Energy production and financial analysis of photovoltaic energy plants in Guinea

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