Essays on Cost-Benefit - Fotowatio Renewable Ventures Case Study

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The paper "Cost-Benefit - Fotowatio Renewable Ventures " is a perfect example of a finance and accounting case study. The ACT Labor Government through the Ministry of Environment and Sustainable Development launched low-cost large-scale solar generation in Canberra, Australia. As stated during the launch, Fotowatio Renewable Ventures (FRV) was to spearhead the construction of the Royalla 1- a 20MW solar power facility in the District known as Tuggeranong. The solar power was reported to be able to generate enough renewable electricity that would have the power of approximately 4,400 thus costing each household 25c for every weekly consumption or rather $13 annually.

However, as time goes by, the low cost is expected to reduce further as the wholesale electricity charges increase, thus eventually leading to the reduction of the cost payable per household to approximately $9.5 annually. Likewise, the solar project is expected to minimize 560,000 tons of carbon emitted in the span of 20 years during the entire operation of the facility (Martin 2013). 2.0 GENERAL INFORMATION 2.1 Aim According to Thomson and Kempton (2015), the main purpose of carrying out this cost-benefit analysis is to establish whether the establishment of the low- cost large scale power project would be able to: - Protect and improve the livelihood of households within Canberra through the reduction of the high rate of carbon emissions by at least 40% Enhance the living standard of its population by generating enough renewable electricity of approximately 90% and therefore capable of supporting 4,400 homes in Canberra Maintain generation of 37,000 megawatt-hours of renewable power annually which would be considerate in serving many households. 2.2 Overview As stated earlier, a Spanish based firm, Fotowatio Renewable Ventures (FRV) was given the mandate by the ACT Government to lead the implementation of the project and thus the groundbreaking reverse action.

As a matter of fact, FRV was to start with the installation of the 20MW power system in Royalla for the next two years. According to the ACT Government, the completion of the first phase in Royalla was believed to be capable of reducing the carbon emissions drastically while facilitating the transition from the previously used fossil fuel energy sources to renewable energies such as solar which were considered to be clean (Boyle 2012).

References

ACT government 2012, ACT labor government delivers big solar for Canberra, viewed on 9 March 2016, http://www.cmd.act.gov.au/open_government/inform/act_government_media_releases/corbell/2012/act_labor_government_delivers_big_solar_for_canberra2

Boyle, R 2012, Spanish firm FRV to build 20MW solar farm near Canberra, Solar choice, viewed on 9 March 2016, http://www.solarchoice.net.au/blog/news/spanish-firm-frv-to-build-20kw-solar-farm-near-canberra-050912/

Buckman, G., Sibley, J. & Bourne, R. 2014, "The large-scale solar feed-in tariff reverse auction in the Australian Capital Territory, Australia", Energy Policy, vol. 72, pp. 14-22.

Corbell, S 2009, Strong Industry interest in ACT Solar Facility, ACT government, viewed on 9 March 2016,http://info.cmcd.act.gov.au/archived-mediareleases/mediaad67.html?v=7778&m=53&s=24

Martin, J 2013, ACT announces next 20MW of large-scale solar projects, Solar choice, viewed on 9 March 2016, http://www.solarchoice.net.au/blog/news/act-announces-next-20mw-of-large-scale-solar-projects-210813/

Martin, J 2011, ACT Large-scale Feed-in Tariff detail released, Solar choice, viewed on 9 March 2016, http://www.solarchoice.net.au/blog/news/act-large-scale-feed-in-tariff-details-released-011211/

Parkinson, G 2013, ACT solar auction won by Elementus, Zhenfa Solar, Reneweconomy, viewed on 8 March 2016, http://reneweconomy.com.au/2013/act-solar-auction-won-by-elementus-zhenfa-solar-67633

Parkinson, G 2012, FRV to build 20MW solar PV plant after winning ACT auction, Reneweconomy, viewed on 8 March 2016, http://reneweconomy.com.au/2012/frv-to-build-20mw-solar-pv-plant-after-winning-act-auction-50595

Buckman, G., Sibley, J. and Bourne, R., 2014. The large-scale solar feed-in tariff reverse auction in the Australian Capital Territory, Australia. Energy Policy, 72, pp.14-22.

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Mishan, E.J., 2015. Elements of Cost-Benefit Analysis (Routledge Revivals). Routledge.

Thomson, H. and Kempton, W., 2015, June. A Cost Benefit Analysis of Electricity Generation. In North American Wind Energy Academy 2015 Symposium.

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