Environmental,technical and financial feasibility study of solar power plants by RETScreen,according to the targeting of energy subsidies in Iran

In this study, based on new electricity tariffs, three scenarios have been developed with The RETScreen International Photovoltaic Project Model, according to the targeting of energy subsidies in Iran. We have also dedicated one of our scenarios to the reduction of greenhouse gasses.In the first case the electricity price was set to 3.75 Cents/kWh (450 Rial/kWh) and no credit was assigned to the reduction of greenhouse gasses (GHG), therefore equity payback (Return positive cash flow) has been 12.1 year. In the second case the electricity price was set to 17.5 Cents/kWh, therefore equity payback (return positive cash flow) was 8 year. Finally in the last scenario by considering a credit to the reduction of greenhouse gasses and electricity price being 175 Cents/kWh and applying solar panels with high efficiency and suitable batteries (DOD = 60%), equity payback (return positive cash flow) reached within 6 years.     

Case study feasibility analysis of the Pelamis wave energy convertor in Ireland, Portugal and North America

The performance and economic viability of the Pelamis wave energy converter (WEC) has been investigated over a 20 year project time period using 2007 wave energy data from various global locations: Ireland, Portugal, USA and Canada. Previous reports assessing the Pelamis quote a disparate range of financial returns for the Pelamis, necessitating a comparative standardised assessment of wave energy economic indicators. An Excel model (NAVITAS) was created for this purpose which estimated the annual energy output of Pelamis for each location using wave height (H_s) and period (T_z) data, and produced financial results dependant on various input parameters. The economic indicators used for the analysis were cost of electricity (COE), net present value (NPV) and internal rate of return (IRR), modelled at a tariff rate of €0.20/kWh). Analysis of the wave energy data showed that the highest annual energy output (AEO) and capacity for the Pelamis was the Irish site, as expected. Portugal returned lower AOE similar to the lesser North American sites. Monthly energy output was highest in the winter, and was particularly evident in the Irish location. Moreover, the difference between the winter wave energy input and the Pelamis energy output for Ireland was also significant as indicated by the capture width, suggesting that Pelamis design was not efficiently capturing all the wave energy states present during that period. Modelling of COE for the various case study locations showed large variation in returns, depending on the number of WEC modelled and the initial cost input and learning curve. COE was highest when modelling single WEC in comparison to multiples, as well as when using 2004 initial costs in comparison to 2008 costs (at which time price of materials peaked). Ireland returned the lowest COE of €0.05/kWh modelling over 100 WEC at 2004 cost of materials, and €0.15/kWh at 2008 prices. Although favourable COE were recorded from some of the modelled scenarios, results indicated that NPV and IRR were not encouraging when using a €0.20/kWh tariff. It is recommended that a tariff rate of €0.30/kWh be considered for Ireland, and higher rates for other locations. In conclusion, Ireland had the most abundant wave energy output from the Pelamis. COE returns for Ireland were competitive for large number of WEC, even at peak costs, but it is recommended that careful analysis of NPV and IRR should be carried out for full economic assessment. Finally, a standardised method of COE reporting is recommended, using fixed WEC number or MW size, as well as standardised learning/production curves and initial costs, to facilitate confidence in investment decisions based on COE.     

An economic analysis comparison of stationary and dual-axis tracking grid-connected photovoltaic systems in the US Upper Midwest

This paper presents an economic analysis of stationary and dual-axis tracking photovoltaic (PV) systems installed in the US Upper Midwest in terms of life-cycle costs, payback period, internal rate of return, and the incremental cost of solar energy. The first-year performance and energy savings were experimentally found along with documented initial cost. Future PV performance, savings, and operating and maintenance costs were estimated over 25-year assumed life. Under the given assumptions and discount rates, the life-cycle savings were found to be negative. Neither system was found to have payback periods less than the assumed system life. The lifetime average incremental costs of energy generated by the stationary and dual-axis tracking systems were estimated to be $0.31 and $0.37 per kWh generated, respectively. Economic analyses of different scenarios, each having a unique set of assumptions for costs and metering, showed a potential for economic feasibility under certain conditions when compared to alternative investments with assumed yields.     

