EGCO SunWat 1-4 Solar Plants

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Sunedison Thailand Holdco was created to build own and operate 51 solar pv generation facilities with a total installed capacity of 520 MW. The project company was a subsidiary of the U.S.-based solar project developer Sunedison, which in turn was a wholly owned subsidiary of MEMC Electronic Materials Inc. The project was to consist of 51 distinct facilities ranging from 1 to 51 MW in installed capacity. Phase 1, which included SunWat 1-4, totaled 36MW. Each installation was to benefit from a five-year power purchase agreement with automatic renewal from one of three state-owned power companies: the Electricity Generating Authority of Thailand, the Provincial Electricity Authority or the Metropolitan Electricity Authority of Thailand. As such, the project formed part of the Thai Government’s initiative to diversify the country’s sources of power generation and have 20% of generation capacity come from renewable power by 2022. The total project cost was projected to be USD 1.5 billion. In October 2011, the project closed a fiancing arrangement with OPIC with loan financing of USD 250 million. Commissioning of the facilities was scheduled for 2012. SunEdison also received an equity (US$55 million in total) contribution from IFC and debt financing (US$26 million, A Loan), for the four Thai projects as well as a single project in India. The four plants in Thailand included: SunWat-1, 9.6MW (Saraburi); SunWat-2, 7.2MW, SunWat-3 9.6MW (Sri Sa Ket); and, SunWat 4, 9.6MW (Roi Et). As of June 2012, SunEdison started to divest completed solar projects in this program, including: SPP3, SPP4, and SPP2. The plants, together 22MW, were sold to Electricity Generating Public Company Limited (Egco), a private power producer from Thailand. SPP2 was sold to Egco for Baht 370 million ($11.7 million), averaging $1.463/kW. This high price was justified by a subsidiy on the output over a 10 year period, of Baht 8/kWh ($252.2/MWh), from the Power Department Fund Management Division, of the Office of the Energy Regulatory Commission. SPP2 entered commercial operation in May 2, 2012 and holds a non-firm PPA with state-owned Provincial Electricity Authority (PEA). Total cost of the three plants was estimated at 36MW x $1.463/kW = US$32.3 million. Plants 2, 3 and 4 reportedly had a debt/equity ratio of 70/30 (SPP2) and 75/25 (SPP3 and 4). http://www.opic.gov/sites/default/files/sunedisonthailandconstructionfinancialfacility.pdf http://www.opic.gov/news/press-releases/2009/pr101211 Source: Power in Asia, Thai Generators add to solar capacity, 21 June 2012.