PHOTOVOLTAIC DEVELOPMENT IN GRID PARITY

WE DEVELOP PHOTOVOLTAIC IN GRID PARITY IN ITALY
FOR INVESTORS, INVESTMENT FUNDS AND GENERAL ADVISOR

Our company, in collaboration with structural design companies, is developing photovoltaic power plants in Grid Parity in Green Field in Italy through new Single Authorizations .
As to GREENFIELD, we talk about new authorizations in the Photovoltaic sector in which the investor is a part of the development process from the beginning, and intervenes during the authorization process supporting the costs through agreed payment steps according to predefined milestones . The process starts with confirmation of specific sites of interest ( agricultural, industrial, ex – quarries ), continues with the presentation of the request for connection to the national electricity grid addressed to the competent authorities, until obtaining the Single Authorization . In some cases with sites where the authorization process has already been activated by our companies, the BROWNFIELD mode is also possible .

SERVICES WE OFFER :

In the field of photovoltaic development we will deal with:

- PRELIMINARY CHECKS : analysis of site conformation and slopes, radiation intensity, shaded areas, constraint analysis and planning restrictions, possibility of connection to the electricity grid in the cabin and connection costs, layout drawing, preliminary signature of option with the owner of the land, and of all the activities of preparation of the dossier relating to the site of interest .

- DESIGN, ENGINEERING AND AUTHORIZATION PROCEDURE : all the steps from the start of the connection request process to the network, up to the scheduled time based on national and regional procedures, to the authorization, in collaboration with our engineering partner companies of an important track record of photovoltaic power plants already successfully authorized .

- EPC : IBS can provide the investor with an excellent EPC service with advanced technology and competitive prices for the construction of the Photovoltaic Plant to deliver the Turnkey Photovoltaic park .

STRENGTH : IBS has a scouting team in all the Italian regions for finding suitable sites, and in JV with structured engineering and design companies, it develops the entire authorization process from the connection request to Enel or Terna until the release of the buildable ” Single Authorization ” concession .

THIS PAGE IS FOR :

– Italian and International Investors
- Investment funds, SGR
- General Advisor
- EPC ( Engineering, Procurement and Construction ) in a Joint Venture with Investment Fund
- JV Developers with Capital Funds

OPERATIONAL ASPECTS FOR THE INVESTOR

REGIONS : it is possible to build plants in almost all the Italian regions .
Initially the Investors were more interested in the South, Central Italy and Islands ( especially Sicily, Puglia, Basilicata, Lazio ), but we are witnessing a growing interest in Sardinia, Abruzzo, Molise, Campania, Calabria, Umbria and the regions of central and northern Italy ( Tuscany, Emilia Romagna, Veneto, Friuli Venezia Giulia, Lombardy, Piedmont ) due to system logics and future opportunities related to the network and industrial sectors .
The economic parameters are carefully analysed to guarantee for rents or land purchase, in combination with the radiation in that area, an adequate economic return compatible with the economic model of the individual investor . It is important to verify that the sites are not affected by constraints and in the case of particular restrictions, industrial or former quarries are preferred, instead of agricultural land .

DIMENSIONS AND SIZES OF PLANTS : normally we are required to install sites starting from 5 – 10 MW to go up, even if occasionally some investors show interest in 2.5 – 3 MW peak plants or in isolated cases of plants below 1 MW to be connected in medium voltage through PAS ( Simplified Authorisation Procedure ).

EXTENSION IN LAND HECTARES : is an aspect strongly linked to the type of technology to be used ( single axial tracker or fixed system tracker ) and to the type of panels . Normally 1.6 – 2 Hectares are required for each installed Megawatt of power up to 1 Hectare for each MW in the case of particular fixed technologies designed to optimize the installed power .

ASSIGNMENT OF SURFACE RIGHTS OR BUY THE LANDS : Land owners are interested in both methods of proceeding . In the case of a contract for the sale of surface rights, the duration is usually 30 years .

ADVANCES OR CAPERS FOR DDS OR PURCHASE OF LANDS : The topic related to the advance or down payment is relevant for easier negotiation with the land owner . The investor is usually willing to recognize a deposit for TICA or STMG for the site, when Terna or Enel confirm the power that can be connected to the electricity grid through the electrical substation identified as the connection point and the related costs . However, occasionally some investors consider it appropriate to make a payment of an advance or down payment at the signing of the preliminary option contract for DDS ( sale of surface rights ) or purchase of the land .

EURO A MW AMOUNT FOR DEVELOPMENT : The amount in Euro or Fee to be paid for each MW of installed power for the development of the Single Authorization . It is to be paid to the Development Engineering and Design Company, of which IBS is a partner . It is an important parameter to confirm the interest in proceeding with the signing of the Development Contract with the Investor, and will be the subject of negotiation between the parties . This aspect is closely linked to what follows, namely the payment Milestones ( risk capital and success fee ) linked to the Development itself .

STRUCTURE OF PAYMENT MILESTONES : that is, when development payments are made, and % for each phase . IBS can send a draft milestones structure combined with the MW Development Fee . Although this aspect is highly customized and the result of negotiations between Developers and Investors, the milestone structure traditionally provides for 4 to 6 payment Milestones .

