Program of Study Code: MC226

Program of study Title: Master of Engineering (Management)

Course Code: MANU 1054

Course Title: Engineering Economic Strategy

Assignment 02: BUSINESS CASE

Lecturer: Dr. Lucy Lunevich

Submitted by : Sunil Gowdaiah

Student Number: S3825464
Table of Contents

1. Executive Summary……………………………………………………...02
2. Background and Overview……………………………………………....02
3. Objective Of the Project………………………………………………....03
3.1 Financial Development of the Region………………………………03
3.2 Employment Generation…………………………………………….04
3.3 Consistent Electricity Distribution………………………………….04
4. Constraints……………………………………………………………......04
5. Assumptions……………………………………………………………....05
6. Financial and Non Financial Benefits…………………………………...06
6.1 Financial Benefits……………………………………………………..06
6.2 Non Financial Benefits……………………………………………......06
7. Duration of the Project and Schedule…………………………………...07
8. Recommendations………………………………………………………...08
9. Impact on Environment fromSolar Power Project……………………..08
9.1 Positive Impacts…………………………………………………….....08
9.2 Negative Impacts…………………………………………………...…09
10.Risk Management Plan………………………………………………..….10
11.Cost of Doing Nothing………………………………………………….....11
12.References………………………………..………………………………..12

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 1. Executive summary:

Berri Barmera Council is dedicated to being a model "sustainable energy city" in Southern
Australia State. The development of a solar plant would minimize the Regions carbon emissions
while also providing the city with a reliable and price-efficient renewable power source.
Substantial rises and instability in electricity prices have currently been experienced by key
Riverland nearby companies, especially those with large electricity consumption. The
Riverland's financial diversification and growth are disrupted by the heavy price and
inconsistency of electricity, which make it difficult to expand established companies and acquire
new stakeholders. Berri Renewable Energy Photovoltaic cells Electricity production provision is
made regarding a regional demand for inexpensive electricity for people with Heavy Energy
requirements to sustain the industry, income generation, and Riverland area stabilization.

The solar farm's feasibility has been confirmed by an accounting-based design parameter. A
planning proposal has also been filed, and development and implementation will begin in August
2021 after a design document and Securities Examination are concluded. The Sustainable Energy
Production Project will be built starting in November 2021 and finished in November 2022. This
Business Development case is backed up with project contingency risk planning, objective cost
estimates, a project timeline, and an expense strategy. This Initiative will be accelerated rapidly
with the support from the State Local Council Transformation Program offering an effective
financial benefit by infrastructure development and employment growth. The major financial
benefits from this initiative is Employment for the local and retrenched workers, Value for local
Raw materials and goods, enhancing the Skill of local workers, leads to financial diversifiaction,
Creation of the distribution chain. (Berri Barmera Council, 2021)

The Berri Sustainable Energy Photovoltaic Electricity Production Project would require $25.17
million for the construction. The City Corporation is looking for funding of $5.034 million from
the state local bodies infrastructure plan. This Project is mainly focused on the Development of
Regional Economy, Sustainable energy source and Price Effective Energy Supply.
(Berri Barmera Council, 2021)

2. Background and Overview:

Considerable fluctuations and instability in electricity prices have currently been seen in core
Riverland to the local industries, particularly those with high electricity requirements. The
Riverland's financial diversification and growth are disrupted by the large prices and
inconsistency of electricity, which makes it difficult to expand existing businesses and encourage
new ones. The proposal is motivated by a regional need for inexpensive electricity for consumers
with heavy load requirements in order to sustain industry, local economic development, and

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Riverland area stabilisation. The Solar Electricity Generating Framework will be built by the
Berri Barmera Council, with a primary capacity of up to 10 Megawatts for regional access and
grid connectivity. Photovoltaic solar technologies will be used in the construction with specific
‘behind the meter' connections to commercial and industrial consumers as well as grid link to the
Berri subsidiary station, which is near to Solar Energy project location. The initiative will help
create a commercial climate that encourages the establishment of Jobs and maintenance and
development in the agriculture sector and winemaking which are the two main segments of the
regional economy where both the sectors are aimed to attract direct link consumers.

