Basic principles and necessity of investment appraisal methods in modern renewable energy systems

 Part A: Photovoltaic (PV) Energy Park (approximately 1500 words) Tasks  Produce the Work Break Down Structure (WBS) of a medium size PV Energy Park in Greece  Use Gannt Chart methodology to present detailed activities sequence according to above mentioned WBS  Estimate indicative costs per category of equipment and installation activity  Estimate indicative cash flows (annual turnover and operational costs) over a period of 20 years  Based on abovementioned cash flows and initial amount of investment use the NPV and Profitability Index methods in order to evaluate the investment Note: Freedom of elaboration based on your perception of corresponding investment appraisal techniques/methodology/examples developed during module sessions  Part B: Photovoltaic Park  An investor of a photovoltaic park 500 kw has considered the following data:  Investment cost: 300.000 euro  Connection to PPC(ΔΕΗ) network cost: 50.000 euro  Annual Operational/Maintenance cost: 20.000 euro  Annual Revenue (electric power sale): 60.000 euro  20 years guaranteed power sale / r = 8% (correction factor/interest rate) a. Calculate the NPV of the project b. Pre-assume funding of 40% on the initial cost of investment in the first 2 years of operation (divided in two equal installments) and the annual purchase value of power by PPC is reduced by 10% for the first 10 years and by 20% during the next 10 years. Compare the investment outcome with the outcome of question