EXAMPLE OF MILESTONES STRUCTURE :

- MILESTONE 1 Approval of the project : presentation of the Dossier and preliminary contract signed with the owners of the land
- MILESTONE 2 Preliminary phase : acceptance of TICA
- MILESTONE 3 Pre – authorization phase : Environmental impact assessment , Single Authorization ( VINCA, VIA and AU )
- MILESTONE 4 Construction project
- MILESTONE 5 to 120 days from obtaining the Single Authorization

COSTS EXCLUDED FROM DEVELOPMENT FEE A MW :

The following direct development costs are normally excluded from the MW fees and Development Fee :

- Any charges for setting up and managing the SPV
- Expenses for requesting the TICA ( request for connection to the electricity grid )
- Eventual Extraordinary specialist reports during the authorization process ( geognostic, geological, hydraulic, acoustic, archaeological )
- Charges envisaged by the Network Operator for connection solutions and advances on grid connection costs
- Possible advances to land owners and charges for registering contracts for the granting of land rights, notary reports, brokerage fees to Real Estate Agencies
- Examination costs at the appropriate public bodies concerned
- Costs for issuing guarantees in favour of public bodies and / or network operators .

DRAFT OF THE DEVELOPMENT CONTRACT : a draft of the development contract is very important to be sent so that the Engineering Company that will sign the development agreement with the investor can view it .

DRAFT OF THE PRELIMINARY OPTION TO BE SIGNED WITH THE PROPERTY OF THE LAND : although it is a purely contractual aspect, our experience suggests that we analyze the document to realize if this latter will substantially facilitate or complicate the negotiation with the ownership of the site, and the signature of the same, also to provide some suggestions aimed at speeding up the practices and at the same time preserving the bankability of the agreement for the due protection for the investor . Therefore a draft of the preliminary option would be desirable to be analyzed by us simultaneously with the negotiation of the Development Milestones and Fees .

EPC : EPC and BOS ( Balance of System ) activity is optional and at the discretion of the investor, so in case of interest it will be our care to provide the necessary advice .

OPERATIONS RELATED TO SITES AND DOCUMENTS
( for owners and reporters )

SOIL CONFORMATION : if it is flat, inclination and conformation of the site
- GOOGLE EARTH and the perimeter of the land together with the coordinates . This will allow us to determine, through simulations, the radiation and expected profitability of the plant .

CATASTAL DOCUMENTS : Land register and parcel lots, CDU ( urban destination certificate )

SUBSTATION OR CONNECTION CAB : distance of the land from the Terna or Enel substation, presence of medium or high voltage, actual line capacity, if possible connect to the substation, connection costs to the existing substation stall . Possible creation of a new user substation in the case of PV Photovoltaic Power Stations of 30 MW – 40 MW up and actions to intercept the high voltage line of proximity .

PRELIMINARY WITH THE PROPERTY OF THE LAND : sometimes the preliminary contracts already signed with the properties of the land are turned over to the investor who confirms the interest in a site . However, it is normally preferable to use the investor ‘s draft agreement and sign the agreement for the purchase or sale of the surface right directly between the Owner and the Investor, immediately using the investor’s format .

SURVEY AND BUROCRATIC ITER : IBS and the Partner Engineering Companies, will follow the operational steps and the bureaucratic process through highly qualified personnel and technicians with experience gained over decades of professional activity . The Team is able to operate throughout the development of the AU : inspections, surveys, geological examinations, and all the specialized reports, Engineering and planning, presentation of TICA requests, requests, meetings of any kind at any level with the foreseen Authorities, until obtaining the AU ( Single Authorization ) turnkey, for the construction of the Photovoltaic Plant .

TIMING : Depending on the Regions, times and methods may differ, however the times for the bureaucratic process take effect after the positive outcome :
- Of the preliminary analysis information and documents relating to the land and after the signing of the preliminary contract with the property .
- Verification of documents sent to the Service conference in the Region in close collaboration with our designers .

AGREEMENTS : we will sign agreements and NDA ( Non Disclosure Agreement ) for data processing and the exchange of confidential information .

SITE PAGE FOR THE SCOUTING TEAM : web site page addressed to the Scouting Team

DOWNLOAD DOCUMENTS TO PRESENT THE WEBSITES
( for owners and signalers ):

GUIDELINES : Information Guide by means of a PDF file which aims to illustrate the various aspects related to Photovoltaics, and to the New Photovoltaic Plants to be installed on Terrain and the parameters to select suitable sites .

INFORMATIVE VIDEO : video in Youtube to explain the process linked to the presentation of the sites and their characteristics, to select and present suitable sites, together with the various steps of the process .

GUIDE ON HOW TO TRACK THE KMZ PERIMETER IN GOOGLE EARTH : a guided illustrative page on how to trace the KMZ file in Google Earth, which is indispensable for performing preliminary checks on the site, both conformation and network connection costs .

VIDEO ON HOW TO TRACK KMZ : 2 minutes video in Youtube that explains with a concrete example how it is possible to easily trace the perimeter and save on disk the file with extension .kmz to send to analyze the site .

GREENFIELD SITE WEBSITE TO COLLECT INFO : Excel file to enter the data relating to the site, general information, the coordinates of Google Earth and KMZ with highlighted the perimeter of the land, if of interest the transfer of the right of surface or sale, if mortgages are present on the ground, the presence of medium voltage cabins adjacent to the site, another important to report .

FAQ : all the questions and answers, and suggestions to save time and make communications more effective and efficient for owners and Scouting Teams who intend to send sites .

COST LINE SIMULATION AND CONNECTION TO THE NETWORK : Excel file to simulate the costs of connection to the power line for low and medium voltage . It is sufficient to enter the values in the yellow boxes ( where values are currently shown as an example ) and the connection cost is automatically calculated . For high voltage, CONTACT US .

STATE OF ADVANCE AU ( Single Authorization ) : in this section, our collaborators can monitor the progress of the AU ( Single Authorization ) for the sites presented .

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