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12.chapter 3

Chapter 3 discusses the operating process of solar power systems, detailing how photovoltaic cells convert sunlight into electricity and the various types of solar cells, including mono-crystalline, multi-crystalline, and amorphous silicon cells. It also covers the components of solar modules and arrays, as well as the importance of batteries for energy storage in photovoltaic systems, highlighting different types of rechargeable batteries such as lead-acid, nickel-cadmium, nickel-metal hydride, lithium-ion, and lithium-polymer. The chapter emphasizes the efficiency, manufacturing processes, and applications of these technologies in solar energy systems.

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0% found this document useful (0 votes)
25 views17 pages

12.chapter 3

Chapter 3 discusses the operating process of solar power systems, detailing how photovoltaic cells convert sunlight into electricity and the various types of solar cells, including mono-crystalline, multi-crystalline, and amorphous silicon cells. It also covers the components of solar modules and arrays, as well as the importance of batteries for energy storage in photovoltaic systems, highlighting different types of rechargeable batteries such as lead-acid, nickel-cadmium, nickel-metal hydride, lithium-ion, and lithium-polymer. The chapter emphasizes the efficiency, manufacturing processes, and applications of these technologies in solar energy systems.

Uploaded by

Aung Myat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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CHAPTER 3

POWER FLOW ANALYSIS AND LOAD FLOW BASED NEWTON


RAPHSON METHOD

3.1. Operating Process of Solar Power System


Solar or PV cells are made of semiconductor materials that can convert sun
lights into electricity. When sunlight strikes the cells, it dislodges and liberates
electrons within the material which then move to produce a direct electrical current
(DC). The voltage current relationships of the solar cells depend on various levels of
radiation and various cell temperatures.
Typically, a solar cell produces about one watt of power. For obtaining high
power, numerous cells are electrically connected in series-parallel combinations to
generate the required current and voltage. Several PV cells make a module and
several modules make an array. Solar systems begin with the solar module. Modules
gather solar energy in the form of sunlight and convert into direct current electricity.
The more sunlight they receive; the more electricity they produce. Solar modules are
the heart of the system, and called the photovoltaic generators. The system
components (such as batteries, inverter, etc.) regulate, store, condition the input
current and voltage, and then deliver the electricity.

3.2. Solar Cells


Solar photovoltaic cell represents the fundamental power conversion unit of a
photovoltaic system, which converts solar energy directly into electricity, either
directly the photovoltaic effect or indirectly by first converting the solar energy to
heat or chemical energy. They are made from semiconductors, and have much in
common with other solid-state electronic devices, such as diodes, transistors and
integrated circuits. For practical operation solar cells are usually assembled into
modules. Various types of solar cells are crystalline and amorphous silicon cells,
compound thin film devices and high-frequency cells for specialized applications.
Crystalline silicon Cells hold the largest part of the market. To reduce the cost, these
18

cells are now often made from multi-crystalline material, rather than from the more
expensive single crystals. Crystalline silicon cell technology is well established. The
technology based on crystalline silicon is the most reliable and most developed
photovoltaic technology. It is not simple and requires the use of sophisticated
equipment and complete technological process. The modules have a long lifetime
(20 years or more) and their best production efficiency is about 80%.
A particular class of high efficiency solar cells from single crystal silicon
compound semiconductors (for examples, gallium arsenide or indium phosphide) is
used in specialized applications. Such as to power satellites or in system which
operates under high-intensity concentrated sunlight. Other types of solar cells are
summarized below.
Many Types of PV cells are available today. In this thesis, most popular types
of PV cells are described in details and overview.

3.2.1. Mono-crystalline Silicon Cells


These cells are made from pure mono-crystalline silicon. In these cells, the
silicon has a single continuous crystal lattice structure with almost no defects or
impurities. The main advantage of mono-crystalline cells is their high efficiency,
which is typically around 15%. The disadvantage of these cells is that a complicated
manufacturing process is required to produce mono-crystalline silicon, which results
in slightly higher costs than those of other technologies.

