Manuscript - Financing Modeling of Renewable Energy Projects
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Characteristic of Renewable Projects
What makes renewable projects different than other electric generation
• More Capital Intensive, economics driven majorly by the cost of capital
• Low capacity factor – risk Driven by resource Assessment
• Need a subsidy through Feed in Tariffs (exposure to changes in volume)
• Problem for financiers is the confidence in the capacity factor estimates
Three types of renewable projects discussed in this book
1. Hydro Power
2. Solar Power
5
• Basic design element of hydro facility.
• water at one elevation, and a dam or
reservoir to hold it there
• A lower elevation to which the water
output can be directed
• A hydraulic turbine, connected to a
generator
• These plants convert the potential
energy of the water to kinetic energy as
it changes elevation, then to
mechanical energy as it passes through
the turbine, then into electrical energy
• Very flexible operation
• Change operations quickly
• Large range of operations
• Good resource for ancillary service
• No fuel required
• Very low production costs
• Zero air emissions
• The solar resource assessment depends on
the latitude of the location on the earth as
well as the cloudiness or clearness. It also
depends on the temperature.
• The step by step process (used by
rescreen) includes:
• Compute the declination angle that
depends on the day of the year
• Compute the sunset angle and the hours
of sunlight that depend on the latitude of
the location.
• Compute the sunlight radiation from the
clearness index
3. Wind Power (On-shore/Off-shore)
• Wind is a form of solar energy
• Uneven heating of the atmosphere
• Irregulates in the earth’s surface
• Rotation of the earth
• Wind power turns in the wind into
mechanical and electrical power
• Power available in the wind is
proportional to the cube of its speed