The Financial and Economic Evaluation of Using Photovoltaic Electricity to Supply Marine Propulsion in Merchant Ships in Iran

This study investigated the feasibility of equipping merchant ships of the Persian Gulf and the Sea of Oman in southern Iran with solar-electric propulsion systems from the perspective of private and public sectors in 2019. The cost-benefit analysis approach was used. The results indicated that 0.26 units of profit is obtained for each unit of cost from the perspective of the private sector and the payback period is 18 years. Thus, replacing solar electricity is not cost-effective. The results of the social cost-benefit analysis revealed that this technology is economically viable for society by considering the benefits of reducing pollution. In addition, the results of sensitivity analysis in the financial cost-benefit case of the discount rate and the annual fuel price of ships indicated that if the discount rate (financing opportunity cost for the private sector) is less than 5% or the average annual price of fossil fuels increases by 40%, the project will be financially viable from a private sector perspective.