The Economics of Photovoltaic Power Generation
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A European Photovoltaic Industry Association survey covering the 1990-1994 time period showed that approximately three-fourths of PV applications involved remote locations. Remote applications include satellites, remote telecommunications sites, remote homes and villages, water pumping, camping, and boating . Remote applications can become economically feasible because of the expense of constructing distribution lines and power losses sustained in transmission of conventional power. PV facilities may be located at the point of power consumption and do not require the purchase or delivery of fuel. If a remote site requires a dependable power source or has large loads, a hybrid system may be a better option. This may consist of photovoltaic cells and a diesel generator charging a bank of batteries. In such a hybrid system, the PV cells reduce the amount of fuel consumed. The batteries reduce the runtime required of the generator. Charging the batteries during generator runtime permits the generator to operate in a more efficient load range.
Peak Load Relief
In warm-climate areas, peak load demands occur on sunny days due to heavy use of air conditioners. This coincides with the productive period for photovoltaic power. By locating photovoltaic collectors at the end of a distribution line, a power utility may be able to defer the construction of additional conventional generating capacity as well as defer an upgrade of the distribution line.
Photovoltaic System Components
We often see the cost of photovoltaic modules reported in dollars per watt. At the retail level, the cost of photovoltaic modules is currently about $5/watt. But photovoltaic modules account for only 25% to 50% of the cost of a PV system. To achieve substantial cost reduction, the expense of system components will need to be addressed. Also, poor component efficiencies can compromise the total system efficiency. PV systems can have efficiencies as low as 50% due to losses in inverters, batteries, and system voltage drops.
Green Power
Economic feasibility is not always the determining factor in selecting a power generation system. With interest in green (ecologically friendly) power growing, both consumers and providers of electrical power are turning to the use of photovoltaics in spite of its higher cost.
Industry Forecasts
A 1996 study published by the International Energy Agency (IEA), concluded that demand for alternative energy would grow strongly, yet renewable sources would only account for about 1% of total energy produced in 2010. This does not include hydropower, which would constitute about 3% of the energy supply. The World Energy Council estimates that renewable power could provide 5-8% of the total energy demand by 2020, but only with continued support for research and development .Figure .1 shows the practical implementation of photovoltaic system
Fig.1. A view of PV system
Major Manufacturers
The five companies listed below are major producers of photovoltaic modules. All have been involved in products for aerospace as well as land-based systems including thin-film technology. Some have achieved this status by recent buyouts of established PV manufacturers.
Siemens Solar
Siemens Solar is the largest manufacturer of photovoltaic cells. The parent company, Siemens, is a diversified producer of electrical equipment, involved in all types of electrical power generation, with an established worldwide marketing and distribution system.
Applications of Photovoltaic Power
Distinct advantages to PV power, such as zero pollution and absence of the need to transport fuel to the generating site, make it attractive in many applications. As efficiency improvements and manufacturing cost reductions inch PV power toward economic parity with conventional power, these applications become more numerous. This economic trend is reflected in the recent expansions of manufacturing capacity and the acquisitions of PV manufacturers by larger corporations. The use of photovoltaic as the sole source of electrical power requires the use of batteries or other storage. The cost of electrical storage prevents PV generation from replacing conventional power generation. PV systems with electrical storage are only feasible for low-power, remote applications. For remote applications requiring more power, a hybrid system may be practical. This may consist of photovoltaic cells and a diesel generator charging a bank of batteries. In such a hybrid system, the PV cells reduce the amount of fuel to be transported to the site. The batteries also reduce the runtime required of the generator, and charging the batteries during generator runtime permits the generator to be operated in a more efficient load range .
Conclusion
Photovoltaic efficiency and manufacturing costs have not reached the point that photovoltaic power generation can replace conventional coal-, gas-, and nuclear-powered generating facilities. For peak load use (no battery storage), the cost of photovoltaic power is around two to four times as much as conventional power. (Cost comparisons between photovoltaic power and conventionally generated power are difficult due to wide variations in utility power cost, sunlight availability, and numerous other variables.)