Accolade Blends and the Central Agriculture Trusts are major employers in the region, as well as
buyers of local utilities and products, and participants of the project in the Solar Energy
Production System and The Berri Barmera Board will maintain contractual arrangements with
Accolade Wines and Central irrigation trust for the procurement of produced electricity and by
these overviews and benefits, we can conclude that the Solar Energy Production Infrastructure
can have a positive role to play on the regional economies from direct investment and
distributional contribution. (Berri Barmera Council, 2021)

3. Objectives of the Project:

The following are the two essential motivations that this project directs is as follows,

● Enhancing local financial integration

● Consistent and price efficient electricity supply

3.1 Financial Development of the Region:

Connectivity to transportation, telecom, electricity, fuel, and water are vital inputs for businesses
as they grow and generate employment. Power generation developments lead to long-term
productivity and employment expansion and are significantly associated with creating jobs. The
role of electricity in the economic expansion process is essential, where the global literature
survey reveals a connection between power consumption and the economic progress of the
region. where Central irrigation trust and Accolade Wines in Glossop would be competent to
obtain electricity source from the Solar Electricity Production Facilities and 5.5 km of
transmitting wiring. This raises the Frameworks profits and provides these businesses with more
profits and sustainable electricity. (Berri Barmera Council, 2021)

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3.2 Employment Generation:

Renewable energy production is an employment generation force in the electricity sector.

Renewable energy generates up to three times the number of positions as nuclear and natural gas.
A solar power plant would provide major and long-term financial gains to the Region and its
deprived communities. The potential advantages of implementing massive solar farms spread
further than the program's boundaries to the local neighborhood. The economic impact of the
Berri Photovoltaic Energy Production Facility will generate 100's of full-time employment
during implementation and various full-time occupations throughout the service which has been
calculated using the data from other solar power plants. This venture would create numerous
direct and indirect employment in surrounding local companies satisfying the objective of the
project. (Berri Barmera Council, 2021)

3.3 Consistent Electricity Distribution:

Solar power is unlike conventional fossil fuels, it is an abundant, clean source of energy that is
both reliable and limitless. This form of energy has zero carbon emissions and is non-polluting
that does not produce any gas emissions when converted to electrical energy. For nearby
companies and the city, the Berri Sustainable Electricity Generation Facility would supply an
inexpensive and convenient power supply. The infrastructure would also ensure that the
Riverland community has a stable and autonomous electricity system and also in load shedding
during busy times, Berri's corporate sector and society will no longer be dependent on
non-renewable sources of energy coming from outside of the state or inappropriate regulatory
orders from major multinational corporations.

4. Constraints in the Project:

❏ High Initial Development Cost: The price of setting up a solar power generation
framework is relatively high at first. Solar cells, Inverters, storage batteries, Electronics
equipment, assembly and installations are all included in this cost. Nonetheless, since
solar technology is continually improving, it's fair to say that costs will continue to fall in
the meantime. This will be the major cost out of estimated $25 million in the project plan.

❏ Dependency on weather: While solar power could be obtained on cloudy or rainy, the
photovoltaic cells rate of efficiency will be reduced. Solar cells must be exposed to
daylight to collect energy from the sun. As a result, a couple of gloomy, heavy rainfall
can have a significant impact on the power network. It also is important to note that
renewable power sources cannot be generated at nighttime.

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❏ Storage of Generated Solar Power: Energy from the sun may either be utilized
immediately or stored in a central storage battery. These solar-powered batteries, which
are used in off-grid solar power systems, can be powered throughout the day and the
power stored can be consumed at nighttime. This is a decent option for utilizing energy
from the sun, but it is also very costly. In certain situations, it is more cost-effective to use
solar power throughout the day and draw power from the grid at night. Fortunately, the
electricity consumption is typically greater through the daytime, hence solar power can
satisfy the majority of it.

