1. Place image in this area.
TK RENEWABLES
WPT2
EIBHLIN MARSH
&
KIERAN MC LAUGHLIN
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2. TK RENEWABLES
GENCOMM MEETING
27TH JUNE 2018
STORNAWAY

3. Objective: To develop a Financial/Commercial Decision-Making Model to be used to project, evaluate and optimise the financial performance of zero/low carbon/SMART community scale hydrogen systems across the North West Europe (NWE) region.

4. METHODOLOGY Initially use public data to create the model
Develop on a common platform
Validate using the data from the 3 Implementation work packages
Develop a workplan for approval by Gencomm partners

5. PLAN FORMAT - Content and duration of project activities
- Start up activities – early adopter group, demo data agreed etc.
- Content and duration of project activities
- Information collection tools
- Data analysis process and rules
- Additional market data activities
- Development of data templates
- Skills and abilities required to undertake the work
- Development of input/output templates
- Validation steps
- Activities and Resources

6. DATA REQUIREMENTS INPUTS
For each of the 3 implementation workpackages the following parameters will be defined
The technical operating parameters and specifications
The electricity costs for a range of sizes of plant
Curtailment factors
Equipment operational life
Capital and operational costs for agreed size ranges
Hydrogen Production Equipment
Hydrogen Distribution Equipment
Hydrogen market Values per region

7. DATA REQUIREMENTS OUTPUTS
As examples the outputs from the model will likely include:
Calculated cost of electricity by technology
Calculated cost of hydrogen per kg
Total System Capex
Total System Opex
Volume of hydrogen per day/per annum
Assessment of viability to supply certain hydrogen markets
Communication plan for engagement with potential users

8. VALIDATION
Upfront discussions will be held with the 3 Gencomm demonstration sites to identify and request the required data to allow validation of the model
Testing with the early adopter group and undertake any modifications to ensure the points made by the early adopter group are addressed

9. DEVELOPMENT
There are a number of existing Financial Models in use today but many are quite complex and can be too cumbersome.
MARKAL Model – MARKet Allocation simulates the market for energy technologies.
TIMES model – The Integrated MARKAL-EFOM System which is a combination of models
TIAM model – TIMES Integrated Assessment Model
All are interesting but too global in scale for our project

10. DEVELOPMENT
The required system needs to be able to make performance predictions and cost-of-energy estimates for all 3 technologies within this project namely wind, solar and AD which are based on installation and operating costs and system design parameters which have been specified as inputs to the model. .

11. DEVELOPMENT
We will be designing and developing a bespoke model similar to the System Advisor Model (SAM) developed by the National Renewable Energy Laboratory based in the USA.
Development will be using Visual Basic Excel software.

12. DEVELOPMENT
The SAM model is a good example of what a comprehensive model should look when complete.
The following screen shots are examples of the type of basic information the GENCOMM Financial will display when complete.

13. Graphs and Charts on the Results page displays graphs of results that you can easily export to your documents.

14. Graphs and Charts on the Results page displays graphs of results that you can easily export to your documents.

15. In this screenshot, you can see several rows of the cash flow table for a 10-megawatt utility-scale project with a two-partner flip financial structure.

16. TIMING
These are the types of results which we intend to have available as part of our model outputs.

17. TIMING
The validated model will be operational by March 2019.