GREEN POWER PROJECT

COMSATS INSTITUTE OF INFORMATION TECNOLOGY

RIWAND ROAD OFF DEFENC ROAD LAHORE

The topic is concern: Green Power Project for COMSATS University

Author(s): Muhammad Naeem (FA12-MBT-059), Zulkifull Raza (FA12-MBT-093)

Section: A

Date: 30/05/2014

Table of Content:

1. Executive Summary

2. Scope

3. Limitation and Assumption

4. Introduction

Industry Background

Importance of Project

Existing Local Market Condition

Why Project is Important

5. Situation Analysis

6. Over All Strategies

Market Analysis

Target Market

Marketing Strategy

Competitive Strategy

Pricing Strategy

Promotional Strategy

Distribution Strategy

7. Distribution Channels

8. Gap Analysis

9. Production

About Product

Equipment and Panel

Load of University

Ancillary Equipment

Plant and Equipment

10. WBS

11. Raw Material

12. Process

13. Production Capacity

14. SWOT Analysis

15. Risk Breakdown for Green Power Project

16. Financial Analysis

Budget

Cost of Project

Executive Summary

Key Findings

This analysis determined that solar energy development is technically feasible and

financially viable at several Department of COMSATS.

We will install the solar power system for the generation of electricity for each block and

department of the COMSATS University.

The Federal Government could potentially receive approximately $100 million/year in

the form of rental payments, reduced cost power, in-kind considerations, or some

combination among them.

There are a range of technical, policy and programmatic barriers that can slow or, in

some cases, stop solar development.

We work on for shifting WAPDA load to Solar system. For this working the departments

have 291KW load of electricity. So we will shift the load on solar.

This project contains the all process and method of solar electricity generation. All the function

and terminologies include in this project. All the calculation of load include in the outline of the

project. The project contains the all basic requirement and analysis. In the analysis include the

market analysis and prefeasibility analysis.

With rising grid electricity prices and declining solar technology costs, the economic benefits of

solar power are becoming increasingly difficult for leading businesses to ignore. Transitioning to

solar can save money on energy today and hedge against rising utility rates tomorrow. However,

before moving forward with solar, it is important to determine the total energy and savings

available over the life of a photovoltaic (PV) installation.

How much electricity will your solar installation generate over the lifetime of the system?

This is a measure of the total benefit. How does the lifetime cost of the solar electricity produced

compare to what you would pay your current provider over that same period? This is a measure

of the total cost. Given a choice between utility electricity and solar electricity, conventional

wisdom suggests that you go with whichever option or combination of options yields the most

energy at the lowest price. This white paper is designed to help you make that assessment,

allowing you to determine whether or not a solar installation is the right choice for your facility

based on the following considerations:

1 Maximizing the Total Energy Output from a Solar Project

2 Calculating the True Cost of a Solar Project

3 Achieving the Greatest Return on a Solar Project

4 The Sun power Advantage

Scope

Overall Scope of the project power green

Project power green will enable higher educational institutes to generate power through solar

energy; it will also help these institutes to reduce their operational cost by providing energy by

least expensive energy source that is solar energy.

Project Scope

Project power green will enable COMSATS to produce eco-friendly and free electricity for its

major load. Its major load will be shifted on solar energy. Project power green will take 2 months

and will cost approximately Rs.57,425,000

Deliverables

Solar energy plants in OMSATS to bear a load 700KW.

Each department will be enabled to fulfill its major electricity load.

Cells would be made to store and supply electricity to departments.

A proper monitoring system to analyze operational progress of the project.

Milestones

Approval and other documents requirements of project to be completed till 15 June.

All frames to hold panels will be made and installed till 5th

of July.

Panels will be set are fixed in each department till 15th

of July.

Storage cells and inverters will be set till 5th

of August.

System will be tested and verified for operation till 10th

of August.

Documents to hand over project’s operation will be made and control would be passed to

university till 15th

of August.

Limitations and Assumptions

Project does not include power supply to Air Conditioning systems of COMSATS they will

remain on LESCO or generator supply.

A backup source like LESCO would be required in rain, fog or at night.

Project will only respond to specified requirement of the project.

Proper place to setup panels would be required to gain maximum sun light.

Develop a system for reducing electricity waste.

Convert all tube light into energy severs

Use low voltage fan in the rooms

Introduction

Industry Background It is newly establish company that will work for the solar energy system installation in education

sector and as well as business sectors. This project is titled as project power green. Project will

enable higher educational institutes to produce energy by solar.

