"Technical" price of solar energy in São Paulo (Brazil)
Power prices for future solar-based delivery may be calculated as follows:
- Installed power 5 MW
- Investment R$ 15 Million
- Production 750 MWh/month
- Interest rate 12% per year
- Term 10 years
- Amortization R$ 215 Thousand/month
The amortization cost related to energy production results in R$ 290/MWh in rounded figures, equating to USD 76/MWh.
Considering a margin for operations and maintenance, during the project term, the cost is USD 84/MWh.
The off-peak regulated rate for the A4 subgroup (typically companies and institutions), which is when the solar panels produce electricity, granted to the local utility company is USD 84MWh (energy rate + wire fees).
Solar energy is reaching the threshold of feasibility!
The subsidies granted on the one hand and the need to contract a demand with the utility (to cope with a sunless day) have yet to be considered in a more detailed study.