Eco forge Advisor

Water Assets water desalination, water purification and water pumping plants
Water Assets 8000

Water Asset Type Desalination Plant

Daily Water Production 600 cubic meters per day
Annual Solar Radiation (GHI) at this Location 2000 kWh/m2
Baseline Source of Electricity Supply of this Asset Grid Electricity System operated by National Electri

Annual Electricity Demand 1,700,000 kWh

Average Annual Electricity Tariff Incurred 0.06 $ Per Kwh
Estimated Annual Escalation in Electricity Tariff 2%

Grid-connected ground-mounted
Solar PV, Inverters and Balance of
Recommended Renewable Energy Technology Systems (BOS) without Batteries

Recommended Capacity of Solar PV installation 325 kWp

Estimated Annual Electricity Generation by Solar PV

Installation (Year 1) 510,000 kWh

Estimated Annual Electricity Supplied by Solar PV

Installation to Water Desalination Plant (Year 1) 500,000 kWh

Estimated Annual Electricity Supplied by Solar PV

Installation to National Electricity Grid (Year 1) 10,000 kWh

Net Metering for Grid Interconnection? Yes, allowed

Tariff at which Electricity fed to the Grid will be

compensated US$ 0.06 per kWh

Useful Life of Solar PV panels 20 Years

Useful Life of Inverters 8 Years

Annual Degradation in Solar PV Electricity Output 1%

Problem
Make suitable assumptions (based on research) for the following financing parameters in Vietnam:
- Cost of Equity
- Cost of Debt
- Income Tax Rate
- Suitable Financing Structure (Debt-to-Equity Ratio)
Compute simple Payback period and Internal Rate of Return (IRR) in base case scenario for the proposed Solar PV investmen
Determine the amount of capex subsidy that would be required for a simple payback period of 3 years.
Year 1 2
2019 2020
Total Capex at Initial 472,000
Opex Per year 7500 7725
Inverter Installation Cost ( 8 Year ) 0 0
Cost of Operation 479,500 7,725

Annual Electricity demand 1700000 1700000

Annual Electricity supplied from Solar PV 510000 504900
Supplied to grid 10000 9900
Total Suplied to Desalination Plant 500000 495000
Required from Grid for Desalination Plant 1200000 1205000
Tarrif Cost 0.06 0.0612
Total Cost without Solar PV 102000 104040
Cost With Solar PV 71400 73140.12

Marginal COGS( Electricity) Reduction 30600 30899.88

Net Cash Flows -448,900 23,175

NPV of Project ₹ -277,896.33

water pumping plants
Solar PV Modules 215,000
Inverter only 62,000 62000
BOS, Labor, Permits, Grid Interconnection and Other Costs 195,000
Estimated Total Capex 472,000
Estimated Annual Opex including Insurance 7500
Annual Opex Escalation 3%

Cost Of Euity 12.01%

Debt / Equity 0.612

Debt/Total 37.97%

Vietname Goverment 10 y bond rate 4.12%

Taking risk Premium of 3% 7.12%

Tax rate 20%

WACC 9.61%

oposed Solar PV investment.

 3 4
2021 2022

7956.75 8195.4525
0 0
7,957 8,195

1700000 1700000
499851 494852.49
9801 9702.99
490050 485149.5
1209950 1214850.5
0.062424 0.06367248
106120.8 108243.216
74918.101176 76734.73072752

31202.698824 31508.48527248
23,246 23,313
 5 6 7 8
2023 2024 2025 2026

8441.316075 8694.55555725 8955.392223968 9224.053990687

0 0 0 0
8,441 8,695 8,955 9,224

1700000 1700000 1700000 1700000

489903.9651 485004.925449 480154.8761945 475353.3274326
9605.9601 9509.900499 9414.80149401 9320.65347907
480298.005 475495.02495 470740.0747005 466032.6739535
1219701.995 1224504.97505 1229259.9253 1233967.326047
0.0649459296 0.0662448482 0.0675697452 0.0689211401
110408.08032 112616.2419264 114868.5667649 117165.9381002
78590.8118918546 80487.16426766 82424.62414513 84404.04484276

31817.2684281455 32129.07765874 32443.9426198 32761.89325747

23,376 23,435 23,489 23,538
 9 10 11 12 13 14
2027 2028 2029 2030 2031 2032

9500.775610407 9785.798878719 10079.37284508 10381.75403043 10693.20665135 11014.00285089

