On the use of hourly pricing in techno-economic analyses for solar photovoltaic systems

Abstract

a b s t r a c tThe use of hourly prices in distributed photovoltaic (PV) techno-economic analysis is rare, but may become necessary as time-of-day retail pricing becomes more common. A methodology is presented for selecting an hourly price curve suitable for long-term analysis, called the typical price year (TPY), which is based on the methodology for TMY weather data. Using a techno-economic analysis with annual revenues and net present value as indicators, a TPY curve for the Swedish market is validated and then compared to 18 price simplification methods to determine the error introduced by the use of non-hourly prices. Results show that the TPY method produces a curve which accurately represents long term pricing trends, but using a static annual mean introduces minor revenue errors of 1.3%. This suggests the TPY may not be necessary in the Swedish market, but further analysis of the method is suggested for other markets.

Battery sizing and rule-based operation of grid-connected photovoltaic-battery system: A case study in Sweden

“…This is based on the current contract between the building owner and distribution system operator. This is consistent with the study by Sommerfeldt et al [5]. The second part is the electricity export revenue ( , ), which means that the surplus electricity generated by the system will be exported to the grid.…”

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Clean, efficient, affordable and reliable energy for a sustainable future

“…Sommerfeldt and Madani [26] conducted techno-economic analysis for hourly prices in distributed photovoltaic systems. These authors proposed a typical price year method to accurately represent long term pricing trend with minor revenue errors.…”