Figure 3.1. Structure of Mono-crystalline Silicon Cell and PV Module

3.2.2. Multi-crystalline Silicon Cells


19

Multi-crystalline cells are produced using numerous grains of mono-


crystalline silicon. In the manufacturing process, molten polycrystalline silicon is cast
into ingots, which are subsequently cut into very thin wafers and assembled into
complete cells. Multi-crystalline cells are cheaper to produce than mono-crystalline
ones because of the simpler manufacturing process required. They are, however,
slightly less efficient, with average efficiencies being around 12%.

Figure 3.2. Structure of Multi-Crystalline Silicon Cells

3.2.3. Amorphous Silicon Cells


Generally, the main difference between amorphous silicon cells and the
previous ones is that, instead of the crystalline structure, amorphous silicon cells are
composed of silicon atoms in a thin homogenous layer. Additionally, amorphous
silicon absorbs light more effectively than crystalline silicon, which leads to thinner
cells, also known as a thin film PV technology.
20

Figure 3.3. Structure of Amorphous Silicon Cells


The greatest advantage of these cells is that amorphous silicon can be
deposited on a wide range of substrates, both rigid and flexible. Their disadvantage is
the low efficiency, which is on the order of 6%. Nowadays, the panels made from
amorphous silicon solar cells come in a variety of shapes, such as roof tiles, which
can replace normal brick tiles in a solar roof.

3.3. Solar Modules


Solar modules generate DC electricity directly from sunlight. One or more
modules are used depending on the power needs and the amount of sunlight available.
The modules represent the basic construction unit of a photovoltaic generator. The
structure of a module based on crystalline or semi-crystalline silicon cells. The cells in
a module are interconnected in series.
The reason comes from the electrical characteristic of an individual solar cell.
The number of cells in a module is governed by the voltage of the module. The
nominal operating voltage of the system usually has to be matched to the nominal
voltage of the storage subsystem. Most of photovoltaic module manufactures
therefore have standard configurations which can work with 12V batteries. These
modules are hermetically sealed for protection against corrosion, moisture, pollution
and weathering.
The nominal output is usually called the peak power of a module, and
expressed in peak watts, W. The three most important electrical characteristics of a
module are the short-circuit current, open-circuit voltage and the maximum power
point as functions of the temperature and irradiance.
The modules (and cells) are not identical, and their parameters exhibit a
certain degree of variability for two principal reasons:
1.The solar cell and modules vary in quality as a result of the manufacturing
process. In general, the current produced by commercial modules suffers a
higher degree of dispersion than the voltage.
2. Different operating conditions may exist in different parts of the photovoltaic
array. For example, one must allow for different cleanness of different parts of
the photovoltaic generator, or some modules may be obscured by a cloud
which is covering only a part of the array.
21

After testing under standard conditions and sorting to match the current and
voltage about thirty-six cells are interconnected and encapsulated to form a module.
The encapsulate materials must satisfy a number of very strict requirements since the
modules should last twenty years or more.
Typical construction of PV module is shown in Figure 3.4. It has the following
components:
1. Frame
2. Weatherproof Junction Box
3. Rating Plate
4. Weather Protection Cover (for 30 – year life)
5. PV Cell
6. Tempered High Transmissivity Cover glass
7. Outside Electrical Bus
8. Frame Clearance

