Table 14 - uploaded by Francesca Salvo
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Source publication
The appraisal of ground mounted photovoltaic systems is an important question, due to increasing investments in renewable energies. The costs related to installation and maintenance, and the economic benefits related to the energy saving, suggests the use of an income approach, in order to consider the financial aspects of the photovoltaic systems....
Citations
... The study shows that amorphous silicon had the highest performance ratio, capacity factor and energy output in all the studied locations. In a different study (Salvo et al., 2017), proposed the Discounted cash flow analysis (DCFA) which simulate the entire life of the PV system from the procurement date to the end of its life so as to obtain the most probable market value (Sharma and Chandel, 2013). also studied the performance analysis of 190 kW solar PV plants in India. ...
The plan to integrate solar energy into the Nigerian grid is in conception and thirteen different locations within the country have been proposed for solar farm investment. In this paper, fourteen selected solar photovoltaic module types from different manufacturers were assessed to determine the optimum PV module for each of the locations. The optimum module was thereafter used to determine the technical feasibility and economic viability of the locations identified for solar investment in Nigeria. Technical assessments were performed using the reference yield, array yield, final system yield, performance ratio and capacity factor while the economic consideration was made using the levelized cost of energy and payback period. Sensitivity analyses were also carried out to identify the important relationships among the technical and economic parameters as they affect the proposed sites. Relevant findings reveal that final yield, performance ratio and capacity factor ranges between 4.0361 and 4.7972 kWh/kWp, 78.96–79.96% and 16.75–19.92%, respectively. It was also observed that the cost of energy and payback period are between 0.0524 and 0.0607 $/kWh and 10.18–10.42 years, respectively. The sensitivity analyses conducted across the selected sites demonstrate that levelized cost of electricity depends heavily on the electricity production in kWh/kWp. The result obtained also shows that increase in the installed capacity of the solar farm has no significant impact on its performance ratio and capacity factor of the farm. Out of fourteen solar modules that were used in the study, module index M2 (Panasonic solar) provided the best result in terms of peak values of capacity factor and performance ratio at all the proposed sites.
... In our study, due to the difficulty of finding comparable data, the discount rate has been determined by combining the Build up Approach with the analytical method based on ascending and descending influences that act, with a positive or negative sign respectively, on the specific risks of the factors related to the photovoltaic investment (Salvo et al. 2017;Forte et al. 1974). The percentage incidences of the ascending and descending influences are determined considering the factors that contribute to the formation of the risks, such as: geographic position of the system, nominal power of the system, photovoltaic cells material, the age of the system, inclination and orientation of the panels, feed-in-tariff contribution, etc. ...
Energy produced from renewable sources has assumed an increasingly central role, thanks to the investments in renewable energy and the agreements reached during the last Conferences of the Parties. This paper deals with the economic-estimative evaluation of two photovoltaic plants with similar peak power and geographic position located precisely in the areas of Mandatoriccio and Campana (Calabria, South Italy). The evaluation method used is the Discounted Cash Flow (DCF), a financial procedure that allows to simulate the entire life cycle of the photovoltaic system, from the acquisition date. This method has been implemented by applying an experimental combination of the Build up Approach and the analytical method based on the ascending and descending influences that act on the specific risks related to photovoltaic investment. This paper also highlights the importance of the energy potentially produced by the photovoltaic plants to obtain a very objective estimation value. For this purpose, the annual energy production was estimated using the simplified Siegel method. Thus it was possible to compare Siegel data with real ones supplied by their managers, to carry out a comparative estimative analysis of the two photovoltaic plants covered by our article.
... In order to evaluate economically the installation of a PV system, the Discounted Cash Flow (DCF) technique is commonly applied by considering the Net Present Value (NPV) concept as an indicator of economic viability. This approach aims to evaluate the cash flow created by the project, discounting the associated capital cost [25]. ...
An analysis of Brazilian public costs indicates that, although a significant part of its financial resources is destined for electricity consumption, only a small portion of the distributed generation belongs to public institutions. A technical and economic analysis of a PV power plant in the Brazilian public sector was proposed and various scenarios were evaluated, indicating that a change in the Brazilian tariff policy could be an alternative for boosting PV generation in the public sector. Risk analysis demonstrated that the minimum acceptable rate of return is the variable that most affects the system’s viability. In addition, a Monte Carlo Simulation (MCS) showed that the proposed PV system has a viability probability higher than 92%. A statistical analysis indicated that the system has a probability of at least 80% for supplying more than 25% of the building’s peak demand for all seasons. Finally, such systems have also been found to represent an alternative for improving the electricity grid’s stability, while supplying part of the building’s energy demand.
