The economic value of photovoltaic performance loss mitigation in electricity spot markets

Abstract

Photovoltaic (PV) performance is affected by reversible and irreversible losses. These can typically be mitigated through responsive and proactive operations and maintenance (O&M) activities. However, to generate profit, the cost of O&M must be lower than the value of the recovered electricity. This value depends both on the amount of recovered energy and on the electricity prices, which can vary significantly over time in spot markets. The present work investigates the impact of the electricity price variability on the PV profitability and on the related O&M activities in Italy, Portugal, and Spain. It is found that the PV revenues varied by 1.6 × to 1.8 × within the investigated countries in the last 5 years. Moreover, forecasts predict higher average prices in the current decade compared to the previous one. These will increase the future PV revenues by up to 60% by 2030 compared to their 2015–2020 mean values. These higher revenues will make more funds available for better maintenance and for higher quality components, potentially leading to even higher energy yield and profits. Linearly growing or constant price assumptions cannot fully reproduce these expected price trends. Furthermore, significant price fluctuations can lead to unexpected scenarios and alter the predictions.