How do solar power plants work?

Solar power plant (SPP) - engineering construction that converts solar radiation into electrical energy. Depending on the type of construction, the methods for converting the radiation energy of the sun differ:

Solar power tower plant - mirrors on a flexible positioning system turn to keep track of the sun. Bundles of reflected sunrays heat the water tank on the tower to 700 °C.

Energy is received from water vapor using standard turbines.

Solar dish power plant - energy of the sun is reflected by mirrors collected as a concentrator in the form of dish, and transmits bundle of rays to a stationary receiver.

Photovoltaic SPP - solar radiation is received and converted into direct current by photovoltaic modules.

Then the grid tie inverters convert the DC voltage from the modules into alternating current with an industrial frequency.

Parabolic trough SPP – energy is collected using the parabolic-cylinder long mirrors and is focused on the tube through which the oil (heat transfer fluid) flows.

At the end of the path, oil transfers heat to water, water turns into steam, steam enters the turbine.

Stirling engine based SPP - energy is collected by mirrors and focused on the Stirling engine:

Oscillations of piston are converted to electrical energy.

Hybrid SPP - various engineering constructions can be installed in parallel.

For example, photovoltaic panels with concentrators or additional placement of heat exchangers (for heating or hot water supply).

21.02.202012.05.2020

Land plots for the 1 MW SPS construction. Why is it a trend in the Ukrainian renewable energy market in 2020?

Because 1 MW is the upper limit for the land-based industrial SPSs at which the facility is entitled to a “green” tariff from 2020.

The tariff is regulated by the laws of Ukraine "On the Electrical Energy Market" and "On Alternative Energy Sources", is establish as of the date of the station's commissioning and will not change until 2030.

The tariff is pegged to the Euro, which eliminates the risks of devaluation of the national currency.

After the expiration of the tariff in 2030, you will be able to sell the electrical energy on the direct contracts market at a commercial price.

How much does it cost to build a 1 MW SPS. Income from industrial a 1MW SPS.

EDS-Development specialists have assessed the payback period of a 1 MW solar power station. We used data from operating SPSs from EDS's own generation and maintenance assets, as well as the average market value of equipment and construction.

Cost of 1 MW SPS = 600,000 (construction and equipment) + 65,000 Ready to build + 90,000-110,000 Connection

= 750,000 euros excluding VAT *

вартість розрахована як середня ринкова. Окремі пропозиції будуть відрізнятися. EDS-Engineering, наприклад, пропонує реалізувати одномегаватний проект “під ключ” за 650 000 євро.

The real payback of the SPS is 5-7 years, depending on the date of the SPS commissioning. Project implementation period is about 6 months:

SPP launch year	Dependence of the tariff on the year of SPP launch	SPP generation 1 MW per year	Income for the year
You launched the SPP in the period from 01/01/2020 to 12/31/2020	0,135 euro / kWh with VAT	1227 MW / year	165 645 euro with VAT
You launched the SPP in the period from 01/01/2021 to 12/31/2021	0,130 euro / kWh with VAT	1227 MW / year	159 510 euro with VAT
You launched the SPP in the period from 01/01/2022 to 12/31/2022	0,126 euro / kWh with VAT	1227 MW / year	154 602 euro with VAT
You launched the SPP in the period from 01/01/2023 to 12/31/2024	0,121 euro / kWh with VAT	1227 MW / year	148 467 euro with VAT
You launched the SPP in the period from 01/01/2025 to 12/31/2029	0,117 euro / kWh with VAT	1227 MW / year	143 559 euro with VAT

EDS-Development is following the trends and has prepared the Base of Ready to build land plots, ready for the construction of a 1 MW SPS

We present our product - land plots for the construction of 1 MW industrial solar power stations.

Our developers have chosen plots with optimal parameters, changed the designated purpose, the design department has developed a plan of the PV panel field.

The TS draft is being prepared, topographic and geodetic survey has been completed. A complete package of land documents minimizes risks and significantly speeds up the project implementation.

In fact, having bought a land plot from us, You can start a construction tomorrow.

13.02.202020.02.2020

Designated purpose of land

целевое назначение земли, цена смены целевого назначения земельного участка,

Why do all land plots in Ukraine have their own code and designated purpose?

For registration in the State Land Cadastre for the relevant uses.

Knowing the designated purpose of any plot, one can understand its legal regime, ecosystem functions, type of possible development, etc. It is used by state authorities, local authorities, organizations and enterprises for accounting and reporting on land resources.

Lands in Ukraine are divided into 10 sections:

lands of agricultural designation;
lands of housing and public development;
lands of nature reserve fund and other nature protection designation;
lands of health-improving designation;
lands of recreational designation;
lands of historical-cultural designation;
lands of forest fund;
lands of water fund;
lands of industry, transport, communications, energy, defense and other designation;
lands of reserve, reserve fund and general use.

Sections have subsections, detailed information is in open government sources.