... The risk adjusted discounted rate method has been used in order to consider the main risk components to evaluate the actualization rate in the discounted cash flow analysis (Chau, 1997;Evans, 1990;Froland, 1987;Hoag, 1980;Jud and Winkler, 1995;Karolyi and Sanders, 1998;Liu and Mei, 1994;Manganelli et al., 2014;Mei and Lee, 1994;Salvo et al., 2017;Sivitanides et al., 2001;Swad, 1994). ...
Purpose
In this research a model for the rationalization of the assessment in a rent to buy contract has been proposed, in order to contextualize the economic amounts involved in the negotiation according to the specific market risk of the area where the property is located. The paper aims to discuss this issue.
Design/methodology/approach
The model borrows the logical principles of operational research, in order to take into account the convenience constraints of the parties involved (seller and buyer) and to determine the minimum amount of the additional annual rent to be charged as down payment on the final sale price, compensating the investment risk. The procedure proposed for the risk assessment combines the discrete modeling of real option analysis and the exponentially weighted moving average method, in order to weigh appropriately the data available for the specific area in the analysis.
Findings
Considering the limit conditions of variability of the property market value at the time provided for the notarial deed, the proposed model returns two values (minimum and maximum) for a fixed contract duration and for a specific market area for the annual additional rent, which define the reference range to ensure the compliance with the convenience constraints of the parties involved.
Practical implications
In order to test the reliability of the developed methodology, the model has been implemented to the 24 “microzones” defined by the Italian Revenue Agency for the city of Bari (Southern Italy). The results obtained were then georeferenced, in order to create thematic maps of convenience for the subjects interested in the rent to buy formula. The developed maps define a useful support to be consulted in the negotiation phase between the seller and the buyer, allowing both to verify the investment conveniences within the limits of their disposable incomes and their needs.
Originality/value
The tabulated values of the down-payment amounts and the related thematic maps constitute a valid support for both the parties in the initial negotiation phase of the contractual conditions: in fact, if comparable data for the assessment of the market value and the market rent at the time of the stipulation of the contract are ordinarily available, the increase in the rent, to be charged as the annual down payment on the final purchase price, is generally entrusted to the contractual capabilities of the subjects involved, since there is no market reference that can direct an appropriate assessment.
... In the context of PPP initiatives for the use-conversion of the public property assets, the implementation of the DCFA has the advantage of explicating the financial conveniences of the parties involved (private investor and Public Administration) through an appropriate interpretation of the evaluation criteria: determined the transformation costs, the management costs and the revenues of the initiative, and set the actualization rate of the cash flows equal to the periodic expected yield of the private investor (r min ), the NPV represents the maximum amount that the Public Administration may require to the private investor in monetary terms and/or in terms of public works of equivalent value to be realized for the local community [13,14]. ...
With reference to the public-private partnership procedures for the enhancement of the public property assets, in this paper an innovative methodology for assessing the financial conveniences of the parties involved (private investor and Public Administration) is proposed. The developed method borrows the most widely-used evaluation criteria for the verification of the investment financial sustainability, and through basic logical assumptions, it allows to define combinations of the financial performance indicators easily interpretable by the parties involved and to be used in the negotiation phases. The aim is to provide a rapid tool for the verification of the investment financial viability, through an original interpretation of the classic DCFA evaluation criteria, that could be more relevant to the typology of public-private partnership agreements for the territorial regeneration.
... In a further paper, Salvo et al. deal the economic evaluation of ground mounted photovoltaic systems using the Discounted Cash Flow Analysis, quantifying the costs related to installation and maintenance and the economic benefits related to the energy saving. An innovative aspect of this study is the procedure to determine the discount rate through the combination of a conventional financial method (Build-Up approach) and the analytical method which makes recourse to the use of the ascending and descending influences that act, each with positive or negative sign, on the specific risk factors related to the photovoltaic investment [10]. ...