Figure 3.4. Typical Construction of PV Module

3.4. Solar Arrays


The solar cells are interconnected in certain series or parallel combinations to
form modules. A combination of suitable modules constitutes an array. One square
meter of fixed array kept facing south yields nearly 0.5kWh of electrical energy on a
normal sunny day. If the orientation of the array is adjusted to face the sun’s ray at
any time, the output can increase by 30%. If it is requiring to be used during non-
sunshine hours, a suitable system of storage batteries will be required.
There may be tracking arrays or modules or fixed arrays. A tracking array is
defined as one which is always kept mechanically perpendicular to the sun-array line
22

so that all times it intercepts the maximum isolation. Such array must be physically
movable by a suitable prime mover and are generally considerably more complex than
fixed array. A fixed array is usually oriented east west and tilted up at an angle
approximately equal to the latitude of the site (tile angle β=Ф, latitude angle). Fixed
arrays are mechanically simpler than tracking arrays. Thus array designs fall into two
broad classes.
1. Flat-plate Arrays
Where in solar cells are attached with a suitable adhesive to some kind of
substrate structure usually semi-rigid to prevent cells being cracked. This technology
springs from the space-related photovoltaic technology, and many such arrays have
been built in various power sizes.
2. Concentrating Arrays
Where suitable optics (e.g. Fresnel-lenses), parabolic mirrors, compound
parabolic concentrators (CPC), and others, are combined with photovoltaic in terms of
hardware development, and comparatively fewer such array have actually been built.
The array should stand above the maximum expected level of snow or vegetation
level. The array must be installed so that a clear view of the sun is obtained at all
times. The surface of the solar array must be cleaned with soft cloth wetted water in
the early morning or in the evening when it is not in strong sunlight. The surface of
the solar array should wipe gently, starting at the highest point and working down to
the lowest point. All the rust must be removed. Do not stand on the solar array, or
clean heavily on it, as this may cause damage. The solar array must be clean every
week. The solar will not work properly if it is shaded during the day. It must be
checked at approximately 8:00 AM, 12:00 noon and 4:00 PM on the day. Bushes and
trees can cut back that may start to shade the solar array between 8:00 AM and 4:00
PM. Trees and bushed which caused shading only before 8:00 AM of after 4:00 PM
need not be cut down.

3.5. Battery
In addition to energy storage, batteries provide several other important energy
services for PV systems, including the ability to provide surges of current that are
much higher than the instantaneous current available from the array, as well as the
inherent and automatic property of controlling the output voltage of the array so that
loads receive voltages that are within their own range of acceptability.
23

The battery stores energy in the electrochemical form, and is the most widely
used device for energy storage in a variety of applications. The electrochemical
energy is a semi-ordered form of energy, which is in between the electrical and
thermals forms. There are two basic types of electrochemical batteries:
The primary battery converts the chemical energy into the electrical energy.
The electrochemical reaction in the primary battery is nonreversible is their action.
Primary battery can be restored to their original condition after discharge only by
addition of fresh materials.
The secondary battery is also known as the rechargeable battery. The
electrochemical reaction in the secondary battery is reversible. After a discharge, it
can be recharged by injection direct current from an external source. This type of
battery converts the chemical energy into electrical energy in the discharge mode. In
the change mode, it converts the electrical energy into chemical energy. In both the
charge and discharge modes, a small fraction of energy is converted into heat, which
is dissipated to the surrounding medium. The round trip conversion efficiency is
between 70 and 80%. It has positive and negative electrode plates with insulating
separators and a chemical electrode in between. The two group of electrode to two
externals mounted on the casing.

3.5.1. Types of Battery


There are at least six majors’ rechargeable electrochemistry’s available today.
They are as follows:
1. Lead-acid (Pp.-acid)
2. Nickel Cadmium (NiCad)
3. Nickel Metal Hydride (NiMH)
4. Lithium-ion (Li-ion)
5. Lithium-polymer (Li-poly)
6. Zinc-air
New electrochemistry is being developed by for a variety of applications, such
as electric vehicles, space craft, and utility load leveling for renewable power systems.
The average voltage during discharged on the electrochemistry as listed in Table 3.1.

