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PROJECT SELECTION. WHY SOLAR ENERGY?.

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Presentation Transcript
why solar energy
WHY SOLAR ENERGY?
  • In Pakistan demand of electrical energy is increasing by 8% every year because of increase in population, infrastructure and other related factors. Currently total consumption of electricity is 18,000 MWatt. But Pakistan is unable to produce the required amount of power. Because of shortage of Dams and resources of power generation.
why solar energy1
WHY SOLAR ENERGY?
  • Pakistan has 18 gigawatts (GW) of electric generating capacity. Thermal plants using oil, natural gas, and coal account for about 70 percent of this capacity, with hydroelectricity (hydro) making up 28 percent and nuclear 2.5 percent. Pakistan's total power generating capacity has increased rapidly in recent years, due largely to foreign investment, ultimately leading to a partial alleviation of the power shortages Pakistan often faces in peak seasons. Rotating blackouts ("load shedding") are, however, still necessary in some areas. Transmission losses are about 30 percent, due to poor quality infrastructure and a significant amount of power theft. Periodic droughts affect the availability of hydropower.
reasons for selecting project
REASONS FOR SELECTING PROJECT
  • Grave energy crisis:

If the current growth trend in the energy supply and demand continues then it is estimated that Pakistan would be facing a shortage of 31% of energy by the year 2010.

solar energy potential in pakistan
Solar energy potential in Pakistan:

Pakistan is ideally located in the sun belt to take advantage of solar technologies. Balochistan province is particularly rich in solar energy. It has the highest annual mean sunshine duration in the world.

slide7

Fuel-less power generation

Green aspect of doing business

  • Environment friendly

Production end wastes and emissions are manageable using existing pollution controls.

services products oferred
SERVICES & PRODUCTS OFERRED

Solar Water Heaters

Street Lights

Working time 8 to

24hours each day

Lasting4 to 10 rainy days

slide9

Traffic Lights

24 hours for 4 rainy or cloudy days

  • Solar Air Conditioners

units can be combined or zoned for 2-10 ton applications.

can be easily operated remotely for up to 12 hours between charges

slide10

Garden Lights

  • 5 rainy days
government incentives
GOVERNMENT INCENTIVES
  • No Sales Tax
  • No Income Tax
  • No Import Duty
role of our government
ROLE OF OUR GOVERNMENT:
  • Established research and development institutes like:
          • Solar Energy Research Centre, (SERC)
          • Pakistan Council of Scientific and Industrial Research, (PCSIR)
          • Pakistan Council of Appropriate Technology, (PCAT)
          • National Institute of Silicon Technology, (NIST)
          • Alternate Energy Development Board, (AEDB)
continued
Continued…
  • AEDB has created 100 solar homes in all provinces in order to promote solar energy
  • Various national engineering universities have been

involved in solar thermal technologies

  • Country’s 400 villages (300 in Balochistan + 100 in Sindh) to be electrified through solar energy

(The News)

  • Decision to use solar energy-based lights on all important buildings including Prime minister House and secretariat

(Business Recorder)

role of private sector
ROLE OF PRIVATE SECTOR
  • Many private businesses in solar energy sector
  • Warid Telecom, has deployed a Pakistan’s first ever solar powered BTS site using Huawei’s Solar Powered Macro Base Station (BTS)
existing service providers
EXISTINGSERVICE PROVIDERS
  • Nascom: (wholesale supplier, importer)

Product types: photovoltaic cells, photovoltaic systems, photovoltaic modules, solar electric power systems

  • Haroon Brothers:(exporter, importer )

Product types: solar electric power systems, solar air heating systems, solar water pumping systems, photovoltaic cells

  • Rockwell Group:(manufacturer, wholesale supplier)

Product types: photovoltaic cells, photovoltaic modules, solar water pumping systems, solar air cooling system, solar cooler

basis of competition our technology
BASIS OF COMPETITION OUR TECHNOLOGY
  • efficiency 50% more than conventional panels
  • more solar power and less space required.
  • panel’s black frame and lack of metal creates a final installed appearance that is integrated and stylish, not obtrusive and unsightly.
  • Use of CdTe(Cadmium Telluride) compound semiconductor
continued1
Continued…
  • Extensive Testing:
    • "light soak" exposure test

to estimate the stability of energy output

    • "hail ball" test

to ensure modules can withstand golf-ball size

hail pellets

    • exposure to accelerated levels of heat and cold –

to ensure performance is not affected in extreme

environment

supply demand gap
SUPPLY-DEMAND GAP
  • In 2010, forecasts suggest that supply

could be twice the demand predicted

in the global PV market.

