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A technical, economic, and greenhouse gas emission analysis of a homestead-scale grid-connected and stand-alone photovoltaic and diesel systems, against electricity network extension

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  • McHenry, Mark P.

Abstract

This research compares two generation components in grid-connected and stand-alone power supply (SPS) systems (6 kWp solar photovoltaic array, and a 6 kWp diesel generator), separately supplying a homestead’s electricity load (12 kWh day−1 average, 10 kWp), against a 2 km underground electricity distribution line extension. The technical simulation intervals (15 min) included realistic peak demand and generation component outputs, based on actual load data collected from an existing homestead and local meteorological data in the southwest of Western Australia. The separate emission and economic calculations incorporated technical simulation data, were based on emission factors for the region, used 2010 market prices for capital and operational costs, all projected over 15 years. The economic model included an 8% real discount rate, and several assumptions customised for each scenario. The results suggest small-scale distributed electricity generation systems are currently unattractive economically when compared to medium distance network extension, and increased the cost of electricity for private individuals (or governments if subsidised) with small mitigation benefits. The scenario results and discussions illuminate the specific economic barriers for small-scale photovoltaic components in both stand-alone and grid-connected systems in areas proximal to electricity distribution networks in regional Western Australia.

Suggested Citation

  • McHenry, Mark P., 2012. "A technical, economic, and greenhouse gas emission analysis of a homestead-scale grid-connected and stand-alone photovoltaic and diesel systems, against electricity network extension," Renewable Energy, Elsevier, vol. 38(1), pages 126-135.
    • Handle: RePEc:eee:renene:v:38:y:2012:i:1:p:126-135
    DOI: 10.1016/j.renene.2011.07.020
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    References listed on IDEAS

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    1. Alexander Ljungqvist & Matthew Richardson, 2003. "The cash flow, return and risk characteristics of private equity," NBER Working Papers 9454, National Bureau of Economic Research, Inc.
    2. McHenry, Mark P., 2009. "Why are remote Western Australians installing renewable energy technologies in stand-alone power supply systems?," Renewable Energy, Elsevier, vol. 34(5), pages 1252-1256.
    3. McHenry, Mark P., 2009. "Remote area power supply system technologies in Western Australia: New developments in 30 years of slow progress," Renewable Energy, Elsevier, vol. 34(5), pages 1348-1353.
    4. Parker, Rh, 1968. "Discounted Cash Flow In Historical Perspective," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 6(1), pages 58-71.
    5. McHenry, Mark P., 2011. "Integrating climate change mitigation and adaptation: Refining theory for a mathematical framework to quantify private and public cost-effectiveness, and C emissions for energy and development project," Renewable Energy, Elsevier, vol. 36(4), pages 1166-1176.
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    5. Velo, R. & Osorio, L. & Fernández, M.D. & Rodríguez, M.R., 2014. "An economic analysis of a stand-alone and grid-connected cattle farm," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 883-890.
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