“Guidebook on Developing Solar Power Plant” is prepared by Lif Enerji Ltd Şti. (Lifenerji) in collaboration with Diyarbakir Chamber of Commerce and Industry (DTSO) within the scope of “Diyarbakir Solar Capacity Building Project” which is funded by Foreign & Commonwealth Office. This guidebook draws attention to three main issues:
- importance of the renewable energy and the solar power plants for the mitigation of the climate change,
- the development process of solar power plants and
- finance of the projects.
This guidebook is now translated into English.
- Climate Change and Solar Power
The first main issue discussed in the guidebook is the importance and the necessity of the renewable energy and especially the solar power. In this respect the first section of the guidebook is reserved to point out the importance of using the renewable energy sources and especially the solar power plant investments, in mitigating climate change. In addition to this, solar energy potential of both Turkey and Southeastern Anatolia Region and also the solar power systems are discussed in the guidebook.
- Development Process of Solar Power Plant
The second and main section is reserved to the development process of solar power plant, which is the most problematic issue for the investors. In this section all of the steps needed to be followed during the development process are explained in a detailed way and also strengthen by visually.
Application process is the first step of the solar power project development process. There are several documents needed to be submitted during the application, which are also differing from ground and roof-top base projects. Investors, who are going to make an application for ground based solar power plant, first have to make the land selection. Then, they need to provide the necessary documents. Selection of land and several documents needed to be submitted during the application are explained in a detailed way in the sub-sections of this guidebook.
The next step after completing the application step is the evaluation of the applications. This process includes: application process to the related marketing company, evaluation of this application, and submission of the provisional acceptance of the production plant by the related marketing company. Detailed explanation of the rules regarding the evaluation of the applications are included the related sub-section.
The third step to be followed is the acceptance of the application, which is the approval of the Project and the signing the connection and use of system agreement. Steps needed to be followed and issues needed to be paid attention are discussed in the relevant sub-sections. After, provisional acceptance of the production plant (4th step) and taking into operation of the production plant (5th step) are discussed in the related sub-sections.
- Financial Analysis
The last section of the guidebook is reserved for project finance. One of the most important topics needed to be discussed during application process is the profitability of the Project. So, a separate sub-section is reserved for this topic and the sub-section is enriched by several examples. Also, other important topics such as bank loans, finance options and insurance cost of the project, which are all explained in a detailed way and explained with examples in separate sub-sections. By considering the expenses and the income and also the loan amount (if it is going to be used), the internal rate of return of the Project must be calculated. If the project does not have a reasonable internal rate of return, search for financial resources must be performed. At the end of this search of financial resources, it will be determined that how much of this Project will be met by equity and how much will be met by loan.
Author: İklim Şahin