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Ex-post economic analysis of photovoltaic power in the Spanish grid: Alternative scenarios

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  • Azofra, D.
  • Saenz-Díez, J.C.
  • Martínez, E.
  • Jiménez, E.
  • Blanco, J.

Abstract

Nowadays, photovoltaic technology as a whole is considered to cause deficit to the Spanish power system, because the bonuses that it receives are higher than the savings generated over the electricity prices thanks to the merit-order-effect. However, the bonuses to generation for new facilities have undergone significant declines over the past five years, along with the drop in the prices of modules. That means that the economic influence of photovoltaic power is highly penalized by the existing feed-in-tariff scheme presented in the years 2007 and 2008, which gave way to the Spanish photovoltaic boom. Based on these facts, the economic profitability to the system of the latest installed photovoltaic plants is analyzed; reaching the conclusion that the facilities registered in and after the second quarter of 2011 have been profitable to the system in the fourth quarter of 2012, and are very close to being profitable for the whole year. Finally, based on the aforementioned conclusions, alternative scenarios for the deployment of photovoltaic power in the Spanish grid are presented, based on a temporary redistribution of the facilities that fostered the boom, to provide a better understanding of the situation. This knowledge may be a valuable tool for less developed countries in terms of photovoltaic energy.

Suggested Citation

  • Azofra, D. & Saenz-Díez, J.C. & Martínez, E. & Jiménez, E. & Blanco, J., 2016. "Ex-post economic analysis of photovoltaic power in the Spanish grid: Alternative scenarios," Renewable Energy, Elsevier, vol. 95(C), pages 98-108.
    • Handle: RePEc:eee:renene:v:95:y:2016:i:c:p:98-108
    DOI: 10.1016/j.renene.2016.04.005
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    2. Ribó-Pérez, David & Van der Weijde, Adriaan H. & Álvarez-Bel, Carlos, 2019. "Effects of self-generation in imperfectly competitive electricity markets: The case of Spain," Energy Policy, Elsevier, vol. 133(C).
    3. Kriechbaum, Michael & López Prol, Javier & Posch, Alfred, 2018. "Looking back at the future: Dynamics of collective expectations about photovoltaic technology in Germany & Spain," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 76-87.
    4. Sergio Coronas & Jordi de la Hoz & Àlex Alonso & Helena Martín, 2022. "23 Years of Development of the Solar Power Generation Sector in Spain: A Comprehensive Review of the Period 1998–2020 from a Regulatory Perspective," Energies, MDPI, vol. 15(4), pages 1-53, February.

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