A European Photovoltaic Industry Association survey covering the 1990-1994 time period showed that approximately three-fourths of PV applications involved remote locations. Remote applications include satellites, remote telecommunications sites, remote homes and villages, water pumping, camping, and boating . Remote applications can become economically feasible because of the expense of constructing distribution lines and power losses sustained in transmission of conventional power. PV facilities may be located at the point of power consumption and do not require the purchase or delivery of fuel. If a remote site requires a dependable power source or has large loads, a hybrid system may be a better option. This may consist of photovoltaic cells and a diesel generator charging a bank of batteries. In such a hybrid system, the PV cells reduce the amount of fuel consumed. The batteries reduce the runtime required of the generator. Charging the batteries during generator runtime permits the generator to operate in a more efficient load range.
Peak Load Relief
In warm-climate areas, peak load demands occur on sunny days due to heavy use of air conditioners. This coincides with the productive period for photovoltaic power. By locating photovoltaic collectors at the end of a distribution line, a power utility may be able to defer the construction of additional conventional generating capacity as well as defer an upgrade of the distribution line.
Photovoltaic System Components
We often see the cost of photovoltaic modules reported in dollars per watt. At the retail level, the cost of photovoltaic modules is currently about $5/watt. But photovoltaic modules account for only 25% to 50% of the cost of a PV system. To achieve substantial cost reduction, the expense of system components will need to be addressed. Also, poor component efficiencies can compromise the total system efficiency. PV systems can have efficiencies as low as 50% due to losses in inverters, batteries, and system voltage drops.
Green Power
Economic feasibility is not always the determining factor in selecting a power generation system. With interest in green (ecologically friendly) power growing, both consumers and providers of electrical power are turning to the use of photovoltaics in spite of its higher cost.
Industry Forecasts
A 1996 study published by the International Energy Agency (IEA), concluded that demand for alternative energy would grow strongly, yet renewable sources would only account for about 1% of total energy produced in 2010. This does not include hydropower, which would constitute about 3% of the energy supply. The World Energy Council estimates that renewable power could provide 5-8% of the total energy demand by 2020, but only with continued support for research and development .Figure .1 shows the practical implementation of photovoltaic system
Fig.1. A view of PV system
Major Manufacturers
The five companies listed below are major producers of photovoltaic modules. All have been involved in products for aerospace as well as land-based systems including thin-film technology. Some have achieved this status by recent buyouts of established PV manufacturers.
Siemens Solar
Siemens Solar is the largest manufacturer of photovoltaic cells. The parent company, Siemens, is a diversified producer of electrical equipment, involved in all types of electrical power generation, with an established worldwide marketing and distribution system.
Applications of Photovoltaic Power
Distinct advantages to PV power, such as zero pollution and absence of the need to transport fuel to the generating site, make it attractive in many applications. As efficiency improvements and manufacturing cost reductions inch PV power toward economic parity with conventional power, these applications become more numerous. This economic trend is reflected in the recent expansions of manufacturing capacity and the acquisitions of PV manufacturers by larger corporations. The use of photovoltaic as the sole source of electrical power requires the use of batteries or other storage. The cost of electrical storage prevents PV generation from replacing conventional power generation. PV systems with electrical storage are only feasible for low-power, remote applications. For remote applications requiring more power, a hybrid system may be practical. This may consist of photovoltaic cells and a diesel generator charging a bank of batteries. In such a hybrid system, the PV cells reduce the amount of fuel to be transported to the site. The batteries also reduce the runtime required of the generator, and charging the batteries during generator runtime permits the generator to be operated in a more efficient load range .
Conclusion
Photovoltaic efficiency and manufacturing costs have not reached the point that photovoltaic power generation can replace conventional coal-, gas-, and nuclear-powered generating facilities. For peak load use (no battery storage), the cost of photovoltaic power is around two to four times as much as conventional power. (Cost comparisons between photovoltaic power and conventionally generated power are difficult due to wide variations in utility power cost, sunlight availability, and numerous other variables.)