Importance of Project

Purpose of This project is to enable educational institutes in power generation through solar

energy. This is a very cost effective source and gaining much attention in Pakistan where most of

the times remain sun shine and weather is perfectly suitable. However, energy crisis in Pakistan

and high cost of electricity are obstacle in operations of universities. Universities will be willing

to use our solution and save its operational cost and to become self-efficient in power generation.

Objectives:

Our primary objective is to provide eco-friendly and cost effective source of energy to

educational institutes.

Secondly, objective is to gain a major share from the market.

Third objective is to tap other profitable segments that we can serve.

Why Project is Important?

The main purpose of this project to reduce the electricity cost and with the help of solar

electricity we can save the 90% of electricity cost of and any institution or business sectors. For

this purpose we make a project for COMSATS University that tells us why project is important?

Project Plan for COMSATS Lahore

Project Title: Project Power Green for COMSATS University

Primary Objectives:

Our objective is to provide eco-friendly power source to a green university.

Cost effective source of energy to educational institute.

Self-sufficiency in power generation at nominal cost.

Starting Date:

16 Jun 2014 this will be suitable for starting as all the activities required for this project could be

smoothly performed in universities off times in summer vacations.

Duration:

All the department of University will be shifted on solar power system within 2 months,

Beneficiaries:

This system will provide an opportunity to make COMSATS more efficient in power sector and

to eliminate power expenses of major load by providing a free alternative source of power.

Situation Analysis

Situation analysis refers to a collection of methods that managers use to analyze an

organization's internal and external environment to understand the organization's capabilities,

customers, and business environment. The situation analysis consists of several methods of

analysis:

The 5Cs Analysis

SWOT analysis

Porter five forces analysis.

A Marketing Plan is created to guide businesses on how to communicate the benefits of their

products to the needs of potential customer. The situation analysis is the second step in the

marketing plan and is a critical step in establishing a long term relationship with customers.

So According to the internal electricity requirement of COMSATS University the project has

much importance.

http://en.wikipedia.org/wiki/Management

http://en.wikipedia.org/wiki/Situation_analysis#5C_Analysis

http://en.wikipedia.org/wiki/SWOT_analysis

http://en.wikipedia.org/wiki/Porter_five_forces_analysis

http://en.wikipedia.org/wiki/Marketing_Plan

Over All Strategies

We will register our firm name and trade mark from SECP. We will initially use outsourcing

strategy because at this stage we lack technical expertise and capital required for the project. We

have established relations with the suppliers and vendors to provide equipment that would be

required and we also perform project activities. After completion of few beginning projects and

after gaining technical expertise we will handle the project with our own employees.

Market analysis:

Currently Pakistan is facing shortage of energy and customers are getting it less at high rates.

UPS and generators were realized as an alternative in this shortfall of energy in Pakistan. But

these sources proved themselves as a high cost alternative for the customers because of fuel and

electricity charges.

Solar panel, imports in Pakistan provided the potential customers with a free source of power

generation. More and more potential customers are now a days becoming user of this

Technology to get a free alternative of energy. But due to fewer competitors in industry and

higher import taxes it is a bit expensive technology now days. However, customers are more and

more adopting this technology by considering its long terms benefits. Which overcome its high

cost in few years and provide rest of period with free source of energy. This is also a smart

technology for customers because of product lifecycle of this technology which is approximately

20-25 years.

TARGET MARKET:

We will target educational institute like universities. The purpose to select this market is that this

institution faces major expenses of power which they used to run their operations.

However, by using a free alternative of energy will enhance efficiencies of these institutes and

will result in a lot cost saving. This will be beneficial and attractive for them to save a lot of

money and also to be competitive with each other.

Products user

In initial stage we are going to only tap higher educational institutes. We will also find out other

profitable segments to expand our market.

Marketing strategy

Market size and Trends:

Solar technology is new in Pakistan and is going towards growth stages .potential for this market

is very large as more and more potential customers are realizing its benefits. People are shifting

from conventional means of power generation like generators etc. toward this smart and cost

efficient technology.

We have selected a specific segment and include govt. and private universities in Lahore. There

are total 36 universities in Lahore and it can be considered as a segment with strong potential

demand for this technology to reduce their power expense. It will also be a profitable segment

for us on our initial stages. Our target market at our initial stages are Universities in Lahore

which is a major city of Pakistan and have 36 universities Purpose to select this market at our

initial stage is to avoid direct competition with larger firms in the market. Secondly, these

institutes will be more attractive to an alternative which will enable them to save their costs of

operations and to become profitable. Thirdly, it is a relatively profitable and attractive market to

serve.

