Fs for Commercial & Industrial Scale Solar in Iran

The solar industry is booming worldwide, providing stable and secure energy while combating environmental threats. Investments in renewable energy are increasingly overtaking investments in all other forms of energy, according to statistics. This report assesses the potential for investment in commercial and industrial-scale solar plants in Iran. The methodology for macroeconomics-related matters is PESTEL analysis. Likewise, the 5 Porter’s forces model is implemented for microeconomics assessments. The SWOT analysis technique is used to identify internal and external factors affecting the business for strategic planning. New energy investments are necessary to address seasonal power deficits and gas supply imbalances. Two key segments—industries and the state- are identified in the domestic market. Industries are obliged to gradually integrate clean energy, while government bodies shall accelerate the transition. A green trade board in the energy exchange market is introduced for trading renewable power, with a fair Feed-In Tariff, relying on market-based pricing. In this report, the case study of a 1 MW solar capacity in the most efficient location in the country is assessed. The cash flow statement will be evaluated using the economic and technical inputs. The result shows the Net Present Value (NPV) assuming 7% discount rate, of $3.2 million, the Internal Rate of Return (IRR) of 33%, the Benefit-Cost Ratio (BCR) of 4.5, the Pay-back Period (PBP) of 5.6 years, and the Financial Exposure (FE) of $(0.5) million. The probabilistic study was conducted to assess the risk factors using the Monte Carlo simulation, and 5 risk variables were selected to fluctuate with the triangular basis. The variables are going to change using the XLRisk software tool, and in 10,000 iterations. Due to the Monte Carlo simulation results, the mean IRR is 28%, whilst for PBP it is 6.4 years. The mean value of NPV is about $2.6 million, and for BCR is approximately 3.7.