A preliminary study on potential for very large-scale photovoltaic power generation (VLS-PV) system in the Gobi desert from economic and environmental viewpoints

A 100 MW very large-scale photovoltaic power generation (VLS-PV) system is designed assuming that it will be installed in the Gobi desert, which is one of the major deserts in the world. Array arrangement, array support, foundation, wiring, and so on are designed in detail. Then energy payback time (EPT), life-cycle CO₂ emission rate and generation cost of the system are estimated based on the methodology of life-cycle analysis. As a result of the estimation, 1.7 year of EPT and 12 g C/kWh of CO₂ emission rate are obtained. These show that VLS-PV in the Gobi desert would be very promising for the global energy and environmental issues. The generation cost is calculated at 8.6 cent/kWh assuming that PV module price is one US $/W and system lifetime is 30 years.     

An economic investigation of the wind-hydrogen projects: A case study

Hydrogen as an energy carrier can play a significant role in reducing environmental emissions if it is produced from renewable energy resources. This research aims to assess hydrogen production from wind energy considering environmental, economic, and technical aspect for the East Azerbaijan province of Iran. The economic assessment is performed by calculation of payback period, levelized cost of hydrogen, and levelized cost of electricity. Since uncertainty in the power output of wind turbines may affect the payback period, all calculations are performed for four different turbine degradation rates. While it is common in the literature to choose the wind turbine based on a single criterion, this study implements Multi-Criteria Decision-Making (MCDM) techniques for this purpose. The results of Step-wise Weight Assessment Ratio Analysis illustrates that economic issue is the most important criterion for this research. The results of Weighted Aggregated Sum Product Assessment shows that Vestas V52 is the most suitable wind turbine for Ahar and Sarab cities, while Eovent EVA120 H-Darrieus is a better choice for other stations. The most suitable location for wind power generation is found to be Ahar, where it is estimated to annually generate 2914.8 kWh of electricity at the price of 0.045 $/kWh, and 47.2 tons of hydrogen at the price of 1.38 $/kg, which result in 583 tons of CO₂ emission reduction.     

Technical and economic performance of residential solar water heating in the United States

This paper examines the regional, technical, and economic performance of residential rooftop solar water heating (SWH) technology in the U.S. It focuses on the application of SWH to consumers in the U.S. currently using electricity for water heating, which currently uses over 120 billion kWh per year. The variation in electrical energy savings due to water heating use, inlet water temperature and solar resource is estimated and applied to determine the regional “break-even” cost of SWH where the life-cycle cost of SWH is equal the life-cycle energy savings. For a typical residential consumer, a SWH system will reduce water heating energy demand by 50–85%, or a savings of 1600–2600 kWh per year. For the largest 1000 electric utilities serving residential customers in the United States as of 2008, this corresponds to an annual electric bill savings range of about $100 to over $300, reflecting the large range in residential electricity prices. This range in electricity prices, along with a variety of incentives programs corresponds to a break-even cost of SWH in the United States varying by more than a factor of five (from less than $2250/system to over $10,000/system excluding Hawaii and Alaska), despite a much smaller variation in the amount of energy saved by the systems (a factor of approximately one and a half). We also consider the relationships between collector area and technical performance, SWH price and solar fraction (percent of daily energy requirements supplied by the SWH system) and examine the key drivers behind break-even costs.     

Is inexpensive natural gas hindering the grid energy storage industry?

Grid energy storage is a maturing technology and forecasts of the industry's growth have been promising. However, recent years have realized little growth in actual deployments of grid-level storage and several high-profile storage companies and projects have failed. We hypothesize that falling natural gas prices have significantly reduced the potential profit from many U.S. energy storage projects since 2009 and quantify that effect. We use engineering–economic models to calculate the monthly revenue to energy storage devices providing frequency regulation and energy arbitrage in several electricity markets and compare that revenue to prevailing natural gas prices. We find that flywheel devices providing frequency regulation were profitable in months when natural gas prices were above $7/mcf, but face difficulties at current prices (around $4/mcf). For energy arbitrage alone, we find that the breakeven capital cost for large-scale storage was around $300/kWh in several key locations in 2004–2008, but is around $100/kWh in the same locations today. Though cost and performance improvements have been continually decreasing the effective cost of energy services from storage, fundamental market signals indicating the need for energy storage are at or near 10-year lows for both energy arbitrage and frequency regulation.     

