Evaluating the Effect of Financing Costs on PV Grid Parity by Applying a Probabilistic Methodology
This paper presents a study that analyses the effect of financing costs on grid parity in photovoltaic (PV) installations by applying a probabilistic methodology. Three different case studies, located in Spain, have been considered, with 500 kW, 50 kW and 5 kW grid-connected PV generators. The techn...
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doaj-e78c2cb194e74837aa1808683c2e18e22020-11-24T20:47:25ZengMDPI AGApplied Sciences2076-34172019-01-019342510.3390/app9030425app9030425Evaluating the Effect of Financing Costs on PV Grid Parity by Applying a Probabilistic MethodologyCarlos J. Sarasa-Maestro0Rodolfo Dufo-López1José L. Bernal-Agustín2Department of Electrical Engineering, University of Zaragoza, Calle María de Luna, 3, 50018 Zaragoza, SpainDepartment of Electrical Engineering, University of Zaragoza, Calle María de Luna, 3, 50018 Zaragoza, SpainDepartment of Electrical Engineering, University of Zaragoza, Calle María de Luna, 3, 50018 Zaragoza, SpainThis paper presents a study that analyses the effect of financing costs on grid parity in photovoltaic (PV) installations by applying a probabilistic methodology. Three different case studies, located in Spain, have been considered, with 500 kW, 50 kW and 5 kW grid-connected PV generators. The technical and economic calculations were performed, considering the interest rate, yield across the Spanish geography, and PV module cost as parameters. The Monte Carlo method was applied to consider the full probabilistic range of values given to the different variables. The goal of this study was to determine, for the studied cases, the levelised cost of energy (LCOE) and the internal rate of return by considering realistic values of the variables. A success rate parameter was calculated, which determined the likelihood of the number of times that the LCOE was below the retail cost of electricity. All the cases were evaluated by applying 10,000 iterations, considering the standard deviations and means defined.https://www.mdpi.com/2076-3417/9/3/425photovoltaic (PV) tariffsremuneration policiesgrid parity |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Carlos J. Sarasa-Maestro Rodolfo Dufo-López José L. Bernal-Agustín |
spellingShingle |
Carlos J. Sarasa-Maestro Rodolfo Dufo-López José L. Bernal-Agustín Evaluating the Effect of Financing Costs on PV Grid Parity by Applying a Probabilistic Methodology Applied Sciences photovoltaic (PV) tariffs remuneration policies grid parity |
author_facet |
Carlos J. Sarasa-Maestro Rodolfo Dufo-López José L. Bernal-Agustín |
author_sort |
Carlos J. Sarasa-Maestro |
title |
Evaluating the Effect of Financing Costs on PV Grid Parity by Applying a Probabilistic Methodology |
title_short |
Evaluating the Effect of Financing Costs on PV Grid Parity by Applying a Probabilistic Methodology |
title_full |
Evaluating the Effect of Financing Costs on PV Grid Parity by Applying a Probabilistic Methodology |
title_fullStr |
Evaluating the Effect of Financing Costs on PV Grid Parity by Applying a Probabilistic Methodology |
title_full_unstemmed |
Evaluating the Effect of Financing Costs on PV Grid Parity by Applying a Probabilistic Methodology |
title_sort |
evaluating the effect of financing costs on pv grid parity by applying a probabilistic methodology |
publisher |
MDPI AG |
series |
Applied Sciences |
issn |
2076-3417 |
publishDate |
2019-01-01 |
description |
This paper presents a study that analyses the effect of financing costs on grid parity in photovoltaic (PV) installations by applying a probabilistic methodology. Three different case studies, located in Spain, have been considered, with 500 kW, 50 kW and 5 kW grid-connected PV generators. The technical and economic calculations were performed, considering the interest rate, yield across the Spanish geography, and PV module cost as parameters. The Monte Carlo method was applied to consider the full probabilistic range of values given to the different variables. The goal of this study was to determine, for the studied cases, the levelised cost of energy (LCOE) and the internal rate of return by considering realistic values of the variables. A success rate parameter was calculated, which determined the likelihood of the number of times that the LCOE was below the retail cost of electricity. All the cases were evaluated by applying 10,000 iterations, considering the standard deviations and means defined. |
topic |
photovoltaic (PV) tariffs remuneration policies grid parity |
url |
https://www.mdpi.com/2076-3417/9/3/425 |
work_keys_str_mv |
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