Monday, April 22, 2013


"Decentralised solar power plants will play a decisive role in the future structure of the power market in Germany... At present, we have almost reached the power production cost level of onshore wind.”
Bernhard Beck - CEO BELECTRIC

More info on the 128 MW mega thin-film project
According to Belelectric the 200 million euro project is comprised of 1.5 million First Solar modules and was installed in 4 months.

This is a curious project. Curious because it doesn't appear to be profitable.

Cost: 1563 Euro/kWp
O&M: 10 Euro/kWp per year
Output: 938 kWh/kWp per year
FiT: 11.02 cent/kWh
Loan: 10 year at 4%
Depreciation: Declining Balance - 12.5%
Discount Rate: 5%

LCOE: 11.24 cent/kWh
NPV: -468 Euro/kW
IRR: -0.71%

I think my assumptions are reasonable but they lead to unreasonable results. There's obviously more to the story here. Perhaps there's a special "non-FiT" contract being used to sell the electricity. Maybe the costs are being reported incorrectly  and/or incompletely. Can't tell yet... Must dig deeper.

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