The Cost Decision: A New Discount Approach for Net Cost Projects

This discussion paper proposes a new decision rule for economic investment theory, the Cost Decision, and describes a new discount approach for Net Cost Projects and the Net Present Cost Formula. The paper illustrates the problems faced internationally, at all levels of government, of assessing Net Cost Projects from a finance perspective. The paper discusses the Cost Decision in the controversial context of public-private partnerships and compares the four main alternative approaches to the Cost Decision currently used in practice. The paper is also relevant when analysing Net Cost Projects undertaken by private sector entities and individuals.Corporate Finance; Investment; Economic Investment; Finance Investment; Discount Rate; Net Present Cost Formula; Cost Decision; Net Cost Projects; Social Projects; Net Present Cost; Net Present Value;

Design analysis of potential grid connected floating photovoltaic system in UTHM

Every month Universiti Tun Hussein Onn (UTHM) management pays around RM 1 million for electricity bills. The aim of this project is to explore the feasibility of implementing a grid connected Floating Photovoltaic (FPV) system at the campus of UTHM. There are multiple unutilized water bodies (ponds/lakes) within the campus premises covering a total area of more than 50,000 m2. A 4000 m2 located at the lake near faculty of technical and vocational education (FPTV) is considered of the total available area for the feasibility study. A total of 1372.6 kW can be generated by deploying 335W mono crystalline PV modules with 21% efficiency on a floating mechanism (floaters) on the selected area. The FPV system is then simulated using MATLAB Simulink to observe the performance parameters of the FPV system such as total harmonic distortion (THD), current and voltage waveforms. Hybrid Optimization Model for Electric Renewable (HOMER) software has been used to obtain results such as the net present cost (NPC), cost of operation (COE), CO2 emissions impact and the payback period of the grid connected FPV system. The FPV system provides the lowest cost of energy (LCOE) RM0.418 kWh and a total net present cost (NPC) of RM 52.3 million. This system can decrease CO2 emissions by about 1241 t/yr

INVESTMENT ANALYSIS OF ALTERNATIVE FRUIT TREE SPRAYERS IN MICHIGAN ORCHARDS

Changing orchard sprayer technology and rising pesticide costs to fruit growers raise the need to analyze the profitability of alternative sprayer investments. This study analyzes investments in four orchard sprayers for use in Michigan apple production: an air blast sprayer, a tower boom sprayer, a tower boom sprayer equipped with electronic sensors that activate spray nozzles when foliage is detected, and an air curtain sprayer that targets spray with a layer of forced air. Assuming equal pest control efficacy, the study calculates the annualized net present cost per acre of owning and operating each sprayer for ten years using a baseline discount rate of 10 percent over 200 acres of semi-dwarf apple trees. The analysis found the annualized net present cost per acre, from least to greatest, to be $287 for the air curtain sprayer,$312 for the tower sprayer with electronic sensors, $345 for the plain tower sprayer, and$391 for the conventional air blast sprayer. Sensitivity analysis revealed that the ranking of these cost results was sensitive to farm size, but not to percentage of funds borrowed, discount rate, loan interest rate, or pesticide costs within the ranges investigated. The air curtain sprayer was lowest cost for orchards of 25 acres or more; the conventional air blast sprayer was lowest cost for 10-acre orchards.Crop Production/Industries,

Feasibility Study of Solar Power Generation System for Public Street Lighting

One of the uses of electricity that is widely used by society today is as a source of lighting. The increasing level of community mobility makes all activities require lighting. One part that is important and requires lighting is a highway or public road. PJU is a lighting lamp that is public (for the common good) and is usually installed on roads and certain places such as parks and other public places. PJU (street lighting) or road lighting is a light source that is installed as street lighting at night. Public street lighting using solar power is a cheap and economical alternative to be used as a source of lighting electricity because it uses a new and unlimited renewable energy source that comes from nature, namely solar energy. This study aims to determine the feasibility of solar street lighting in the future as a substitute for conventional public street lighting in the future by looking at the Net present cost, and Break even point assisted by HOMER software version 3.10.3. And the results obtained from the calculation of the Net present cost of conventional street lighting costs less, which is only Rp. 30,245,473 and the Net present cost of solar street lighting costs an initial investment of Rp. 128,341,312 and the BEP (Break even point) graph that has not been found to break even.