3.5.2. Lead-acid
24

This is the most common type of rechargeable battery and used Today because
of its maturity and high performance over cost ratio, even though it has the least
energy density by weight and volume. In the lead-acid battery under discharge, water
and lead sulfate are formed, the water dilutes the sulfuric acid electrolyte, and the
specific gravity of the electrolyte decreases with the decreasing state of charge. The
recharging reverses the reaction in the lead and lead dioxide is formed at the negative
and positive plates, respectively, restoring the battery into its originally charged state.
The lead-acid battery comes in various versions. The shallow-cycle version is used in
automobiles where a short burnt of energy is drawn from the battery when needed.
The deep-cycle version, on the other hand, is suitable for repeated full charge and
discharge cycles. Most energy storage applications require deep-cycle battery. The
lead-acid battery is also available is sealed ‘gel-cell version with additives which turns
the electrolyte into a non-spill able gel. Such batteries can be mounted sideways or
upside down. The high cost, however, limits its use in the military avionics.

Table 3.1. Average Cell Voltage during Discharge in Various Rechargeable Batteries

Electrochemistry Cell Voltage Remark

Lead-acid 2.0 Least cost technology

Nickel-cadmium 1.2 Exhibits memory effect

Nickel-metal hydride 1.2 Temperature sensitive

Lithium-ion 3.4 Safe, contains no metallic lithium

Lithium-polymer 3.0 Contains metallic lithium

Requires good air management to limit


Zinc-air 1.2
self-discharge rate

3.5.3. Nickel Cadmium


The NiCad is a matured electrochemistry. The NiCad cell has positive
electrodes made of cadmium and the negative electrodes of nickel hydroxide. Two
25

electrodes are separated by Nylon separators and potassium hydroxide electrolyte in


stainless steel casing. With sealed cell and half the weight of conventional lead-acid,
NiCad batteries have been used to power rechargeable consumer applications. They
have a longer deep cycle life, and are more temperature tolerant than the lead-acid
batteries. However, this electrochemistry has a memory effect which degrades the
capacity if not used for a long time. Moreover, cadmium has recently come under
environmental regulatory scrutiny. For these reasons, the NiCad is being replaced by
NiMH and Li-ion batteries in laptop computers and other similar high priced
consumer electronics.

3.5.4. Nickel Metal Hydride


The NiMH is an extension of NiCad technology, and offers and improvement
in energy density over that in NiCad. The major construction difference is that the
anode is made of a metal hydride. This eliminates the environmental concerns of
cadmium. Another performance improvement is that it has negligible memory effect.
The NiMH, however, is less capable of delivering high peak power, has high self-
discharge rate, and is susceptible to damage due to overcharging. Compare to NiCad,
NiMH is expensive at represent, although the future price is expected to drop
significantly. This expectation is based on current development programs targeted for
large-scale application of this technology in electric vehicles.

3.5.5. Lithium-ion
Lithium-ion technology is a new development, which offers three times the
energy density over that of lead-acid. Such large improvement in the energy density
comes from lithium’s low auto atomic weight of 6.9 versus 207 for lead. Moreover,
the lithium-ion has higher cell voltage of 3.5 versus 2.0 for lead acid and 1.2 for other
electro chemistries. This requires fewer cells in series for a given battery voltage, thus
reducing the manufacturing cost. On the negative side, the lithium electrode reacts
with any liquid electrolyte, creating a sort of passivity film. Every time when the cell
is discharge and then charged, the lithium is stripped away, a free metal surface is
exposed to the electrolyte and a new film is formed. To compensate, the cell uses
thick electrode, adding into the cost. Or else, the life would be shortened. For this
reason, it is more expensive than NiCad. In operation, the lithium-ion
electrochemistry is vulnerable to damage from overcharging or other shortcomings in
26

the battery management. Therefore, it requires more elaborate charging circuitry with
adequate protection against overcharging.

3.5.6. Lithium-polymer
This is a lithium battery with solid polymer electrolytes. It is constructed with
film of metallic lithium bonded to a thin layer of solid polymer electrolyte. The solid
polymer enhances the cell’s specific energy by acting as both the electrolyte and the
separator. Moreover, the metal in solid electrolyte reacts less than it does with liquid
electrolyte.