New perspectives and frontiers were highlighted in a Special Issue on “Real Estate Economics, Finance and Investments”. The twenty-eight papers that were selected and published emanated from scholars from universities all over the world with the aim to represent more recent advances in building management, mass appraisal methods, real estate risk management, economic evaluation of real estate investment projects, real estate market, property, social housing, real estate economics, real estate finance, building transformation and economic effects on environment. These papers helped to determine a unique and valuable opportunity to experiment with multiple approaches to these ever more crucial topics. This note proposes a brief review of the twenty-eight papers, concluding with some reflections about policy, practice and research on real estate issues.
أدى الطلب المتزايد على أجهزة تكييف الهواء في فصل الصيف إلى ارتفاع كمية الطاقة الكهربائية المستهلكة من الشبكة العامة، وزيادة في فواتير الكهرباء. يتم تشغيل أجهزة التكييف في المؤسسات الحكومية خلال فترة الدوام الرسمي في وقت ذروة الطلب على الكهرباء من الشبكة العامة، حيث تكون تعرفة الكهرباء مرتفعة. من أجل إزاحة التبريد من وقت الذروة إلى الوقت الذي تكون فيه قيمة تعرفة الكهرباء أقل، وتخفيض استهلاك المبنى للطاقة، وتخفيض قيمة فواتير الكهرباء، تناولت هذه الدراسة تقنية التبريد المسبق باستخدام الطاقة الشمسية الكهروضوئية.
تمت دراسة حالة مبنى فرع نقابة المهندسين في محافظة اللاذقية في سورية، وتعتبر هذه الدراسة الأولى من نوعها في سورية. بينت النتائج أن التبريد المسبق باستخدام نظام الطاقة الشمسية الكهروضوئية يؤدي إلى تخفيض الطلب على التبريد بشكل كبير خلال فترة الدوام، كما أنه يؤدي إلى تخفيض الاستهلاك اليومي من الشبكة العامة حيث انخفض الطلب من 85 كيلو واط ساعي إلى 21.250 كيلو واط ساعي، أما قيمة فاتورة الكهرباء فانخفضت بنسبة 83%. إضافةً لذلك، فقد تبين أن التبريد المسبق يؤدي إلى تخفيض سعة نظام الطاقة الشمسية المطلوبة لتشغيل أجهزة التكييف في المبنى بنسبة 50%، كما يمكن تحقيق انخفاض بقيمة 42.5 كيلوغرام من انبعاثات غاز ثاني أكسيد الكربون يومياً بعد القيام بالتبريد المسبق باستخدام نظام الطاقة الشمسية الكهروضوئية.
Impending exhaustion of fossil fuels and concerns related to environmental pollution and climate changes have led to extensive usage of renewable energy sources in the utility grid. Among the renewable energy sources, solar photovoltaics (PVs) are gaining popularity and are considered a potential solution for future electrical energy crises. Despite the technical benefits of solar PV, an economic feasibility analysis is critical in assessing the viability of a long‐term solar PV project. In this chapter, the economic feasibility of a ground‐mounted solar PV system at Tirupati Airport, India, is carried out considering two leading economic indices – simple payback period (SPP) and discounted payback period (DPP). The performance analysis between the two payback periods and a comparison table is presented. Finally, better energy‐efficient measures like replacing the existing CFLs with LEDs are highlighted in this chapter to reduce operational costs and energy consumption, resulting in direct monetary benefits.
Building an energy system compatible with the Paris Agreement requires large-scale investment in renewable energy technologies (RET). Designing effective energy policies, therefore, requires an understanding of the dynamics of RET investment risk. This study draws on RET project data and 40 interviews with investors in Germany, Italy and the United Kingdom. We identify the five most relevant RET investment risk types (curtailment, policy, price, resource and technology), show their relative importance over time and use a network analysis of interview transcripts to identify the drivers behind the observed changes. We show that risk premiums and investment risk have declined for solar photovoltaics and onshore wind technologies in all three countries. Increasing technology reliability at a lower cost, data availability, better assessment tools and credible and stable policies were crucial elements of this declining investment risk. While policy and technology risks have become relatively less important over time, curtailment and price risks are becoming relatively more important. From these insights, we derive recommendations for policymakers aiming to accelerate the transition towards a Paris-compatible energy system.