62000 0 0 0 0 0
71,501 9,786 10,079 10,382 10,693 11,014

1700000 1700000 1700000 1700000 1700000 1700000

470599.7941582 465893.7962167 461234.8582545 456622.5096719 452056.2845752 447535.7217295
9227.446944279 9135.172474836 9043.820750088 8953.382542587 8863.848717161 8775.21022999
461372.347214 456758.6237418 452191.0375044 447669.1271294 443192.4358581 438760.5114995
1238627.652786 1243241.376258 1247808.962496 1252330.872871 1256807.564142 1261239.488501
0.0702995629 0.0717055541 0.0731396652 0.0746024585 0.0760945077 0.0776163978
119509.2568622 121899.4419995 124337.4308395 126824.1794563 129360.6630454 131947.8763063
86426.29705084 88492.26918193 90602.86772831 92759.01762661 94961.6626298 97211.76568664

33082.95981139 33407.17281755 33734.56311116 34065.16182965 34399.00041558 34736.11061965

-38,418 23,621 23,655 23,683 23,706 23,722
 15 16 17 18 19 20
2033 2034 2035 2036 2037 2038

11344.42293641 11684.75562451 12035.29829324 12396.35724204 12768.2479593 13151.29539808

0 0 62000 0 0 0
11,344 11,685 74,035 12,396 12,768 13,151

1700000 1700000 1700000 1700000 1700000 1700000

443060.3645122 438629.7608671 434243.4632584 429901.0286258 425602.0183395 421345.9981562
8687.45812769 8600.583546413 8514.577710949 8429.431933839 8345.137614501 8261.686238356
434372.9063845 430029.1773206 425728.8855474 421471.596692 417256.880725 413084.3119178
1265627.093616 1269970.822679 1274271.114453 1278528.403308 1282743.119275 1286915.688082
0.0791687258 0.0807521003 0.0823671423 0.0840144852 0.0856947749 0.0874086704
134586.8338324 137278.5705091 140024.1419192 142824.6247576 145681.1172528 148594.7395978
99510.30932869 101858.2960652 104256.7487858 106706.7111715 109209.2481135 111765.446141

35076.52450372 35420.27444386 35767.39313341 36117.91358612 36471.86913926 36829.29345683

23,732 23,736 -38,268 23,722 23,704 23,678
 1 2 3 4 5 6 7 8 9
Cost 472000
Inverter 62000
Opex 7500 7725 7956.75 8195.453 8441.316 8694.556 8955.392 9224.054 9500.776
Total Cost 479500 7725 7956.75 8195.453 8441.316 8694.556 8955.392 9224.054 71500.78
₹ 551,556.07

Tariif 0.06 0.0612 0.062424 0.063672 0.064946 0.066245 0.06757 0.068921 0.0703
Capacity 1700000 1683000 1666170 1649508 1633013 1616683 1600516 1584511 1568666
Benefits 102000 102999.6 104009 105028.3 106057.6 107096.9 108146.5 109206.3 110276.5
₹ 952,682.07

309008.59608
-162991.4039
 10 11 12 13 14 15 16 17 18 19

62000
9785.799 10079.37 10381.75 10693.21 11014 11344.42 11684.76 12035.3 12396.36 12768.25
9785.799 10079.37 10381.75 10693.21 11014 11344.42 11684.76 74035.3 12396.36 12768.25

0.071706 0.07314 0.074602 0.076095 0.077616 0.079169 0.080752 0.082367 0.084014 0.085695
1552979 1537450 1522075 1506854 1491786 1476868 1462099 1447478 1433003 1418673
111357.2 112448.5 113550.5 114663.3 115787 116921.7 118067.6 119224.6 120393 121572.9
 20

13151.3
13151.3

0.087409
1404487
122764.3
Source: https://www.investing.com/equities/sai-gon-water-infra
Sai Gon Water Infrastructure Corp (SII)
SII Industry Avg
Return on EquityTTM 0.80% 12.01%
Return on Equity5YA 5.17% 12.38%
Return on AssetsTTM -0.38% 5.85%
Return on Assets5YA 1.90% 8.13%
Return on InvestmentTTM -0.48% 7.23%
Return on Investment5YA 2.38% 10.46%

Quick RatioMRQ 1.69 2.91

Current RatioMRQ 1.86 3.17
LT Debt to EquityMRQ 90.34% 54.35%
Total Debt to EquityMRQ 102.62% 61.20%

Cost Of Euity 12.01%

Debt / Equity 0.612
Debt/Total 37.97%
Vietname Goverment 10 y bond rate 4.12% https://www.google.co.in/url?sa=t&rc
Taking risk Premium of 3% 7.12%
Tax rate 20% https://www.google.co.in/url?sa=t&rc

WACC 9.61%
om/equities/sai-gon-water-infrastructure-corp-ratios

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