NAVITAS Techno-financial Project software for

renewable energy

Michael O’Connor

HMRC

Presentation OutlineNavitas Commercialisation ProjectNAVITAS Software Product

Functionality, ModulesFlow chartsSample graphical results

Current status & future plans

What is Navitas?Techno-financial evaluation toolCalculates Energy Output & Financial Returns

What is the best device at your locationWhat is the best location for your deviceOptimal MW size of your projectWhat level of REFIT support is requiredHow long will it take for the project to produce a return

Originally developed in Excel as an in-house research tool.

NAVITAS – Academic papers 1. Dalton G J, Alcorn R, Lewis T, (2010) “Economic assessment of the Pelamis wave

energy converter, in Ireland, Portugal and North America”. Renewable Energy: 35:2: p.443-455.

2. Dalton G J, O’Gallachoir B. (2010) “Building a wave energy policy focusing on innovation, manufacturing and deployment.” Renewable and sustainable energy reviews. 14:8: p.2339-2358.

3. O’Sullivan D, Dalton GJ, Lewis T. (2010) “Regulatory, technical and financial challenges in the grid connection of wave energy devices”. IET Renewable Power Generation. 4:6: 555-67

4. Dalton GJ, Lewis T. (2011) “Metrics for measuring job creation by renewable energy technologies, using Ireland as a case study”. Renewable and Sustainable Energy Reviews: 15:4: 2123-2133.

5. Dalton GJ, Alcorn R, Lewis T. (2011) “A 10 year installation program for wave energy in Ireland, a sensitivity analysis on financial returns”. Renewable Energy; , 40:1: 80-89.

6. Dalton GJ. (2011) “Why wave energy”. OES IA Annual Report 2010 - Implementing agreement on ocean energy systems. pg 93-110.

7. Deane JP, Dalton G J, O’Gallachoir B “Economics of 500MW of Wave Energy in the All Island System”. Energy Policy. In Press.

8. O’Connor M, Lewis T., Dalton GJ. “Weather windows for operation and maintenance”. Renewable Energy; in review.

9. O’Connor M, Lewis T., Dalton GJ. “Techno-economic performance of the Pelamis P1 and Wavestar at different ratings and various locations in Europe”, Renewable Energy; in review.

10. O’Connor M, Lewis T., Dalton GJ. "Operational expenditure costs for wave energy projects and impacts on financial returns". Renewable Energy. in review.

NAVITAS – sample users to date Sector Company Project

EU FP7 Waveplam Case study

Industry Association

MRIA Case study

Utility Bord Gais Tidal feasibility

Irish Government - SEAI

MPT Feasibility

Wave energy companies

WaveStar Case study

Benson Feasibility (SEAI)

Seapower Feasibility (SEAI)

Ocean Energy Buoy Jobs/MW

Commercialistion ProjectEnterprise Ireland funded €350,000 over two

yearsDevelop and Commercialisation existing

HMRC in –house tool into a commercially available software product

Transfer to more flexible, powerful and user friendly platform

Stage 1: Jan 2012-March 2013 Stage2: April 2013-Dec 2013

Gordon DaltonPI & Manager

Chris O’Donoghue Software Engineer

Steve Prestwich

Optimisation Specialist

Tony DaltonCommercial

Advisor

Chris McCarthySoftware

Consultant

Ray AlcornProject

Consultant & Industry Liaison

Private ConsultantsHMRC

UCC

Slavomir Krupa

Software Architect

Computer Science Depart

Michael O’Connor Technical

Expert

Navitas Team

Navitas experience4 years in development

3 years in Excel1 year in new platform software

development2 technical engineers2 software engineers5 postgraduate+4 undergrad thesis

contributions6 summer interns

NAVITAS – modeling options

Offshore wind +wave

Offshore wind + tide

Wave +tideWind+wave+tideHybrid modelling

Offshore wind

Wave

Tidal

Hybrid device

NAVITAS – modular productTarget market Features

NAVITAS Lite

Trial use, pre project planning

Pre defined user inputsSelection of locations and devices

NAVITAS enterprise

Designers, developers, advisors, financiers oPre project planning, oproject implementation, opost project monitoring

User inputs in all modules8 extra available modulesOptimisation

Energy Calc

AEO

CORE

Limited in Lite

Full in Enterprise

Enterprise Only

Resource

Device

Cash Flow

Results

OPEX

Cable/Piping

Device Cost

Financial Inputs

Moorings/Foundation

s

Weather Window

s

Install

O&M

DebtEquity

Tax

Sensitivity/Risk

Power Optimis-

ation

Project

Planner

NAVITAS Flow Chart

Device Details

Technical inputs - Devices Lite –

15 device types (permissions confirmed)

Wave, wind , tidePower curves or matrices.

Enterprise – User input option

Location Details

Technical inputs - Resource Lite –

15 locations around the worldWave, wind , tideSummary data or detailed

hourly dataUp to 15 years data

Enterprise – User input option

Project Dashboard

Technical outputs – Financial resultsCumulative discounted cash flows

-1,000

-800

-600

-400

-200

0

200

400

600

800

1,000

0 2 4 6 8 10 12 14 16 18 20 22 24

Project years

Cu

mu

lati

ve

dis

co

un

ted

pro

fit

(€M

)

FIT €0.00

FIT €0.05

FIT €0.10

FIT €0.22

FIT €0.30

FIT €0.40

FIT €0.50

FIT €0.60

Technical outputs – Financial results

-800

-600

-400

-200

0

200

400

Irel

and

Sco

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Por

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Spa

in

Den

mar

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Gre

ece

Irel

and

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ece

Wavestar Pelamis

Device type

NP

V (

€M

)

1MW rated 0.5MW rated 0.25MW rated

€0.00

€0.10

€0.20

€0.30

€0.40

€0.50

€0.60

€0.70

€0.80

Irel

and

Sco

tland

Por

tuga

l

Spa

in

Den

mar

k

Gre

ece

Irel

and

Sco

tland

Por

tuga

l

Spa

in

Den

mar

k

Gre

ece

Wavestar PelamisDevice type

CO

E (€

/kW

h)

1MW rated 0.5MW rated 0.25MW rated

Current StatusHalf way through two year commercialisation processStage 1 complete: Navitas LiteStage 2 underway to complete Enterprise ModulesTrial of Lite will commence August 2013Enterprise Trials end of yearCommercial Release early 2014Cost: dependent on ongoing marketing studies

Future Plans Post 2013Navitas Bank

Project finance raising stageFull financial inputs and outputs Profit loss, balance sheets

Navitas Microgrid Onshore windIntegrate with HMRC Seagrid

Cloud based?

Any Questions