Feasibility Analysis

RETScreen Application
 Why Renewable Energy
• RETs help in GHG mitigation, enhance energy
security and enable energy access

• RETs provide cost-effective alternative to fossils

• Use of RETs has increased over past decades

 Use of RETScreen
• Stakeholders (Project Developers, Corporate, Policy
Makers & Financiers) need to make investment decisions
based upon techno-commercial viability of project

• RETScreen facilitates pre-feasibility analysis of RE projects

• Link for downloading RETScreen Expert Application

http://www.nrcan.gc.ca/energy/software-tools/7465

• Available in Viewer mode free-of-charge

 Case Study
1 MW Solar PV Project
 Project Appraisal Steps
• Step 1: Location

• Step 2: Facility

• Step 3: Energy

• Step 4: Cost Analysis

• Step 5: Finance

• Step 6: Sensitivity & Risk Analysis

• Step 7: Report Generation

Location

JAISALMER
 Facility

Grid Connected PV Plant

Energy

1 MW Capacity
 Loss Levels
Losses (%) Values
Irradiance 3
temperature 9.4
IAM Factor 2.8
Array Soiling 1.5
Module quality loss 0.1
Module array mismatch 1.5
Ohmic wiring loss 0.5
Inverter loss 1.3
Transformer 1
Total 21.1
Project Cost

CERC Tariff Order

 Financial Inputs
• Discount Rate :11%
• Project Life :25 years
• Debt Ratio :70
• Interest Rate :12%
• Debt Term :13 years
• Income tax :21%
• Depreciation :5.8% at SLM
• Electricity Rate :5000 (INR/kWH)
 Financial Viability
• Pre-tax Equity 19.7%

• DSCR 1.3

• Cost of Generation 4.78

• Payback Period 7.7 years

 Sensitivity Analysis
• Macroeconomic Factors
o Interest Rate
o Tax Rates
o Energy Cost
o Tariff

• Microeconomic Factors
o Project Cost
o implementation Period
o O&M Costs
o Power Generation
Sensitivity Analysis
 Sensitivity Analysis

Value of Equity IRR/ Payback upon change in

• Interest Rate
• Electricity Generation
• Debt Repayment
• Debt Ratio
Reports
THANK YOU