REP Project Planning & Financial Analysis 2

Question 1

A solar developer is evaluating two sites with identical capacity but different solar irradiance. Site A has a P50 yield of 1,800 kWh/kWp and Site B has 1,600 kWh/kWp. If both sites have the same installed cost, which financial metric is most directly affected?

Accepted Answer

Levelized Cost of Energy (LCOE)

Answer

LCOE is directly affected by energy yield; higher irradiance at Site A lowers the cost per kWh produced.

Question 2

In a renewable energy project pro forma, a 'sculpted debt service' structure means:

Accepted Answer

Debt repayments vary to match the project's expected cash flow profile

Answer

Sculpted debt service tailors repayment amounts to align with projected cash flows, maintaining a target DSCR throughout the loan period.

Question 3

Which permitting pathway typically applies to large-scale offshore wind projects in the United States?

Accepted Answer

Bureau of Ocean Energy Management (BOEM) leasing and permitting process

Answer

BOEM manages the leasing, site assessment, and construction/operations permitting for offshore wind on the Outer Continental Shelf.

Question 4

A wind project's capacity factor is 35% and installed capacity is 100 MW. Annual energy production (AEP) in MWh is approximately:

Accepted Answer

306,600 MWh

Answer

AEP = 100 MW × 0.35 × 8,760 hours/year = 306,600 MWh.

Question 5

Which risk is best mitigated through an interconnection queue study conducted early in project development?

Accepted Answer

Unexpected grid upgrade costs that could render a project uneconomical

Answer

Interconnection studies reveal required network upgrades whose costs are allocated to the project, potentially making it financially unviable.

(REP) Certified Renewable Energy Professional Practice Test

(REP) Certified Renewable Energy Professional Practice Test

REP Project Planning & Financial Analysis 2