A life-cycle analysis on thin-film CdS/CdTe PV modules

Authors have evaluated the life cycle of a thin-film CdS/CdTe PV module to estimate the energy payback time (EPT) and the life-cycle CO₂ emissions of a residential rooftop PV system using the CdS/CdTe PV modules. The primary energy requirement for producing 1 m² of the CdS/CdTe PV module was similar to a-Si PV module at annual production scale of 100 MW. EPT was calculated at 1.7–1.1 yr, which was much shorter than the lifetime of the PV system and similar to that of a-Si PV modules. The life-cycle CO₂ emissions were also estimated at 14–9 g-C/kWh, which was less than that of electricity generated by utility companies.     

Determining profits for solar energy with remote sensing data

The objects of the article are to determine the profits for solar energy integrating remote sensing data: the optimal locations of photovoltaic and the base price of electricity resulting from solar energy. An illustrated experiment with five European countries data sets is taken. Results indicate that Germany is the only optimal region to set up photovoltaic so as to satisfy the electricity demand of the five considered. Results also show that solar energy is a promising energy source since the highest base price of electricity resulting from solar energy is only 0.35 $/kWh. The base electricity price for Germany is the lowest whereas the base electricity price for Italy is the highest. Moreover, the results further indicate that the photovoltaic module price plays a key role in determining the best appropriate region(s) to install photovoltaic and the base electricity price.     

Optimum energy evaluation and life cycle cost assessment of a hydrogen liquefaction system assisted by geothermal energy

In this study, analyses of the thermodynamic performance and life cycle cost of a geothermal energy-assisted hydrogen liquefaction system were performed in a computer environment. Geothermal water at a temperature of 200 °C and a flow rate of 100 kg/s was used to produce electricity. The produced electricity was used as a work input to liquefy the hydrogen in the advanced liquefaction cycle. The net work requirement for the liquefaction cycle was calculated as 8.6 kWh/kg LH₂. The geothermal power plant was considered as the work input in the liquefaction cycle. The hydrogen could be liquefied at a mass flow rate of 0.2334 kg/s as the produced electricity was used directly to produce liquid hydrogen in the liquefaction cycle. The unit costs of electricity and liquefied hydrogen were calculated as 0.012 $/kWh and 1.44 $/kg LH₂. As a result of the life cycle cost analysis of the system, the net present value (NPV) and levelized annual cost (LAC) were calculated as 123,100,000 and 14,450,000 $/yr. The simple payback period (N_spp) and discount payback period (N_dpp) of the system were calculated as 2.9 and 3.6 years, respectively.     

Hydrogen as a long-term,large-scale energy storage solution when coupled with renewable energy sources or grids with dynamic electricity pricing schemes

One of the key challenges that still facing the adoption of renewable energy systems is having a powerful energy storage system (ESS) that can store energy at peak production periods and return it back when the demand exceeds the supply. In this paper, we discuss the costs associated with storing excess energy from power grids in the form of hydrogen using proton exchange membrane (PEM) reversible fuel cells (RFC). The PEM-RFC system is designed to have dual functions: (1) to use electricity from the wholesale electricity market when the wholesale price reaches low competitive values, use it to produce hydrogen and then convert it back to electricity when the prices are competitive, and (2) to produce hydrogen at low costs to be used in other applications such as a fuel for fuel cell electric vehicles. The main goal of the model is to minimize the levelized cost of energy storage (LCOS), thus the LCOS is used as the key measure for evaluating this economic point. LCOS in many regions in United States can reach competitive costs, for example lowest LCOS can reach 16.4¢/kWh in Illinois (MISO trading hub) when the threshold wholesale electricity price is set at $25/MWh, and 19.9¢/kWh in Texas (ERCOT trading hub) at threshold price of $20/MWh. Similarly, the levelized cost of hydrogen production shows that hydrogen can be produced at very competitive costs, for example the levelized cost of hydrogen production can reach $2.54/kg-H₂ when using electricity from MISO hub. This value is close to the target set by the U.S. Department of Energy.     

