FUNDING AND FINANCIAL MODEL

PROJECT OVERVIEW
gathering of solar data. The solar data used in this master plan was sourced from Ghana's
Energy Commission. This information was derived from several research that the commission
conducted Furthermore, built-in solar statistics from NASA for numerous sites worldwide are
included in the RET Screen sustainable energy program, which was highly helpful in our
research..

Solar PV selection
The main criteria used in selecting the PV for this master plan were its technical attributes,
availability, efficiency, and affordability. For this thesis, we also restricted ourselves to crystalline
panels. Mono-crystalline solar panels have a better conversion efficiency than any other
commercial solar panels. Its efficiencies range from fifteen to twenty-four percent. Poly-
crystalline panels have a lower conversion efficiency than mono-crystalline panels. It is between
fifteen and nineteen percent effective. Either way, its primary advantage lies in its lower cost.
Poly-crystalline panels have a lower conversion efficiency than mono-crystalline panels. It is
between fifteen and nineteen percent effective. Either way, its primary advantage lies in its
lower cost. Poly-crystalline panels have a lower conversion efficiency than mono-crystalline
panels. It is between fifteen and nineteen percent effective. Either way, its primary advantage
lies in its lower cost.

Table 1 Electrical Data and Characteristics of the Panel (CSUN, 2019).

Standard CSUN 310-72P

Nominal Power, Pmpp(W) 310W

Tolerance, Pmpp 0/+3%

Module efficiency 16.01%

Short circuit current (Isc) 9.04 A

Open circuit voltage (Uoc) 44.8 V

Current (Impp) 8.58A

Voltage (Vmpp) 36.1 V

Voltage Temperature -0.292 %/ 0K

coefficient
Current Temperature +0.045% / 0 K
Figure 1 CSUN310-72P panel sample
coefficient
Source: (CSUN, 2019)
Temperature Coefficient -0.408%/0K
 Frame Anodized aluminum profile

Back Sheet Composite film

Junction Box Rated current ≥ 12A, IP ≥ 65, TUV & UL

Cable Length 900 mm, 1 × 4 mm2

Connector MC 4/ compatible with MC 4

Frontal White toughened safety glass, 3.2 mm

Solar cells 6 × 12 pieces polycrystalline solar cells series

strings (156 mm × 156 mm)
Weight and dimensions (L X W) +/- 1% mm 23.8 Kg/ 1956 × 990 × 50 mm

The location of the project

The economics of the PV system are impacted by the project's location because it may have an
effect on production. Therefore, before making any systemic investments, a preliminary survey
of the planned project should be carried out. The economics of the PV system are impacted by
the project's location because it may have an effect on production. Therefore, before making
any systemic investments, a preliminary survey of the planned project should be carried out.

Yield determination
Important elements that affect the system's output are module size, capacity, and efficiency;
site location and solar radiation; inverter capacity and efficiency; and available area. Then, using
a variety of software programs, all of these inputs are simulated in MWh/year.. Four elements
can be manually considered in order to compute this yield: panel yield, performance ratio, total
module area, and solar irradiation at an inclined plane. The annual yield is therefore obtained
by multiplying these four elements.
The following is the worldwide formula for calculating the power output of a solar system:
E=A*Gr*r*PR … … (1)
E- Annual yield – kWh /year
A-Total module area - m2
Gr-Average global solar irradiation at tilt angle – kWh/m2/year r- panel yield – is the ratio of
the electrical power of the panel divided by the area of one panel or it is also expressed as
panel efficiency (%)
PR- performance ratio - %
The performance ratio, Coefficient for all losses (usually ranges between 0.5 – 0.9)

3 Analysis and Cost Expenditure

The overall capital cost as well as the expenditures associated with operation and maintenance
are the key topics of this portion of the financial analysis. We will also review the NPV, PBP,
LCOE, and LCC.
These recommendations will support the economic assessment of the capabilities of the
suggested system.

