E Energy Economics_Assessment... Page 1 of 2 6 a Q Search Energy Economics_Assessment_Project_2021 Decisent) polf "FINANCIAL EVALUATION OF RES-BASED HYBRID POWER STATIONS IN GREECE INCLUDING ENVIRONMENTAL ASPECTS" You are asked to undertake a preliminary cost-bencfit study, associated with the implementation of a hybrid RES based project of LOMW for a remote area hased on two different renewable energy technologies, the first regarding the installation of a small wind park (hased exclusively on 1 MW wind turbines) at a high wind polential island area (Table I), and the scoond conceming a small hydro power station (hased exclusively on 2MW hydro turbines) to he installed in a low elevation (15m) area (Table 1). For both technologies exarnined, environmental aspects are also to be taken into account, while the status of the local electricity market should also be examined taking into consideration the existing system of subsidy and support for RES applications in the course of time. For this purpose, the following should be considered. Financial evaluation of the project should be based on the estimation of the investments (simple and complete) pay-back period, NPV (np) and IRR value. However, the final evaluation of the proposed hybrid power station should be based on the estimation of the levelized (on life cycle basis) total electricity production cost (including externalities). Investment oost shall derive from the combination of the initial installation cost and the corresponding maintenance and operation coxl, considering the entire economic life of each investment and including the possibility of Stato subsidy. Revenues from the operation of the plants should be estimated by using the current selling price of electricity, valid for autonomous island networks and grid connected hybrid RES-based power plants (hydro and wind), while taxution should also be taken into account. The annual escalation rute of the local market electricity price should also be considered, excluding the case of the simple pay-back method. Cost estimation of atmospheric pollution, either caused or avoided, should be based on the mainland and island system emission coellicients as well as on the CO2 charges of existing air pollution quantification schemes, eg the current Enuission Trading System (ETS). . Embodied energy values should be drawn from the international literature, presenting also iny assumptions adopted, while you may assume that both the wind and the hydro turbine manufacturers are located in Europe. In this context, using the available information for the local economy parameters, you are asked to deliver an integrated cost-benefit study for the entire hybrid energy projects, including environmental aspects, while at the end of this assessment you are asked to extend your analysis by investigating land requirement of the entire installation More precisely, after selecting the nominal power of the small hydro and the wind power stations (total numinal peak power output equal to 10MW), PART ONE (40%) 1. Estimate the simple and the complete pay-back period of the proposed investment (using selected combinations of wind turbines and hydro turbine peak/rated power) and compare your findings. Note that the estimation of the complete pay-back period must he hased on the present values of cash flows. At this point it is important to mention that you should select solutions based on commercial available equipment. Is there any remarkable difference between the simple and the complete pay-back period estimated? What are the limitations of the simple pay-back period as an investment appraisal tool? (10%) 2. Estimate the net present value and the internal rate of return (TRR) value of the potential investments under investigation and evaluate your findings. What is the IRR telling you about an investimeat? Is the net present value the most reliable financial cvaluation criterion? Can you choose the most bencficial investment on the basis of the results of questions (I) and (2) using a multi-criteria analysis, taking also into consideration the initial capital to be invested? Discuss your selection answer (15%) % 3. Furthermore, estimate the levelized (on life cycle basis) total electricity production cost of the proposed hybrid power configurations (excluding the externalities at this point). Rank your proposed solutions on the hasis of the LC electricity generation cost and compare your results with the ones of question (2). Comment on your findings (15%) Note that answering to all the questions is critical for your mark. Give clear and coherent answers to each of the questions and try not to exceed the total maximum of 3,000 words (including figures and tables). Furthermore, make any reasonahle assumptions wherever required and since work will be carried and in groups of two, keep in mind that co-ordination is essential Table I: Capacity factor values for Hydro Power station and Wind Park in selected Greek regions 1" Student 2014 Student Surname Sumame CF 1 Letter 1 Letter A 3104 