Realistic generation cost of solar photovoltaic electricity

Solar photovoltaic (SPV) power plants have long working life with zero fuel cost and negligible maintenance cost but requires huge initial investment. The generation cost of the solar electricity is mainly the cost of financing the initial investment. Therefore, the generation cost of solar electricity in different years depends on the method of returning the loan. Currently levelized cost based on equated payment loan is being used. The static levelized generation cost of solar electricity is compared with the current value of variable generation cost of grid electricity. This improper cost comparison is inhibiting the growth of SPV electricity by creating wrong perception that solar electricity is very expensive. In this paper a new method of loan repayment has been developed resulting in generation cost of SPV electricity that increases with time like that of grid electricity. A generalized capital recovery factor has been developed for graduated payment loan in which capital and interest payment in each installment are calculated by treating each loan installment as an independent loan for the relevant years. Generalized results have been calculated which can be used to determine the cost of SPV electricity for a given system at different places. Results show that for SPV system with specific initial investment of 5.00 $/kWh/year, loan period of 30 years and loan interest rate of 4% the levelized generation cost of SPV electricity with equated payment loan turns out to be 28.92 ¢/kWh, while the corresponding generation cost with graduated payment loan with escalation in annual installment of 8% varies from 9.51 ¢/kWh in base year to 88.63 ¢/kWh in 30th year. So, in this case, the realistic current generation cost of SPV electricity is 9.51 ¢/kWh and not 28.92 ¢/kWh. Further, with graduated payment loan, extension in loan period results in sharp decline in cost of SPV electricity in base year. Hence, a policy change is required regarding the loan repayment method. It is proposed that to arrive at realistic cost of SPV electricity long-term graduated payment loans may be given for installing SPV power plants such that the escalation in annual loan installments be equal to the estimated inflation in the price of grid electricity with loan period close to working life of SPV system.     

Economic assessment of biogas-to-electricity generation system with H2S removal by activated carbon in small pig farm

This study was conducted to assess the economic feasibility of electricity generation from biogas in small pig farms with and without the H₂S removal prior to biogas utilisation. The 2% potassium iodide (KI) impregnated activated carbon selected as H₂S adsorbent was introduced to a biogas-to-electricity generation system in a small pig farm in Thailand as a case study. With the average inlet H₂S concentration of about 2400 ppm to the adsorption unit, the H₂S removal efficiency could reach 100% with the adsorption capacity of 0.062 kg of H₂S/kg of adsorbent. Under the reference scenario (i.e., 45% subsidy on digester installation and fixed electricity price at 0.06 Euro/kWh) and based on an assumption that the biogas was fully utilised for electricity generation in the system, the payback period for the system without H₂S removal was about 4 years. With H₂S removal, the payback period was within the economic life of digester but almost twice that of the case without H₂S removal. The impact of electricity price could be clearly seen for the case of treated biogas. At the electricity price fixed at 0.07 Euro/kWh, the payback period for the case of treated biogas was reduced to about 5.5 years, with a trend to decrease at higher electricity prices. For both treated and untreated biogas, the governmental subsidy was the important factor determining the economics of the biogas-to-electricity systems. Without subsidy, the payback period increased to almost 7 years and about 11 years for the case of untreated and treated biogas, respectively, at the reference electricity price. Although the H₂S removal added high operation cost to the system, it is still highly recommended not only for preventing engine corrosion but also for the environment benefit in which air pollution by H₂S/SO₂ emission and impact on human health could be potentially reduced.     

Economic feasibility of campus-wide photovoltaic systems in New England

Compared to the national average residential retail electricity price, Connecticut (CT) had the 4th highest electricity price in the country with 19.23 cents/kWh in September 2015, nearly 50% higher than the national average for price of electricity. This study aims to assess the economic feasibility of the solar PV systems at the campus under realistic constraints, by analyzing actual data from the solar array on campus. The project focused on the economic feasibility of solar PV systems on campus with physical, spatial, and practical constraints that result in a project to deviate from theoretical (estimated) values. To achieve that, the prediction of the PV power generation from the building was developed and compared with the actual (measured) data.The average payback period of a campus-wide PV system was calculated as primarily 11 years, within a range of 8–12 years, and was estimated to reduce overall building operating expenses by $250,000, or 8%. The economic parameters such as NPV and IRR also validated the investment worthiness. The results of the study could be used to analyze or further develop feasibility studies of PV systems at other universities in Connecticut and neighboring states that share similar climatic characteristics and economic factors.     

