Evaluating the Effect of Financing Costs on PV Grid Parity by Applying a Probabilistic Methodology

Sarasa-Maestro, Carlos J.; Dufo-López, Rodolfo; Bernal-Agustín, José L.

doi:10.3390/app9030425

Cited by 6 publications

(2 citation statements)

References 27 publications

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“…Assuming a low price for land (55,000 e/ha) the land costs for the PV plant is 43 e/kWp. In the model a PV module price of 310 e/kWp was used [57], and 0.22 e/Wp [58] for large central inverters (around 1 MW). Due to the lifetime of the inverter, the model assumed the purchase of new inverter after 10 years using half the price (i.e., 0.11 e/Wp).…”

Section: Investment and Oandm Costmentioning

confidence: 99%

Cost-Effective Increase of Photovoltaic Electricity Feed-In on Congested Transmission Lines: A Case Study of The Netherlands

et al. 2021

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In many areas in the world, the high voltage (HV) electricity grid is saturated, which makes it difficult to accommodate additional solar photovoltaic (PV) systems connection requests. In this paper, different scenarios to increase the installed PV capacity in a saturated grid are assessed on the basis of the net present value (NPV). The developed scenarios compare an increase of grid capacity, PV system azimuth variation, curtailment, and battery storage. For each scenario the net present value (NPV) is assessed using an optimization model as a function of the overbuild capacity factor, which is defined as the relative amount of PV capacity added beyond the available capacity. The scenarios are applied on a case study of the Netherlands, and the analysis shows that, by optimising curtailment, a PV system’s capacity can be increased to 120% overbuild capacity. For larger overbuild capacity investments in the electricity-grid are preferred when these costs are taken into account. However, the optimum NPV lies at 40% overbuild, thus the societal and NPV optimum are not always aligned. Furthermore, the use of a battery system as an alternative to an infrastructure upgrade was not found to be a cost-effective solution. Thus, applying curtailment could be cost-efficient to a certain extent to allow for additional PV capacity to be connected to a saturated grid. Furthermore, the inverter size compared to the installed PV capacity should be significantly reduced. For a connection request that exceeds 120% overbuild increasing network capacity should be considered.

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Section: Investment and Oandm Costmentioning

confidence: 99%

Cost-Effective Increase of Photovoltaic Electricity Feed-In on Congested Transmission Lines: A Case Study of The Netherlands

et al. 2021

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“…They also recommended the use of BESS to maximize the consumption of the PV energy and consequently extract an extra benefit from the facility. Finally, Sarasa et al [24] applied Monte Carlo simulation (with data from the year 2019) to estimate the LCOE in Spain for three PV facilities of different sizes (5 kW, 50 kW and 500 kW of nominal power). In the case of a residential facility of 5 kW, the grid parity was achieved when the module cost was 0.4 €/kWp, with an internal rate of return of 10% for productions of 1200 kWh/kWp and above.…”

Section: Introductionmentioning

confidence: 99%

Optimal Design Model for a Residential PV Storage System an Application to the Spanish Case

2021

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Self-consumption of photovoltaic energy is being promoted as an effective way for energy consumption in residential households. The European Directive 944/2019 promotes the use of green energy and battery energy storage systems (BESS) for self-consumption and, in Spain, the 244/2019 Royal Decree of the Spanish electrical regulatory framework allows the self-consumption of energy with a photovoltaic (PV) facility for residential use, as well as the injection of the surplus energy into the grid for which compensation will be received. At the same time, new developments in PV and BESS technologies reduce the costs of facilities, a fact that can increase the profitability of self-consumption through PV energy. This study evaluates the profitability of a household PV facility with BESS using a model based on real market prices, hourly data from user smart meters, and their own location; especially, the model gives the best configuration of PV panels power and BESS capacity. The financial indicators taken as reference for the results and conclusions are the Net Present Value (NPV), Internal Rate of Return (IRR), and Investment Return (IR). Our method examines also the effect of the BESS and PV panel costs on the profitability of the facility. Unlike other studies, our model is based on actual (not simulated) demand and price data, and it can be easily extended to other locations and market prices.

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Managing Costs of Renewable Energy Companies for Sustainable Business

Backović

Ilić²

2022

Sustainable Business Management and Digital Transformation: Challenges and Opportunities in the Post-Covid Era

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Evaluating the Effect of Financing Costs on PV Grid Parity by Applying a Probabilistic Methodology

Cited by 6 publications

References 27 publications

Cost-Effective Increase of Photovoltaic Electricity Feed-In on Congested Transmission Lines: A Case Study of The Netherlands

Cost-Effective Increase of Photovoltaic Electricity Feed-In on Congested Transmission Lines: A Case Study of The Netherlands

Optimal Design Model for a Residential PV Storage System an Application to the Spanish Case

Managing Costs of Renewable Energy Companies for Sustainable Business

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