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Creation of Financial and Environmental Values With Solar Photovoltaic Projects While Managing Risks

Creation of Financial and Environmental Values With Solar Photovoltaic Projects While Managing Risks

Shantha Indrajith Hikkaduwa Liyanage, Fulufhelo Godfrey Netswera, Shivajyoti Pal, Isaac Nthomola
Copyright: © 2020 |Volume: 9 |Issue: 2 |Pages: 14
ISSN: 2160-9659|EISSN: 2160-9667|EISBN13: 9781799807988|DOI: 10.4018/IJSEM.2020040102
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MLA

Liyanage, Shantha Indrajith Hikkaduwa, et al. "Creation of Financial and Environmental Values With Solar Photovoltaic Projects While Managing Risks." IJSEM vol.9, no.2 2020: pp.13-26. http://doi.org/10.4018/IJSEM.2020040102

APA

Liyanage, S. I., Netswera, F. G., Pal, S., & Nthomola, I. (2020). Creation of Financial and Environmental Values With Solar Photovoltaic Projects While Managing Risks. International Journal of Sustainable Economies Management (IJSEM), 9(2), 13-26. http://doi.org/10.4018/IJSEM.2020040102

Chicago

Liyanage, Shantha Indrajith Hikkaduwa, et al. "Creation of Financial and Environmental Values With Solar Photovoltaic Projects While Managing Risks," International Journal of Sustainable Economies Management (IJSEM) 9, no.2: 13-26. http://doi.org/10.4018/IJSEM.2020040102

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Abstract

This study investigates 200 kWp roof-mounted solar photovoltaic system in a country where there is no legal, policy, and institutional framework to de-risk the solar energy market but present naturally conducive environment in the sun-drenched semi-arid country. The analysis of quantitative and qualitative data subject to interpretivist and positivist approaches paves the way to find out that the university, though created financial and environments values, has not addressed the risk associated with illiquid capital intensive investment and conventional financial metrics such as net present value, internal rate of return. Hence, it is recommended to manage the risk with four strategies including maintaining economic value added at 5% or more, leveraging the investment, and withdrawing a part of equity for reinvesting in diversified investment. The findings are significant for low carbon investors to identify opportunities and manage the risk in solar energy market. Energy engineers enable designing a system that meets the fundamentals of the business and environmental value.

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