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Industrial Photovoltaic Systems: An Economic Analysis in Non-Subsidized Electricity Markets

Author

Listed:
  • Federica Cucchiella

    (Department of Industrial and Information Engineering and Economics, University of L’Aquila, Via G. Gronchi 18, L’Aquila 67100, Italy)

  • Idiano D’Adamo

    (Department of Industrial and Information Engineering and Economics, University of L’Aquila, Via G. Gronchi 18, L’Aquila 67100, Italy)

  • Paolo Rosa

    (Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Piazza L. Da Vinci 32, Milano 20133, Italy)

Abstract

Photovoltaic (PV) systems are becoming a relevant electricity source, characterised by a growing trend in the last years. This paper analyses the economic feasibility of investments in industrial PV systems of different sizes (200 kW, 400 kW, 1 MW, and 5 MW), in the absence of subsidies, and in a mature market (Italy). The selected indicators for this kind of assessment are net present value (NPV) and discounted payback time (DPBT). Furthermore, the environmental advantage in comparison to fossil sources of energy is evaluated through the reduction of carbon dioxide emissions (ER cd ). Finally, a sensitivity analysis on critical variables (percentage of self-consumed energy, average annual insolation rate, annual electricity purchase price, annual electricity sale price, unitary investment cost and opportunity cost) is conducted. Results highlight the strategic role of self-consumption in a market characterised by an absence of public policy incentives and the presence of interesting economic opportunities for industrial applications.

Suggested Citation

  • Federica Cucchiella & Idiano D’Adamo & Paolo Rosa, 2015. "Industrial Photovoltaic Systems: An Economic Analysis in Non-Subsidized Electricity Markets," Energies, MDPI, vol. 8(11), pages 1-16, November.
    • Handle: RePEc:gam:jeners:v:8:y:2015:i:11:p:12350-12880:d:58716
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    2. Vladimír Hönig & Petr Prochazka & Michal Obergruber & Luboš Smutka & Viera Kučerová, 2019. "Economic and Technological Analysis of Commercial LNG Production in the EU," Energies, MDPI, vol. 12(8), pages 1-17, April.
    3. Nuria Novas & Alfredo Alcayde & Isabel Robalo & Francisco Manzano-Agugliaro & Francisco G. Montoya, 2020. "Energies and Its Worldwide Research," Energies, MDPI, vol. 13(24), pages 1-41, December.
    4. Dariusz Kurz & Agata Nowak, 2023. "Analysis of the Impact of the Level of Self-Consumption of Electricity from a Prosumer Photovoltaic Installation on Its Profitability under Different Energy Billing Scenarios in Poland," Energies, MDPI, vol. 16(2), pages 1-40, January.
    5. Cucchiella, Federica & D’Adamo, Idiano & Gastaldi, Massimo & Koh, SC Lenny & Rosa, Paolo, 2017. "A comparison of environmental and energetic performance of European countries: A sustainability index," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 401-413.
    6. Rômulo de Oliveira Azevêdo & Paulo Rotela Junior & Luiz Célio Souza Rocha & Gianfranco Chicco & Giancarlo Aquila & Rogério Santana Peruchi, 2020. "Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments," Sustainability, MDPI, vol. 12(17), pages 1-40, September.

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