Abstract
ABSTRACT Solar-Photovoltaic (PV) utility power is more expensive to produce compared with conventional sources. Current utility power purchase agreement policies discourage private investment because far future cash flow does not add to asset value. This article presents an overview of a study that assesses the commercialization of PV power generation in the US energy market. Data analysis substantiates that for PV power to be competitive with conventional power plants, much lower discount rates are required during the first half of the PV utility lifecycle, after which solar PV will have a much lower cost due to a drastic reduction in the cost of capital. Additionally, the levelized cost of energy analysis for a longer lifecycle indicates that the utility scale solar PV cost gap can be bridged. Therefore, this article aims to influence policy makers to introduce long-term power purchase agreements, taking into account the avoided costs due to the unevaluated quality of long life at anticipated low operat...
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Distributed Generation & Alternative Energy Journal
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
