ELEC6220 Power Systems Operations & Economics – Coursework 2024/2025
Utility Scale Solar Farm Feasibility in the UK
Set on: 08/10/2024
Hand in by: 09/12/2024 – 16:00
Feedback lecture: 09/01/2025
Introduction:
This coursework comprises 50% of the total assessment for the module ELEC6260.
The aim of this coursework is to undertake a feasibility study on a new utility-scale PV project. The first stage of a solar farm project is to develop a business case for the sales team to apply for funding and potential clients. For a new 5 MW project in the UK, you are to scout land within 34 KM of the weather station (latitude and longitude) provided to you. You will have to carry out a desktop feasibility study, followed by a business case for the project, and prepare a technical report. Throughout the coursework assignment, you will be expected to apply knowledge gained from the lectured part of the course, but also to conduct significant research and independent study to help you to justify any assumptions.
Objectives:
- To identify suitable land of the assigned location in the UK for the development of a new 5MW PV project
- Use the NREL System Advisor Model to optimise the performance of the farm over its lifetime.
- Maximise the energy yield, net present value (NPV) and the internal rate of return (IRR), minimize the levelized cost of energy (LCoE) of the project, and explore financial incentives
- Identify risk and mitigation strategies for your project
Coursework Description:
The project is a utility scale solar farm at least 5 MW, i.e., the system must be connected to the transmission/distribution networks using a high voltage connection. All the other aspects of the project such as the location, technology used, revenue strategy etc. are completely open and to be determined by yourself.
You are fully responsible for all design matters of the system and selection of components, including the PV modules, support and mounting structures, inverters, substation, and grid connection point.
Note: In the case of a real design, the farm will include several other components, namely, cabling, earthing, protection, combiner box. However, you are expected to only deal with the critical components mentioned above.
The design must be technically sound at the least, but the primary objective is to achieve a good economic return using reasonable assumptions.
Part 1. Grid Connection
You must select a high voltage (HV) grid connection point for your project. The selected connection point must have the capacity to accept all the power from your project plus an additional 20% free as a minimum. You also need to know the voltage of the connection point.
Calculations could include cost of cable, distance, degradation, losses etc. Output 1:
A clear description of the grid connection configuration, you need to consider voltages and capacity of the local transmission line and substation. Estimate the cable route and distance from Point of Supply (PoS) to Point of Connection (PoC). Discuss connection options, transmission infrastructure (overhead or underground), etc. PoC, PoS, and cable route needs to be clearly presented in a figure with coordinate information.
Part 2. System Design & Optimization
Your solar farm must be designed to maximise its performance and minimise losses and costs. You should explore the following:
• Solar modules type (monofacial or bifacial)
• Inverters (optimise to minimise clipping losses)
• Mounting system (fixed, Single Axis Tracking, Dual Axis Tracking) Output 2:
A clear description of the design and optimization, including the selection of all the components. How was SAM used and the methods implemented for designing and optimizing? All the assumption should be reasonable and clearly explained with industrial standards or regulations as appropriate.
Part 3. Economic Revenue Assessment
To carry out the economic assessment you must first estimate the cost of the project to the best of your capabilities and the information that you can find. Use literature to find current capital costs for your project, as well as referenced inflation rate and discount rate. Given these values, and optimised energy yield for your solar farm, you should discuss the appropriate revenue stream, and financial incentives for your project. This can include: Power Purchase Agreements (PPAs); Smart Export Guarantee (SEG); Contracts for Difference (CfD) and Renewables Obligation Certificates (ROC)
Output 3:
Full economic assessment of the project as presented. It must be consistent with design. All economic assumptions should be shown. The value of NPV and IRR should include to do the comparison with the current market trend and values. Are the results competitive with market values? Is the business feasible? Financial incentives must be explained and supported.
Part 4. Risk assessment
The project risks need to be justified and the mitigation measures need to be presented with reference. This should cover risks associated with location site, choice of solar technologies, competing energy resources, grid connection, government policies, and market trends.
Output 4: A variety of risks and mitigation method need to be presented and explained well.
Requirements for report
You should write up your results in an individual technical report, which should not be longer (make it concise) than 6 pages in total. When producing your work, you should be aware of the academic integrity requirements; discussion with your peer group is encouraged, but the work you submit must be your own. A Plagiarism check will be conducted on all submitted work. Please take care that the limitation of the technical report is 6 pages (including references), a recommendation is given below which broadly conforms to the weighting of the assessment. Work should be submitted on A4 with standard margins (25.4 mm), single line spacing, and a font size no smaller than 10 points.
You must also upload your SAM simulation file ([filename].sam) alongside your report to showcase your design and economic outputs.
Guidance Notes/Marks Distribution: (Total 50)
Part 1: Grid connection (5)
a) Location and proximity to the Grid
Justification for the location's proximity to the nearest grid connection
Relevant maps/illustrations depicting the site and its connection to the grid
Analysis of available grid options and justifying for the chosen grid based on capacity
b) Methodology and justify for the chosen cable route
Strategy and reasoning behind the choice of cable, cost etc.
Detailed layout and/or diagram of the cable route
Part 2: Design and Optimization of PV system (20)
a) PV System and configurations
Comparison between monofacial and bifacial PV types
Rationale for the chosen type based on project goals
b) Tracking Solutions
Comparative study of fixed-tilt (and its most ideal angle), single-axis tracking, and dual-axis tracking
Optimal technology system type is chosen with justification in regards with energy yield/LCOE/NPV/IRR
c) Inverter Clipping
Analysis of clipping based on the PV system configuration chosen
Recommendations/proposals to minimize clipping losses
d) Shading Analysis
Analysing fixed/one axis shading using SAM and comparing it to relevant literature
Assess the trade-offs between different algorithms, such as backtracking, and comprehend the effects of shading on aspects like hotspot generation
Part 3: Economic assessment and financial structure (15)
a) Financial Calculations
Summary of the correct calculation of IRR, LCOE and NPV with clear and supported assumptions
b) Comparison to Literature
Identification of similar projects in comparable climates to the location
Comparative analysis of the project financial metric with literature, with insights drawn from such comparison
c) Financial Incentives
Identification of potential financial incentives available for the project
Analysis of the impact of incentives on the financial metrics of the project
Recommendations on which incentives to go forward with based on analysis
Part 4: Risk assessment of the project (5 marks)
a) Risks associated with PV Project
a. Recognizing the risks tied to the selected solar solution
b. Highlighting concerns like market-centric challenges b) Mitigation strategy
Proposed mitigation strategies for each risk identified
Suggested countermeasures for each challenge identified
Quality of Report Writing (5 Marks)
- Structure, formatting, grammar, spelling, references