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Financial Investment Impacts in the Renewable Energy Sector: Case Study of a Micro-Grid PV System


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DOI: https://doi.org/10.15866/iree.v17i5.22709

Abstract


This article investigates the return on financial investment of one of the most famous renewable energy sources available in the majority of countries over the world when considering building a micro-grid station of 1MW namely the photovoltaic (PV) system. By bringing together information on the need to invest in a very promising field which is solar, the reasons that can motivate investment or not in the PV sector based on the global energy potential has been analyzed, climate agreements, technological development of the field and practical cases studied. The problem is at present that, there still are some reluctant investors who do not believe in investing in the renewable energy sectors. Society is divided on the environmental impact that most used energies presently have on human life. Whether it is coal, uranium or gas, many companies invest huge amounts of money in these forms of energy to increase their economical level while investment in the renewable energies stagnates. The results obtained from the proposed micro-grid deployed show that an initial investment of about US$1,564,286.71 allows the return of initial expenses from the ninth year with an overflow of US$54,989.83, and from year ten to have a net payoff of US$265,425.28 which can increase to US$391,805.71 in year fifteen.
Copyright © 2022 The Authors - Published by Praise Worthy Prize under the CC BY-NC-ND license.

Keywords


Financial Return; Micro-Grid; Renewable Energies; PV System; Solar Irradiation

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