Civil Engineering Reference
In-Depth Information
•
the total capital cost is paid by the utility company.
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the utility company is responsible for maintenance of the system.
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customer is billed a fixed monthly rate, rather than the amount
based on the energy consumed.
This approach spreads out the burden of the initial capital cost on the
customer.
15.7
Hybrid Economics
A detailed analytical tool to evaluate the economics of hybrid systems has
been developed by the National Renewable Energy Laboratory. The newer
version, Hybrid2
allows the user to determine basic economic figures for a
particular simulation run. The economics module uses information from the
performance simulation run and economic data supplied by the user. It
computes parameters as the payback period, internal rate of return, cash
flow, and equipment replacement expenses. The user has a wide versatility
in determining the expense of the project and what inputs to include. Param-
eters such as grid extension, importation tariffs, systems administration
costs, and taxes can be included in the analysis. The user may conduct
comparisons between differing hybrid possibilities and power solutions, and
determine approximate costs.
Figure 15-8
is the computer screen displaying
the choices available to the user. As indicated by the menu buttons, it
includes wind, pv, diesel, and battery.
Hybrid2 allows user to conduct parametric analyses on certain cost param-
eters, such as fuel cost, discount rate, and inflation rate to help determine
how the value of certain parameters can affect the viability of the project.
As for the project funding, there have been strong financial incentives for
the renewable power in many countries around the world. However, the
incentives have been declining because the renewables are becoming eco-
nomically competitive on their own merits. More projects are being funded
strictly on the commercial basis. Enviro Tech Investment Funds in the U.S.A.
is a venture-capital fund supported by Edison Electric Institute (an associa-
tion of investor-owned electric utility companies providing 75 percent of the
nation's electricity). The World Bank now includes the wind and pv in its
landing portfolios. The first such loan was made to India in 1993. Several
units in the World Bank group are jointly developing stand-alone projects
in developing countries.
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