IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v153y2020icp509-521.html
   My bibliography  Save this article

Economic analysis and impact on national grid by domestic photovoltaic system installations in Pakistan

Author

Listed:
  • Shabbir, Noman
  • Usman, Muhammad
  • Jawad, Muhammad
  • Zafar, Muhammad H.
  • Iqbal, Muhammad N.
  • Kütt, Lauri

Abstract

Pakistan is facing an increasing energy crisis with every passing year due to a growing population and increased industrial zones. Moreover, the energy cost is very high as it is mostly generated from conventional energy sources. Conversely, Pakistan has excellent potential for solar power generation as it lies near the equator. Due to the recent decrease in solar Photovoltaic (PV) costs, Pakistan is moving towards these solutions for both on-grid and off-grid systems. Therefore, this article focuses on the solar irradiance behavior and computation of the PV panel’s optimum angle for maximum energy harvesting in Pakistan. Moreover, the domestic economic analysis of rooftop solar PV systems is conducted based on investment cost, payback period, electricity bills reduction, and optimal metering scheme selection. Furthermore, the impact of domestic PV systems on the power grid is evaluated based on a reduction in the electrical load. This study has the potential to encourage consumers to gain monetary benefits from the investments in domestic PV systems by selling excess energy to the local distribution company. All simulations are performed in sol-metric sun-eye software. These simulations results are more versatile and meaningful under the ground conditions and actualities of Pakistan.

