Question 3: Feasibility Study of Photovoltaic Solar Power Plant

Benchmark Analysis of Energy Production Costs

Energy Analysis

The energy assessment has been analyzed on the basis of benchmark analysis in part 3.1 as well as the climatic information in segment 2.1. The intended capacity of the power plant is 100MW, implying that the power plant should consistently produce 100MW of electricity to the power grid. Unfortunately, the irradiation of solar energy varies on a daily basis as well as an hourly basis. So, achieving constant electricity generation is tough. Table 3 displays the energy capacity in terms of the projected solar power system. According to the capability of energy analyses, the determined capacity of the proposed power plant is 100MW, and the power provided to the local power grid is determined to be 140,155MWh.

Financial Viability

Economic feasibility is the capacity to produce enough revenue to pay operational expenses, and debts, when relevant, to permit growth and conserve service quality. As a result, the economic feasibility of the proposed power plant is reviewed in this section.

The financial parameters are the factors that determine whether or not a project is financially viable. The table below shows these financial parameters. The financial viability process depends on the contribution of the appropriate assumptions about the project life, the inflation rate, the reinvestment rate, and the discount rate.

The table below summarizes all costs and debt payments on a yearly basis. The project needs to pay $9,222,748 per year.