  • In Pakistan also, there is a vast gap

between supply and demand of

solar products due to

      • Unawareness
      • Technology new to people here
      • High installations costs
our target market
OUR TARGET MARKET

Main target market is the rural areas of Pakistan

  • Thar in Sindh
  • Entire Balochistan province
    • 80% of the population lives in

the rural areas

    • About 85% of the villages are

yet to be electrified

Reason for this target market:

Agriculture is still considered the backbone of our economy, the electrification of rural areas will

    • stimulate productivity, education
    • reverse urbanization trends
quality service gap
QUALITY-SERVICE GAP
  • Solar parts are imported (delayed services )
  • Lack of technical know-how and follow-up
  • Lack of trained technicians to design, install

and maintain solar electric system

  • Overall low efficiency of solar cell in general
  • Non-availability of household appliances that

run on low voltages

  • Requirement and maintenance of backup

energy sources e.g. batteries in night

primary activities
PRIMARY ACTIVITIES
  • Import of solar products specially solar panels
  • Supply of solar products
  • Installation
  • After-sales services

SECONDARY ACTIVITIES

  • Deliver solar energy solutions to rural households
  • Market various solar energy products all over the country
stage of product life cycle plc
STAGE OF PRODUCT LIFE CYCLE (PLC)
  • Introduction stage of the PLC
swot analysis
SWOT ANALYSIS
  • Strengths:

Marketing abilities required to market our

products.

Research department researchers conduct

studies as to how our products can be

improved in terms of size, quality, efficiency

  • Weakness:

Lack of capital As our business is in its

introductory stage, we often face this

challenge primarily due to lack of

investment in this sector.

slide27

Opportunity:

The recent energy crisis in Pakistan

has provided a suitable environment

for this industry and our company

also takes opportunity and wants to

contribute in solving this crisis.

  • Threat:

The biggest threat that we face is

the high cost of our products

compared to our competitors.

strategy objectives to succeed in market
STRATEGY/OBJECTIVES TO SUCCEED IN MARKET
  • Objective -

To produce electricity to fulfill the minimum

requirement of electrical power after dusk in the

remote rural areas of Pakistan

  • Mission -

To alleviate poverty and protect the environment

through applied research and development of

renewable energy based technologies.

continued2
Continued…
  • Strategy –
    • Concentrate on potential

of solar energy

    • Strategic alliances with

the leading players

(manufacturers / organizations)

assumptions of solar project
Assumptions of Solar Project
  • Economy Assumptions: Utilities Growth Rate 8% Salaries & Wages Growth Rate 10%
  • Cash Flow Assumptions:
  • Accounts Receivable cycle ( in days) 15
  • Accounts Payables cycle ( in days) 30
  • Material Inventory Period (in days) 30
  • Cash at the start of operation 1,000,000
slide34

Depreciation Assumptions:

  • Building 10% (3000000)
  • Office Equipment 20%(649600)
  • Show Room Infrastructure 10%
  • Vehicles 20%(1000000)

Amortization Assumption:

  • Amortizations Period 5 Years
slide35

Revenue Assumptions:

  • Sale Price Growth Rate 5%
  • Dollar Conversion Rate $1 = Rs. 80
  • Revenues Growth Rate year 1year 2year 3year 4year 5year 6year 7year 8
  • 9,000,000 ,22%, 15%, 20%, 39%, 10%, 10%, 12%
slide36

Inventory Material Assumptions:

  • Inventory Cost Growth Rate 20%
  • Revenue Growth Rate 22%

Expense Assumptions:

  • L.C. Charges 0.50% of Revenue
  • Sales Tax Rate (Local) Exampt of Revenue Income Tax Rate Exampt of Income
  • Marketing Expense 3% of Revenue
  • Repairs and Maintenance 1.5% of Revenue
slide37

Financial Assumptions:

  • Project Life ( Years ) 8
  • Equity 60% Debt 40%
  • Cost of Debt 18.0%
  • Cost of Equity 15.0%
  • Debt Re-payment ( Installment per year ) 1
  • Debt Period ( Life ) 8