Financial model of
SPP plus BESS
construction and
operation
in Spain
SPP-49 MW
BESS-53.3MWh
Monthly weighted average electricity price, EUR/MWh, DAM, Spain
To analyze the cost-effectiveness of building and operating a hybrid SPP in combination with BESS, we will use weighted average electricity prices for 2024 and compare the cost-effectiveness of operating SPP with BESS and SPP without BESS.
2024
Calculation of the selling price, Option 1 (SPP plus BESS)
Month | Price, DAM, EUR per kW/h | Discount on the wholesale market, % | Charge for imbalances, % | Selling price, EUR per kW/h |
January | 0.0665 | 5 | 4 | 0.0605 |
February | 0.0313 | 5 | 4 | 0.0285 |
March | 0.0107 | 5 | 4 | 0.0097 |
April | 0.0071 | 5 | 4 | 0.0065 |
May | 0.0176 | 5 | 4 | 0.0160 |
June | 0.0424 | 5 | 4 | 0.0386 |
July | 0.0524 | 5 | 4 | 0.0477 |
August | 0.0712 | 5 | 4 | 0.0648 |
September | 0.0564 | 5 | 4 | 0.0513 |
October | 0.0619 | 5 | 4 | 0.0563 |
November | 0.0959 | 5 | 4 | 0.0873 |
December | 0.06 | 5 | 4 | 0.0546 |
Calculation of the selling price for SPP:
Calculation of the selling price for BESS:
Annual weighted average price: 0,0417 EUR/kWh
Month | Price, DAM, EUR per kW/h | Discount on the wholesale market, % | Selling price, EUR per kW/h |
January | 0.10485 | 5 | 0.0996 |
February | 0.06645 | 5 | 0.0631 |
March | 0.05419 | 5 | 0.0515 |
April | 0.03671 | 5 | 0.0349 |
May | 0.06191 | 5 | 0.0588 |
June | 0.0959 | 5 | 0.0911 |
July | 0.11182 | 5 | 0.1062 |
August | 0.13069 | 5 | 0.1242 |
September | 0.11777 | 5 | 0.1119 |
October | 0.11764 | 5 | 0.1118 |
November | 0.13505 | 5 | 0.1283 |
December | 0.10015 | 5 | 0.0951 |
Annual weighted average price: 0,0943 EUR/kWh
Construction and operation of SPP plus BESS, Option 1, Key indicators
No. p/n | Indicators | unit of measure | SPP | Notes |
1 | Solar panels | | LR5-72HTH-580M | |
2 | Cost of SPP construction including VAT | euro | 33,971,758.08 | VAT - 21% |
3 | Equity participation 30%. | euro | 10,191,527.42 | |
4 | Bank loan 70% of the total | euro | 23,780,230.65 | |
5 | Planned capacity | MW | 49.0000 | |
6 | including: SPP | MW | 49.0000 | |
7 | BESS | MW | 53.3000 | |
8 | SPP plus BESS construction price including VAT per Watt | euro | 0.6933 | Data for planning should be provided by the EPC contractor |
9 | including: SPP construction price including VAT per Watt | euro | 0.5137 | |
10 | BESS construction price including VAT per Watt | euro | 0.1651 | |
11 | Target annual sales volume, excluding VAT | kWh | 80,121,277.67 | Data for planning should be provided by the EPC contractor |
12 | euro | 4,013,825.96 | | |
13 | including: Target annual sales volume of SPP, excluding VAT | kWh | 67,281,456.87 | |
14 | euro | 2,802,875.62 | | |
15 | including: Target annual sales volume of BESS, excluding VAT | kWh | 12,839,820.80 | |
16 | euro | 1,210,950.33 | | |
17 | Electricity sales price excluding VAT | EUR/kWh | 0.0501 | This includes a 5% discount from the DAM price |
18 | including: Electricity sales price of SPP excluding VAT | EUR/kWh | 0.0417 | |
19 | Electricity sales price of BESS excluding VAT | EUR/kWh | 0.0943 | |
20 | Planned interest rate for the use of credit facilities | % | 5.00 | |
