Turning IoBM in to Pakistan First Green University Indicative Parameters

Project Size 1.2 Mega Watts Solar Power Generation

Facility.*
Project Cost
Annual Energy Generation KWH
Annual Cost Saving / Gross Cashflow***
Project IRR ( Self-finance)
Project IRR ( with Bank Borrowing****)
Payback Period (Self Finance)
Payback Period (with Bank Borrowing****)

Rs 180.00 Mn**
1.4 Mn Units of Electricity ( KwH)
Rs 48 Mn
26%
40%
3.8 Years
2.9 Years

*Assuming a Solar Panel Collector area of 8000 Sq Meters ( Less than 20% of total 11
Acres of IOBM campus)

**At standard rate of Rs 150/Watt of System cost

*** Assuming the retail rate per unit of Rs 17/Unit charged by K-Electric (Utility Provider)
**** Assuming Bank borrowing upto 70% of project cost, and Borrowing Cost of 10%

External Stakeholder Engagement

Solar Vendor and Engineering Company
Request for Proposal from Leading Solar Engineering Companies and Vendor.
Proposal Qualification and Project Award.
Bank and Financial Institution Engagement
Formal Interaction with Banks for financing arrangements
K-Electric and NEPRA
As an over 1 Mega Watt producer, IoBM may qualify for Net-metering and Feedin-Tariff under NEPRA regulation of 2015.
Internal Buy-in and Board Presentation and Approvals
Presentation of the proposition to the board and
Engagement of students with the Finance Managers at IoBM for determining the
risk appetite, WACC, required rate of return/ hurdle rate to undertake a certain
project.
Project Definition, Scope and Market Assessment
Develop Market dynamics, global trends, regulatory implications and built a
future outlook on the Solar and Renewable Energy Aspects.
Technical Appraisal
Solar Energy Generation Potential and Assessment of IoBM on the basis of Solar
Irradiance based geographical/locational coordinates.
Solar Panel Vendor Assessment- The quality of panels, Inverter and other
equipment are critically important. The PV technology, type of inverter, warrant

conditions, panel efficiency, annual degradation factor and vendor reputation are
crucial decision factors, warranting a detailed assessment.
Solar Energy Engineering Company Assessment:
Optimal system design is another factor, which is based on technical expertise
and experience.
Load Assessment and Demand Side Management

Financial Appraisal
Cashflow Assessment
Financing Mix
WACC
Capital Budgeting and Rationing
Levered and Unlevered Projections
Risk Assessment and Management

Given your authorization, I aim to actually built a practical setting for this course
within the ambit and management setting of the institution that our student is
studying in.

Operationalization
The class would be distributed for each phase / part of the project appraisal
process. The designated group leads ( Manager and Co-Manager) would actually
engage and interact, along with IoBMs management in meeting with the
external stakeholders such as Vendors, Engineering Companies, Financial
Institutions etc.
Moreover, the students representatives would also get the opportunity to
engage with the IoBMs internal management for the processes of Financial
Appraisal, technical Demand and Generation Assessment, On-site and Off-site
analysis and project costing.
Finally, a group comprising of student leads would present the Project Proposal to
the Board/ Decision makers at IoBM.

Key Deliverable
A Techno-Commercial Project Proposal and Feasibility Analysis of IoBMs