Economic feasibility of electricity production from energy plantations present on community-managed forestlands in Madhya Pradesh,India

This paper assesses economic feasibility of utilizing community-managed degraded forest areas for raising energy crops and using the produced biomass for electricity production in the state of Madhya Pradesh, India through gasification technology. Three fast-growing species, three gasifiers of different capacities, three capital costs, and two scenarios of carbon payments were considered for analysis. Sensitivity and risk analyses were undertaken for determining the effects of variations in inputs on selected outputs. Results suggest that 5 million megawatt hour electricity can be generated annually which will prevent 4 million tons of carbon dioxide emissions per year. The production cost of a unit of electricity was found inversely related to the scale of production. The average cost of electricity at the consumer level produced using 100 kW gasifier was $0.15/kWh, which was greater than the price of electricity supplied from grid i.e. $0.08/kWh. The unit cost of producing electricity using Acacia nilotica was lowest among all the selected species. Technological advancements suitable government incentives are needed to promote electricity generation from forest biomass through gasification technology. This will help in spurring economic development and reducing overall ecological footprint of the state.     

Co-production of electricity and hydrogen from wind: A comprehensive scenario-based techno-economic analysis

The aim of this study is to investigate the economic prospects of producing electricity and hydrogen using wind energy under different scenarios. For this, the most essential criteria to investors including Levelized Cost of Wind-generated Electricity (LCOWE), Levelized Cost of Wind-based Hydrogen (LCOWH), payback period, and rate of return are examined. Technical and environmental impacts are factored into the LCOWE formulation to obtain comprehensive insight. Owing to the uncertain nature of future, five degradation rates concerned with wind turbine performance and five likely rates as to the future value of money are investigated under the scenarios of I) utilizing wind electricity to replace fuel oil electricity, II) to replace natural gas electricity and III) without considering environmental penalties. The results indicate that LCOWE would be in the range of 0.0325–0.0755 $/kWh, while the corresponding LCOWH being in the range of 1.375–1.59 $/kg. Moreover, payback period of the related LCOWE and LCOWH would be in the range of 2.55–9.48 yr during the lifetime of wind power plant and 3.91–8.41 yr during that of hydrogen production system, respectively. The corresponding rate of return pertinent to the above-mentioned ones would be respectively in the range of 14.15–23.54% and of 9.87–21.55%.     

Economic feasibility of large community feed-in tariff-eligible wind energy production in Nova Scotia

Nova Scotia, Canada's community feed-in tariff (COMFIT) scheme is the world's first feed-in tariff program specifically targeting locally-based renewable energy projects. This study investigated selected turbine capacities to optimize electricity production, based on actual wind profiles for three sites in Nova Scotia, Canada (i.e., Sydney, Caribou Point, and Greenwood). The turbine capacities evaluated are also eligible under the current COMFIT-large scheme in Nova Scotia, including 100 kW, 900 kW and 2.0 MW turbines. A capital budgeting model was developed and then used to evaluate investment decisions on wind power production. Wind duration curves suggest that Caribou Point had the highest average wind speeds but for shorter durations. By comparison, Sydney and Greenwood had lower average wind speeds but with longer durations. Electricity production cost was lowest for the 2.0 MW turbine in Caribou Point ($0.07 per kWh), and highest for the 100 kW turbine located in Greenwood ($0.49 per kWh). The most financially viable wind power project was the 2.0 MW turbine assumed to operate at 80 m hub height in Caribou Point, with NPV=$251,586, and BCR=1.51. Wind power production for the remaining two sites was generally not financially feasible for the turbine capacities considered. The impact of promoting local economic development from wind power projects was higher in a scenario under which wind turbines were clustered at a single site with the highest wind resources than generating a similar level of electricity by distributing the wind turbines across multiple locations.     

