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  • Periodic Reporting for period 1 - Solar Bankability (Improving the Financeability and Attractiveness of Sustainable Energy Investments in Photovolatics: Quantifying and Managing the Technical Risk for Current and New Business Models)
H2020

Solar Bankability Report Summary

Project ID: 649997
Funded under: H2020-EU.3.3.7.

Periodic Reporting for period 1 - Solar Bankability (Improving the Financeability and Attractiveness of Sustainable Energy Investments in Photovolatics: Quantifying and Managing the Technical Risk for Current and New Business Models)

Reporting period: 2015-03-01 to 2016-02-29

Summary of the context and overall objectives of the project

The overall objective of the Solar Bankability project is to reduce the risk associated with investments in sustainable energy projects. The project results should increase trust from investors, financers and insurance companies. The project aims to establish a common practice for professional risk assessment based on technical and financial due diligence. The specific objectives of the Solar Bankability project are:
1. To develop, document and establish practices for evaluating and mitigating the technical risks associated with investments in photovoltaics over the project life cycle, i.e., during development, operation and decommissioning.
2. To develop, document and establish practices for valuing such risks when modelling the costs of a PV investment as investors do when evaluating the life cycle costs of such projects.
3. To evaluate how these risks affect the electricity production and the expected return on investment in different business models.
4. To enable the key actors, and particularly the financial market actors, to widely adopt the project results as best practices for the mitigation of risk of sustainable energy investments with current and new business models.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

The Consortium has collected a list of prioritized Technical Risks in a technical Risk Matrix. The uncertainties associated to these technical risks have an impact on the initial yield assessment and consequently on the lifetime yield prediction. The Consortium was able to assess the economic impacts of the development phase technical risks on the PV plant performance and in addition, the Consortium has developed a cost-based FMEA to evaluate the technical risk impacts on PV plant performance during operation. Ultimately, this cost-based approach allows for assessing the economic impacts of the technical risks in PV system operation on the PV plant performance, i.e. the electricity production. The resulting documented Risk Matrix, the cost-based FMEA methodology, and the evaluation of the technical risks during PV system operation are presented in the joint Deliverable D1.1/2.1 and available on the Solar Bankability project website accessible by the public.
The benchmarking and gap analysis presently ongoing are aiming to first identify the parameters in the PV LCOE which are influenced by the technical risks in the PV project lifecycle as identified in the Risk Matrix. The results will be used to develop and establish ways to evaluate the technical risks when modelling the PV LCOE. A snapshot of the business models in representative national PV markets in EU was given and served to understand the current climate of existing business models used for PV investment and the corresponding features and boundary conditions. The results will be used to select the appropriate cases in the simulation of different business models where the impacts of technical risks on the electricity production and expected return on investment are evaluated, The country business model snapshots are presented in the Deliverable D4.1 and available on the Solar Bankability project website accessible by the public.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

In the Solar Bankability project the Consortium so far has succeeded in building a database of failures coming from more than 2000 expert reports for a total portfolio of more than 400 MWp. The evaluation of the impact of failures before operation was defined as an uncertainty of the initial yield assessment; for failures occurring during operation, the project partners have developed a dedicated cost based Failure Modes and Effects Analysis which allows for the direct calculation of the economic impact of the failure and to assess the effectiveness of the mitigation measures. Dedicated tasks focus on disseminating the project results for capacity building among the key actors. Counting together these different kinds of engagement activities, the total number of people who should be reached by and learn from the project is targeted to be 3300. The outreach through wider media dissemination activities (press releases and public dissemination, professional/scientific publications, conference presentations) achieved in the first reporting year is well in line with the target. In addition to these, the Solar Bankability project website has registered the following statistics to-date:
· 1700 single visitors (350 from the USA, 250 from Belgium, 245 from Germany, 170 from Italy, etc.) and 5000 page-views.
· Report downloads: Deliverable D1.1/D2.1 has been downloaded 183 times while, Deliverable 4.1 has been downloaded 124 times.

Related information

Record Number: 190025 / Last updated on: 2016-11-03
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