Offshore Wind Worldwide 2022 edition - Flipbook - Page 135
Offshore Wind Worldwide 2022
maintenance of marine renewable
energy power generation facilities.
j) Income and expenditure plan
An income and expenditure plan will
need to be prepared with respect to the
supply price. This will be evaluated in
terms of whether risks are properly
identified and analyzed and whether an
appropriate income and expenditure
plan is established based on those risks.
Documents and other such materials will
be required to understand the
decommissioning method, the amount
of the decommissioning costs, the basis
for calculating those costs, and the
method by which those costs will be
secured. With respect to the basis for
calculating decommissioning costs, it is
sufficient to describe the breakdown of
costs for constructing the facility in the
ocean and stating that decommissioning
costs are calculated by multiplying that
by 70%. With respect to the
decommissioning method, it is sufficient
to state simply that it will all be
decommissioned or a part of the facility
will be left behind.
The income and expenditure plan needs
to consist of materials that make it
possible to grasp the appropriateness of
the income and expenditure plan,
including the investigation and design
costs, construction costs, materials and
equipment procurement costs, O&M
costs, removal costs, occupancy fees,
equipment utilization rates, income
estimates, and the internal rate of return
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(IRR). The IRR needs to use the “pre-tax
IRR” based on the formula set out below.
Note it is not assumed that the business
will be operating before the operation
start date, and electricity generated
during the commissioning period before
the operation start date is not permitted
to be sold as a business outside the
procurement period.
C0+C1/ (1+r)+C2/ (1+r)2+···+Ct/ (1+r)
t=0, where
•Ct is the cash flow occurring at time
t and
•r is the internal rate of return (IRR)
k)Selection Process
The selection of a business operator by
public offering is made by (i) examining
the business operator’s proposed
occupancy plan to see that it conforms
to the standards listed in each item of
Article 15, Paragraph (1), of the New
Act; and (ii) evaluating all plans that
conform to the conformity standards in
accordance with the evaluation
standards, and selecting the person
deemed to be most appropriate for
enabling the long-term, stable and
efficient implementation of the power
generation business.
l)Evaluation of the Plan
The bidder whose occupancy plan
receives the highest score is selected as
the business operator. The proposed
supply price can receive a maximum of
120 points, and the elements related to
the feasibility of the project can receive