Price development of photovoltaic modules,inverters, and systems in the Netherlands in 2012

Since 2010 the Dutch photovoltaic (PV) market has been growing fast, with around doubling of installed capacity in 2011 and 2012. Four quarterly inventories have been made in 2012 for modules, inverters, and systems that are presently available for purchase in the Netherlands. We have found that the average selling price of modules, inverters, and systems decreased with 44.3, 14, and 7.3–10.2%, respectively: average selling prices are 1.26 €/Wp, 0.41 €/Wp, and 1.46 €/Wp for modules, inverters, and systems on tilted roofs, respectively, at the end of 2012. Average installation costs amount to 0.43 €/Wp. Using an energy yield of 900 kWh/kWp, 25 years system lifetime, 6% discount rate, and 1% operation and maintenance (O&M) cost, a levelized cost of electricity (LCOE) is calculated for a 2.5 kWp system to be 0.194 €/kWh for a system price of 1.98 €/Wp (including installation). Grid parity conditions are apparent, with electricity retail prices of around 0.23 €/kWh.     

Optimal and energy efficient operation of conveyor belt systems with downhill conveyors

Downhill conveyors are important potential energy sources within conveyor belt systems (CBSs). Their energy can be captured using regenerative drives. This paper presents a generic optimisation model for the energy management of CBSs that have downhill conveyors. The optimisation model is able to optimally schedule three configurations of a case-study CBS that is connected to the grid and operated under a time-of-use tariff. The three suggested drive configurations showcase potential energy savings/incomes that can be obtained from implementing: (a) variable speed control, (b) internal use of downhill conveyor energy and (c) the export of energy to the grid. The results show that a CBS with a daily energy consumption of 924 kWh can be reconfigured and controlled to reduce consumption by 53 or 100 % or be made to generate 1984 kWh, depending on the configuration. Analysis of the investment in each of the three configurations is assessed using a life-cycle cost and payback period (PBP). The daily operation simulation results show that the use of regenerative drives and variable speed control is able to provide energy savings in CBSs. The cost analysis shows that the configuration that enables sale of energy to the grid is the most profitable arrangement, for the case study plant under consideration. The sensitivity analysis indicates that the PBPs are more sensitive to the annual electricity price increases than changes in the discount rate. Combining regenerative drives and optimal operation of CBS generates energy savings that give attractive PBPs of less than 5 years.     

Techno-economic evaluation of a grid-connected PV-trigeneration-hydrogen production hybrid system on a university campus

Many universities have plans to reduce campus energy consumption with developed energy efficiency strategies, supply the energy needs of the university campus with renewable energy and create a green campus. In order to serve this purpose, this study focuses on the simulation of the installation of an on-grid photovoltaic (PV) power system at the Vocational Colleges Campus, Hitit University. On the other hand, the integration of the simulated PV system with a gas fired-trigeneration system is discussed. Moreover, the study explores opportunities for solar hydrogen generation without energy storage on campus. For the PV system simulation, three different scenarios were created by using web-based PV system design software (HelioScope). Installed powers in the simulation were found as 94.2 kWe, 123.9 kWe, and 157.5 kWe for the low scenario (on the rooftop), high scenario (on the rooftop), and the high + PV canopy arrays scenario (on the rooftop and an outdoor parking area), respectively. The levelized cost of electricity (LCOE) values were 0.061 $/kWh, 0.065 $/kWh, and 0.063 $/kWh for the low scenario, high scenario, and the scenario including PV canopy, respectively. The energy payback time is found to be 6.47–6.94 years for the 20–25 years lifetime of the PV plant. The simulation results showed that the PV system could support it by generating additional electrical energy up to 25% of the existing system. The campus can reduce GHG emissions of 1546–2272 tonnes-CO₂eq, which is equivalent to 142–209 ha of forest-absorbing carbon unused during the life of the PV system. Depending on the production and consumption methods utilized on campus, which is a location with relatively large solar potential, the levelized cost of hydrogen (LCOH) of hydrogen generation ranged from 0.054 $/kWhH₂ (1.78 $/kgH₂) to 0.103 $/kWhH₂ (3.4 $/kgH₂). Consequently, with proper planning and design, a grid-connected PV-trigeneration-hydrogen generation hybrid system on a university campus may operate successfully.