Internal rate of return (IRR) and Net Present Value (NPV)

Internal rate of return (IRR)

The market discount rate, or IRR, that results in zero or no life cycle savings is known as the net
present value (NPV). Examples of the IRR are Pre-tax IRR equity, After-tax IRR equity, Pre-tax IRR
assets, and After-tax IRR assets. Pre-tax IRR equity and assets is the percentage of the possibility
to equable the investment cost and assets during the project lifetime before income tax.The
market discount rate, or IRR, that results in zero or no life cycle savings is known as the net
present value (NPV). Examples of the IRR are Pre-tax IRR equity, After-tax IRR equity, Pre-tax IRR
assets, and After-tax IRR assets. Pre-tax IRR equity and assets is the percentage of the possibility
to equable the investment cost and assets during the project lifetime before income tax.The
market discount rate, or IRR, that results in zero or no life cycle savings is known as the net
present value (NPV). Examples of the IRR are Pre-tax IRR equity, After-tax IRR equity, Pre-tax IRR
assets, and After-tax IRR assets. Pre-tax IRR equity and assets is the percentage of the possibility
to equable the investment cost and assets during the project lifetime before income tax.The
possibility of matching the investment cost and assets over the course of the project life cycle
after income tax is known as after-tax IRR equity and assets.
Net present Value (NPV)
The NPV analysis is widely used for projecting investments and decisions, such as jointly owned
projects and community costs. While NPV is commonly used when analyzing investments from a
public viewpoint, it is not conventional when it comes to communal expenses. Instead, it
evaluates the variance in the number of viable investment possibilities in mutually exclusive
projects. (Short and others, 1995).
The NPV can be calculated by using the following
formula NPV =
𝑛
𝑡
∑ 𝑡 ……………………………………………………….(2)
𝑡=0 (1+𝑖)

Where: Ft - the net cash

flow at year t

t – time in years,

n – number of years considered for the investment evaluation (it includes both depreciation
and technical life)
i – is the discount rate in % (differentiated in household and industry investment)
3.7.6 Payback Period (PBP)
PBP variance in the number of investment options available, whereas in communal costs, NPV is
not standard, although it is frequently employed when evaluating investments from a public
perspective. (Short et., 1995).
The NPV can be calculated by using the following formula
𝑛 t
 ∑ 𝑡 ……………………………………………………….(2)
𝑡=0 (1+𝑖)

Where: Ft - the net cash flow at year t

t – time in years,

n – number of years considered for the investment evaluation (it includes both

depreciation and technical life)

i – is the discount rate in % (differentiated in household and industry

investment)

Payback Period (PBP)

over the course of its operating life or the examination period selected. The LCC concept helps
with future financing searches by indicating the appropriate amount to invest in terms of the
discount rate. It functions by transforming anticipated future expenses into actual expenses.
The LCC study includes consideration of inflation.

3.7.8 Levelized Cost of Energy (LCOE)

The most popular application of this technique is comparing the energy generating cost to the
system's overall lifetime costs. System capacity in kW or MW, starting costs ($/kWh), O&M costs
($/kW/yr), project duration (in years), system degradation rate (percent), interest rate, and
residual values are all necessary information for computing the LCOE.. Additionally, it may be
used to assess various power production systems according to a variety of criteria, including
efficiency, capacity factor, unequal financial life, and capital cost (Ocampo, 2009).
By applying the formula given by Linddahl (2015), the LCOE can be determined as follows:

𝑖𝑛𝑖𝑡𝑖𝑎𝑙 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡+(𝑎𝑛𝑛𝑢𝑎𝑙 𝑐𝑜𝑠𝑡𝑠∗𝑛)−𝑅𝑒𝑠𝑖𝑑𝑢𝑎𝑙 𝑣𝑎𝑙𝑢𝑒

𝐿𝐶𝑂𝐸 ∶ …………….(3)
𝐹𝑖𝑟𝑠𝑡 𝑦𝑖𝑒𝑙𝑑∗(1−𝑠𝑦𝑠𝑡𝑒𝑚 𝑑𝑒𝑔𝑟𝑎𝑑𝑎𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 )𝑖−1
∑𝑖𝑖= 𝑛1(1+𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒) 𝑖

Where: n is the system lifetime and i is the years

Also, it can be calculated using the formula presented in (Branker et al., 2011) as:

LCOE = (∑Tt=0(1l+t interest+Ot+Mt rate +Ft)t

(4)
𝑓𝑖𝑟𝑠𝑡 𝑦𝑒𝑎𝑟 𝑦𝑖𝑒𝑙𝑑∗(1−𝑠𝑦𝑠𝑡𝑒𝑚 𝑑𝑒𝑔𝑟𝑎𝑑𝑎𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒)𝑡

∑𝑇𝑡=0(1+𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒)𝑡

Where: t is the years, T is a system lifetime, It is the investment costs at year t, Ot

& Mt are the operation and maintenance costs respectively and Ft is fuel costs.