21 | Loan period | months | 119.00 | |
22 | Construction period before project implementation | months | 4.00 | |
23 | Service maintenance per year | euro | 210,000.00 | |
24 | Charge for imbalances, % | % | 4.00 | |
25 | Operating expenses including land rent 1200EUR/Ha per year | euro | 570,000.00 | |
26 | Return on investment period after commissioning (including loan interest costs) | months | 142.00 | 11.83 |
27 | Internal rate of return IRR | % | 8.62% | Corporate tax rate in Spain is 25% |
Calculation of the selling price, Option 2 (SPP without BESS)
Calculation of the selling price for SPP:
Annual weighted average price: 0.0378 EUR/kWh
Month | Price, DAM, EUR per kW/h | Discount on the wholesale market, % | Charge for imbalances, % | Selling price, EUR per kW/h |
January | 0.0655 | 5 | 10 | 0.0557 |
February | 0.0311 | 5 | 10 | 0.0264 |
March | 0.0098 | 5 | 10 | 0.0083 |
April | 0.0066 | 5 | 10 | 0.0056 |
May | 0.0161 | 5 | 10 | 0.0137 |
June | 0.0405 | 5 | 10 | 0.0344 |
July | 0.051 | 5 | 10 | 0.0434 |
August | 0.0691 | 5 | 10 | 0.0587 |
September | 0.0534 | 5 | 10 | 0.0454 |
October | 0.059 | 5 | 10 | 0.0502 |
November | 0.09 | 5 | 10 | 0.0765 |
December | 0.0599 | 5 | 10 | 0.0509 |
Construction and operation of SPP without BESS, Option 2, Key indicators
No. p/n | Indicators | unit of measure | SPP | Notes |
1 | Solar panels | | LR5-72HTH-580M | |
2 | Cost of SPP construction including VAT | euro | 25,171,758.08 | VAT - 21% |
3 | Equity participation 30%. | euro | 7,551,527.42 | |
4 | Bank loan 70% of the total | euro | 17,620,230.65 | |
5 | Planned capacity | MW | 49.0000 | |
6 | including: SPP | MW | 49.0000 | |
7 | BESS | MW | 0.0000 | |
8 | SPP plus BESS construction price including VAT per Watt | euro | 0.5137 | Data for planning should be provided by the EPC contractor |
9 | including: SPP construction price including VAT per Watt | euro | 0.5137 | |
10 | BESS construction price including VAT per Watt | euro | 0.0000 | |
11 | Target annual sales volume, excluding VAT | kWh | 81,333,674.29 | Data for planning should be provided by the EPC contractor |
12 | euro | 3,069,840.85 | | |
13 | including: Target annual sales volume of SPP, excluding VAT | kWh | 81,333,674.29 | |
14 | euro | 3,069,840.85 | | |
15 | including: Target annual sales volume of BESS, excluding VAT | kWh | 0.00 | |
16 | euro | 0.00 | | |
17 | Electricity sales price excluding VAT | EUR/kWh | 0.0377 | This includes a 5% discount from the DAM price |
18 | including: Electricity sales price of SPP excluding VAT | EUR/kWh | 0.0377 | |
19 | Electricity sales price of BESS excluding VAT | EUR/kWh | 0.0000 | |
20 | Planned interest rate for the use of credit facilities | % | 5.00 | |
21 | Loan period | months | 119.00 | |
22 | Construction period before project implementation | months | 4.00 | |
23 | Service maintenance per year | euro | 210,000.00 | |
24 | Charge for imbalances, % | % | 10.00 | |
25 | Operating expenses including land rent 1200EUR/Ha per year | euro | 570,000.00 | |
26 | Return on investment period after commissioning (including loan interest costs) | months | 150.00 | 12.50 |
27 | Internal rate of return IRR | % | 7.93% | Corporate tax rate in Spain is 25% |