Abstract:
This article presents a techno-economic analysis on upgrading a Photo-Voltaic (PV) power
system at large. The comparative study has been carried out considering various technical
and economic factors like per unit cost, annual load, energy demand growth, and PV panel
efficiency, annual performance degradation of system, cost of electricity, payback period,
initial capital expenditure and rate of return in form of saving in energy bills. The PV
system is proposed to be upgraded from 1 Mega Watt (MW) to 2MW at National University
of Sciences & technology (NUST), Islamabad. The technical evaluation delves into the
practical aspects of implementing the proposed models, assessing the efficiency and
reliability of renewable energy technologies and infrastructure. Aspects such as the
performance of PV systems, grid integration, and operational maintenance are thoroughly
examined to ensure that the chosen models align with the institution's energy demands and
long-term objectives. By quantifying the initial investment, operational expenses, and
projected savings over time, the study provides a robust financial analysis to support
decision-making and prioritize the most economically viable option. This increase in
energy production aligns with institution's commitment to sustainability and its proactive
approach towards reducing carbon emissions and promoting renewable energy adoption.
While considering these factors, four economic models have been evaluated and compared
which include Self-Built via Contractor with self-financing, Self-Built with bank financing,
Power purchase agreement (PPA) also known as rental agreement and Built, Own, Operate
& Transfer (BOOT) model. The advantages and disadvantages of these models have been
thoroughly analyzed and evaluated and the most feasible model has been proposed based
on mentioned key factors and long term sustainable development goals (SDG) for
affordable clean energy to contribute in climate action i.e. adaptation of renewable energy
resources (RER) and reduction of greenhouse gases (GHG).