Sensitivity analysis
The sensitivity of key economic factors, such as starting costs and technological and financial
characteristics, can be roughly determined through sensitivity analysis. RETScreen considers
initial and yearly expenses, debt ratio, discount rate, and debt interest rate for calculating the
sensitivity of the LCOE, after-tax IRR equity, Net present value (NPV), and Equity Payback
(Sebastian et al, 2016).
Finally, the sensitivity analysis was run, and the impact of the initial investment cost, O&M
costs, and the electricity export rate on the NPV, PBP, and after-tax IRR equity were examined

Project name Rural electrification for kantro

Location Kantro Sunyani municipal
Project duration 25years
 CAPITAL EXPENDITURE(CAPEX)

MOUNTING STRUCTURE
Type of mounting
Ground
structure
Cost per mounting
1500
structure
LAND ACQUISITION 150
COST OF LAND 1500
SMA TAX 120
CONTIGENCY 10%
Wiring etc 134
Cost of appliances 132
maintenance cost 10956
System Monitoring 2634
Control System
378
Upkeep
Equipment Insurance 234
Security: 234
office cost 150

ASSUMPTIONS
Projected Energy Generated
solar potential Abundant
panel efficiency 16.5
weather paltern 5.5
solar manufacturer Sun

Adminstrative cost 3000

inflation 9%
Financial Projections:
Return on
Investment (ROI) 8.2
Net Present Value
(NPV) 752159
Internal Rate of
Return (IRR) 17.7
Payback Period 8.2years
Financing:
Debt Financing 1480806.19
 Equity Financing 9yers
Grant/Subsidy
Funding

OPERATION EXPENDITURE(OPEX)
breakdown of each component of the Operating Expenditure (OPEX) for a solar-powered
microgrid project in detail:

Operating Expenditure (OPEX) Breakdown:

1. Maintenance and Repairs:

- Routine Maintenance:
-Regular inspections of solar panels, inverters, and other components.
- Cleaning and checking for wear and tear.

- Corrective Maintenance
- Repairs in case of equipment failures or malfunctions.
- Replacement of faulty components.

2. Monitoring and Control Systems

- System Monitoring
- Implementation of monitoring tools for real-time performance tracking.
- Integration of sensors to detect any deviations or issues.
- Control System Upkeep:
- Software updates for monitoring and control systems.
- Calibration and optimization of control algorithms.

3. Insurance
- Equipment Insurance
- Coverage for damage, theft, or unexpected failures of solar panels and other hardware.
- Liability Insurance:
- Protection against any damages or injuries related to the microgrid operation.

4. Security:
- Physical Security:
- Installation and maintenance of security systems (fencing, cameras, lighting).
- Security personnel for on-site surveillance.
- Cybersecurity
- Implementation of measures to protect against cyber threats.
- Regular cybersecurity audits and updates.
5. Administrative and Management Costs:
- Personnel Salaries:
- Salaries for administrative staff, project managers, and support personnel.
- Office Expenses:
- Rent, utilities, and maintenance of office facilities.
- Office supplies and equipment.

Budgeting
_Regularly review and adjust budgets based on the specific needs and evolving regulations.
- Proactive Maintenance: Implement a preventive maintenance schedule to minimize corrective
maintenance needs.
- Technology Upgrades: Plan for occasional upgrades to monitoring systems and control
algorithms to stay current with technology advancements.
- Regulatory Monitoring: Stay informed about changes in regulations to ensure ongoing
compliance.

This detailed breakdown provides a comprehensive view of the various elements comprising the
Operating Expenditure for a solar-powered microgrid, helping to plan and manage costs
effectively. Adjustments may be necessary based on specific project details and evolving
circumstances.

SOURCES OF FUNDING FOR THE PROJECT

Undoubtedly, the successful execution of a community's energy master plan depends on

obtaining money for it. To execute a rural energy program utilizing renewable energy in areas
without access to the national grid, the Energy Master Plan for Kantro emphasizes the
significance of establishing a unique financial envelope incorporating government budgets,
loans, grants, and rural financing. The EMP also seeks to establish sustainable finance schemes,
support networks, and incentives in order to draw capital and give renewable energy
technology top priority (Ministry of Energy, 2019). In an initiative, the ARB Apex Bank offered
low-interest loans to rural communities so they could buy solar panels and lamps. The
government has also implemented policy changes targeted at increasing the use of renewable
energy. Therefore, possible funding sources for the project's master plan (Ponkshe, 2022). It is
true that obtaining funds for a community's energy master plan is essential for successful
integration Thus, donor money, government financing, systems of incentives and assistance,
international organizations, and private sector investment are all possible sources of finance for
the Kantro master plan project.

