Potential of solar farm development at UTM campus for generating green energy

Abstract

buildings consumed more than 40% of global energy mainly electricity and emit 1/3 of global greenhouse gas through combustion of fossil fuels for generating electricity. Nowadays, global warming is a major issue facing the world and it leads to a better awareness about renewable energies as alternatives in generating electricity. In certain countries, solar farm is adopted as an alternative in producing electricity. UTM spent millions of money yearly for electricity bills and UTM could consider solar farm as an energy option in generating green electricity due to suitable climate and huge land bank. Government’s incentives and decreasing PV panel price are opportunities to be appreciated for UTM to implement solar farm. However, high initial investment is needed to construct the solar farm. Additionally, decision will be based on financial benefits of the construction. The aim of this study is to identify potential of solar farm implementation in generating green electricity. Data was acquired via literature review, questionnaire survey, record review, and expert interview. The data from questionnaire surveys were analysed by using Statistical Packages for Social Science (SPSS) and Average Index Value have been utilised for the analysis. Calculations on payback period and NPV were made based on interview data to identify potential of investment for solar farm. The study outlines the benefits, challenges, and suitability factors for UTM to implement solar farm, at the same time financial benefits of solar farm implementation is portrayed. This study revealed that high education institution such as UTM has a big influence to increase public awareness on solar energy. Furthermore, the research discovered that 1 MWp capacity of solar farm will cost approximately RM 9 million for initial investment with payback period less than 10 years and it is more profitable compared to investment with 7% annual return based on NPV calculation.