❏ Less Space for Further Expansion of Plant: Presently Berri barmera council has
planned to develop a solar power plant which has to generate 10 MW, but if in case the
council wants to expand the plant and wish to generate more power once the region is
economically benefited the Space for expansion will be more difficult because the space
available at present is not sufficient enough for further development. The plant should
require more photovoltaic panels if you want to generate additional energy and you want
to absorb much more natural light as possible. Solar Pv modules take up a lot of room,
and the current site isn't big enough to accommodate the number of solar arrays you want
in the future. (Dr Lucy Lunevich, RMIT 2021)

5. Assumptions:

1. Solar energy evaluations are conducted on a regular basis in order to determine the plant's
financial lifespan and to equate projected energy potential to real energy potential.

2. Capital and operating expenses are flowing smoothly in terms of calculation, with no
unnecessary expenses and less hidden costs. The photovoltaic cells are well-maintained
and there are no inconsistencies which helps in lowering the plant's maintenance costs.

3. There is limited soiling, distortion, glare, and radiant loss in the solar power plant and
also the location opted for the project is suitable with higher sunlight

4. The energy yield estimates are close to the actual measurements, with a negligible loss of
electricity which helps in high generation of electricity in the project and financially
stabilizes the solar power plant. (International energy agency, 2021)

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6. Financial and Nonfinancial Benefits:

6.1 Financial Benefits:

1. Power generation is an important part of the economic development process because it

provides a variety of job opportunities for people in the local areas and also for the
retrenched workers in the solar power generation project.
2. supplying local staff with training laying the groundwork for potential solar projects in
the area and across the state
3. The project helps in the market of raw materials and goods which are from the local areas
and revenue generated to the local business.
4. Long-term urban strategic plan that contributes to economic development and the
development of local talent and enhances the present companies economic growth and
attracts new companies to the region.
5. Distribution network production of Tracking mechanisms, power lines, electrical
switches, and facility installation and commissioning are all developed in Australia.
(Global spec, 2021)

6.2 Non financial benefits:

1. Minimize the impact of climate change and carbon pollution, which aids in meeting the
Paris Agreement's goal of reducing greenhouse gas emissions.
2. When compared with other types of energy generation, there is less noise in the solar
power generation process.
3. The project would cause minimal damage to the atmosphere, because the renewable
energy source is non toxic and inexhaustible in nature, so it will be extremely beneficial
in the environmental aspect.
4. The resources needed for the generation of electricity in this project are minimal; only
sunlight is used as a natural resource, and no water, gas, hazardous substances are used
for electricity generation and also there is less space required. (Global spec, 2021)

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7. Duration of the Project :

DELIVERABLES TARGET DATE

Directing the Project Proposal 01August 2021

Finalizing the Project Arrangements 01 September 2021

Commencement of Project 01 November 2021

Energy Storage and Energy Yield 01 November 2021 to 30 November 2022

Examination (Every Month)

Conducting Meetings with Stakeholders August 2021 to November 2022

(Every month)

Mid term Report of the project 01 May 2022

Final Report of the project 01 November 2022

Completion of the project 30 November 2022

Table 01: Project Schedule Plan (Dr Lucy Lunevich, RMIT 2021)

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8. Reccomendations:

● Require a long term view of technological advancement in the solar power generation
projects.
● Establish far greater concentrations of photovoltaic cells production.
● By getting skills with production and implementation, as well as addressing structural
hurdles, encouragement for existing solar technology helps lay the groundwork for global
scale-up.
● Floating solar panels should be used in solar power generation projects where the
photovoltaic cells lean towards the sunlight and conduct more energy which helps in
more quantity electricity generation.
● Bio Solar cells and other concentrated solar cells are recommended to use in solar power
generation which conducts more energy as well as which is environmentally friendly.
( technologies shaping the future of solar power, 2021)

9. Impact on Environment From Solar Power Project:

9.1 POSITIVE IMPACTS:

1. Solar power can decrease Carbon dioxide and emissions of greenhouse gases:

Annual energy consumption for the industry standard is under 13,000 kwh. Even a
limited solar power device can possibly lower the quantity by 75%, and many can even
reach 85 to 90%. And at these low concentrations, solar has a major environmental effect.
Over the course of two decades, a solar power system supplying only 75% of the median
company's total energy needs would reduce the Carbon footprint of over 200,000 pounds
of fossil fuels such as coal and the greenhouse gases from 45 tonnes of waste produced.

