Under the auspices of the Marine Energy Alliance (MEA) project, a French start-up HelioRec worked together with Irish techno-financial analysis provider Exceedence on the assessment of levelized cost of energy (LCOE) and key cost drivers for the company’s floating solar technology.
HelioRec received commercial services from Exceedence , which used its techno-financial software Exceedence Finance to support and verify the targets set by the French floating solar developer.
Specifically, Exceedence has investigated the HelioRec technology for lake and sea applications and two different business model approaches: providing a turnkey solution, versus selling the floating system technology to a project developer.
HelioRec provided the yield as the starting point for Exceedence Finance from which to conduct the financial modelling.
The resulting LCOE and other key performance indicators were calculated based on the given yield, while the sensitivity analysis in the form of key cost drivers was performed subsequently, according to HelioRec.
The key findings of the analysis have shown the LCOE for floating solar projects is higher for sea than lake deployments, but higher yields at sea have been found to counterbalance the LCOE, brining it to the similar rate as in lakes.
In that regard, yield has been identified as ‘the main key cost driver’ – with a decrease in yield having a much greater negative impact on LCOE, than an actual increase, according to HelioRec.
Also, the assessment of the HelioRec’s floating solar technology found the financial module in Exceedence Finance could also be used for other energy sources once the yield is given.
Polina Vasilenko , founder and CEO of HelioRec, said: “Exceedence Finance has provided the robust metrics we need when approaching potential investors and partners.
“Having an independent LCOE report that details the different scenarios allows us to better understand the business decisions that we need to make.”
Solar photovoltaics, with 760GW cumulative installed capacity in 2019, is a well-established technology.
Floating photovoltaics, with an estimated 2.6GW in 2020, is still considered a niche market.
However, it is quickly gaining traction with drivers such as land scarcity and high costs in many places, as well as by design innovations that are helping to reduce costs, and this in spite of the additional challenges associated with currents, waves and salt water.
HelioRec has developed a floating solar system can be deployed inland via lakes, or offshore in the sea.
Recently, the company installed a 10kW floating solar pilot plant in the Port of Oostend e in Belgium, in collaboration with Greenpipe International, as part of the EU-funded DUAL Ports initiative.
Related Partner Partner Marine Energy Alliance (MEA) The Marine Energy Alliance (MEA) is a 4-year European Territorial Cooperation project running from May 2018 to May 2022. The project is financially…