Suggested Citation

  • Shabbir, Noman & Usman, Muhammad & Jawad, Muhammad & Zafar, Muhammad H. & Iqbal, Muhammad N. & Kütt, Lauri, 2020. "Economic analysis and impact on national grid by domestic photovoltaic system installations in Pakistan," Renewable Energy, Elsevier, vol. 153(C), pages 509-521.
    • Handle: RePEc:eee:renene:v:153:y:2020:i:c:p:509-521
    DOI: 10.1016/j.renene.2020.01.114
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148120301361
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2020.01.114?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rashwan, Sherif S. & Shaaban, Ahmed M. & Al-Suliman, Fahad, 2017. "A comparative study of a small-scale solar PV power plant in Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 313-318.
    2. Harijan, Khanji & Uqaili, Mohammad A. & Memon, Mujeebuddin & Mirza, Umar K., 2011. "Forecasting the diffusion of wind power in Pakistan," Energy, Elsevier, vol. 36(10), pages 6068-6073.
    3. Sheikh, Munawar A., 2010. "Energy and renewable energy scenario of Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 354-363, January.
    4. Nogueira, Carlos Eduardo Camargo & Vidotto, Magno Luiz & Niedzialkoski, Rosana Krauss & de Souza, Samuel Nelson Melegari & Chaves, Luiz Inácio & Edwiges, Thiago & Santos, Darlisson Bentes dos & Wernck, 2014. "Sizing and simulation of a photovoltaic-wind energy system using batteries, applied for a small rural property located in the south of Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 151-157.
    5. Celik, Ali Naci, 2006. "Present status of photovoltaic energy in Turkey and life cycle techno-economic analysis of a grid-connected photovoltaic-house," Renewable and Sustainable Energy Reviews, Elsevier, vol. 10(4), pages 370-387, August.
    6. Barbose, Galen & Wiser, Ryan & Heeter, Jenny & Mai, Trieu & Bird, Lori & Bolinger, Mark & Carpenter, Alberta & Heath, Garvin & Keyser, David & Macknick, Jordan & Mills, Andrew & Millstein, Dev, 2016. "A retrospective analysis of benefits and impacts of U.S. renewable portfolio standards," Energy Policy, Elsevier, vol. 96(C), pages 645-660.
    7. Ullah, Asad & Imran, Hassan & Maqsood, Zaki & Butt, Nauman Zafar, 2019. "Investigation of optimal tilt angles and effects of soiling on PV energy production in Pakistan," Renewable Energy, Elsevier, vol. 139(C), pages 830-843.
    8. Mahmoud, Marwan M. & Ibrik, Imad H., 2006. "Techno-economic feasibility of energy supply of remote villages in Palestine by PV-systems, diesel generators and electric grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 10(2), pages 128-138, April.
    9. Ghafoor, Abdul & Rehman, Tanzeel ur & Munir, Anjum & Ahmad, Manzoor & Iqbal, Muhammad, 2016. "Current status and overview of renewable energy potential in Pakistan for continuous energy sustainability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1332-1342.
    10. Farooq, Muhammad Khalid & Kumar, S., 2013. "An assessment of renewable energy potential for electricity generation in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 240-254.
    11. Asif, M., 2009. "Sustainable energy options for Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(4), pages 903-909, May.
    12. Silva, S.B. & Severino, M.M. & de Oliveira, M.A.G., 2013. "A stand-alone hybrid photovoltaic, fuel cell and battery system: A case study of Tocantins, Brazil," Renewable Energy, Elsevier, vol. 57(C), pages 384-389.
    13. Ghafoor, Abdul & Munir, Anjum, 2015. "Design and economics analysis of an off-grid PV system for household electrification," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 496-502.
    14. Omar, Moien A. & Mahmoud, Marwan M., 2018. "Grid connected PV- home systems in Palestine: A review on technical performance, effects and economic feasibility," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2490-2497.
    15. Numbi, B.P. & Malinga, S.J., 2017. "Optimal energy cost and economic analysis of a residential grid-interactive solar PV system- case of eThekwini municipality in South Africa," Applied Energy, Elsevier, vol. 186(P1), pages 28-45.
    16. Jabeen, Musarrat & Umar, Muhammad & Zahid, Muhammad & Ur Rehaman, Masood & Batool, Rubeena & Zaman, Khalid, 2014. "Socio-economic prospects of solar technology utilization in Abbottabad, Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 1164-1172.
    17. Sadiqa, Ayesha & Gulagi, Ashish & Breyer, Christian, 2018. "Energy transition roadmap towards 100% renewable energy and role of storage technologies for Pakistan by 2050," Energy, Elsevier, vol. 147(C), pages 518-533.