3.5.7. Zinc-air
The zinc-air battery has a zinc negative electrode, a potassium hydroxide
electrolyte, and carbon electrode, which is exposed to the air. During discharge,
oxygen from the air is reduced at the carbon electrode (the so-called air cathode), and
the zinc electrode is oxidized. During discharge, it absorbs oxygen from the air and
converts into oxygen ions for transport to the zinc anode. During charge, it evolves
oxygen. A good air management is essential for the performance of the zinc-air
battery.

3.6. Battery Capacity


The cell stores electrochemical energy at low electrical potentials, typically a
few volts. The cell capacity, denoted by C, is measured in Ampere-hours (Ah),
meaning it can deliver C amperes for one hour or C/n amperes for n hours. The
battery is made of numerous electrochemical cells connected in a series-parallel
combination to obtain the desired operating voltage and current. The higher the
battery voltage, the higher the number of cells required is series. The battery rating is
stored in terms of the average voltage during discharge and the Ah capacity it can
deliver before the voltage drops below the specified limit. The product of the voltage
and the Ah forms the Watt-hour (Wh) energy rating it can deliver to a load from the
fully-charged condition. The battery charge and discharge rates are stated in unit of its
capacity in Ah. For example, charging a 100Ah battery at C/10 rate means charging at
10A rates. Discharging that battery at C/2 rate means draining 50A, at which rate the
battery will be fully discharge in 2 hours. The state of charge (SOC) is an alternate
way of expressing the available capacity as that which is remaining in a battery.
27

A battery is rated for its voltage output and current capacity. Typically,
rechargeable batteries are available in 6V and 12V outputs. The capacity of the
battery is determined by the amount of energy it can store. Large amount of energy
storage will have required large size battery. Its current capacity is given in terms of
ampere-hour (Ah) which tells us that ‘how much current’ and ‘how long’ we can
extract current from a fully charged battery. A 10Ah battery can provide us 10A
current for 1 hour or 1A current for 10 hours. As the battery size increases, battery’s
Ah capacity also increases. A small 6V battery has 3 to 5Ah capacity. Other batteries
have current capacities like 15Ah, 40Ah, 50Ah, 60, 75Ah, 150Ah, 200Ah and more
etc.

3.7. Battery Lifetime


Two independent factors may limit the lifetime of the battery bank: the
lifetime throughput and the battery float life. In other words, batteries can die either
from use or from old age. If the battery properties indicate that the battery life is
limited by throughput, the battery will require replacement after a fixed amount of
energy cycles through the battery, regardless of the depth of the individual charge-
discharge cycles. Energy storage in a battery is typically given in units of amp-hours
(Ah) at some nominal voltage and at some specified discharge rate. If the manufacture
provides values of cycles to failure versus depth of discharge, the lifetime throughput
can be calculated with the following equation:

Equation 3.1

where,
Qlifetime, I = Lifetime throughput, kWh
fi = Number of cycles to failure
di = Depth of discharge, %
Qmax = Maximum capacity of the battery
Vnom = Nominal voltage of the battery
There are two independent factors limited the lifetime of the battery bank: the
lifetime throughput and the battery float life. In other words, batteries can die either
from use or from old age. The battery bank life can calculate using the equation:
28

If limited by
throughput Equation 3.2

If limited by time

If limited by

where,
Rbatt = Battery bank life, yr
Nbatt = Number of batteries in the battery bank
Qlifetime = Lifetime through of a single battery, kWh
Qthrpt = Annual battery throughput, kWh/yr
Rbatt,f = Battery float life, yr

