THE IMPACT OF CURRENT RENEWABLE ENERGY INCENTIVES ON THE 10 MW GRID-CONNECTED SOLAR POWER PLANT

Abstract

ABSTRACT Recently, the Mongolian energy sector is facing capacity deficiency because the old thermal power plants, which have been operating for more than 30 years, are unable to meet the increasing demand. Therefore, the government of Mongolia has been supporting renewable energy penetration, which is one alternative to solve this issue. Due to this, projects of the large-scale solar power plant are increasing in recent years because of the current incentive policy for renewable energy generation. However, there are still challenges on large-scale PV system integration is the investment constraint due to high capital cost. Thus, the priority of this study is to evaluate the contribution of the current renewable energy incentive programs in Mongolia. The case study selected the Bayanchandmani village is one that included in the list of the development plan of the satellite city. The performance analysis of the solar power plant in the selected location has been determined by PVsyst V.6.84 software. The financial analysis is defined as two scenarios, one calculated with all incentives included, and another is the absence of customs taxes (all imports related to renewable energy) based on the performance of the proposed solar power plant. The key findings of this study were the PV system’s final output and the financial results which are the payback period, internal rate of return, net present value. This research captured, the absence of one incentive has a considerable financial impact on the solar power plant project’s initial investment cost, and this study also found that our country has few incentive programs for renewable energy deployment.