Funding from donors

Ghanaian renewable energy projects have received support from donors like the Danish
International Development Agency (DANIDA) and the African Development Bank (AfDB). One
donor-funded project that can be utilized for the master plan project is the Ghana Scaling up
Renewable Energy Program of the AfDB.
Government funding
Under the China-Ghana Renewable Energy Technology Transfer (RETT) project, DANIDA is
funding the development of a task group that created Ghana's Renewable Energy Master Plan.
Ghana's government may be able to provide funding for our master plan's implementation,
particularly in light of the high-level planning document that establishes deployment goals for
mini-grids, standalone solar systems, and solar lanterns. (USAID, 2020)

incentives and support networks

In order to draw in investors and stakeholders, the master plan may suggest sustainable
funding options, incentives, and support networks. These incentives may take the form of
competitively procured future power purchase agreements (PPAs), tax-based incentive
systems, or financially structured securitization models of renewable energy assets.
(Ponkshe, 2022)

International agencies

The master plan can be implemented with financial and technical support from international
agencies like the International Renewable Energy Agency (IRENA) and the United Nations
Development Programe (UNDP).

Investment from the private sector

By providing appealing returns on investment, risk-reduction strategies, and a solid legislative

framework, the master plan can draw in private sector capital. This may make it easier to use
resources from the private sector to pay for the master plan's execution. (Mini-grids, 2022.)

ASSUMPTIONS

Assumptions Breakdown:

1. Projected Energy Generation (kWh/year):

- Factors Influencing Projections:
- Solar resource potential in the project location.
- Efficiency of the solar panels and energy storage system.
- Historical weather patterns and variability.
- Data Sources:
- Meteorological data.
- Solar resource assessments.
- Manufacturer specifications for solar panels.

2. Electricity Selling Price:

- Market Analysis:
- Examination of local energy market conditions.
 - Consideration of regulatory policies affecting electricity pricing.
- Competitor Pricing:
- Analysis of pricing strategies adopted by competitors.
- Evaluation of tariff structures and incentives.
- Government Policies:
- Consideration of any government incentives or subsidies affecting electricity pricing.

3. Inflation Rates:
- Components Affected by Inflation:
- Capital and operational expenses (CAPEX and OPEX).
- Electricity selling price.
- Financing costs.
- Sources of Inflation Data:
- Historical inflation rates.
- Projections from economic forecasts.
- Government inflation indices.

4. Discount Rate:
- Determinants of Discount Rate:
- Cost of capital for the project.
- Project risk assessments.
- Opportunity cost of capital.
- Benchmarking:
- Comparisons with industry-standard discount rates.
- Consultation with financial experts.
- Sensitivity Analysis:
- Assessing the impact of varying discount rates on financial metrics.

5. Projected Lifespan of the Microgrid:

- Components Influencing Lifespan:
- Technology advancements and potential upgrades.
- Maintenance practices and schedules.
- Manufacturer warranties.
- Historical Performance Data:
- Review of similar projects to understand real-world lifespans.
- Manufacturer specifications for the lifespan of solar panels and other components.

1.0 SENSITIVITY ANALYSIS

Sensitivity analysis is used to approximate the sensitivity of major economic indicators such as
beginning costs, technical and financial characteristics. RETScreen computes the sensitivity of
the LCOE, after-tax IRR equity, Net present value (NPV), and Equity Payback by taking into
account the initial and annual costs, debt ratio, discount rate, and debt interest rate (Sebastian
et al, 2016). Finally, the sensitivity analysis was run, and the impact of the initial investment
cost, O&M costs, and the electricity export rate on the NPV, PBP, and after-tax IRR equity were
examined.

MONITORING AND EVALUATION

monitoring and evaluating the performance of the solar-powered microgrids
Monitoring and evaluating the operation of solar-powered microgrids is essential because it
demonstrates the impact of the project on the neighborhood, ensures financial viability, and
points up potential areas for improvement.
The project's impact and success will be evaluated using the following measures and indicators:
 Energy Output Metrics:
Total Energy Generated (kWh):
Annual and cumulative energy production.
 Energy Consumption Reduction:
Percentage reduction in energy consumption compared to alternative sources.

 Financial Performance Indicators:

Return on Investment (ROI):
Measures the profitability of the project.
Payback Period:
Time taken to recoup the initial investment.

