Volume: 3 Issue 9 [September 2020]

Article:Investment Attractiveness of Renewable Energies

Author: Dulal Ahmed, Mandi Louise Barker-Gibb , Mark Awe Tachega , Xilong Yao

Volume: Vol 3, Issue 9 ; September 2020

DOI: North American Academic Research, 3(9) 175-198, 2020, https://doi.org/10.5281/zenodo.4054053

Abstract: Optimum economic sustainability and national grid-parity of renewable energies require significant investment attractiveness (IA) for the feasibility of proposed power generation projects. Using Investment benefit analysis method; this paper aims to identify a method to determine the IA of renewable energy project at a solar power plant (SPP) in Bangladesh. Data was analyzed using two modeling-software: RETScreen-Expert analyses and Microsoft excel along with Discounted-Cash-flow (DCF) model; which displayed differences in annual-costs. The results illustrate that each of six used parameters has the potential to influence all economic tools, except electricity sales via LCOE calculation. The sensitivity range (±25%) NPV attests Electricity-Exported to the Grid to be the most sensitive measure, followed by Initial-Capital-Investment (ICI). Any changes made to optimize the photovoltaic (PV) tilt-angle, influenced maximum rate of the capacity factor for the SPP. Furthermore, LCOE is the most salient factor influencing increased NPV, followed by ICI. In conclusion, the study emphasizes the assessment of underlying uncertainty in a new project’s costs and power generation. Moreover, it clarifies that the economic tools and methodologies herein can establish benchmark models useful for the implementation of other projects, especially those focusing on doubt surrounding IA.

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