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Re-considering the economics of photovoltaic power

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  • Bazilian, Morgan
  • Onyeji, Ijeoma
  • Liebreich, Michael
  • MacGill, Ian
  • Chase, Jennifer
  • Shah, Jigar
  • Gielen, Dolf
  • Arent, Doug
  • Landfear, Doug
  • Zhengrong, Shi
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    Abstract

    This paper briefly considers the recent dramatic reductions in the underlying costs and market prices of solar photovoltaic (PV) systems, and their implications for decision-makers. In many cases, current PV costs and the associated market and technological shifts witnessed in the industry have not been fully noted by decision-makers. The perception persists that PV is prohibitively expensive, and still has not reached ‘competitiveness’. The authors find that the commonly used analytical comparators for PV vis a vis other power generation options may add further confusion. In order to help dispel existing misconceptions, some level of transparency is provided on the assumptions, inputs and parameters in calculations relating to the economics of PV. The paper is aimed at informing policy makers, utility decision-makers, investors and advisory services, in particular in high-growth developing countries, as they weigh the suite of power generation options available to them.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0960148112007641
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    Bibliographic Info

    Article provided by Elsevier in its journal Renewable Energy.

    Volume (Year): 53 (2013)
    Issue (Month): C ()
    Pages: 329-338

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    Handle: RePEc:eee:renene:v:53:y:2013:i:c:p:329-338

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    Web page: http://www.journals.elsevier.com/renewable-energy

    Related research

    Keywords: Photovoltaics; Energy economics; Energy policy;

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    Cited by:
    1. Brigitte Knopf & Bjorn Bakken & Samuel Carrara & Amit Kanudia & Ilkka Keppo & Tiina Koljonen & Silvana Mima & Eva Schmid & Detlef Van Vuuren, 2013. "Transforming the European Energy System: Member States' Prospects within the EU Framework," Post-Print halshs-00936127, HAL.
    2. Janosch Ondraczek, 2013. "Are we there yet? Improving solar PV economics and power planning in developing countries: The case of Kenya," Working Papers FNU-200, Research unit Sustainability and Global Change, Hamburg University.
    3. Lion Hirth, 2013. "The Optimal Share of Variable Renewables. How the Variability of Wind and Solar Power Affects their Welfare-optimal Deployment," Working Papers 2013.90, Fondazione Eni Enrico Mattei.
    4. John Foster & Liam Wagner, 2014. "International experience with transformations in electricity markets: A Short Literature Review," Energy Economics and Management Group Working Papers 2-2014, School of Economics, University of Queensland, Australia.
    5. Dong, Changgui & Wiser, Ryan, 2013. "The impact of city-level permitting processes on residential photovoltaic installation prices and development times: An empirical analysis of solar systems in California cities," Energy Policy, Elsevier, vol. 63(C), pages 531-542.

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