Financial Feasibility Study Of Photovoltaic Power Station In Yulin BYD

During the Spring Festival in2014, there have a contradiction of environmental pollution because of the large long fog and haze come into being in Beijing, Shanghai, Tianjin, Hebei and Xi’an. Changing the former extensive mode of economic development, strengthening ecological environmental protection, promoting the change in energy production and consumption mode become the important task of people’s good living environment and strengthening ecological improvement. At the Second Session of the Twelfth National People’s Congress on March5,2014, Premier Li Keqiang in Report IN THE WORK OF THE GOVERNMENT said we should try hard to conserve energy, reduce emissions and prevent and control pollution, encourage the development of wind and solar power. Energy intensity was cut by3.7%, and electricity generated from non-fossil energy amounted to22.3%. The paper provides the important theoretical and engineering significance for the construction of the photovoltaic power station based on the investment feasibility analysis of BYD300MW photovoltaic power station in Yulin.The paper is divided into seven chapters. The first chapter introduces the background of the photovoltaic power industry and shows the significance of PV power station in Yulin and research framework. Then the second chapter gives the market analysis on supply and demand of electricity power in China and Yulin, with presenting the development course and status quo of PV power stations in China. After that, the third chapter provides the survey of solar energy resources and calculation method for electricity generation.The fourth chapter gives the budget and financial statement preparation mainly focusing on total investment, financing costs and financial statement. The fifth chapter sets out the benefit assessment, principally on return on investment, profit and tax investment ratio, break-even point and profit-guarantying point, payback period, net present value and internal rate of return. The sixth chapter introduces the risk evaluation throughout the degree of break-even and profit-guarantying, the sensitivity analysis of single factor, multifactor and risk matrix. Finally, the seventh chapter provides the conclusions and continuous operation and management recommendations from the point of sustainable development of the PV power station.In the energy development under "Twelve-Five" program, the State Council demands non-fossil energy consumption should increase to11.4%and coal consumption should reduce from81.56%to65%, encouraging the construction of large photovoltaic power stations. Therefore, it has a broad market prospect on the development of photovoltaic industry with the tremendous growth in electricity consumption in Shanxi. The project is expected to achieve sales of$9.9billion and total profit of$5.6billion. It will break even only126.87MW capacity power generation at full capacity. The investment evaluation is feasible because the return on investment is8.54%, dynamic payback period (after tax) is9.24, total financial net present value is2.2billion, and internal rate of return is13.66%. To ensure economic benefits and improve the risk resistance capacity, project response measures should be taken to avoid the reduction of the investment, generating capacity and on-grid prices at the same time. In the course of operation, the investor should explore foreign markets and solar internet financial products while control the quality and cost of PV module strictly. Only in this way, the project can provide theories and engineering experience for the sustainable development of BYD’s PV industry.