E Energy Economics_Assessment... Page 1 of 2 6 a Q Search Energy Economics_Assessment_Project_2021 Decisent) polf "FINANCIAL EVALUATION OF RES-BASED HYBRID POWER STATIONS IN GREECE INCLUDING ENVIRONMENTAL ASPECTS" You are asked to undertake a preliminary cost-bencfit study, associated with the implementation of a hybrid RES based project of LOMW for a remote area hased on two different renewable energy technologies, the first regarding the installation of a small wind park (hased exclusively on 1 MW wind turbines) at a high wind polential island area (Table I), and the scoond conceming a small hydro power station (hased exclusively on 2MW hydro turbines) to he installed in a low elevation (15m) area (Table 1). For both technologies exarnined, environmental aspects are also to be taken into account, while the status of the local electricity market should also be examined taking into consideration the existing system of subsidy and support for RES applications in the course of time. For this purpose, the following should be considered. Financial evaluation of the project should be based on the estimation of the investments (simple and complete) pay-back period, NPV (np) and IRR value. However, the final evaluation of the proposed hybrid power station should be based on the estimation of the levelized (on life cycle basis) total electricity production cost (including externalities). Investment oost shall derive from the combination of the initial installation cost and the corresponding maintenance and operation coxl, considering the entire economic life of each investment and including the possibility of Stato subsidy. Revenues from the operation of the plants should be estimated by using the current selling price of electricity, valid for autonomous island networks and grid connected hybrid RES-based power plants (hydro and wind), while taxution should also be taken into account. The annual escalation rute of the local market electricity price should also be considered, excluding the case of the simple pay-back method. Cost estimation of atmospheric pollution, either caused or avoided, should be based on the mainland and island system emission coellicients as well as on the CO2 charges of existing air pollution quantification schemes, eg the current Enuission Trading System (ETS). . Embodied energy values should be drawn from the international literature, presenting also iny assumptions adopted, while you may assume that both the wind and the hydro turbine manufacturers are located in Europe. In this context, using the available information for the local economy parameters, you are asked to deliver an integrated cost-benefit study for the entire hybrid energy projects, including environmental aspects, while at the end of this assessment you are asked to extend your analysis by investigating land requirement of the entire installation More precisely, after selecting the nominal power of the small hydro and the wind power stations (total numinal peak power output equal to 10MW), PART ONE (40%) 1. Estimate the simple and the complete pay-back period of the proposed investment (using selected combinations of wind turbines and hydro turbine peak/rated power) and compare your findings. Note that the estimation of the complete pay-back period must he hased on the present values of cash flows. At this point it is important to mention that you should select solutions based on commercial available equipment. Is there any remarkable difference between the simple and the complete pay-back period estimated? What are the limitations of the simple pay-back period as an investment appraisal tool? (10%) 2. Estimate the net present value and the internal rate of return (TRR) value of the potential investments under investigation and evaluate your findings. What is the IRR telling you about an investimeat? Is the net present value the most reliable financial cvaluation criterion? Can you choose the most bencficial investment on the basis of the results of questions (I) and (2) using a multi-criteria analysis, taking also into consideration the initial capital to be invested? Discuss your selection answer (15%) % 3. Furthermore, estimate the levelized (on life cycle basis) total electricity production cost of the proposed hybrid power configurations (excluding the externalities at this point). Rank your proposed solutions on the hasis of the LC electricity generation cost and compare your results with the ones of question (2). Comment on your findings (15%) Note that answering to all the questions is critical for your mark. Give clear and coherent answers to each of the questions and try not to exceed the total maximum of 3,000 words (including figures and tables). Furthermore, make any reasonahle assumptions wherever required and since work will be carried and in groups of two, keep in mind that co-ordination is essential Table I: Capacity factor values for Hydro Power station and Wind Park in selected Greek regions 1" Student 2014 Student Surname Sumame CF 1 Letter 1 Letter A 3104