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Comparison of Electricity Prices between Solar Photovoltaic System and<br />

TNB by Levelised Cost of Electricity and Cash Flow Technique<br />

Lam Wai Lick<br />

Supervisor: Dr. Hassilah Binti Salleh<br />

Bachelor of Science (Financial Mathematics)<br />

School of Informatics and Applied Mathematics<br />

Solar photovoltaic (PV) system, which known as a natural renewable resource renders<br />

“green electricity” to Malaysian. However, huge PV system installation cost maybe<br />

unaffordable to most Malaysian due to the lack of technological development of<br />

renewable energy but it is expected to be reduced in the future. The aim of the research<br />

is to compare the price of electricity supplied from renewable sources and non-renewable<br />

sources, which compare PV power plant (PVPP) with Tenaga Nasional Berhad (TNB) and<br />

PV rooftop (PVR) system with TNB, purposely to show that which investment will be<br />

better for investors. Levelised cost of electricity (LCOE) is modelling to calculate the price<br />

for PVPP to compare the price with TNB, undergo break-even analysis. Then, cash flow<br />

technique is used to calculate annual cash flow of PVR system compared with price from<br />

TNB to undergo break-even analysis. Finally, the result shows PVR system is the best<br />

choice.<br />

813 | UMT UNDERGRADUATE RESEARCH DAY 2018

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