / 160.460.960 USD
Scrap Cost (10 years later) / 38.150.090 USD / 34.972.008,7EUR
Electricity Prices
Electricity Unit Selling Price ($/kWh) / 0,133 USD
Electricity Unit Purchase Price ($/kWh) / 0,1204 USD
Distribution System Usage Cost / kWh / 0,0000 USD
Production System Usage Cost according to installed Power /
kWh
Production System Usage Cost according to production / kWh / 0.00904385 USD
Electricity Raise Rate (% year) / 10%
Promoting of Domestic Products (Steel Construction) / 0,000 USD
Promoting domestic product (Panel) / 0,000 USD
EURO/USD / 1,0986
EURO/TL / 2,9250

FINANCIAL FORECASTS

INCOME AND EXPENSES (YEAR 1 TO 5)

Income Table (»USD) / Year 1 / Year 2 / Year 3 / Year 4 / Year 5
Income / 22.633.460,3
USD / 22.493.097 USD / 22.358.289,8
USD / 22.229.439,1
USD / 22.106.981,6
USD
1. Electricity Production Decrease
Rate (%year) / 0,80% / 0,80% / 0,80% / 0,80% / 0,80%
2. Electricity Sales Unit Price (USD /
kWh) / 0,133 USD / 0,133 USD / 0,133 USD / 0,133 USD / 0,133 USD
3. Net Annual Electricity
Production (kwh) / 170.500.000 / 169.136.000 / 167.782.890 / 166.440.670 / 165.109.120
4. Sellable electricity (kWh) / 167.090.000 / 165.726.000 / 164.372.890 / 163.030.670 / 161.699.120
5. Sellable electricity Income / 22.222.970 USD / 22.041.580 USD / 21.861.620 USD / 21.683.090 USD / 21.505.990 USD
6. Electricity Purchase Price per
Unit / 0,1204 USD / 0,1324 USD / 0,1457 USD / 0,1602 USD / 0,1762 USD
7. Available Electricity (kWh) / 3.410.000 / 3.410.000 / 3.410.000 / 3.410.000 / 3.410.000
8. Available Electricity Income / 410.520 USD / 451.550 USD / 496.650 USD / 546.370 USD / 601.040 USD
Expenses / 12.232.550 USD / 12.232.550 USD / 12.232.550 USD / 12.232.550 USD / 12.232.550 USD
9. Personnel Expenses / 1.650.000 USD / 1.650.000 USD / 1.650.000 USD / 1.650.000 USD / 1.650.000 USD
10. Maintenance and Repair
Expenses / 550.000 USD / 550.000 USD / 550.000 USD / 550.000 USD / 550.000 USD
11. Insurance Expense / 550.000 USD / 550.000 USD / 550.000 USD / 550.000 USD / 550.000 USD
12. Other Expenses / 550.000 USD / 550.000 USD / 550.000 USD / 550.000 USD / 550.000 USD
13. Distribution System Usage Cost / 0,00 USD / 0,00 USD / 0,00 USD / 0,00 USD / 0,00 USD
14. System Usage Cost / 30.800 USD / 30.800 USD / 30.800 USD / 30.800 USD / 30.800 USD
15. Depreciation Expense / 8.901.640 USD / 8.901.640 USD / 8.901.640 USD / 8.901.640 USD / 8.901.640 USD
16. Corporate tax (20%) exemption for 5 years / - / - / - / - / -
17. Investment Amount Including
VAT / 137.570.950
USD / 89.016.730 USD

· VAT exemption has been applied for the first 5 years.

· The land value is reduced for scrap value and depreciation charge.

INCOME AND EXPENSES (YEAR 6 TO 10)

Income Table (»USD) / Year 6 / Year 7 / Year 8 / Year 9 / Year 10
Income / 21.991.405,7 USD / 21.883.244,9 USD / 21.783.088,8 USD / 21.691.588,6 USD / 21.609.459,3 USD
1. Electricity Production Decrease Rate
(%year) / 0.80% / 0.80% / 0.80% / 0.80% / 0.80%
2. Electricity Sales Unit Price (USD /
kWh) / 0.133 USD / 0.133 USD / 0,133 USD / 0,133 USD / 0,133 USD
3. Net Annual Electricity Production
(kwh) / 163.788.240 / 162.477.920 / 161.178.160 / 159.888.740 / 158.609.550
4. Sellable electricity (kWh) / 160.378.240 / 159.067.920 / 157.768.160 / 156.478.740 / 155.199.550
5. Sellable electricity Income / 21.330.320 USD / 21.156.080 USD / 20.983.160 USD / 20.811.670 USD / 20.641.500 USD
6. Electricity Purchase Price per Unit / 0.1939 USD / 0.2133 USD / 0,2346 USD / 0,2580 USD / 0,2838 USD
7. Available Electricity (kWh) / 3.410.000 / 3.410.000 / 3.410.000 / 3.410.000 / 3.410.000
8. Available Electricity Income / 661.100 USD / 727.210 USD / 799.920 USD / 879.890 USD / 967.890 USD
Expenses / 16.630.790 USD / 16.609.120 USD / 16.589.100 USD / 16.570.840 USD / 16.554.450 USD
9. Personnel Expenses / 1.650.000 USD / 1.650.000 USD / 1.650.000 USD / 1.650.000 USD / 1.650.000 USD
10. Maintenance and Repair Expenses / 550.000 USD / 550.000 USD / 550.000 USD / 550.000 USD / 550.000 USD
11. Insurance Expense / 550.000 USD / 550.000 USD / 550.000 USD / 550.000 USD / 550.000 USD
12. Other Expenses / 550.000 USD / 550.000 USD / 550.000 USD / 550.000 USD / 550.000 USD
13. Distribution System Usage Cost / 0,00 USD / 0,00 USD / 0,00 USD / 0,00 USD / 0,00 USD
14. System Usage Cost / 30.800 USD / 30.800 USD / 30.800 USD / 30.800 USD / 30.800 USD
15. Depreciation Expense / 8.901.640 USD / 8.901.640 USD / 8.901.640 USD / 8.901.640 USD / 8.901.640 USD
16. Corporate tax (20%) exemption for
5 years / 4.398.240 USD / 4.376.680 USD / 4.356.660 USD / 4.338.290 USD / 4.321.900 USD

BACK UP PLAN

This Project has an insurance policy.

The Collateral

Signed PPA and Land.