Analytical model for solar PV and CSP electricity costs: Present LCOE values and their future evolution
AbstractIn this paper we first make a review of the past annual production of electricity and the cumulative installed capacity for photovoltaic (PV) and concentrating solar power (CSP) technologies. This together with the annual costs of PV modules and CSP systems allows us the determination of the experience curves and the corresponding learning rates. Then, we go over a rigorous exposition of the methodology employed for the calculation of the value of the levelized cost of electricity (LCOE) for PV and CSP. Based on this knowledge, we proceed to establish a mathematical model which yields closed-form analytical expressions for the present value of the LCOE, as well as its future evolution (2010–2050) based on the International Energy Agency roadmaps for the cumulative installed capacity. Next, we explain in detail how specific values are assigned to the twelve independent variables which enter the LCOE formula: solar resource, discount and learning rates, initial cost and lifetime of the system, operational and maintenance costs, etc. With all this background, and making use of a simple computer simulation program, we can generate the following: sensitivity analysis curves, graphs on the evolution of the LCOE in the period 2010–2050, and calculations of the years at which grid parities will be reached. These representations prove to be very useful in energy planning policies, like tariff-in schemes, tax exemptions, etc., and in making investment decisions, since they allow, for a given location, to directly compare the costs of PV vs CSP power generation technologies for the period 2010–2050. Among solar technologies, PV seems always more appropriate for areas located in middle to high latitudes of the Earth, while CSP systems, preferably with thermal storage incorporated, yield their best performance in arid areas located at relatively low latitudes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Renewable and Sustainable Energy Reviews.
Volume (Year): 20 (2013)
Issue (Month): C ()
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Felix Groba & Barbara Breitschopf, 2013. "Impact of Renewable Energy Policy and Use on Innovation: A Literature Review," Discussion Papers of DIW Berlin 1318, DIW Berlin, German Institute for Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.