Dissanayaka, H.R.A.S.R. and Rajapakshe, P.S.K.
Department of Environmental Management, Faculty of Social Sciences & Humanities, Rajarata University of Sri Lanka, Mihintale, Sri Lanka
hrasrd95@gmail.com, pskr75@gmail.com
ABSTRACT
DOI : 10.57075/jaf1022307
Increasing energy consumption is one of the most critical determinants of climate change. Therefore, energy efficiency strategies and the growing demand for renewable energy sources are significant to minimize the negative impacts of climate change across the globe. This study examines the current electricity consumption of the Faculty of Social Sciences and Humanities (FSSH) of the Rajarata University of Sri Lanka. It explores the potential of using solar power as a renewable energy source to meet the faculty’s electricity demand. As the university is located in a dry zone, using solar power as a renewable energy source has enormous potential. This research was based on both primary and secondary data. Primary data were collected
from academic and non-academic staff through key person interviews and students through a survey based on a structured questionnaire. Secondary data were collected from electricity bills of the FSSH and available electrical equipment data. CostBenefit Analysis (CBA) is mainly employed to examine the financial and economic viability of transforming to solar power to meet the energy requirements of the faculty. This study disclosed that the electricity consumption of the university in general and the FSSH had increased drastically during 2015 – 2018. The study found that electricity consumption creates an external cost of 31856.53 LKR as CO2 emission per year. Results of the financial CBA estimates indicate that installing a
solar power system to the FSSH will generate 27,340,401.08 LKR of Net Present Value (NPV) and 1.86 of Cost-Benefit Ratio (CBR), and the Internal Rate of Return (IRR) is 21.63%. After considering the externalities, the results of the economic CBA generate little higher estimates than the financial CBA with 27,677,889.62
LKR of Net Present Value, 1.87 of CBR and 21.81 of IRR. Therefore, it can be concluded that investing in solar energy systems for the FSSH is a financially and economically viable and environmentally sound business.
Keywords: Climate Change, Electricity Consumption, Energy Efficiency, Solar Power, Cost-Benefit Analysis
