Re-considering the economics of photovoltaic power (original) (raw)

A Review of Prices for Photovoltaic Systems

2015

Solar energy is the most abundant, useful, efficient and environmental friendly source among the renewable energy sources. Also, in recent years, the capacity of photovoltaic electricity generation systems has increased exponentially in the world due to increase in economic viability and reliability of photovoltaic systems. Anyway, many studies state that photovoltaic power systems will play a key role for electricity of the future. When first produced, photovoltaic systems had short lifetimes. Nowadays, with the development of technology life cycles of photovoltaic systems has been increased up to 20-25 years. Researches show that photovoltaic systems will be broadly used in the future. These analyses are achieved by considering fast decreasing cost of photovoltaic systems. As the price analysis is very important for energy marketing. In this study, a review of cost potential factors on photovoltaic panels is realized and the expected cost potential of the photovoltaic systems is e...

Price-Efficiency Relationship for Photovoltaic Systems on a Global Basis

International Journal of Photoenergy, 2015

Solar energy is the most abundant, useful, efficient, and environmentally friendly source of renewable energy. In addition, in recent years, the capacity of photovoltaic electricity generation systems has increased exponentially throughout the world given an increase in the economic viability and reliability of photovoltaic systems. Moreover, many studies state that photovoltaic power systems will play a key role in electricity generation in the future. When first produced, photovoltaic systems had short lifetimes. Currently, through development, the technology lifecycle of photovoltaic systems has increased to 20–25 years. Studies showed that photovoltaic systems would be broadly used in the future, a conclusion reached by considering the rapidly decreasing cost of photovoltaic systems. Because price analysis is very important for energy marketing, in this study, a review of the cost potential factors on photovoltaic panels is realized and the expected cost potential of photovoltai...

A Review of Solar Energy: Markets, Economics and Policies

World Bank policy research working paper, 2011

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Policy Conflicts in Photovoltaics: Moving Up or Sliding Down the Learning Curve

South African local authorities, anxious to protect their revenue streams, contend that photovoltaic (PV) energy will be a highly disruptive technology, threatening the delivery of services to poor communities and resulting in job losses within the energy sector. In this paper, a quantitative approach is used to proportion the extent of the revenue loss, its impact on service provision and the net outcome on employment. Using financial information and profiles of electricity consumption from two major metropolitan areas, and industry-wide data on PV jobs, it is concluded that contrary to the prevailing sentiment, PV technology could stimulate economic growth, create employment and reduce inequality. This conclusion is supported by the track record of the Renewable Energy Independent Power Producers Procurement Programme, which has been successful in facilitating technology transfer and employment. Regulatory authorities will be well-advised to drop their resistance towards roof-top solar and take proactive steps to reap the dividends of the green economy, whilst making the necessary provisions to safeguard their redistributive programmes.

Basics on Energy Economics of Renewable Power Generation Projects : A focus on utility-scale PV plants inclusion on national grid

2019 10th International Renewable Energy Congress (IREC), 2019

The objective of this work is to evaluate the solar photovoltaic power addressing the perspective of this kind of power generation and its barriers in the Brazilian Market, taking into consideration the economic perspective of the country and the initial phase of development of the technology in the country. To better address the economics behind the solar power generation a case study of a solar power plant in Northeast Brazil, with a capacity of 30MW is analyzed and discussed in detail from the investor’s perspective. One of the main challenges faced for the case study is the lack of clear legislations based on the modal of power generation. Nevertheless, this article demonstrates successfully the financial and economic viability of the photovoltaic power plant in question and it the business plan could be extrapolated to other photovoltaic power plants.

Economic Analysis of a Photovoltaic System: A Resource for Residential Households

Energies

New installed annual solar photovoltaic (PV) capacity was equal to 76.1 GW in 2016 (+49%), reaching the total of 305 GW around the world. PV sources are able to achieve a greater energy independence, to tackle the climate change and to promote economic opportunities. This work proposes an economic analysis based on well-known indicators: Net Present Value (NPV), Discounted Payback Time (DPBT) and Levelized Cost of Electricity (LCOE). Several case studies are evaluated for residential households. They are based on three critical variables: plant size (1, 2, 3, 4, 5 and 6 kW), levels of insolation (1350, 1450 and 1550 kWh/(m2×y)) and share of self-consumption (30%, 40% and 50%). The profitability is verified in all case studies examined in this work. The role of self-consumption, that is the harmonization between demanded and produced energy, is strategic in a mature market to improve financial performance. A sensitivity analysis, based on both electricity purchase and sales prices (c...

Break-even Price Estimates for Residential PV Applications in DECD Countries with an Analysis of Prospective Cost Reductions

Energy Studies Review

This paper assesses the prospects for cost reductions of grid-connected photovoltaic (PV) systems to the estimated break-even price of S2.5/Wp. At this price, PV technology could become cost-competitive without incentives for building-integrated applications m residential sectors of most industrialized countries. Significant reductions in the manufacturing costs of modules and inverters can be achieved by increasing production volumes or through technological innovation, e.g., by using less expensive materials. PV system costs can also be reduced by PV yield optimization, by increasing availability of a skilled labour force, and through design and construction innovations.

Photovoltaics: reviewing the European Feed-in-Tariffs and changing PV efficiencies and costs

TheScientificWorldJournal, 2014

Feed-in-Tariff (FiT) mechanisms have been important in boosting renewable energy, by providing a long-term guaranteed subsidy of the kWh-price, thus mitigating investment risks and enhancing the contribution of sustainable electricity. By ongoing PV development, the contribution of solar power increases exponentially. Within this significant potential, it is important for investors, operators, and scientists alike to provide answers to different questions related to subsidies, PV efficiencies and costs. The present paper therefore (i) briefly reviews the mechanisms, advantages, and evolution of FiT; (ii) describes the developments of PV, (iii) applies a comprehensive literature-based model for the solar irradiation to predict the PV solar energy potential in some target European countries, whilst comparing output predictions with the monthly measured electricity generation of a 57 m² photovoltaic system (Belgium); and finally (iv) predicts the levelized cost of energy (LCOE) in term...

The price of solar energy: Comparing competitive auctions for utility-scale solar PV in developing countries

Energy Policy, 2018

This paper examines the viability of low PV prices in developing countries from recent competitive auctions and discusses the sustainability of these low prices for further market expansion. Our analysis of utility-scale PV projects procured through major auctions in developing countries between 2013 and 2016 reveals that low PV prices are viable. PV prices of 0.06−0.08/kWhareconsistentwithmarketfundamentalsandpriceslowerthan0.06-0.08/kWh are consistent with market fundamentals and prices lower than 0.060.08/kWhareconsistentwithmarketfundamentalsandpriceslowerthan0.03/kWh are viable under exceptional conditions in some countries. Maintaining low prices while ensuring deployment of quality projects requires a combination of high capacity factors, low equipment prices, low cost of capital, de-risked investment environments, e.g., through the presence of guarantees, and other factors such as particular project developer strategies. Overall, developing countries with abundant local solar resources are well-positioned to drive the global expansion of PV capacity. Well-designed auctions offer a unique opportunity to expand solar PV capacity to many markets in a cost-effective manner.