Economic potential for generation of electric power by photovoltaic system in a public university

Abstract

This study presents the economic potential of electric power generation by photovoltaic system in a Brazilian public university with the objective of reducing the second highest cost of universities, after the employee payroll, and also contributing to a more sustainable and balanced energy matrix via micro-generation or energy self-sufficiency. A financial plan was structured through a private public partnership, which may be undertaken by a Specific Purpose Society. The proposal of this project is based on the School of Agrarian and Veterinary Sciences (FCAV), Sao Paulo State University (UNESP). The discounted cash flow method was used to analyze the economic and financial feasibility of the project. The 5 MW projected structure would require a capital expenditure of R$ 25.5 million to install solar panels in an area close to 4 ha. The model presented economic feasibility for the SPE up to the limit of 39.9% discount in the current average tariff, which would represent an estimated saving of R$ 1,230,882/year to FCAV, thus generating a financial slack of 40% in FCAV's cost budget.