2. Solar Power Generation Project decreases the water Pollution:

This is a less evident benefit of solar power, but it is undoubtedly one of its most
important possible effects. Although all production methods could use some freshwater,
such as the production of solar PV panels, the overall water requirement to produce solar
energy is significantly less than that required to produce energy from more conventional
sources. For cooling applications, old systems such as nuclear, oil and gas, and fossil fuel
power plants all need large quantities of water. Solar power poses almost no threat to
local water supply, and its activity does not put a strain on raw ingredients by interacting
with irrigation, fresh water infrastructure, as well as other critical water requirements.

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 3. Solar Power Helps in saving the Finite Sources:

The population of the world will begin to escalate, but there is only so much coal, oil, and
fossil fuels that our planet will offer up. The sunlight is the most plentiful form of energy
source on the planet, generating 1.75 million terawatts of solar power each moment, That
would be more than 10,000 times the overall cumulative energy usage of the entire
planet, and it's always usable. Coal and oil, on the other hand, are polluting and
exhaustible. They will either vanish or the expense of locating and removing them will be
incredibly costly for our already struggling community. The harm to our ecosystem and
burden on our financial system that will occur if we do not reform will be irreversible. So
it's beneficial to utilize the solar power to save the environment. (Ritland, 2021)

9.2 NEGATIVE IMPACTS:

1. Energy Demand For Development of Solar Power Panels:

The production of solar energy necessitates a considerable amount of power up front.

Quartz should be extracted and filtered before being combined with other materials from
various sources to create a single solar module. During the production process,
exceptionally high energy is produced to heat the quartz. To make high-efficiency panels,
manufacturers must combine several materials with extreme precision. All of this
necessitates a significant amount of initial effort. (KU Renewable, 2021)

2. Usage of Chemicals in production of PV cells:

Semiconductor manufacturing usually requires toxic substances to manufacture

photovoltaic grade silicon. These additives may not be handled properly, depending on
the solar photovoltaic cells manufacturer and country of origin. There are businesses that
set an example, and those that cut costs to save money, just as there are in any business.
There are poor companies out in the market, but not every organisation can waste
chemicals or reuse their residues sufficiently.

3. Recycling of the photovoltaic cells might be a Problem in future years:

While photovoltaic cell recycling has still not become a significant problem, in the future
decades it will be a consequence, solar panels do contain various hazardous chemicals
and substances in it so it should be decomposed in a proper way. Photovoltaic panels can
generally be discarded with the other types of e-waste. Countries with weak e-waste
dumping technology are more vulnerable to recycling-related problems.
(non-renewable energy resources BBC Bitesize, 2021)

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 10. Risk management plan:

Each program must be critically assessed for all potential dangers, and every precaution must be
taken to prevent any employee work risks that could negatively affect the business. Senior Risk
Assessment Officer, who assisted in the development of a new risk assessment framework for
this project based on information from all previous major projects in the database, incorporating
all of the information gathered from years of industry experience. The risks involved with a
program's satisfactory implementation have been broadly identified and the risks involved with
the project initiative and results. (Berri Barmera Council, 2021)

Risk Associated in the Likelihood consequence Mitigation plan

project

● Based on the weather conditions

No Sunlight for power Rare High the week off should be allocated.
Generation ● Other miscellaneous Work has to
be conducted in this situation.

● Intending the Plan whenever the

Unlikely Low weather is better and there are no
Delay as result of a other environmental hazards
Geological Disaster ● Working hours are extended on
holidays, and working day leave
is compensated.

● Specific arrangements are being

Breakdown or storage Rare High made, and alternative services
batteries or electronic are being made accessible.
equipments ● Switching to other tasks before
the resource is organized

● Since this occurs more often in

Delay in Permissions and Rare Moderate the early stages, other tasks such
Funds allocation as preparations and development
may be carried out.