Segmentation:

We will select niche marketing strategy. We will identify and target specific segments to avoid

direct competitions at our initial stages of business. This will also provide us with an opportunity

to understand and specialize in our selected market needs and to create a valuable image in

minds of our potential customers.

Competitive Strategy

Solar energy is newly introduced in Pakistan and industry is going toward growth due to

awareness in public and as an attractive source to produce energy. In starting we will give

discount and attract more customers for compete their competitor. Many firms are now providing

solutions to customers in this regard and are forming a sense of competition in the market. Some

of our competitors are:

Nizam solar

Tesla solar co

Pricing Strategy

We will price to position our product of being valuable for them and to create a value image in

the mind of potential customers. Our firm will provide them value against the price which they

are willing to pay .we will use skimming strategy for pricing our product to skim profitable

segments Because this is relatively new technology and it is not very common in the market. We

will sell our product on net and no credit will be allowed at our initial stages. Customer will have

to pay 40% advance and rest of installments will be arranged with progress of the project in

advance to progress of next phase.

Promotional strategies:

At our early stage we will use low cost but strong promotional tools to promote our product.

We will use following promotional tools.

Direct marketing.

Emails

Social Media

Distribution strategy:

Our office will be located at link road Lahore. Its operations time is from 12-7 pm.

In other times customers can contact with us on our phone, Email, or at social media

Distribution Channels

Gap Analysis

The gap analysis contains the five different stages. In which include review system, develop

requirement, comparison, implication, and recommendation.

This solar project has been completed all the steps of the gap analysis. We have checked and also

review the all process system and then started the work on project. After this step we developed

the list of project requirement. We also did comparison of this project with others companies

according to the cost and material perspective. After comparison we implemented on project

activities and started the work and at the end of gap analysis we defined the assumption and

limitation the project.

Production

About Product

In product include the solar panels and the

frame of panel that will use for the solar

energy system. In product also include the

cells batteries that will store the electricity

and also include the electricity convertor

who will convert the DC current into AC

current. In related picture of solar

electricity generation tell us how the

current convert from DC to AC and also

show the all process of electricity

production.

Equipment and panels

Project would require some tools and equipment’s for its working

We would require a suitable place where solar panel can get maximum sun light. These panels

can be placed on roofs of each department. Further detail is given department wise tables.

Load of University:

The load of whole university is 670 KW. There are five blocks in the university and five labs and

other department which have approximately 300 KW.

Estimated Load sheet of the University

Total Load of COMSATS = 1200AmpsW 1KW = 1000W

1200Amps/1.8 = 667KW 1Amps = 1.8KW

So we can say that the total load of COMSATS University is approximately 670KW

Ancillary Equipment

20kw off Grid solar system (Sample)

Item Quantity Specification

Solar panel 80pcs 200Wp Mono crystalline silicon solar panels

Controller 1pcs 240V/100A,

Inverter 1pcs 240V/20KW, LCD Display protection

Battery 64pcs 12V/200AH,Lead Acid Deep Cycle(Lifetime:5-6 years)

Cable 1 Bundle 400Metres Photovoltaic Cables(16m2)

We will explain the equipment usage in each department of the COMSATS University

The detail of load and ancillary equipment of each department are as follow:

A Block

The Load of A Block is 30.92KW







B Block

The Load of B Block is 36.92KW







C Block

The Load of C Block is 67.24KW







D Block

The Load of D Block is 50.77KW







N Block

The Load of N Block is 44.43KW







Chemical Department

The Load of Chemical Department is 29.02KW







Architecture Department

The Load of Architecture Department is 17.52KW







Library

The Load of Library is 13.77KW







Plant and Equipment

We can provide the equipment you need – collectors, turbines, turbo generators and more – for

an efficient, high-performance solar power plant. We also offer equipment and planning for

hybrid plants where solar is a part of the bigger picture.

Project Phases (WBS):

The project will be divide into six phases, the detail of these phases are as follow:

Phases Department/Blocks Duration Dependencies

Phase 1 Block A and Library Ten days ----

Phase 2 Block B One week Phase 1

Phase 3 Block C Twenty days Phase 2

Phase 4 Block D Ten days Phase 3

Phase 5 Block N Five days Phase 4

Phase 6 Architecture and Chemical Five days Phase 5

Total Duration Two Months

Raw Material

In the raw material include solar panels, batteries, invertors, electricity controllers and cables.