 Operational Metrics:
Downtime Percentage:
Measures the reliability of the microgrid.
System Availability:
Percentage of time the microgrid is operational.

 Environmental Impact Indicators:

Carbon Emission Reduction:
Quantifies the reduction in carbon emissions compared to traditional energy sources.
Environmental Compliance:
Ensures compliance with environmental standards and regulations.

 Community Impact Metrics:

Employment Opportunities Created:
Number of jobs generated within the community.
Energy Access Improvement:
Percentage increase in households and businesses with reliable electricity access.

The Essence Of Evaluation And Monitoring The Performance Of The Solar Powered Microgrid
The key to assessing and tracking a solar-powered microgrid's performance is to make sure it is
efficient, long-lasting, and achieving the goals it was designed to. (Atiba et al., 2019)These are
the main justifications for carrying out monitoring and evaluation:

1. Optimizing Energy Production:

 Real-time tracking of energy production is made possible via monitoring, which enables
early detection and inefficiency rectification.
 Assessment offers information on overall performance, enabling modifications to
maximize energy production.

2. Operational Reliability:
 Continual and dependable operation of the microgrid is ensured by routine monitoring,
which aids in the early detection and resolution of possible problems.
 Evaluation determines the overall dependability of the system, which helps to minimize
downtime and enhance maintenance procedures.
3. Financial Accountability:
 Resource allocation is held accountable by the comparison of actual financial
performance to projected results.
 Tracking financial data improves the project's financial sustainability and aids in finding
areas for cost savings.

4. Environmental Impact Assessment

 The microgrid's contribution to environmental sustainability is confirmed by tracking
environmental indicators, such as the decrease in carbon emissions.
 Evaluation guarantees that the project conforms to applicable requirements and is in
line with environmental aims.

5. Community Empowerment and Social Impact:

 Frequent observation evaluates the socioeconomic effects on nearby communities,
including the generation of jobs and enhanced availability of electricity.
 Evaluation quantifies the overall efficacy in promoting empowerment and well-being in
the community.

6. Adaptation to Changing Conditions:-

 Monitoring enables the microgrid to adjust to shifting environmental conditions,
guaranteeing peak performance in a variety of situations.
 Evaluation sheds light on how resilient and flexible the microgrid is to changing
environmental and technical conditions.

7.Continuous Improvement
 Lessons learnt from performance assessments feed future decision-making, and both
monitoring and evaluation contribute to this cycle of continuous improvement. The key
is to gradually improve the microgrid's functionality by applying data-driven insights.

8. Involvement and Openness with Stakeholders:

 Frequent monitoring and assessment promote open communication with all parties
involved, including investors, regulatory agencies, and the local community.
 Establishing credibility and trust with stakeholders is improved by displaying a
commitment to evaluation.
9. Meeting Sustainable Development Goals (SDGs)
 Assessment makes sure the microgrid is in line with more general SDGs, promoting
economic expansion, environmental protection, and energy availability.
 A solar-powered microgrid's sustainability and effectiveness are essentially dependent
on monitoring and assessment, which helps decision-makers maximize output, maintain
accountability, and promote favorable social and environmental effects.
(Korkovelos et al., 2020.)
A Propose Monitoring And Evaluation Plan To Track The Progress And Identify Areas For
Improvement
Establish defined objectives and indicators that will be used to evaluate the project's
performance. This is the first phase in the process. Specific, measurable, realistic, pertinent, and
time-bound objectives are essential, and indicators are measurements, either quantitative or
qualitative, that demonstrate how well the objectives are being accomplished. Objectives might
include expanding the community's access to clean energy, for instance, and indicators could
include the number of homes linked to the microgrid, the quantity of energy produced and
used, and the beneficiaries' degree of satisfaction.

Select the right instruments and techniques: Data can be gathered, analyzed, and reported
using a variety of techniques and technologies, depending on the goals, metrics, financial
constraints, and schedule. Surveys, interviews, focus groups, observations, sensors, meters, and
dashboards are a few examples of these.

Select the right tools and methods: There are a variety of tools and methods that can be used to
gather, evaluate, and report data, depending on the goals, metrics, spending limit, and
schedule. Surveys, interviews, focus groups, observations, sensors, meters, dashboards, and
other suitable instruments can all be included in this.

Determine a starting point: Establish a baseline for the metrics and indicators listed above prior
to the project start date so that it can be used as a point of comparison.