What does this mean for a tenant or land owner?

For each category of land, there are rules for use and permitted activities. For example, factories and any other facilities not related to agriculture cannot be built on land of agricultural designation. Lands for recreation and tourism of population (recreational) cannot be used for industrial construction, etc.

The use of a land plot not according to the designated purpose is prohibited by the law.

Is it possible to change the designated purpose and how to do it?

Yes, it’s possible. This right is assigned to the owner of the plot by the Land Code of Ukraine. For this, the established procedure must be observed:

You conclude an agreement on the development of a land survey projectwith a land surveying company. The term of production is stated in the contract (the price is higher, the term is faster), but cannot exceed 6 months according to the Law.
Further, you need to coordinate the project with the local department of the StateGeoCadastre, local department of architecture and urban development and other organizations in each individual case.
Important! A detailed territory plan is required. Request this document from local councils or from the district state administration. If there is no detailed plan – order the development additionally.
Apply to the village (settlement, city) council with a petition for approval of the project on changing the designated purpose.
Submit an application and a land survey project to TsNAP (Centre for the Delivery of Administrative Services) for entering information into the State Land Cadastre. Your application will be considered within 14 days. If everything is okay – information about the new designated purpose of the plot will be entered into the State Land Cadastre.
Register the real estate title in the State Register of Rights (at the centre for the delivery of administrative services or at the notary).

How much does it cost to change the designated purpose of a land plot or land?

The cost of changing the designated purpose of a land plot or the price of changing the designated purpose of a land plot depends on the urgency and complexity of the work.

Designated purpose for the land for the industrial solar power stations construction:

Has a 14.01 code – for the location, construction, operation and maintenance of buildings and structures of power generating enterprises facilities.

The procedure for changing the designated purpose of the land plot on which You decided to build an industrial solar power station is described above.

With the help of professional developers, You can select the land plots for which the change of designated purpose has already been completed.

06.02.202016.06.2020

Wind or solar power plants? Features of land use for projects

Wind turbine (WPP) - engineering construction that converts kinetic energy of wind into mechanical energy of rotor rotation with further conversion into electrical energy. The main types of wind turbines - horizontal impeller wind turbine and vertical carousel-type wind turbines.

What is the land area required for placement of wind plant?

For a 1 MW WPP, 30-50 ares of land will be required.

Windmills require a small area, but along the wide perimeter there should be no forest plantations and other obstacles to the wind.

Solar power plant (SPP) - engineering construction that converts solar radiation into electrical energy. Depending on the type of construction, the methods for converting the energy of solar radiation differ.

What is the land area required for placement of solar plant?

For a 1 MW SPP, a minimum of 200 ares of land will be required.

They require a larger installation area than a WPP, and there should be no objects shadowing the panels along the perimeter. It is necessary to take into account the orientation of the land plot, the best arrangement of rackings with PV panels will be on the southern slope.

Hybrid WPP/SPP systems - a wind turbine equipped with solar panels with accumulators. Mutual "insurance" of alternative energy sources is provided (the wind at night and in daytime, sun in daytime, accumulator – at any time). The controller regulates the degree of charge of the accumulators and controls the processes of system interaction.

To locate the hybrid plant, depending on the capacity, an amount of land equal to the sum, respectively, of the area for the photovoltaic panels and the area for the wind turbines will be required. The requirements for the landscape are the same: do not shadow the sun and do not obstruct the wind.

Let's compare the features of the choice of land for solar power plants (type - photovoltaic panels) with wind in the main parameters:

Parameter

WPP

SPP

Geography,

weather dependence

For WPP:

When choosing a land plot, climatic characteristics must be taken into account (wind map of Ukraine).

In any region, regardless of climatic characteristics, specialized companies conduct mandatory measurements of wind speed - at least 1 year.

It is advisable to install wind turbines in areas where the average wind speed is more than 8 m/s. The blades of large turbines start rotational motion in 4 m/s wind; maximum energy conversion efficiency is achieved at 12 m/s.

The main advantage of WPP over SPP – is all-year operation without a decrease in productivity in the autumn-winter period and at night.

For SPP:

When choosing a land plot, climatic characteristics must be taken into account (solar radiation map of Ukraine).

Solar projects are more mobile, they can be built in any region.

If you look at the solar radiation map, you can see that the solar radiation level doesn’t fall below three units across approximately 80% of the country's territory, which looks promising as compared to other European countries.

The main advantage of SPP over WPP – there is no need to carry out long-term (at least 1 year) and costly wind measurements in the selected plot. There are all data for the calculations.

Features of land use

For WPP:

During the construction, lands are allotted for short-term and long-term use.

The peculiarity of land use of WPP projects is that turbines occupy only 1% of the entire territory of the wind farm, while 99% of the territory can be occupied by agriculture or for other types of activities (Denmark, the Netherlands, Germany experience).

