Solar Energy Projects: Overcoming Viability and Financing Challenges
Solar energy projects face challenges in viability and financing, but robust energy modeling and assessment can overcome these hurdles. Solesca Energy, Inc. offers innovative software for early-stage project modeling, while Independent Engineers (IEs) play a crucial role in assessing project energy output.
To ensure project viability, developers should use bankable energy models like PVsyst or DNV's SolarFarmer, along with realistic assumptions. This helps minimize discrepancies between a developer's and IE's energy assessments, preventing 'haircuts' on energy projections. Early modeling also allows teams to forecast equipment needs, size, and energy production with limited information, preventing project failures during financing.
The project finance process is complex, with financing crucial for most solar projects. Banks, funds, or insurance agencies provide debt, making the bankability of a project's energy assessment vital. Discrepancies can lead to reduced returns, highlighting the importance of accurate energy modeling and assessment by IEs. Despite the closure of the $2.2 billion Ivanpah Solar plant, it does not signal industry failure. Instead, it underscores the need for thorough assessments and robust modeling to ensure project viability.
Solar energy projects require careful planning and assessment to secure financing and ensure long-term success. By using advanced software for early-stage modeling and engaging Independent Engineers for thorough assessments, the solar industry can overcome challenges and continue to grow.