ANALISIS PERBANDINGAN EFISIENSI PEMAKAIAN ENERGI LISTRIK ANTARA PLN DAN GENSET DI POLLUX MALL PARAGON SEMARANG

Masalah dengan melambungnya harga minyak bumi dan semakin menipisnyacadangan minyak bumi kita diharuskan untuk menghemat pemakaian energi yang dihasilkan oleh pemakaian minyak bumi. Apalagi negara kita merupakan Negara pengimpor minyak. Sehingga semakin bamyak pemakaian minyak bumi didalam negri maka semakin besar pula jumlah minyak yang harus diimpor dan secara otomatis akan menguras keuangan Negara. Antara lain pemakaian minyak bumi didalam negri digunakan untuk : pembangkit listrik, industri, kendaraan, memasak, dan masih banyak lainnya. Penelitian ini bertujuan untuk mengetahui perbandingan efisiensi pemakaian energi listrik antara PLN (Grid) dan genset dengan melihat Net Present Cost, Total Annual Cost, Cost of Energy, dan Break Event Point dengan dibantu software HOMER PRO 3.14.2. Dimana diperoleh Netto sekarang biaya penggunaan energi listrik sumber PLN sebesar Rp. 355.105.400.000, Total biaya tahunan sebesar Rp.27.468.960.000, total energi yang dipakai sebesar 23.493.590 kWh, serta biaya energi Rp. 1.169 /kWh. Dan untuk penggunaan sumber energi listrik genset diperoleh Net present cost sebesar Rp. 1.380.000.000.000, Total biaya tahunan sebesar Rp. 105.343.700.000, total energi yang dipakai sebesar 23.493.590 kWh, serta biaya energi Rp. 4.529/kWh. Yang berarti untuk penggunaan sumber energi genset di Paragon Mall Semarang, saat ini belum memungkinkan untuk mengalihkan secara menyeluruh sumber dari PLN dan hanya digunakan untuk cadangan saja jika PLN terjadi gangguan. 105.343.700.000, total energi yang dipakai sebesar 23.493.590 kWh, serta biaya energi Rp. 4.529/kWh. Yang berarti untuk penggunaan sumber energi genset di Paragon Mall Semarang, saat ini belum memungkinkan untuk mengalihkan secara menyeluruh sumber dari PLN dan hanya digunakan untuk cadangan saja jika PLN terjadi gangguan. 105.343.700.000, total energi yang dipakai sebesar 23.493.590 kWh, serta biaya energi Rp. 4.529/kWh. Yang berarti untuk penggunaan sumber energi genset di Paragon Mall Semarang, saat ini belum memungkinkan untuk mengalihkan secara menyeluruh sumber dari PLN dan hanya digunakan untuk cadangan saja jika PLN terjadi gangguan. Kata Kunci : Biaya Energi, Genset , HOMER PRO, Net Present Cost , PLN ( Grid

Simulasi Optimasi Sistem Plth Menggunakan Software Homer Untuk Menghemat Pemakaian Bbm Di Pulau Penyengat Tanjung Pinang Kepulauan Riau

Currently electrification on Penyengat Island supplied by Diesel Power Plants with total capacity 285 kW to serve peak load system about 250 kW. This research aims to improve the efficiency of Fuel consumption, by means of implementing a Hybrid Power Plants on Penyengat Island. Methods used in this research is simulating and analyzing the result of optimation Hybrid Power Plants system by using Homer Software version 2.81. This software to optimize based on the lowest value of the NPC (Net Present Cost). In this research, result of the simulation and optimation by Homer Software, show that the Hybrid power plant's most optimal to be applied on the Penyengat Island is integration between PLTB, PLTS & PLTD. In this condition, the contribution of the electricity production system of PLTS at 43%, PLTB at 41%, PLTD at 16%. With capital cost for $1.058.906, Operating Cost for$ 268.758 per year, Net Present Cost for $3.938.507, and Cost of energy for$ 0.249/kWh. While PLTH fuel consumption is 205.601 litres/year, saving fuel consumption of 316.499 litres/year or 60,6%/year. And saving fuel consumption cost of $ 265.859/yea

Design of an Optimal off-grid Hybrid Energy System for a Rural Community

This paper presents an optimized off-grid PV-diesel generator-battery hybrid energy system for application in an un-electrified rural community and further outlines a procedure for designing such an economical and technically feasible hybrid system. The hybrid optimization model for multiple energy resources (HOMER) software was utilized for simulation and analysis. The criteria of minimum net present cost of system, low CO2 emissions and zero electric load rejection was applied while considering technical issues of PV array, inverter coordination and PV capacity penetration level. For the case study system used, the obtained optimized hybrid energy system configuration is as follows: 68kW PV plant; 40kW Diesel plant; 45.4kW Inverter; and 80kWh battery unit. The proposed hybrid energy system is capable of producing 157685kWh of electricity annually at a levelized cost of energy of 0.55 $/kWh while emitting 51,000 kg of CO2 yearly. To avoid self-shading of the PV array, an appropriate inter-row distance was determined. The total quantity of PV modules and the electrical configuration of the PV array is presented.  Keywords : Hybrid energy system,  Net present cost,  Optimal sizing and  Photovoltai

Economic and Environmental Investigation of Renewable Energy Sources for Micro-grids coastal areas

The standalone power generating units in Marsa-alam coastal areas depend on fossil fuel to feed electrical loads. This causes many side effects like green gas emissions and high fuel costs, which leads to weak economic growth in this region. While the global interest increases to utilize renewable resources due to several benefits and renewable technologies in solar energy and wind turbine. The objective of this article is to design a tecno-economic and feasibility study of using hybrid renewable energy systems (HRES) over the conventional resources. Eight different types of models including solar photovoltaic (SPVs) /wind turbines (WTs)/ power converter /diesel/battery are designed using HOMER software. The key factors are used to make the decision such as net present cost (NPC), net Levelized costs of energy (LCOEs), the renewable fraction (RF), load demand, availability of the HRES and greenhouse gases emissions. The lifetime and capacity of WTs, SPVs, converter, and battery, nominal discount rate, are used to decide the best optimal solution of HRES. These analyses compared the performance of the micro-grid and showed that the optimal micro-grid is techno-economically feasible based on LCOEs. The LCOEs and net present cost (NPC) of optimum source ($0.224/kWh and$103M) are the least compared to the other hybrid source configurations