Sensitivity Analysis of Financial Parameters in Varying PV Penetrations in the Optimum Location of a Feeder

Abstract

This study investigates the influence of varying financial parameters to the economic analysis of a proposed feeder, by using the sensitivity analysis which is the common methodology in order to find out the uncertainties in any assessments, the impact of specific parameters of any numerical analysis and the consequences of certain assumptions. The feeder system examined in this study will be varied in term of its PV penetration, ranged from 60% to 100%. The study’s objective is to identify the most sensitive economic variable in different economic analysis namely: interest rate of return (IRR), rate of investment (ROI) and payback period (PP), and under net present value (NPV). As the results, this study found that PV cost and electricity price are the most influencers to those economic analysis. Under IRR, ROI and PP, it is identified that PV cost predominantly affect the results of analysis. However, under NPV, the electricity price is changed dramatically than PV cost. The result of NPV changes around -72.46% and 131.90%, while the price goes down and up at 50% of its original value, respectively. In another conclusion, this study found higher PV’s penetration in the feeder system will also rise the variable’s sensitivity level, however, it is not significant enough compared with the change from every examined financial parameters by using sensitivity analysis.