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Distributed Energy
Edible Oil Refinery

Edible Oil Refinery

Kigali, Rwanda.2020

14.9 %

IRR

8 years

Break Even Period

2.7 X

Target total return

20 years

Target investment period

Edible Oil Refinery

Kigali, Rwanda.2020

14.9 %

IRR

8 years

Break Even Period

2.7 X

Target total return

20 years

Target investment period

Edible Oil Refinery – Energy Customer Profile

Our Energy Customer is a business conglomerate in Africa, headquartered in Dubai, UAE, with operations in numerous industrial sectors. Currently, the Energy Customer has its presence in over 14 countries, most of which are in Africa and has over 5000 employees.

The proposed project is for powering the Energy Customer’s refinery in Kigali, Rwanda using rooftop solar, thereby off-setting their dependance on diesel generators. This alternative solution to energy generation via a clean source, will reduce their carbon footprint and associated environmental impacts. Based on the proposed installation capacity, the system cost is $1,200,000.

A total of 2000 KW can be installed and we are quoting for the same. Distributed Energy provides the Customer the option of BOOT Model. Under this plan, we will install the solar system at the Customer’s premises. The lease duration is 20 years and cost per unit is $0.07 without change for the full lease period.

Power Purchase Agreement

How do distributions work?

In terms of monthly payment, the Energy Customer is only charged on the basis of power produced. Under our current Power Purchase Agreement (PPA), parties involved agree to a rooftop lease for the full lease period on a non-chargeable basis and also an O&M contract with Distributed Energy. The lease period is 20 years and the degradation of the asset is 1% per annum – beyond the lease period, the project will be transferred to the Customer at a mutually agreed residual cost. The total investment percentage by the Energy Customer is nil. Ownership of the project is Investor via Distributed Energy. The maximum investment amount is $1,200,000. Solar panels come with a product warranty of 5 years and performance warranty of up to 25 years. Solar inverters will have a warranty of 5 years.

 

Once the solution design is approved and arrangement of finance is finalised, the procurement of materials is initiated, followed by installation and commissioning of the project. A detailed timeline showcasing the breakdown of milestones and deadlines will be provided to the relevant parties.

What fees will I be paying to Distributed Energy?

Distributed Energy share, including O&M fees, is 20% of revenue generated monthly.

Location

Why Invest?

The proposed project has a 14.9% return on investment with a target total return of 2.7x and break-even period of 8 years. As the Investor, you shall be the owner through us of the solar asset for the PPA period and reserve the right to hypothecate the asset if necessary. From a clean energy mobilisation perspective,  percentage savings the Energy Customer will be making over time as a result of this project implementation are substantial.

Amount % Saving

$992,167 /- for 1-5 years

Avg 48.22%

$1,147,096 /- for 6-10 years

Avg 53.11%

$1,304,605 /- for 11-15 years

Avg 57.53%

$1,465,074 /- for 16-20 years

Avg 61.53%

Investment Profile

Hypothetical Investment

$

Total Returned

$

*Note : All calculations and data presented are deemed to be accurate, but accuracy is not guaranteed. The projected pro forma IRR are intended for the purpose of illustrative projections to facilitate analysis and are not guaranteed by Distributed Energy or its affiliates and subsidiaries. Actual returns on investment may vary depending on tax, insurance and other increments.

Distributed Energy