Altern Energy Limited · PSX:ALTN
Altern Energy — Investor Presentation (November 2020)
23 slides from Altern Energy's investor presentation, Nov 18, 2020
Slide 1: Slide 1
Slide 2: Altern Energy Limited Corporate Briefing Session
ALTERN ENERGY LIMITED CORPORATE BRIEFING SESSION- 18TH November 2020 Presented by: Umer Shehzad, CEO
Slide 3: AEL Power Plant
AEL AELPOWER PLANT POWER PLANT
Slide 4: Project Information
PROJECT INFORMATION Type Independent Power Producer Power Policy 1994 Power Policy Off-taker Central Power Purchasing Agency (Guarantee) Limited (CPPA-G); formerly WAPDA Location Kohat Road near Fateh Jang Commissioned 2008 Financial Close Phase I – July 1996 Phase II - Dec 2007 Projec
Slide 5: Company Structure
_\ 1) RR 100% v AEL (listed) 100% 100% x rt
Slide 6: Implementation Agreement
IMPLEMENTATION AGREEMENT IA grants to the Company the exclusive right to design, finance, insure, construct, complete, own, operate and maintain the Complex GoP guarantees the performance obligations of CPPA-G and SNGPL under the PPA and GSA respectively IA provides protections against political
Slide 7: Power Purchase Agreement (PPA)
Power Purchase Agreement (PPA) PPA signed between AEL and WAPDA having a term of 30 years from the Commercial Operation Date (COD) starting from June 6, 2001 In 2017, as a result of a Novation Agreement, all the rights and obligations of WAPDA have been transferred to CPPA-G PPA defines rights an
Slide 8: Gas Supply Agreement (GSA)
GAS SUPPLY AGREEMENT (GSA) GSA defines the rights and responsibilities of AEL & SNGPL for sale and purchase of natural gas Daily contract quantity – 6 MMSCFD of gas per day Term of the Agreement – 30 June 2013 * Currently, Interim tri-partite GSA on RLNG is under the process of execution Interim
Slide 9: Plant Information
PLANT INFORMATION Capacity 31.2 MW at ISO conditions Technology IC Engines – simple cycle Fuel Natural Gas / RLNG Backup Fuel No provision Interconnection 66 kV via In-out transmission connected with Fateh jang and Jand Grid Stations Key Equipment 8 Gas-Fired engines (3.9 MW capacity eac
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS Financial Year Ending June 30 (Rupees in Million) Description 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016 2014-2015 Despatch (MWH) 3,728.00 -83% 22,029.00 -85% 145,115.00 -23% 187,844.00 7% 175,069.00 1% 173,306.00 Revenue 116.80 -75% 474.16 -71% 1,621.19 0% 1,624.56 1% 1,
Slide 11: Reasons for Decline in Operational Income
REASONS FOR DECLINE IN OPERATIONAL INCOME Reduced dispatch demand from the off-taker Company’s low position on economic dispatch merit order of CPPA-G Influx of new/ more efficient power plants in the national grid system in the last 2/3 years (approx.. 13,000 MW) Plant operations shifted on
Slide 12: Merit Order Scenario
MERIT ORDER SCENARIO Till Sep 2017 Plant operations Local /indigenous gas Gas price Rs. 600 / MMBTU AEL’s EPP price Rs. 5.92 / KWh AEL’s merit order position 9 Current Scenario Plant operations RLNG Current RLNG price Rs. 1087.84 / MMBTU AEL’s EPP price phase I= Rs. 9.539 / KWh Phase I
Slide 13: Key Generation Data
KEY GENERATION DATA Capacity YEAR Net generationMWh Availability Utilization 2011-12 182,067 93.10% 97.50% 2012-13 193,794 90.80% 96.70% 2013-14 205,398 96.10% 95.50% 2014-15 173,306 97.40% 94.70% 2015-16 175,069 96.40% 92.90% 2016-17 187,844 96.70% 94.30% 2017-18 145,115 68.20% 96.60% 2018-19 22,02
Slide 14: Net Generation MWh, Availability, Capacity Utilization
Net generation MWh 205,398 193,794 187,844 182,067 173,306175,069 145,115 22,029 3,728 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Availability Capacity Utilization 97.50% 96.70% 96.60% 97.40% 93.10% 96.10% 96.70% 96.40% 90.80% 95.50% 94.70% 95.00% 95.00% 94.30% 68.20% 92
Slide 15: Issues of Power Sector
ISSUES OF POWER SECTOR High cost of electricity Circular debt Under-utilization of ‘Take or Pay’ power plants In- efficient public sector power generation (GENCOs) plants Use of cheaper gas fuel by in-efficient plants Non-availability of RLNG to power plants Centralized control of DISC
Slide 16: Issues of Power Sector
ISSUES OF POWER SECTOR In-adequate infrastructure between NTDC and K-Electric system for import/export of electric power beyond 650 MW Ineffective demand side management. Higher Transmission and Distribution losses Low recoveries of DISCOs
Slide 17: Countrywide Generation Capacity
COUNTRYWIDE GENERATION CAPACITY figures in Mega Watts As at June 30 2016 2017 2018 2019 2020 Hydel 7,116 7,116 8,713 9,761 9,861 Thermal 16,701 18,989 24,020 25,670 25,244 Nuclear 752 1,142 1,467 1,467 1,467 Renewable Energy ( Wind, Solar & Bagasse) 852 1,465 1,779 2,097 2,147 TOTAL 25,421 28,712 35
Slide 18: Countrywide Generation by Type
COUNTRYWIDE GENERATION BY TYPE Figures in GWh Electricity Generation by Type 2016 2017 2018 2019 2020 Hydel 34,554 32,079 28,069 33,096 38,988 Thermal 73,672 78,818 92,011 89,403 81,555 Nuclear 4,216 6,278 9,051 9,136 9,898 Import 463 496 555 487 514 Renewable Energy ( Wind, Solar & Bagasse) 1,187 2
Slide 19: Installed Capacity vs Demand
INSTALLED CAPACITY VS DEMAND As at June 30 2016 2017 2018 2019 2020 INSTALLED CAPACITY 25,421 28,712 35,979 38,995 38,719 DEMAND 26,462 27,560 28,830 28,369 28,672 DIFFERENCE (1,041) 1,152 7,149 10,626 10,047 38,995 INSTALLED CAPACITY DEMAND 38,719 35,979 28,712 28,830 28,672 28,369 27,560 25,421 26
Slide 20: Key Challenges and Their Mitigating Tasks
KEY CHALLENGES AND THEIR MITIGATING TASKS 1. Execution of GSA • Continuous follow-up with the Ministry of Energy (Power Division), Ministry of Petroleum, CPPA-G and SNGPL 2. Circular Debt • Continuous follow-up with Ministry of Energy and CPPA-G earliest release of outstanding overdues 3. To ensure
Slide 21: Material Information
MATERIAL INFORMATION Negotiations with the Government • The Government formed a Negotiating Committee to negotiate with IPPs on various tariff related concessions. • On August 25, 2020, AEL formally requested the Negotiating Committee to terminate its PPA on the terms to be mutually agreed between t
Slide 22: Questions
ALTERN ENERGY LIMITED Questions ANY
Slide 23: Thank You
ALTERN ENERGY LIMITED THANKYOU
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