Frequent monitoring: To track development and pinpoint opportunities for improvement,

monitor the project's performance on a regular basis using the defined metrics and indicators.
Periodic evaluations: Assess the project's success on a regular basis by contrasting its goals and
actual outcomes with the predetermined baseline. This can assist in seeing patterns,
achievements, and difficulties early on and adjusting the project's execution as needed.

Impact assessments: To determine the project's total effect on the community and
environment, conduct impact assessments, such as cost-benefit analyses or social impact
assessments.
Learning and adaptation: To ensure the project's long-term success and sustainability, apply the
monitoring and evaluation results to enhance, modify, and enhance the project's execution.
(Sustainable Energy Authority of Ireland, 2011)
9 Data analysis
Anywhere in the world can easily evaluate the energy production life cycle cost and GHG

emission reduction for the three main PV applications—off-grid water pumping, hybrid PV, and

on-grid water pumping—by utilizing the RET Screen worldwide PV project model. The model

can be used to analyze both isolated-grid and central grid PV systems for on-grid applications.

For off-grid applications, the model can be used to examine hybrid and stand-alone systems

alike. The model can be used to evaluate PV pump systems for applications involving the

pumping of water (Owolabi et al., 2019).

The software has built-in features and algorithms that make the feasibility research easier. The

PV projects workbook file contains the following six worksheets:

1. Energy model worksheet

2. Solar resource & system calculation

3. Cost analysis worksheet

4. GHG emission reduction

5. Financial summary

6. Sensitivity & risk analysis

In addition, the location and facility worksheet has additional project information on it. The

project evaluation does not always make use of these data. On the location worksheet, the user

can add details about the project site, including coordinates. Additionally, RETScreen can

generate a summary report of the data imputed to the user using a report worksheet.

Figure 3.2, which displays the RETScreen clean energy software interface, is shown below.
Figure 3.3 RET Screen clean energy software interface

3.9.1 The energy model worksheet

The RET Screen Clean Energy Management Software's Energy Simulate worksheet is used to model the

production and/or consumption of energy for a range of facilities, including particular systems and

metrics. Based on system characteristics and local site conditions, the energy model worksheet can be

used to determine the annual energy production for a solar project.

The data required for this worksheet are

Resource assessment

• Solar tracking mode

• Slope

• Azimuth

Photovoltaic
 • PV type

• Power capacity

• Manufacturer

• Model

• Efficiency

• Number of units

• Miscellaneous losses

Inverter

• Efficiency

• Capacity

• Miscellaneous loses

Feed-in-tariff / electricity export rate

The information inputted in this worksheet is provided in the figure below.

Figure 2 the detail of the facility to be analyzed

Figure 2 location worksheet

Figure 3 The Energy model worksheet

The monthly daily sun radiation is displayed in the Energy model. The kind of plant and its

power output that we employed. We used the China sun energy panel model from the energy

model. Rescreen determined that we should use 1565 models, which have a 500KW power

output, based on the panel's efficiency. Our panel will as well be fixed.

2 Cost analysis worksheet

The cost analysis worksheet contains estimates of various costs related to a solar PV project.
These costs are taken into account from two different angles: the initial, or investment cost, and
the ongoing, or recurrent cost.
The worksheet has categorized the cost into five (5) major parts thus;
Feasibility study
Development
Engineering
Power system
Balance of system & miscellaneous
Extensive research was made in other to obtain the various costs of standard solar power plants
across the world
Details of the cost estimated for the analysis is presented in figure 3.5 Parameters inputted in
the cost analysis worksheet
Figure 4 The cost analysis worksheet

Emission analysis worksheet

The potential to reduce GHG emissions from the proposed project is estimated with the help of
the GHG analysis worksheet. In order to determine how many tons of CO2 the recommended
case saves the atmosphere; the mode uses this worksheet to compare the suggested clean
energy technology to a base case system (a conventional power plant). The user simply needs to
provide transmission and distribution losses for the base and recommended case systems in
order to complete this analysis; the global bank's most recent estimate of Ghana's network's
electric power transmission and distribution losses is 21.54 percent
(MINISTRY OF ENERGY Republic of Ghana NATIONAL ENERGY POLICY, 2010)
. The emission analysis worksheet interface is shown in Figure
below.