3.8. Inverter
The inverter converts DC to AC and also changes the voltage. In other words,
it is a power adapter. It can allow a battery-based independent power system to run
conventional appliances through conventional home wiring. There are many ways to
use DC power directly, but the electrical needs are beyond the simplest ‘Cabin’ level,
the inverter will be needed for many, if not all of the loads (devices that use power).
DC flows in a single direction. AC alternates its direction many times per
second. The standard DC voltages for home-size systems are 12, 24 and 48V. The
standard for AC utility service in USA is 120 and 240V at 60Hz (cycle per second).
The inverter is used to reconcile these differences. The inverter should be sized to
125% of the AC load that will run simultaneously. The extra 25% capacity will
protect the inverter from being overload and provide with the ability to expand.
A modern home inverter must cope with input voltage that varies as much as
35% and also with huge variations in output demand. Through all, it much regulates
its output quality within narrow constraints, with a minimum of power loss. In
addition, some inverter provides battery backup charging and can even feed excess
power into the grid. There are two types of inverters:
1.Transformer Type Inverter and
2. High Frequency Switching Inverter.
Transformer type inverters are:
29

1. Heavy, expensive
2. High surge capacity
3. Historically the most reliable
4. Make buzzing noise
High frequency switching type inverters are
1. Light weight, inexpensive
2. Less reliable in cases of cheep consumer units No audible buzz
There are different design and rating standard for various applications, such as
use in buildings, vehicles, boats, etc. These also vary from one nation to another. An
inverter used for a home power system must be appropriately rated for the system to
pass an electrical inspection.
Sine wave inverters are
1. Idle, smoothly alternating AC (like swing of a pendulum)
2. Equivalent (or superior) to grid power relatively expensive
Modified sine wave inverters are
1. Inferior waveform, choppy alternation (like pendulum forced by hammers)
2. In expensive
3. Adequate for many homes with simple needs, but about 5 percent of loads
malfunction
4. May confuse digital timing devices in some appliances
5. May overheat converters in some appliances / computer
6. May overheat surge protectors causes some devices to buzz (some fluorescent
lights, ceiling fans, transformers)
7. Reduces energy efficiency of motors and transformers by 10% or more causes
motors and transformers to run hotter
8. Generally, reduces the reliability of appliances
It is not possible to convert power without losses. Efficiency is the ratio of
power out to power in, expressed as a percent. If the efficiency is 90%, that means 10
% of the power is lost in the inverter. Lost power manifests as heat. Efficiency of an
inverter varies with the load. Typically, it will be highest at about 2/3 of the inverter’s
capacity. This is called ‘peak efficiency’. The inverter requires some power just to run
itself, so the efficiency of a large inverter may be low when running very small loads.
30

3.9. HOMER Model Description


HOMER identifies the least cost system for supplying electricity to remote
loads by performing hourly simulations of thousands of potential power systems and
rank ordering them by life-cycle costs. It also performs sensitivity analyses to
evaluate the impact of a change in any of the input parameters and provides both
annual and hourly outputs in tabular and graphic form. HOMER performs three
principal tasks: simulation, optimization, and sensitivity analysis. In the simulation
process, HOMER models the performance of a particular micro power system
configuration each hour of the year to determine its technical feasibility and life-cycle
cost. In the optimization process, HOMER simulates many different system
configurations in search of the one that satisfies the technical constraints at the lowest
life-cycle cost. In the sensitivity analysis process, HOMER performs multiple
optimizations under a range of input assumptions to gauge the effects of uncertainty
or changes in the model inputs. Optimization determines the optimal value of the
variables over which the system designer has control such as the mix of components
that make up the system and the size or quantity of each. Sensitivity analysis helps
assess the effects of uncertainty or changes in the variables over which the designer
has no control, such as the average wind speed or the future fuel price.

