Energy production and financial analysis of photovoltaic energy plants in Guinea

Cheikh Saliou Touré et al.

Abstract


This study investigates the technical and financial viability of photovoltaic (PV) energy systems in Guinea, a country with high solar irradiation, averaging 5.5 kWh/m2/day and over 2,700 hours of sunshine annually. A 50 kWp grid-connected solar PV system located in Koubia is analyzed over a 25-year operational period. The analysis incorporates degradation rates, inflation-adjusted electricity tariffs, and operational costs set at 11% of revenues. First-year energy production is estimated at 82,831 kWh, generating €10,768.03 in revenue and €1,201.55 in expenses, resulting in positive net cash flows from the first year. The system achieves payback in approximately 5 years. Net Present Value (NPV) remains positive for discount rates up to 20.84%, which corresponds to the Internal Rate of Return (IRR). At a 7% discount rate, the Levelized Cost of Energy (LCOE) is calculated to be 0.062 €/kWh, nearly half the current electricity price in Guinea. The results confirm that small-scale PV installations are not only technically feasible but also financially attractive in Guinea. These systems offer a sustainable and low-risk solution to mitigate the country’s energy deficit and accelerate its energy transition.


https://doi.org/10.70974/mat09125106


Keywords


Techno-economic analysis ; NPV ; IRR ; LCOE ; Energy policy ; PV investment

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