    18. Rehman, Muhammad Saif Ur & Rashid, Naim & Saif, Ameena & Mahmood, Tariq & Han, Jong-In, 2013. "Potential of bioenergy production from industrial hemp (Cannabis sativa): Pakistan perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 154-164.
    19. Ghasemi, Golara & Noorollahi, Younes & Alavi, Hamed & Marzband, Mousa & Shahbazi, Mahmoud, 2019. "Theoretical and technical potential evaluation of solar power generation in Iran," Renewable Energy, Elsevier, vol. 138(C), pages 1250-1261.
    20. Holdermann, Claudius & Kissel, Johannes & Beigel, Jürgen, 2014. "Distributed photovoltaic generation in Brazil: An economic viability analysis of small-scale photovoltaic systems in the residential and commercial sectors," Energy Policy, Elsevier, vol. 67(C), pages 612-617.
    21. Watts, David & Valdés, Marcelo F. & Jara, Danilo & Watson, Andrea, 2015. "Potential residential PV development in Chile: The effect of Net Metering and Net Billing schemes for grid-connected PV systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1037-1051.
    22. Abbas, Tauqeer & Ahmed Bazmi, Aqeel & Waheed Bhutto, Abdul & Zahedi, Gholamreza, 2014. "Greener energy: Issues and challenges for Pakistan-geothermal energy prospective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 258-269.
    23. Dufo-López, Rodolfo & Zubi, Ghassan & Fracastoro, Gian Vincenzo, 2012. "Tecno-economic assessment of an off-grid PV-powered community kitchen for developing regions," Applied Energy, Elsevier, vol. 91(1), pages 255-262.
    24. Mirza, Umar K. & Maroto-Valer, M. Mercedes & Ahmad, Nasir, 2003. "Status and outlook of solar energy use in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 7(6), pages 501-514, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tiep, Nguyen Cong & Wang, Mengqi & Mohsin, Muhammad & Kamran, Hafiz Waqas & Yazdi, Farzaneh Ahmadian, 2021. "An assessment of power sector reforms and utility performance to strengthen consumer self-confidence towards private investment," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 676-689.
    2. Sher, Ali & Qiu, Yuzhuo, 2022. "Pakistan's solar mission: Do solar finance and subsidy remove the barriers to solar installations?," Renewable Energy, Elsevier, vol. 190(C), pages 993-1005.
    3. Sulman Shahzad & Muhammad Abbas Abbasi & Hassan Ali & Muhammad Iqbal & Rania Munir & Heybet Kilic, 2023. "Possibilities, Challenges, and Future Opportunities of Microgrids: A Review," Sustainability, MDPI, vol. 15(8), pages 1-28, April.
    4. Kutlu, Elif Ceren & Durusoy, Beyza & Ozden, Talat & Akinoglu, Bulent G., 2022. "Technical potential of rooftop solar photovoltaic for Ankara," Renewable Energy, Elsevier, vol. 185(C), pages 779-789.
    5. Noman Shabbir & Lauri Kütt & Kamran Daniel & Victor Astapov & Hadi Ashraf Raja & Muhammad Naveed Iqbal & Oleksandr Husev, 2022. "Feasibility Investigation for Residential Battery Sizing Considering EV Charging Demand," Sustainability, MDPI, vol. 14(3), pages 1-13, January.
    6. Chandel, Rahul & Chandel, Shyam Singh & Malik, Prashant, 2022. "Perspective of new distributed grid connected roof top solar photovoltaic power generation policy interventions in India," Energy Policy, Elsevier, vol. 168(C).
    7. Sun, Bohan & Gao, Ke & Liu, Shuai & Wei, Qiaoqiao & Wang, Hui, 2023. "Assessing the performance and economic viability of solar home systems: A way forward towards clean energy exploration and consumption," Renewable Energy, Elsevier, vol. 208(C), pages 409-419.
    8. Gürtürk, Mert & Ucar, Ferhat & Erdem, Murat, 2022. "A novel approach to investigate the effects of global warming and exchange rate on the solar power plants," Energy, Elsevier, vol. 239(PD).
    9. Shabbir, Noman & Kütt, Lauri & Raja, Hadi A. & Jawad, Muhammad & Allik, Alo & Husev, Oleksandr, 2022. "Techno-economic analysis and energy forecasting study of domestic and commercial photovoltaic system installations in Estonia," Energy, Elsevier, vol. 253(C).
    10. Tahir, Muhammad Usman & Siraj, Kiran & Ali Shah, Syed Faizan & Arshad, Naveed, 2023. "Evaluation of single-phase net metering to meet renewable energy targets: A case study from Pakistan," Energy Policy, Elsevier, vol. 172(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shabbir, Noman & Kütt, Lauri & Raja, Hadi A. & Jawad, Muhammad & Allik, Alo & Husev, Oleksandr, 2022. "Techno-economic analysis and energy forecasting study of domestic and commercial photovoltaic system installations in Estonia," Energy, Elsevier, vol. 253(C).
    2. Ghafoor, Abdul & Munir, Anjum, 2015. "Design and economics analysis of an off-grid PV system for household electrification," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 496-502.