3.9.1. Levelised Cost of Electricity Generation (LCOE)


The LCOE of renewable energy technologies varies by technology, country
and project based on the renewable energy resource, capital and operating costs, and
the efficiency/ performance of the technology. This method of calculating the cost of
renewable energy technologies is based on discounting financial flows (annual,
quarterly or monthly) to a common basis, taking into consideration the time value of
money.
Levelised cost of energy (LCOE) is often cited as a convenient summary
measure of the overall competiveness of different generating technologies. Levelized
cost represents the present value of the total cost of building and operating a
generating plant over an assumed financial life and duty cycle, converted to equal
annual payments and expressed in terms of real currency such as US dollar to remove
the impact of inflation.
31

A discount rate is used for discounting future expenditures and incomes to


their present values. LCOE will be calculated as the following equation:

Equation 3.3

where,
TLCC = the total life cycle cost
N = the total number of years in the project
r = the annual discount rate (based on the value for the specific country
of the project)
Q = the energy output of power generation system in the specific year n
TLCC is calculated by summing up the expected yearly expenses of the project,
returned to the present value of expense.

Equation

3.4
where, C = the cost in year n

3.9.2. Net Present Cost (CNPC)


The net present cost is the discounted value of all the cash flows needed to
operate and purchase the hybrid system over its lifetime of twenty-five years.
The following formula was used:

Equation

3.5
where,
Canntot = total annualized cost ($/yr)
CRF = capital recovery factor
I = interest rate (%)
Rproj = project lifetime (yr)
The capital recovery factor is as following,

Equation3.6
32

where,
i = the annual real interest rate
N = the number of years
The first variable is the total annualized cost of the system, which is equal to
the sum of each component’s annual operating cost plus its annualized capital cost
over its useful lifetime plus the annual fuel cost, if applicable. By adding the results
for all components, the total annualized cost can be calculated, C anntot. The capital
recovery factor is a function of the real interest rate and the project lifetime and is
used to discount the cash flows to time zero.
3.9.3. Cost of Energy (COE)
The cost of energy (COE), in $/kWh, is the level of tariff needed to recoup the
NPC of the hybrid project. However, differential tariff structures can be used to aid
poor clients, so the COE figure is only indicative of the median level of charges that
must be supported by the host community:

For off-grid type) Equation 3.7

(For grid type) Equation 3.8

where,
Cann,tot = total annualized cost of the system [$/yr]
Eprim = primary load served [kWh/yr]
Edef = deferrable load served [kWh/yr]
Egrid,sales = the amount of energy sold to the grid per year
The two loads, Eprim and Edef, are based on village per capital estimates and are
tested across a range of values to assess robustness of hybrid to grow as demand
expands.
The denominator in equation is an expression of the total amount of useful
energy that the system produces per year. The leveled cost of energy is therefore the
average cost per kilowatt hour of useful electrical energy produced by the system.

3.9.4. Replacement Cost


The replacement cost is the cost of replacing a component at the end of the
lifetime. This cost is used to calculate the annual life replacement cost. This is
different from the initial capital cost for several reasons:
33

1. Not all of the components require replacements at the end of its life
2. The initial capital cost is reduced or eliminated by a donor organization, but
the replacement cost is not.
3. The fixed costs are shared by all components but at replacement time they are
not.

3.9.5. Total PV System Costs


The total cost of a PV system is made up of the costs of the PV modules, BOS
and installation. While different PV technologies have different PV module costs, the
overall PV system cost also depends on the size of the system (due to the economies
of scale with large utility-scale projects), and on whether the system is ground-or
roof-mounted. To analyze costs, PV systems can be grouped into four main end-use
markets.
1. Residential PV systems typically do not exceed 20kW and are usually roof-
mounted;
2. Large-scale building PV systems typically do not exceed 1MW and are placed
on large buildings or complexes, e.g. commercial buildings, schools, hospitals,
universities;
3. Utility-scale PV systems are larger than 1MW and are generally ground
4. Off-grid application varies in size from small systems for remote beacons or
relay stations to mid-size systems for homes or businesses not connected to the
grid, all the way up to large-scale PV systems that provide electricity to off-
grid communities.
The total installed cost of a PV system also depends on the project location,
scale and funding conditions in individual countries, and maturity and size of the
market. For instance, Germany has one of the more competitive PV markets, given
the large domestic PV market and its history of stable long-term incentives.

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