The basic component of a solar cell is pure silicon, which is not pure in its natural state. To make

solar cells, the raw materials—silicon dioxide of either quartzite gravel or crushed quartz—are

first placed into an electric arc furnace, where a carbon arc is applied to release the oxygen. The

products are carbon dioxide and molten silicon. At this point, the silicon is still not pure enough

to be used for solar cells and requires further purification. Pure silicon is derived from such

silicon dioxides as quartzite gravel (the purest silica) or crushed quartz. The resulting pure

silicon is then doped (treated with) with phosphorous and boron to produce an excess of

electrons and a deficiency of electrons respectively to make a semiconductor capable of

conducting electricity. The silicon disks are shiny and require an anti-reflective coating,

usually titanium dioxide.

http://www.madehow.com/knowledge/Boron.html

http://www.madehow.com/knowledge/Semiconductor.html

http://www.madehow.com/knowledge/Titanium.html

Process

We can explain the electricity production with the help of diagram

Production Capacity

The load of whole university is 670 KW. There are five blocks in the university and five labs and

other department which have approximately 300 KW.

Estimated Load sheet of the University

Total Load of COMSATS = 1200AmpsW 1KW = 1000W

1200Amps/1.8 = 667KW 1Amps = 1.8KW

So we can say that the total load of COMSATS University is approximately 670KW

SWOT Analysis:

Strength:

It is an attractive project for University as it will provide free source of energy.

The project will provide cost effective power solution for COMSATS.

Investment cost can be recovered in almost 2 years.

Weakness:

Solar energy can only provide power in specific timing and weather conditions.

A backup must be required all the time.

Opportunities:

Save a huge from power expenses.

Self-sufficiency

Expansion in capacity to bear total load of university

Threat:

Organization may hesitate to invest so much on this project.

Risk breakdown for green power project

Technical Requirements tech performance and reliability Quality.

External (subcontractors and suppliers, market weather.

Organizational (funds resources)

Project management (estimating planning )

Financial Analysis

Plant and equipment cost

HR Cost

Operation Cost

Cash Flows

Profit and Loss

Net Profit Value

Internal Rate of Return (IRR) for the explanation of project scope we have following steps:

Geographical Location:

We install solar panel in COMSATS Institute of Information Technology Lahore.

Cost (Budget):

The estimated load of each department is 66 KW but the actual load of each department is less

than the actual load. We conduct a survey in the University and checked the load of each

department when departments had opened and then we find out the actual load of each

department. The average load of each department is 37KW.

The cost of this project is and this cost divided in all department/Blocks and we also calculate

how many solar panels required and how much cost will occur for each department. All the

information has described in following table:

1. Specific:

The project need is accurate. We will install solar panel for each department which will

produce the solar energy and will be used to fulfill the demand of electricity of each

department

2. Measureable:

The project is divided into different phases (Blocks) so that it can be made measurable and

easy to evaluate.

3. Achievable:

Solar energy is very much emerging technology in Pakistan so a lot of companies can

provide us solutions for our project easily.

4. Realistic:

Solar panel is being widely used in Pakistan and technology is becoming very much common

in Pakistan so it is quit realistic to do project.

Project started As soon as approval will be granted and complete in 2 months

Budget Estimate

The detail of each department usage of ancillary equipment for solar project

Blocks E.Load 200Wp Solar

panel

Batteries

12V

Controller

240V

Inverter

240V

Cables

400m

A Block 30.92KW 130 102 2 2 2

B Block 36.84KW 155 120 2 2 2

C Block 67.24KW 280 224 4 4 4

D Block 50.77KW 210 165 3 3 3

N Block 44.43KW 180 144 2 2 2

Chemical 29.02KW 120 96 2 2 2

Architecture 17.52KW 80 64 1 1 1

Library 13.77KW 60 48 1 1 1

Total 290.51 1215 963 17 17 17

Cost of Project Equipment

Equipment Calculation Price

200Wp Solar panel (1215*15,000) Rs. 18,225,000

Batteries 12V/200AH (963*40,000) Rs. 38,520,000

Controller240V/100A (17*20,000) Rs. 340,000

Inverter 240V (17*5000) Rs. 85,000

Cables 400m (16m2) (17*15000) Rs. 255,000

Total Rs. 57,425,000

GREEN POWER PROJECT

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