FINANCING AND PAYBACK OF RENEWABLE HYBRID ENERGY PROJECT (TECHNOLOGY) SUCH AS PV-MFC SYSTEMS: CASE STUDY UMHLATHUZE MHLATHUZE MUNICIPALITY

Renewable energy based hybridised systems are considered to be the future of electricity generation and the most cost - effective means of attempting to satisfy energy generation targets and development goals in the immediate and near future. Although, the feasibility of hybridised systems seems certain in the energy sector, the sourcing of funds to finance the implementation of systems such as photovoltaic microbial fuel cells (PV-MFC) technology is difficult. This paper attempts to indicate the financing models that can be pursued with great confidence by organisations such as uMhlathuze municipality. When considering funding issues, it is appropriate to consider the targeted payback period of the ‘initial' (feasibility and capital) investment made. Three funding mechanisms have been identified as potential avenues that the municipality can pursue together with identified advantages and disadvantages. The cost-benefit analysis is briefly described in evaluating the feasibility or readiness of a project for implementation. Lastly, the payback period is briefly outlined from the perspective of using different tools such as net present value (NPV), return on investment (ROI) to establish the costs of pursuing such a project against planned payback targets.