Project Initiation Document for Community Renewable Energy Farm
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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.
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Project Initiation Document Contents
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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 Electricitypowerstationsneedsless area and they are cost efficient. Increasedacceptanceofenergy- efficient technology. Weakness Increasingdemandofenergyand 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:
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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 Earnings1000000 Total Earning including O & M costs347500 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 produced750000 Electricity Supplied650000
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 Investment10000000 O & M costs200000 Electricity Produced750 Annual Electricity Supply650 Annual Electricity Demand0.15 per unit Revenue from Annual demand of Electricity97500 Remaining Electricity supply to the grid 750 - 650 = 100 MWh = 1000000 Revenue from grid electricity0.05*1000000 = 50000 Total Revenue147500
01234567891011121314151617181920 -12000000 -10000000 -8000000 -6000000 -4000000 -2000000 0 2000000 Cash Flow Initial InvestmementRevenueO&M cost Series4Cash 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: ï‚·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. ï‚·Site contractor of a company is responsible to give the good level of employment with commitment to safety, health, environment and superiority. ï‚·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. ï‚·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 AssessmentProject DesignInstallationMaintenance 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 demandIICCCCR Assess riskARICIII Define performance requirementsARIIIII Create DesignACIIRIC Execute SupplyIICICII 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.
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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. Figure1Stakeholders Identification
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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.
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