Comparison ofTechno-Economic Models for Upgrading PV System without Net-Metering Option and Long Term Impact on Energy Bills /

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).