● At the worksite, a sufficient

first-aid and emergency care
Medical Emergencies Rare High set-up is in place.
● Employees' life and health
coverage should be designed to
provide financial security for
their families.
Table 01: Risk Mitigation table (Dr lucy Lunevich, RMIT 2021)

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11. Cost of Doing Nothing:

● There will be no Employment creation in the riverland region and it remains like a
Remote area which does not have any scope for new Industries and also there will be no
enhancement of the existing companies.

● The connectivity networks like transportation, telecom industries and others will not be
attracted towards this region which leads to downfall of revenue generation and hence the
economic growth of this Region will be decreased.

● Fuel sources formed in the Earth's crust over thousands of years and it can not be restored
once used. Humans could run out of these resources if we continue to use them.
Non-renewable fuels are those that will run out. The first one to run out would be
petroleum, followed by coal.

● When fuels are burned, greenhouse gases are discharged into the air. Our over use of
fossil fuel combustion is the major contributor to the greenhouse gases and global climate
change. which is an adverse effect on the environment. (KU Renewable, 2021)

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12. References:

1. Berri Barmera Council, 2021. Solar Power Generation Project. [online] Berri
Barmera.sa.gov.au. Available at:
<https://www.berribarmera.sa.gov.au/__data/assets/pdf_file/0028/333739/Business-Case-
Solar-Farm-Final.pdf> [Accessed 24 April 2021].

2. Match, G., 2021. Advantages & Disadvantages of Solar Energy. [online]

Greenmatch.co.uk. Available at:
<https://www.greenmatch.co.uk/blog/2014/08/5-advantages-and-5-disadvantages-of-solar
-energy> [Accessed 24 April 2021].

3. International energy agency, 2021. [online] Iea-pvps.org. Available at:

<https://iea-pvps.org/wp-content/uploads/2020/01/Report_IEA-PVPS_T13-08_2017_Tec
hnical_Assumptions_Used_in_PV_Financial_Models.pdf> [Accessed 25 April 2021].

4. Global spec, 2021. Financial and Non-Financial Cost-Benefit Analysis. [online]

Globalspec.com. Available at:
<https://www.globalspec.com/reference/44348/203279/6-non-financial-cost-benefit-analy
sis> [Accessed 25 April 2021].

5. KU Renewable, 2021. The Positive and Negative Environmental Impacts of Solar Panels.
[online] Kuby Energy.ca. Available at:
<https://kubyenergy.ca/blog/the-positive-and-negative-environmental-impacts-of-solar-pa
nels> [Accessed 26 April 2021].

6. Ritland, K., 2021. Top 4 Ways Solar Positively Impacts the Environment. [online]
Sunvalleysolar.com. Available at:
<https://www.sunvalleysolar.com/blog/top-four-ways-solar-positively-impacts-environme
nt> [Accessed 27 April 2021].

7. mint. 2021. 10 technologies shaping the future of solar power. [online] Available at:
<https://www.livemint.com/Industry/lGM9f97bTxoboIZebYtq9N/10-technologies-shapin
g-the-future-of-solar-power.html> [Accessed 26 April 2021].

8. Berri Barmera Council, 2021. Risk assessment of Riverland region. [online]

Epa.sa.gov.au. Available at: <https://www.epa.sa.gov.au/files/8593_risk_2_s3.pdf>
[Accessed 29 April 2021].

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9. BBC Bitesize. 2021. Pros and cons of non-renewable energy resources - Generation of
electricity - National 4 Physics Revision - BBC Bitesize. [online] Available at:
<https://www.bbc.co.uk/bitesize/guides/zbsdmp3/revision/3> [Accessed 29 April 2021].

10. Dr. Lucy Lunevich., 2020. Project Risk Assessment and Risk Management, Lecture
Notes. RMIT University, Melbourne. [Offline]/ RMIT Library.

11. Dr. Lucy Lunevich., 2020. Project Management Plan, Lecture Notes. RMIT University,
Melbourne. [Offline]/ RMIT Library

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