Energy production and financial analysis of photovoltaic energy plants in Ivory Coast

Abstract

One key factor for boosting economic growth in developing countries is the energetic independence of the countries. Renewable energies are well suited for such purpose even if effective dissemination of renewable energies is their production price. The energy production of solar plants is highly dependent of both sun radiation and climate data and therefore dependent of their location. This paper reports on the economic and financial calculations related to the energy production of a standard 20 kW photovoltaic plant connected to the electric network and located in Ivory Coast (Côte d Ivoire). Its economic profitability in terms of economic returns of the electricity production is calculated by using capital budgeting techniques. It is demonstrated that when photovoltaic plants are considered as economic assets, the knowledge of financial and economic characteristics of the country as well as the geographical localization of photovoltaic plants, have to be taken into account in order to assess the profitability of the investment. The Levelized Cost of the Energy generated for the photovoltaic plant during its expected time of operation (25 years) is calculated and compared with other economical parameters.