Project Initiation Document for Community Renewable Energy Farm

This document outlines the project initiation for the establishment of a Community Renewable Energy Farm in Lincolnshire, UK. It includes project scoping, financial management, operational management, resource planning and control, stakeholder management, and communication strategy.

Project Initiation
Document
Contents

TASKS.............................................................................................................................................3
Project Scoping................................................................................................................................3
a) Introduction and Justification..................................................................................................3
b) Assumptions applied...............................................................................................................3
c) SWOT – PESTLE Analysis.....................................................................................................4
Financial Management.....................................................................................................................5
a) Project Costing........................................................................................................................5
b) Project Feasibility....................................................................................................................6
Operational Management.................................................................................................................8
a) Project organisation.................................................................................................................8
b) Work Breakdown Structure.....................................................................................................9
c) Responsibility..........................................................................................................................9
d) Project Scheduling.................................................................................................................10
e) Risk Management..................................................................................................................15
Resource planning and Control.....................................................................................................16
a) Critical Path Analysis............................................................................................................16
b) Project Control......................................................................................................................17
Stakeholder Management..............................................................................................................17
Stakeholder Engagement Plan...................................................................................................17
Communication Strategy...........................................................................................................17
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

TASKS
Project Scoping.
a) Introduction and Justification
In this report there are some few individuals who utilized fossil fuels to create electricity
but after it identify that it mainly harms to the world then they choose some another clean and
inexpensive energy and then it's converted in to the business method. The below statement is the
project initiation record for come into the existence of Community Renewable Energy Farm with
the objective to determine technique of formulation and generate main part for the administration
and project of achievement for a particular period of time scale provided for establishing
happening among April- September 2023. The operational activity will create electricity to
provide 300 houses along with the maximization of the electricity agree to sell to the network.
The geographical place selected is Lincolnshire and this is one of biggest existing set up
electricity capability. In addition, with this, the estimation is that electricity supply from
metrological stations is adequate and it will identify the achievement of electricity turbine
establishment. The establishment of 5MW Community Renewable Energy Farm in which
machines are installed at 35% during the overall year along with the capability component of
20%. The measurement was considered for the financial predicting, environmental factors and
the engagement view of stakeholders along with the breakdown of activity. At last, the basic
company report for the operating has been passed and depends upon the past operating place.
b) Assumptions applied.
The installation of the 5MW electricity with
Company building community energy generation project in Leicestershire.
Wind energy plant capacity is 500MWh per year. So it is supply 250MWh of annual demand of
community directly and remaining energy supply 250MWh to the local power supply grid.
We are assuming all the Equipment, Labour and Installation cost is including in Capital cost.
We are assuming that Annual Operation & Maintenance cost which is 2% of Capital cost per
year is fix for 20 years.
Project operational life is 20 years
UK average electricity price is £ 0.15/unit and Feed in tariff price is £0.05/unit
Discount rate is 12%

Taking 1 MWh = 1000 units’ electricity
c) SWOT – PESTLE Analysis.
Before making any decisions regarding the project, the company considers to do a micro –
environmental analysis of certain factors which may affect the decision making of the project. It
will also help is likewise planning the project accordingly by applying the strategic approach
when it will come to decision making.
Swot analysis on electricity
Strength
 Electricity power stations needs less
area and they are cost efficient.
 Increased acceptance of energy-
efficient technology.
Weakness
 Increasing demand of energy and
increasing cost of electric grid.
 Employee attrition
Opportunities
 A high increase in tax initiatives for
electricity.
 New blade less technologies.
Threats
 Compliance and regulatory risks
 Climate policy and carbon pricing
PESTLE analysis:
Political factors:
 Political stability and aid of electric product sector in the country's economy.
 Corruption levels of regulation in electric utility sector.
Economic factors:
 Type of economic system and its economic stability in the country.
 Exchange rate and stability while hosting country currency and quality of electric power
industry infrastructure.
Social factors:
 hierarchy and power composition in the society.
 Demographic and level of skills in the population.
Technological factors:

 Advancement or diffusion in technology impact on power project offering.
 Impact on cost structure in electric power industries.
Environmental factors:
 Fluctuation in weather condition and climate may impact on power plants.
 Air and water pollution and wastage of electric utilities.
Legal factors:
 Discrimination, employment, health and safety laws can impact on the project.
 Copyrights, patents or intellectual property laws and data protections.
Financial Management
a) Project Costing
For the initiation of the project, the predetermined cost of the project should be attained
and impact of the successful completion of the project.
The main focus is on the project cost and how this effect the successful completion. The project
is cannot be initiated without investment and evaluation of its cost.
Annual electricity output with 100 % efficiency = 5 * 365 * 24 = 43800 MWh
In million (£)
Investment £ 10
Running Costs (5 % of the initial Investment) 0.5
Total Earnings 1000000
Total Earning including O & M costs 347500
Above table recommend that there is adequate electricity prepared to supply local
gathering as well to be secure for sale to the power grid. It was predicted that the electric turbine
is not operate in their full capacity and ability to produce electricity throughout the year.
The Electricity production estimation per year will be produced as
Electricity produced 750000
Electricity Supplied 650000

b) Project Feasibility.
Project feasibility is computed by the help of calculating cash flow, NPV and payback
period. This method helps to determine whether project will be financially profitable of valuable.
As per the prediction included in section 1 project will be Financially profitable and successful
near in future. There is huge amount of electricity savings and project will acquire the payback in
4 years' period.
Initial Investment 10000000
O & M costs 200000
Electricity Produced 750
Annual Electricity Supply 650
Annual Electricity Demand 0.15 per unit
Revenue from Annual demand of Electricity 97500
Remaining Electricity supply to the grid
750 - 650 = 100
MWh = 1000000
Revenue from grid electricity 0.05*1000000
= 50000
Total Revenue 147500

Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Initial
Invest
ment
-
100
000
00
Reven
ue
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
147
500
O&M
cost
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
-
200
000
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
347
500
Cash
Flow
-
100
000
00
-
965
250
0
-
930
500
0
-
895
750
0
-
861
000
0
-
826
250
0
-
791
500
0
-
756
750
0
-
722
000
0
-
687
250
0
-
652
500
0
-
617
750
0
-
583
000
0
-
548
250
0
-
513
500
0
-
478
750
0
-
444
000
0
-
409
250
0
-
374
500
0
-
339
750
0
-
305
000
0

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
-12000000
-10000000
-8000000
-6000000
-4000000
-2000000
0
2000000
Cash Flow
Initial Investmement Revenue O&M cost
Series4 Cash Flow
Operational Management
a) Project organisation
Every organization follow some specific rules and regulation that are necessary for getting
the target. This has been show at and listed below:
 The business of any organization is depended on the efficiency of its management,
utilizing its resources including employees, raw material, plant and machinery and
technology. It is done and control with the help of several types of plan of action and will
coordinate the procedure.
 Site contractor of a company is responsible to give the good level of employment with
commitment to safety, health, environment and superiority.
 Company Technical architect are the person who is responsible for progressive modelling
instrument and also helpful at the time of facing any difficulties with their design and
costs for wind electricity their element of farm.
 The Maintenance contractor expectations are works for delivering Wing electricity
maintenance, survey, technological expertise, Town services.

b) Work Breakdown Structure
The main focus of the project is to assemble on ground wind electricity and connect to the
facility. It is an important to determine what is necessary to support every level of the project and
their sub-task to assure effective business operations. The work down structure is protecting from
the project induction level up to the stage of maintenance and decommissioning.
c) Responsibility.
The responsibility assignment is the task which cover all responsibility related to the overall
project for delivering the activity and services. It plays a vital role in project explaining and
presenting with proper and clear framework. The RACI Matrix structure display four types
of roles of responsibilities: Responsible, Accountable, consulted and informed.
Electricity Supply
Project
Initiation
Project
Assessment Project Design Installation Maintenance
Team
Development
Consultations
Business Case
Financial
Forecasting
Electricity
Power
feasibility
Stakeholders
Consultation
Authority
Approvals
Analysis
Technical
Design and
supply
Installing
electricity
capacity in
units
Installation
Final Checks
O&M

Project task or
deliverable
Project
manager
Site
contrac
tor
Local
Communi
ty
Local
Authorit
y
Technical
Architect
Land
Owner
s
Electricity
Consumers
Define electricity
demand I I C C C C R
Assess risk A R I C I I I
Define
performance
requirements A R I I I I I
Create Design A C I I R I C
Execute Supply I I C I C I I
Responsible R
Accountable A
Consulted C
Informed I
d) Project Scheduling
Scheduling project of management contain listed activities, deliverables and milestone
within a project. The project scheduling is also including an actual start date and finish date, time
duration and the assigned resources to each and every practices. A successful time management
is all depend on the effectiveness of project scheduling. The project is only assigned to the
people who are knowledgeable, skilled and experienced and also perform their duty by managing
the time. It is an authority to authorised person to delegate the task to other person of the team
according to their needs and necessity. Generally, delegation is take place when activity is not
completed and deadlines are near.

e) Risk Management
The risk management is the practice which helps the company in finding, analysing and
controlling financial activity and lawful, plan of action and risk of security. The risk register is
the person who is responsible for risk management. It has be recommended that the board
members, Investors, local community and project managers has occupy the most influence and
capability and they are the person who kept closely informed of growth and any type of risk
upcoming to quickly applied necessary actions or discussions.

Resource planning and Control
a) Critical Path Analysis.
The project is challenging as the demand of the project need to be fulfilled before the
deadlines. The project manager for this the critical path analysis techniques will be used for
measuring the faster way to complete the project, and it will also tell about the activities if the
project will be delayed.
Figure 1Stakeholders Identification

b) Project Control
a) Gantt chart
b) Critical path Method (CPM)
c) Programme Evaluation and review techniques (PERT)
Stakeholder Management
Stakeholder Engagement Plan
This operational activity considered a stakeholder’s plan of administration which mainly
involves a list for the overall stakeholders for the activity to indicates how their anticipation will
be handled. The supervisor of the projected task is answerable for supplying the administration
strategy of stakeholders.
Communication Strategy.
The members of Community Renewable Energy Farm project will be maintained and
communicate by:
a) Monthly members bulletin
b) email conveying
c) Documents
The basic point of stakeholders which are to be conveyed through the access of
SharePoint communicated board. Another not important reports, statements, letters, permission
of planning. It will be present for the outsiders to be accessed through the site of the project. It is
important to maintain the local society well conveyed otherwise, it comes from the protests or
late the project and maximizing the future acceptance of project. The project is strategies for
reaching the monthly with local people to address the development and to heard any question
arises from the last.
CONCLUSION
In 20 years the company is not able to generate positive cash flow in the project. So, it is
recommended for not choosing the project. Because the demand and supply of the local
households are registered for installation which has been fulfilled.

REFERENCES
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Wakiyama, T. and Kuriyama, A., 2018. Assessment of renewable energy expansion potential and
its implications on reforming Japan's electricity system. Energy Policy, 115, pp.302-
316.