# Benefit Analysis of Grid-Connected Floating Photovoltaic System on the Hydropower Reservoir
## 3 Economy-Financial Analysis
### Plant Financial Analysis  
The objective of the financial analysis is to evaluate the feasibility of the plant from the investor's view to orient the investor to the method of capital mobilization methods, financial mechanisms for the plant to achieve a reasonable level of profitability, ensuring the plant's sustainable, long-term, and effective operation. Financial analysis results are the basis for prioritizing investment decisions.  
For a plant to be considered financially viable, it must satisfy the following conditions:  
The financial internal rate of return FIRR must be greater than the cost of capital determined by the borrowing rate or the required cost of the corresponding source of capital.  
NPV > 0 when calculated according to the discount factor of each required capital source.  
Benefit-to-cost ratio B/C > 1  
The sooner the payback period, the better  
Financial analysis results are shown in Table 7:  
In order to assess risks and find a safe margin for the plant, in financial analysis, it is necessary to analyze the sensitivity of changed levels in investment capital; generated electricity or operating hours; purchase price of main equipment of the PV plant; O&M costs; combination of changes in investment capital; and generated electricity.  
Financial sensitivity analysis aims to consider the possibility of changes in economic and financial parameters affecting the financial evaluation criteria of the plant. Thereby  
\begin{table}
\begin{tabular}{l c c} \hline \hline
**Economic Indicators Achieved** & **Result** & **Unit** \\ \hline - Electricity price & 14.5 & UScent/kWh \\ - IRR & 17.2 & \% \\ - NPV & 664.3 & billions VND \\ - B/C & 1.55 & \\ - Payback time & 9.3 & year \\ \hline \hline \end{tabular}
\end{table}
Table 6: Economic analysis results.  
\begin{table}
\begin{tabular}{l c c} \hline \hline
**Financial Targets Achieved** & **Result** & **Unit** \\ \hline Financial discount factor (iF) & 6.95 & \% \\ Electricity price & 9.35 & UScent/kWh \\ IRR & 11.14 & \% \\ NPV & 220.3 & billions VND \\ B/C & 1.211 & \\ Payback time & 14.4 & year \\ \hline \hline \end{tabular}
\end{table}
Table 7: Financial analysis results.  
helping investors make optimal investment decisions. Sensitivity analysis is conducted with the following cases (Table 8):  
When considering the individual parameters: investment capital, electricity output, and O&M costs, the following chart shows the influence of factors on the efficiency of the plant (Figure 5):  
From the results of the sensitivity analysis, it is shown that evaluating the financial efficiency in individual cases, considering the factors, investment capital increases, electricity decreases, and operating costs increase. With effective plant options, especially the plant of combining investment capital increased by 10% and electricity reduced by 10% of the plant did not guarantee financial efficiency.  
However, in recent times, the price of panels has still been on a downward trend. Therefore, in order to increase the financial efficiency of the plant, the investor needs to manage the investment capital closely, combining effective management and operation to minimize the reduction of generating capacity. In addition, finding capital sources with low interest rates will also contribute to ensuring the financial efficiency of the plant.