IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2020-06-29.html
   My bibliography  Save this article

Financial Evaluation of Photovoltaic Energy Projects in Colombia

Author

Listed:
  • Hugo Hernandez Palma

    (Universidad del Atl ntico, Barranquilla, Colombia,)

  • William Alejandro Niebles

    (Universidad de Sucre, Sincelejo Colombia.)

Abstract

The use of renewable sources, especially photovoltaics, has become a viable alternative as a supply of this vital element without destroying the environmental environment. In this sense, the main objective of the study is to propose a methodology of economic / financial evaluation of photovoltaic energy projects in Colombia, through the application of the real options valuation, the above supported by a mixed method that combines the review of qualitative information or documentary in conjunction with a quantitative sample based on numerical data and official figures, in order to address the issue with rigorous livelihoods. The results indicate that the photovoltaic energy has a high potential in the country, according to the real options valuation the total investment cost of the installation and commissioning for a 5000 Kw plant would be $ 18,930,000 USD, taking advantage of 1,825 hours of work thus generating about 9,125,000 Kw / h. It is concluded that the energy matrix in Colombia must be diversified, supported by a government management that facilitates access to credit lines that leverage the initial investment in capital, additionally, taking advantage of the geographical characteristics of Guajira, Magdalena and the Atlantic is crucial for Implement these types of projects.