Figure 5 emission analysis worksheet

Financial analysis worksheet
This spreadsheet contains the project's projected financial measures. It enables the user to
assess a number of project-related financial factors, including the project's life, inflation rate,
discount rate, revenue from grants and incentives, power export revenue, and so on. This data
will determine if the project is economically feasible or not.
The software calculates the annual revenue generated by the power plant from the sale of
electricity and compares it to the annual costs and debts incurred due to operation and
maintenance costs and debt payments. This standard algorithm is used to estimate the net
present value and simple payback period of an investment. The following financial metrics were
assessed for this investigation.
Inflation rate- 9%
Discount rate- 10%
Project life- 25years
Debt ratio- 70%
Debt interest rate ratio -7
Dept term -10
Figure 6 financial analysis worksheet

Sensitivity and risk analysis worksheet

A sensitivity and risk analysis worksheet are included in the RET Screen renewable energy
project analysis program to assist the user in estimating the sensitivity of significant financial
indicators.
It also includes a relation worksheet to key technical and financial factors. It shows the impact
of changing some financial and technical aspects on the project's feasibility.
The following are the technical parameters of the project.
The following scenarios were considered in our study.

• The effect of a change in initial cost on the feasibility of the project.

• The effect of a change in the debt interest rate on the feasibility of

the project.

• The effect of a change in incentives and grants on the feasibility of

the project.

• The effect of a change O&M on the feasibility of the project.

 • The effect of a change in electricity exported to the grid on the

feasibility of the project.

4.1 RESULT AND DISCUSSION

This chapter presents the financial computations' conclusions. After examining the NPV, IRR,

and simple PBP, the sensitivity is discussed. This is the effect on the project's viability of

variables such as inflation, currency exchange rates, and discount rates. Considering the

research's financial constraints, purchasing the 100kW Kantro solar PV facility is a wise financial

decision.

According to a FiT of $0.10/kWh, the power plant brings 643.915KWH of electricity to the
national grid annually, bringing in $270,444 in revenue. With an annual loan payment of
$221789 and an NPV of 752159, the project's simple payback period is 8.2 years.
Figures 4 and 5 illustrate the power plant's pretax and cumulative cash flow, which demonstrate
that the project experienced a negative net cash inflow from the first to the eighth year of
operation. This indicates that annual losses on debt and other assets exceed income.According
to a FiT of $0.10/kWh, the power plant brings 643.915KWH of electricity to the national grid
annually, bringing in $270,444 in revenue. With an annual loan payment of $221789 and an NPV
of 752159, the project's simple payback period is 8.2 years.
Figures 4 and 5 illustrate the power plant's pretax and cumulative cash flow, which demonstrate
that the project experienced a negative net cash inflow from the first to the eighth year of
operation. This indicates that annual losses on debt and other assets exceed income. According
to a FiT of $0.10/kWh, the power plant brings 643.915KWH of electricity to the national grid
annually, bringing in $270,444 in revenue. With an annual loan payment of $221789 and an NPV
of 752159, the project's simple payback period is 8.2 years.
Figures 4 and 5 illustrate the power plant's pretax and cumulative cash flow, which demonstrate
that the project experienced a negative net cash inflow from the first to the eighth year of
operation. This indicates that annual losses on debt and other assets exceed income.

Figure 7 2 Cumulative cash flow of the project

Sensitivity analysis
Electricity export rate to the total initial cost

The data highlighted means the project won’t be feasible when they are in this condition.
 MONITORING AND EVALUATION
monitoring and evaluating the performance of the solar-powered microgrids
It is crucial to track and assess the performance of solar-powered microgrids since it shows the
project's effect on the community, guarantees financial sustainability, and helps identify areas
for development.
The project's impact and success will be evaluated using the following measures and indicators:
 Energy Output Metrics:

Total Energy Generated (kWh):

Annual and cumulative energy production.
Energy Consumption Reduction:
Percentage reduction in energy consumption compared to alternative sources.
  Financial Performance Indicators:

Return on Investment (ROI):

Measures the profitability of the project.
Payback Period:
Time taken to recoup the initial investment.

 Operational Metrics:

Downtime Percentage:
Measures the reliability of the microgrid.
System Availability:
Percentage of time the microgrid is operational.

 Environmental Impact Indicators:

Carbon Emission Reduction:

Quantifies the reduction in carbon emissions compared to traditional energy sources.
Environmental Compliance:
Ensures compliance with environmental standards and regulations.

 Community Impact Metrics:

Employment Opportunities Created:

Number of jobs generated within the community.
Energy Access Improvement:
Percentage increase in households and businesses with reliable electricity access.

