# 10 MW Solar Plant Financial Appraisal - Sri Lanka Project
> Detailed financial appraisal of a 10 MW solar power plant in Sri Lanka, featuring NPV, IRR, and payback analysis for renewable energy investment.

Tags: solar-energy, financial-appraisal, renewable-energy, investment-analysis, sri-lanka, green-financing, npv-irr, energy-security
## Financial Appraisal of a 10 MW Solar Power Plant in Sri Lanka

- **Project Focus:** Evaluation of a utility-scale solar plant using traditional and advanced financial techniques.
- **Operational Life:** 20 years.

## Introduction & Project Background

- **Context:** Sri Lanka faces rising demand and high dependency on imported fossil fuels.
- **Objective:** Improve energy security and reduce carbon emissions through renewable energy.

## Project Scope & Investment Opportunity

- **Location:** Ground-mounted photovoltaic plant in the dry zone region.
- **Revenue Model:** Selling electricity to the national grid via fixed tariff agreements with the Ceylon Electricity Board.

## Strategic Justification

- **Alignment:** Supports national sustainability goals and ESG principles.
- **Benefits:** Predictable revenue streams and potential for green financing.

## Initial Investment & Financial Assumptions

- **Total Investment:** LKR 2,350M.
- **Annual Generation:** 18M kWh.
- **Selling Price:** LKR 28 per kWh.
- **Discount Rate:** 10%.
- **Annual O&M Costs:** LKR 95 million.
- **Residual Value:** LKR 150 million.

## Traditional Appraisal Techniques

- **Payback Period:** 5.75 Years.
- **Accounting Rate of Return (ARR):** 12.72%.

## Advanced Appraisal Techniques

- **Net Present Value (NPV):** LKR 1,154M.
- **Internal Rate of Return (IRR):** 16.8%.
- **Profitability Index (PI):** 1.49.

## Sensitivity Analysis & Risk Assessment

- **High Risk Factors:** Selling price drops (-10%) and lower power generation output.
- **Medium Risk Factors:** Construction cost increases and higher maintenance expenses.

## Affordability & Financing Options

- **Options:** Equity financing, long-term bank loans, green financing, and Public-Private Partnerships (PPP).

## Final Recommendation

- **Conclusion:** Project is highly recommended as a profitable and sustainable investment with strong strategic alignment.
---
This presentation was created with [Bobr AI](https://bobr.ai) — an AI presentation generator.