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A computational tool for evaluating the economics of solar and wind microgeneration of electricity

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  • Kelleher, J.
  • Ringwood, J.V.

Abstract

This paper presents a method, implemented as a freely available computer programme, which is used to estimate the economics of renewable microgeneration of electricity from wind and solar energy sources. A variety of commercial small wind turbines and photovoltaic (PV) panels are considered and combined with raw energy data gathered from a variety of locations. Both residential and holiday home user profiles are available and options are selectable concerning feed-in tariffs (if available), government incentive schemes and the cost of capital borrowing. The configuration of the generation setup, which can consist of wind, PV and combination of wind/PV, is fully selectable by the user, with a range of appropriate default data provided. A numerical example, based on Irish data, is presented, which suggests that payback periods for solar and wind microgeneration systems can vary greatly (2.5–500 years), depending on the location, installation and economic variables.

Suggested Citation

  • Kelleher, J. & Ringwood, J.V., 2009. "A computational tool for evaluating the economics of solar and wind microgeneration of electricity," Energy, Elsevier, vol. 34(4), pages 401-409.
    • Handle: RePEc:eee:energy:v:34:y:2009:i:4:p:401-409
    DOI: 10.1016/j.energy.2008.10.009
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    References listed on IDEAS

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    3. Dalton, G.J. & Lockington, D.A. & Baldock, T.E., 2008. "Feasibility analysis of stand-alone renewable energy supply options for a large hotel," Renewable Energy, Elsevier, vol. 33(7), pages 1475-1490.
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    Cited by:

    1. Bortolini, Marco & Gamberi, Mauro & Graziani, Alessandro & Manzini, Riccardo & Pilati, Francesco, 2014. "Performance and viability analysis of small wind turbines in the European Union," Renewable Energy, Elsevier, vol. 62(C), pages 629-639.
    2. Yasser Maklad, 2014. "Quantification and Costing of Domestic Electricity Generation for Armidale, New South Wales, Australia Utilising Micro Wind Turbines," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 208-219.
    3. Willis, Ken & Scarpa, Riccardo & Gilroy, Rose & Hamza, Neveen, 2011. "Renewable energy adoption in an ageing population: Heterogeneity in preferences for micro-generation technology adoption," Energy Policy, Elsevier, vol. 39(10), pages 6021-6029, October.
    4. Orioli, Aldo & Di Gangi, Alessandra, 2013. "Effects of the Italian financial crisis on the photovoltaic dissemination in a southern city," Energy, Elsevier, vol. 62(C), pages 173-184.
    5. Watts, David & Durán, Pablo & Flores, Yarela, 2017. "How does El Niño Southern Oscillation impact the wind resource in Chile? A techno-economical assessment of the influence of El Niño and La Niña on the wind power," Renewable Energy, Elsevier, vol. 103(C), pages 128-142.
    6. Fahd Diab & Hai Lan & Lijun Zhang & Salwa Ali, 2015. "An Environmentally-Friendly Tourist Village in Egypt Based on a Hybrid Renewable Energy System––Part One: What Is the Optimum City?," Energies, MDPI, vol. 8(7), pages 1-19, July.
    7. Chen, Yen-Haw & Lu, Su-Ying & Chang, Yung-Ruei & Lee, Ta-Tung & Hu, Ming-Che, 2013. "Economic analysis and optimal energy management models for microgrid systems: A case study in Taiwan," Applied Energy, Elsevier, vol. 103(C), pages 145-154.
    8. Li, Zhe & Reynolds, Anthony & Boyle, Fergal, 2014. "Domestic integration of micro-renewable electricity generation in Ireland – The current status and economic reality," Renewable Energy, Elsevier, vol. 64(C), pages 244-254.
    9. Fulong Ning & Nengyou Wu & Guosheng Jiang & Ling Zhang & Jin’an Guan & Yibing Yu & Fenglin Tang, 2010. "A Method to Use Solar Energy for the Production of Gas from Marine Hydrate-Bearing Sediments: A Case Study on the Shenhu Area," Energies, MDPI, vol. 3(12), pages 1-19, December.
    10. Li, Zhe & Boyle, Fergal & Reynolds, Anthony, 2011. "Domestic application of solar PV systems in Ireland: The reality of their economic viability," Energy, Elsevier, vol. 36(10), pages 5865-5876.
    11. Janajreh, Isam & Su, Liu & Alan, Fathi, 2013. "Wind energy assessment: Masdar City case study," Renewable Energy, Elsevier, vol. 52(C), pages 8-15.
    12. Abbes, Mohamed & Belhadj, Jamel, 2012. "Wind resource estimation and wind park design in El-Kef region, Tunisia," Energy, Elsevier, vol. 40(1), pages 348-357.
    13. Hu, Ming-Che & Lu, Su-Ying & Chen, Yen-Haw, 2016. "Stochastic programming and market equilibrium analysis of microgrids energy management systems," Energy, Elsevier, vol. 113(C), pages 662-670.
    14. Keyhani, A. & Ghasemi-Varnamkhasti, M. & Khanali, M. & Abbaszadeh, R., 2010. "An assessment of wind energy potential as a power generation source in the capital of Iran, Tehran," Energy, Elsevier, vol. 35(1), pages 188-201.
    15. Li, Chong & Ge, Xinfeng & Zheng, Yuan & Xu, Chang & Ren, Yan & Song, Chenguang & Yang, Chunxia, 2013. "Techno-economic feasibility study of autonomous hybrid wind/PV/battery power system for a household in Urumqi, China," Energy, Elsevier, vol. 55(C), pages 263-272.
    16. Li, Zhe & Boyle, Fergal & Reynolds, Anthony, 2012. "Domestic application of micro wind turbines in Ireland: Investigation of their economic viability," Renewable Energy, Elsevier, vol. 41(C), pages 64-74.
    17. Hua, Jian & Shiu, Hong-Gwo, 2018. "Sustainable development of renewable energy on Wangan Island, Taiwan," Utilities Policy, Elsevier, vol. 55(C), pages 200-208.
    18. Walters, Ryan & Walsh, Philip R., 2011. "Examining the financial performance of micro-generation wind projects and the subsidy effect of feed-in tariffs for urban locations in the United Kingdom," Energy Policy, Elsevier, vol. 39(9), pages 5167-5181, September.
    19. de Jesus, Ábio Xavier Cardoso & Pinheiro Neto, Daywes & Domingues, Elder Geraldo, 2023. "Computational tool for technical-economic analysis of photovoltaic microgeneration in Brazil," Energy, Elsevier, vol. 271(C).
    20. Klingler, Anna-Lena, 2017. "Self-consumption with PV+Battery systems: A market diffusion model considering individual consumer behaviour and preferences," Applied Energy, Elsevier, vol. 205(C), pages 1560-1570.

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    More about this item

    Keywords

    Microgeneration; Wind power; Solar power; Payback period; Economics;
    All these keywords.

    JEL classification:

    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools

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