Suggested Citation

  • Hugo Hernandez Palma & William Alejandro Niebles, 2020. "Financial Evaluation of Photovoltaic Energy Projects in Colombia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 225-228.
    • Handle: RePEc:eco:journ2:2020-06-29
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/9976/5506
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/9976/5506
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hosenuzzaman, M. & Rahim, N.A. & Selvaraj, J. & Hasanuzzaman, M. & Malek, A.B.M.A. & Nahar, A., 2015. "Global prospects, progress, policies, and environmental impact of solar photovoltaic power generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 284-297.
    2. Bhandari, Binayak & Lee, Kyung-Tae & Lee, Caroline Sunyong & Song, Chul-Ki & Maskey, Ramesh K. & Ahn, Sung-Hoon, 2014. "A novel off-grid hybrid power system comprised of solar photovoltaic, wind, and hydro energy sources," Applied Energy, Elsevier, vol. 133(C), pages 236-242.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grzegorz Lew & Beata Sadowska & Katarzyna Chudy-Laskowska & Grzegorz Zimon & Magdalena Wójcik-Jurkiewicz, 2021. "Influence of Photovoltaic Development on Decarbonization of Power Generation—Example of Poland," Energies, MDPI, vol. 14(22), pages 1-20, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hugo Hernandez Palma & Kennedy Hurtado Ibarra, 2020. "Evaluation of Photovoltaic Energy Projects using the Real Options Valuation," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 256-265.
    2. Abbas, Sajid & Yuan, Yanping & Zhou, Jinzhi & Hassan, Atazaz & Yu, Min & Yasheng, Ji, 2022. "Experimental and analytical analysis of the impact of different base plate materials and design parameters on the performance of the photovoltaic/thermal system," Renewable Energy, Elsevier, vol. 187(C), pages 522-536.
    3. Mollik, Sazib & Rashid, M.M. & Hasanuzzaman, M. & Karim, M.E. & Hosenuzzaman, M., 2016. "Prospects, progress, policies, and effects of rural electrification in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 553-567.
    4. Anilkumar, T.T. & Simon, Sishaj P. & Padhy, Narayana Prasad, 2017. "Residential electricity cost minimization model through open well-pico turbine pumped storage system," Applied Energy, Elsevier, vol. 195(C), pages 23-35.
    5. Grafström, Jonas & Poudineh, Rahmat, 2023. "No evidence of counteracting policy effects on European solar power invention and diffusion," Energy Policy, Elsevier, vol. 172(C).
    6. Peng Zhang & Huibin Sui, 2020. "Maximum Power Point Tracking Technology of Photovoltaic Array under Partial Shading Based On Adaptive Improved Differential Evolution Algorithm," Energies, MDPI, vol. 13(5), pages 1-15, March.
    7. Xu, Jiuping & Wang, Fengjuan & Lv, Chengwei & Huang, Qian & Xie, Heping, 2018. "Economic-environmental equilibrium based optimal scheduling strategy towards wind-solar-thermal power generation system under limited resources," Applied Energy, Elsevier, vol. 231(C), pages 355-371.
    8. Lisa B. Bosman & Walter D. Leon-Salas & William Hutzel & Esteban A. Soto, 2020. "PV System Predictive Maintenance: Challenges, Current Approaches, and Opportunities," Energies, MDPI, vol. 13(6), pages 1-16, March.
    9. Talaat, M. & Farahat, M.A. & Elkholy, M.H., 2019. "Renewable power integration: Experimental and simulation study to investigate the ability of integrating wave, solar and wind energies," Energy, Elsevier, vol. 170(C), pages 668-682.
    10. Moh’d Al-Nimr & Abdallah Milhem & Basel Al-Bishawi & Khaleel Al Khasawneh, 2020. "Integrating Transparent and Conventional Solar Cells TSC/SC," Sustainability, MDPI, vol. 12(18), pages 1-22, September.
    11. Alain Ulazia & Gabriel Ibarra-Berastegi, 2020. "Problem-Based Learning in University Studies on Renewable Energies: Case of a Laboratory Windpump," Sustainability, MDPI, vol. 12(6), pages 1-15, March.
    12. Aziz, Ali Saleh & Tajuddin, Mohammad Faridun Naim & Adzman, Mohd Rafi & Azmi, Azralmukmin & Ramli, Makbul A.M., 2019. "Optimization and sensitivity analysis of standalone hybrid energy systems for rural electrification: A case study of Iraq," Renewable Energy, Elsevier, vol. 138(C), pages 775-792.
    13. García-Triviño, Pablo & Torreglosa, Juan P. & Fernández-Ramírez, Luis M. & Jurado, Francisco, 2016. "Control and operation of power sources in a medium-voltage direct-current microgrid for an electric vehicle fast charging station with a photovoltaic and a battery energy storage system," Energy, Elsevier, vol. 115(P1), pages 38-48.
    14. Haneen Abuzaid & Fatin Samara, 2022. "Environmental and Economic Impact Assessments of a Photovoltaic Rooftop System in the United Arab Emirates," Energies, MDPI, vol. 15(22), pages 1-27, November.
    15. Chen, Weidong & Wei, Pengbang, 2018. "Socially optimal deployment strategy and incentive policy for solar photovoltaic community microgrid: A case of China," Energy Policy, Elsevier, vol. 116(C), pages 86-94.
    16. Lu Gan & Dirong Xu & Xiuyun Chen & Pengyan Jiang & Benjamin Lev & Zongmin Li, 2023. "Sustainable portfolio re-equilibrium on wind-solar-hydro system: An integrated optimization with combined meta-heuristic," Energy & Environment, , vol. 34(5), pages 1383-1408, August.
    17. M. Hasanuzzaman & Ummu Salamah Zubir & Nur Iqtiyani Ilham & Hang Seng Che, 2017. "Global electricity demand, generation, grid system, and renewable energy polices: a review," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 6(3), May.
    18. Fang, Hong & Wang, Xu & Song, Wenyan, 2020. "Technology selection for photovoltaic cell from sustainability perspective: An integrated approach," Renewable Energy, Elsevier, vol. 153(C), pages 1029-1041.
    19. Kumar, Sandeep & Nehra, Monika & Deep, Akash & Kedia, Deepak & Dilbaghi, Neeraj & Kim, Ki-Hyun, 2017. "Quantum-sized nanomaterials for solar cell applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 821-839.
    20. Najafi, G. & Ghobadian, B. & Mamat, R. & Yusaf, T. & Azmi, W.H., 2015. "Solar energy in Iran: Current state and outlook," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 931-942.

    More about this item

    Keywords

    Renewable Energies; Photovoltaic Energy; Real Options Valuation; Feasibility;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2020-06-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.