Micro-Tracked CPV Can Be Cost Competitive With PV in Behind-The-Meter Applications With Demand Charges

• Main Authors: David J. Wright, Sana Badruddin, Cameron Robertson-Gillis
• Format: Article
• Language: English
• Published: Frontiers Media S.A. 2018-09-01
• Series: Frontiers in Energy Research
• Subjects: concentrator photovoltaics; micro-tracking; CPV; microgrid; internal rate of return; demand charges
• Online Access: https://www.frontiersin.org/article/10.3389/fenrg.2018.00097/full

Micro-tracked CPV, in which cells move relative to fixed concentrating optics, allows CPV to be deployed in the same manner as fixed PV modules. Behind-the-meter applications in locations where there is a land/roof area cost for the space occupied by the modules confers a cost advantage to CPV compared to PV. The primary objective of the present paper is to estimate target prices below which CPV has a competitive advantage over PV. We analyse PV and CPV microgrids, optimizing the scheduling of power into and out of the battery in order to achieve the maximum savings compared to purchasing grid power. We then choose the battery capacity that maximizes the internal rate of return (IRR) on the PV microgrid. The CPV target price is the price that gives a CPV IRR that matches the PV IRR. The target CPV prices obtained are found to depend on the land price and on the ratio of CPV to PV annual energy yield (REY), but are insensitive to battery prices, load profiles, current electricity tariffs and future trends in electricity tariffs. Modesto, CA has a REY of 1.10 and an average target CPV price from $1.86/W at zero land price to $3.53/W at $400/m2. Lancaster, CA with a REY of 1.26 has corresponding target CPV prices from $2.14 to $4.23/W. In Las Vegas, NV, (REY = 1.27) the target CPV price is $2.13/W at a land price of zero, but at higher land prices the IRR is insufficient for solar power to be deployed. These target CPV prices correspond with current estimates of pedestal-tracked CPV of $2.4 to $3.3/W and indicate that it is realistic to expect micro-tracked CPV to be cost competitive with PV in some urban areas in southwestern USA.