Evaluating the Role of Investment in Solar (Photovoltaic) Power Plant on Sustainable Development (Case Study: Boroujerd City)

Document Type : Review Article

Authors

1 PhD student, Department of Economic, Faculty of administrative Sciences and Economics, University of Isfahan and National Statistics Expert, Statistics Center of Iran, Tehran, Iran

2 Master student, Department of Economic, Faculty of administrative Sciences and Economics, University of Isfahan, Isfahan, Iran

Abstract

According to energy economists, increasing efficiency and utilizing renewable energy sources, especially solar energy, is the most effective way to achieve sustainable development goals, provide economic benefits, increase energy security and reduce environmental pollution. In the present study, technical and economic evaluation of the role of investment in the construction of solar power plants (photovoltaics) on sustainable development of Boroujerd city was used using engineering economics method and economic analysis method and RETScreen software. The results show that the assumed photovoltaic power plant has an economic justification with an assumed megawatt period with a return on investment of 4.3 years, an internal rate of return of 28.1%, a net present value of 645.24 billion rials and a profit-to-cost ratio of 9.8. This power plant will produce 2197 MWh of electricity per year (about 0.39% of the total electricity required by the city) and 257 similar power plants are needed to provide the total electricity consumption of Boroujerd city. With the construction of this power plant, the annual emission of greenhouse gases equal to 365.2 barrels of crude oil has not been reduced. Also, this one-megawatt power plant saves 8.5 billion rials per year in fossil fuel, water and greenhouse gas emissions. This amount is equal to 11.7% of the initial construction costs of this power plant, which in addition to selling electricity generated, has positive social effects on society. With the approximate extension of this power plant to a power plant that provides the total consumption of Boroujerd city, 21955.65 billion Rials will be saved in the above cases every year. It is proposed that the government and the Ministry of Energy support the existing solar potentials in the city by providing the necessary funds and facilities for the construction of solar power plants (photovoltaics) with a capacity of one megawatt. Also, by doing this, a lot of savings will be made in the consumption of fossil energy resources, water and greenhouse gas emissions, and the interests of future generations of sustainable energy conservation and development in this city will be realized.

Keywords

References

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Journal of Renewable and New Energy
Volume 8, Issue 2 - Serial Number 16
September 2021
Pages 91-100

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History

  • Receive Date: 18 July 2020
  • Revise Date: 29 August 2020
  • Accept Date: 10 November 2020

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