The foundation of the wind turbine has a diameter of about 10 m, it is completely recessed underground. This means that land almost to the very base of the tower can be leased for agricultural use and receive additional income.

For SPP:

An allotment of land is carried out for the construction of industrial solar power plants (by decision of a special competent authority – Stategeocadastre).

Plots with an increased level of waterlogging, with heavy erosion, with traces of damage from specific productions or other characteristics making these lands unsuitable for agricultural purposes are very often assigned to SPP.

The term of papers formation

For WPP:

More than 1 year

For SPP:

6-9 months

Impact on the environment, environmental friendliness

For WPP:

The work of WPP is accompanied by noise, vibration and flickering shadows.

Wind power plants by themselves do not pollute the environment but in the cycle of production processes a large amount of CO2 emissions is released into the atmosphere.

WPP harm to birds is present when the power plant is located in the path of their migration.

For SPP:

SPP operates silently.

Solar power plants do not pollute the environment.

Ecological harm is present in the process of production of photo panels and depends on the type of toxic elements used, as well as the technological processes of their production and disposal.

EDS Development company prepares a full package of documents for land plots for industrial solar power plant construction.

If you are interested in renewable energy project, as an object of investment in Ukraine, - let's consider and compare WPP and SPP even more detailed according to the main economic parameters *:

*data - January 2020

Parameter

WPP

SPP

Equipment service life

For WPP:

The estimated service life of modern WPP is 25 years.

As a rule, during the entire service life, the wind turbine will need at least 2-3 times a major repair the cost of which can reach the cost of the entire installation.

For SPP:

Degradation of panels usually occurs at a speed of not more than 0.7-0.8% per year of the rated power of the panels.

High-quality inverter will last up to 25 years.

A minimal degree of degradation is characteristic of monocrystalline modules, as well as thin-film modern hybrids. Effective service life is at least 25-30 years;

Polycrystalline panels live somewhat less - 20-25 years. Although in practice, their use may last a little longer.

Cost of construction, development

For WPP:

An industrial wind turbine is built on the prepared site in 7-10 days. Obtaining approvals for construction from regulatory authorities may take a year or more.

The cost of construction of a 1 MW WPP is 1150-1250 thousand euros without VAT depending on the cost of connection.

The high cost of WPP equipment is the main component of the price.

WPP projects are more complex in terms of development and require longer and more complicated preparation.

For SPP:

The implementation period of the SPP takes 6-9 months and depends on the readiness of the documents for the land plot, conditions of point of connection to the power grid, availability of technical conditions and the general condition of the land plot.

The construction costs of a 1 MW SPP amount to 600-700 thousand euros without VAT, depending on the cost of connection.

Payback

For WPP:

5-7 years - period of return on investment

For SPP:

5-7 years - period of return on investment

Capacity utilization factor (ICUF) - determines the profitability of the project

For WPP:

WPP ICUF = 35 - 40%

i.e. per 1 MW of installed capacity WPP produce twice as much electricity SPP

For SPP:

SPP ICUF = 15%

“Green” tariff

For WPP:

Existing WPP and producers that have signed a contract for the sale of electricity with the state-owned enterprise “Energorynok” before 31/12/19 (after signing the contract, WPP must be built in 3 years) - sell e/e according to the “green” tariff:

Tariff per 1 kW for WPP = 9,05 euro cent

The difference between tariffs for solar and wind power plants has reduced by 2020, this gives WPP projects an advantage in return on invested capital.

For SPP:

Existing SPP and producers that have signed a contract for the sale of electricity with the state-owned enterprise “Energorynok” before 31/12/19 (after signing the contract, SPP must be built in 2 years) - sell e/e according to the “green” tariff:

Tariff per 1 kW for SPP = 11.26 euro cent

Auctions since 2020

For WPP:

Participation in auctions since 2020 for industrial WPP is mandatory with a capacity of more than 5 MW.

The winners who quote the lowest price will receive the right to sell electricity (with an obligation to build a WPP in 3 years).

If the manufacturer fails to meet the deadlines he loses his warranty coverage. *

* The content of the law №8449-d of April 25, 2019

For SPP:

Participation in auctions since 2020 for industrial SPP is mandatory with a capacity of more than 1 MW.

The winners who quote the lowest price will receive the right to sell electricity (with an obligation to build a SPP in 3 years).

If the manufacturer fails to meet the deadlines he loses his warranty coverage. *

* The content of the law №8449-d of April 25, 2019

Share in the production of e/e

For WPP:

1.1% of the total e/e production in Ukraine at the end of 2019.

For SPP:

2.2% of the total e/e production in Ukraine at the end of 2019.

EDS Engineering provides services for the design, construction, launch of industrial solar power plants (SPP) in Ukraine.

The development of alternative energy in Ukraine began with high “green” tariff rates. Profitability of projects remains attractive, despite a gradual reduction in tariff, due to decreasing costs of the construction of SPP and WPP.