Multiple Criteria Decision Making (MCDM) Based Economic Analysis of Solar PV System with Respect to Performance Investigation for Indian Market

Abstract

Abstract:Energy market is subject to changing energy demands on a daily basis. The increasing demand for energy necessitates the use of renewable sources and promotes decentralized generation. Specifically, solar PV is preferred in the energy market to meet the increasing energy demand. New approaches are preferred in the economic analysis to simulate multiple actor interplays and intermittent behavior in order to predict the increasing complexity in solar PV. In the Indian society, there are various myths and perceptions regarding economics of electricity generated through solar PV system. Therefore, this paper will address the various Life Cycle Cost Analysis (LCCA) and economic analysis for all types of consumers in the Indian electricity market. A detailed economic and performance study is made by considering ten categories and seven sub categories of investment plan for 1 MW solar projects using Multi Criteria Decision Making (MCDM). Analytic Hierarchy Process (AHP) is applied to support the decision.Keywords: solar PV system; levelized cost of energy (LCOE); internal rate of return (IRR); net present value (NPV); accelerated depreciation (AD); multiple criteria decision making (MCDM); analytic hierarchy process (AHP)

Evaluation Model for Investment in Solar Photovoltaic Power Generation Using Fuzzy Analytic Hierarchy Process

“…However, previous research has mostly focused on technical aspects such as site selection [5][6][7][8][9][10][11][12][13][14][15][16][17], sustainability assessment [18][19][20][21], and solar PV technology selection [22][23][24][25]. Previous research on investment and policy aspects [26][27][28][29][30][31][32][33], feasibility study [34][35][36][37][38] and constructing investment indicators [39,40] is limited to the econometric analysis of parameters that affect the expansion of renewable power generation including solar PV. However, these studies have mainly focused on macroeconomic aspects.…”

Advances in Multiple Criteria Decision Making for Sustainability: Modeling and Applications

“…The following paper [18] aims at devising an MCDM-based economic analysis for the solar PV energy system in India. The rising demand of electricity for industrial productions and consumers in India urges its government to evaluate various renewable power systems for the sustainability concern.…”

Design optimization of communal solar powered irrigation system

“…The cost of the PV support structure is assumed as 40% of the total cost of the PV module, the installation cost is 23% of the total system cost and the operating and maintenance cost for the PVWP system is considered as 2% of the initial capital cost (Padmanathan et al, 2017). For the diesel pumping system, the annual operating and maintenance cost is considered as 8% of the initial capital cost of the system, fuel cost is assumed as 1.1 US$/L and installation cost of the diesel pumping system has been taken as 10% of the system cost Table 4.…”