The Essence Of Evaluation And Monitoring The Performance Of The Solar Powered Microgrid
The key to assessing and tracking a solar-powered microgrid's performance is to make sure it is
efficient, long-lasting, and achieving the goals it was designed to. These are the main
justifications for carrying out monitoring and evaluation:
1. Optimizing Energy Production:
 Real-time tracking of energy production is made possible via monitoring, which enables
early detection and inefficiency rectification.
 Assessment offers information on overall performance, enabling modifications to
maximize energy production.

2. Operational Reliability:
 Continual and dependable operation of the microgrid is ensured by routine monitoring,
which aids in the early detection and resolution of possible problems.
 Evaluation determines the overall dependability of the system, which helps to minimize
downtime and enhance maintenance procedures.

3. Financial Accountability:
 Resource allocation is held accountable by the comparison of actual financial
performance to projected results.
 Tracking financial data improves the project's financial sustainability and aids in finding
areas for cost savings.

4. Environmental Impact Assessment

 The microgrid's contribution to environmental sustainability is confirmed by tracking
environmental indicators, such as the decrease in carbon emissions.
 Evaluation guarantees that the project conforms to applicable requirements and is in
line with environmental aims.

5. Community Empowerment and Social Impact:

  Frequent observation evaluates the socioeconomic effects on nearby communities,
including the generation of jobs and enhanced availability of electricity.
 Evaluation quantifies the overall efficacy in promoting empowerment and well-being in
the community.

6. Adaptation to Changing Conditions:-

 Monitoring enables the microgrid to adjust to shifting environmental conditions,
guaranteeing peak performance in a variety of situations.
 Evaluation sheds light on how resilient and flexible the microgrid is to changing
environmental and technical conditions.

7.Continuous Improvement
 Lessons learnt from performance assessments feed future decision-making, and both
monitoring and evaluation contribute to this cycle of continuous improvement. The key
is to gradually improve the microgrid's functionality by applying data-driven insights.

8. Involvement and Openness with Stakeholders:

 Frequent monitoring and assessment promote open communication with all parties
involved, including investors, regulatory agencies, and the local community.
 Establishing credibility and trust with stakeholders is improved by displaying a
commitment to evaluation.

9. Meeting Sustainable Development Goals (SDGs)

 Assessment makes sure the microgrid is in line with more general SDGs, promoting
economic expansion, environmental protection, and energy availability.
 A solar-powered microgrid's sustainability and effectiveness are essentially dependent
on monitoring and assessment, which helps decision-makers maximize output, maintain
accountability, and promote favorable social and environmental effects.
A Propose Monitoring And Evaluation Plan To Track The Progress And Identify Areas For
Improvement
Establish defined objectives and indicators that will be used to evaluate the project's
performance. This is the first phase in the process. Specific, measurable, realistic, pertinent, and
time-bound objectives are essential, and indicators are measurements, either quantitative or
qualitative, that demonstrate how well the objectives are being accomplished. Objectives might
include expanding the community's access to clean energy, for instance, and indicators could
include the number of homes linked to the microgrid, the quantity of energy produced and
used, and the beneficiaries' degree of satisfaction.

Select the right instruments and techniques: Data can be gathered, analyzed, and reported
using a variety of techniques and technologies, depending on the goals, metrics, financial
constraints, and schedule. Surveys, interviews, focus groups, observations, sensors, meters, and
dashboards are a few examples of these. ( GE Digital, 2021.)

Select the right tools and methods: There are a variety of tools and methods that can be used to
gather, evaluate, and report data, depending on the goals, metrics, spending limit, and
schedule. Surveys, interviews, focus groups, observations, sensors, meters, dashboards, and
other suitable instruments can all be included in this.

Determine a starting point: Establish a baseline for the metrics and indicators listed above prior
to the project start date so that it can be used as a point of comparison.

Frequent monitoring: To track development and pinpoint opportunities for improvement,

monitor the project's performance on a regular basis using the defined metrics and indicators.
Periodic evaluations: Assess the project's success on a regular basis by contrasting its goals and
actual outcomes with the predetermined baseline. This can assist in seeing patterns,
achievements, and difficulties early on and adjusting the project's execution as needed.
Impact assessments: To determine the project's total effect on the community and
environment, conduct impact assessments, such as cost-benefit analyses or social impact
assessments. (Tsoutsos et al., 2005)
Learning and adaptation: To ensure the project's long-term success and sustainability, apply the
monitoring and evaluation results to enhance, modify, and enhance the project's execution.
(Gunerhan et al., 2008)

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