A Financial Cost-effectiveness Analysis of Power Generation with PV Panels in the TRNC

The supplying of electricity services is one of the most critical topics in the Turkish Republic of Northern Cyprus (TRNC). People residing in this area have a very high electric cost on the electricity service due to oil price fluctuations and inefficient technology and AKSA agreement is one of the most important reasons.. In this study, we will analyze and compare the feasibility between PV panels and alternative technology to find superior saving technology. To this aim, this study is utilizing data from the Cyprus Turkish Electrical Institution (KIB-TEK) and AKSA Power Generation. This research aims to compare the alternative technology to produce electricity and solar panel to produce 70 MW of electricity capacity per year by expecting an increase of 5 MW per year with solar panels and to analyze whether it is more feasible to generate electricity with PV panels compared to alternative technology. This analysis has been calculated for 25 years by analyzing sensitivity to different parameters. In this study, we are looking at which method (solar or current technology) is the most cost-effective. Also, we perform a sensitivity risk analysis to determine which parameters affect our results other than the base case and if it is possible to take precautions beforehand. From that, we are using the results to find break-even fuel prices for 1 KW solar capacity. Afterward, we are using those results to find annual 70 MW solar panel capacities by expecting an increase in solar panels capacity by 5 MW yearly for ten years. However, we are just looking at the maintenance rate and fuel cost because renewable solar energy is replacing them. Keywords: Cost-effectiveness Analysis; Electrical Services; PV panel Project; Sensitivity Analysis; Turkish Republic of Northern Cyprus; Cyprus Turkish Electrical Authority.