    3. Shaikh, Faheemullah & Ji, Qiang & Fan, Ying, 2015. "The diagnosis of an electricity crisis and alternative energy development in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1172-1185.
    4. Wajahat Ullah Khan Tareen & Zuha Anjum & Nabila Yasin & Leenah Siddiqui & Ifzana Farhat & Suheel Abdullah Malik & Saad Mekhilef & Mehdi Seyedmahmoudian & Ben Horan & Mohamed Darwish & Muhammad Aamir &, 2018. "The Prospective Non-Conventional Alternate and Renewable Energy Sources in Pakistan—A Focus on Biomass Energy for Power Generation, Transportation, and Industrial Fuel," Energies, MDPI, vol. 11(9), pages 1-49, September.
    5. Mirjat, Nayyar Hussain & Uqaili, Mohammad Aslam & Harijan, Khanji & Valasai, Gordhan Das & Shaikh, Faheemullah & Waris, M., 2017. "A review of energy and power planning and policies of Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 110-127.
    6. Tahir, Z.R. & Asim, Muhammad, 2018. "Surface measured solar radiation data and solar energy resource assessment of Pakistan: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2839-2861.
    7. Muhammad Irfan & Zhen-Yu Zhao & Munir Ahmad & Marie Claire Mukeshimana, 2019. "Solar Energy Development in Pakistan: Barriers and Policy Recommendations," Sustainability, MDPI, vol. 11(4), pages 1-18, February.
    8. Rafique, M. Mujahid & Rehman, S., 2017. "National energy scenario of Pakistan – Current status, future alternatives, and institutional infrastructure: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 156-167.
    9. Riaz Uddin & Abdurrahman Javid Shaikh & Hashim Raza Khan & Muhammad Ayaz Shirazi & Athar Rashid & Saad Ahmed Qazi, 2021. "Renewable Energy Perspectives of Pakistan and Turkey: Current Analysis and Policy Recommendations," Sustainability, MDPI, vol. 13(6), pages 1-28, March.
    10. Kamali, Saeed, 2016. "Feasibility analysis of standalone photovoltaic electrification system in a residential building in Cyprus," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 1279-1284.
    11. Zulfiqar Ali Baloch & Qingmei Tan & Hafiz Waqas Kamran & Muhammad Atif Nawaz & Gadah Albashar & Javaria Hameed, 2022. "A multi-perspective assessment approach of renewable energy production: policy perspective analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2164-2192, February.
    12. Kamran, Muhammad & Fazal, Muhammad Rayyan & Mudassar, Muhammad, 2020. "Towards empowerment of the renewable energy sector in Pakistan for sustainable energy evolution: SWOT analysis," Renewable Energy, Elsevier, vol. 146(C), pages 543-558.
    13. Uddin, Waqar & Khan, B. & Shaukat, Neelofar & Majid, Muhammad & Mujtaba, G. & Mehmood, Arshad & Ali, S.M. & Younas, U. & Anwar, Muhammad & Almeshal, Abdullah M., 2016. "Biogas potential for electric power generation in Pakistan: A survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 25-33.
    14. Sadiqa, Ayesha & Gulagi, Ashish & Breyer, Christian, 2018. "Energy transition roadmap towards 100% renewable energy and role of storage technologies for Pakistan by 2050," Energy, Elsevier, vol. 147(C), pages 518-533.
    15. Syed Ahsan Ali Shah & Gordhan Das Valasai & Asif Ali Memon & Abdul Nasir Laghari & Nabi Bux Jalbani & Jody L. Strait, 2018. "Techno-Economic Analysis of Solar PV Electricity Supply to Rural Areas of Balochistan, Pakistan," Energies, MDPI, vol. 11(7), pages 1-19, July.
    16. Valasai, Gordhan Das & Uqaili, Muhammad Aslam & Memon, HafeezUr Rahman & Samoo, Saleem Raza & Mirjat, Nayyar Hussain & Harijan, Khanji, 2017. "Overcoming electricity crisis in Pakistan: A review of sustainable electricity options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 734-745.
    17. Hayat, Farah & Pirzada, Muhammad Daniel Saeed & Khan, Abid Ali, 2018. "The validation of Granger causality through formulation and use of finance-growth-energy indexes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 1859-1867.
    18. Sohoo, Ihsanullah & Ritzkowski, Marco & Heerenklage, Jörn & Kuchta, Kerstin, 2021. "Biochemical methane potential assessment of municipal solid waste generated in Asian cities: A case study of Karachi, Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    19. Maqbool, Rashid, 2018. "Efficiency and effectiveness of factors affecting renewable energy projects; an empirical perspective," Energy, Elsevier, vol. 158(C), pages 944-956.
    20. Rafi Amir-Ud-Din, 2014. "From Energy Blues to Green Energy: Options Before Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(4), pages 309-325.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:153:y:2020:i:c:p:509-521. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.