The economic prospect of rooftop photovoltaic (PV) system in the commercial buildings in Bangladesh: a case study
- PDF / 2,468,120 Bytes
- 15 Pages / 595.276 x 790.866 pts Page_size
- 31 Downloads / 154 Views
ORIGINAL PAPER
The economic prospect of rooftop photovoltaic (PV) system in the commercial buildings in Bangladesh: a case study Ujjwal Datta1 · Akhtar Kalam1 · Juan Shi1 Received: 14 June 2020 / Accepted: 7 October 2020 © Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract The research investigates the financial and environmental implications of rooftop PV installation in a case study of commercial buildings in Bangladesh. With annual horizontal solar radiation of 4.65 kWh/m2/day, Bangladesh has a great potential to avail sustainable solar energy which would have environmental and economic ramifications. To accomplish this, the simulation has been carried out using the RETScreen software. To perform the calculation, the climatic data from NASA for the selected location have been considered. Numerous economic indices encompassing net present value, payback period, internal rate of return and benefit–cost ratio have been taken into consideration as a measure of performance indicator for the enacted project. The determined economic outcome of the case study points out a net present value of $756,896 with 14.2% internal rate of return, 10.1 years simple payback time, 8.1 years equity payback and 1.5 benefit–cost ratio which implies that the project is remarkably appealing. In addition, the sensitivity analysis of the project highlights that the profitability of the investment is protected in most of the cases for ± 30% variation in input parameters. For example, initial and fuel costs of the proposed case may generate a negative net present value beyond 15% variations. However, a positive net present value within the wide sensitivity ranges for fuel costs base case, operation and maintenance costs, fuel cost escalation and discount rate, debt ratio and debt term imply that economic feasibility is still obvious. This may encourage the building owner to incorporate solar PV in commercial buildings in Bangladesh.
* Ujjwal Datta [email protected] 1
College of Engineering and Science, Victoria University, P.O. Box 14428, Melbourne, VIC 8001, Australia
13
Vol.:(0123456789)
U. Datta et al.
Graphic abstract
Poten al Annual horizontal solar radia on of 4.65 kWh/m2/day in Bangladesh
Economic Feasibility, Environmental Impacts Calcula on, Sensi vity and Risk analysis using RETScreen
14.2% Internal rate of return
Results
NPV of $756,896 & Shorter payback me Investment is protected for all the cases for ±15% varia on
A total of 107,944 tCO2 GHG emission reduc on in its 25 years project life me.
Keywords Commercial buildings · Economic assessment · Rooftop PV · Environmental assessment · Sensitivity analysis · Risk analysis
Introduction The population growth and industrialization are at the forefront in the escalation of global energy demand. Around 74\% of the global energy demand is supplied by fossil fuel (International Energy Agency 2020). As the majority of electricity generation sources, fossil fuels like diesel, coal and natural gas have put significant challenges on green
Data Loading...
