9.+Economics+of+PV

9.+Economics+of+PV - Materials Science 302: Solar Cells...

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1 Materials Science 302: Solar Cells Brian E. Hardin Prof. Michael McGehee Lecture 9: Economics of Photovoltaics (PV) Several slides came from the Energy Resources  (CEE173A) course and were made by Prof. Jane  Woodward and Danny Cullenward .  The MRS Bulletin  Harnessing Materials for Energy  (April 2008)  special bulletin has a great deal of information about all types of  energy. 
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2 Questions to be Answered Where is the solar industry right now? When will PV provide 1TW of power? How do we get there?
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3 Cost of Electricity Production by Resource Cost of Electricity Production 0 5 10 15 20 25 30 C o a l G s H y d r W i n N u c e t h m S cents/kW-hr Cost http://www.energy.ca.gov/electricity/levelized_cost.html Fossil Fuel costs do not take into account negative externalities (e.g. the cost of emitting carbon dioxide into the atmosphere), which would increase production costs. Costs for coal are fairly consistent, but renewable energies vary depending on location. In CA, photovoltaics are predicted to cost $0.25-0.42/kWhr.     Solar thermal ranges from $0.14-0.34/kWhr. 
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4 Producers sell power to Utilities at a Whole Sale Price Step-up transformer ~500kV- 138kV ~20kV ~ 5 0 k V - 1 3 8 6 9 2 Transformers on pole step down to 120/240V Public utilities own the transmission and distribution lines.
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5 The Whole Sale Price is Determined by the Demand Peak electricity demand can vary by 60% from the base load!  Baseload = 30GW  / Peak demand = 50GW   http://currentenergy.lbl.gov/tx/index.php Hours when the sun  shines the brightest  in Texas.  Low power demand = low wholesale price (probably met with nuclear or coal plants) Peak power demand = highest wholesale price (more expensive sources added)
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6 For Utilities Solar Power is Competitive Right Now Average cost over 30 yrs of PV cell electricity in CA including 6 % interest payments: Avg. Retail Rates of electricity in CA: Peak (afternoon) Wholesale Rates in CA: $0.34/kWhr $0.14/kWhr $0.29/kWhr Advantages of PV 1) There is overlap between peak power demand and peak sunshine. 2) PV can directly plug into residential and industrial buildings (eliminating the need for transmission and distribution). 3) Little maintenance is required after installation.
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7 Utilities Charge Customers Constant Prices ( Retail Rates 2006)
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8 PG&E Utility breakdown of Residential Retail electricity bill, 2007 Generation is only half the cost!
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9 Grid Parity in 2015? Slide courtesy of Johan Duramy (Stanford MBA)
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10 How close are we to competing at Retail Rates? Where do the costs come from for Si PV? Why does solar power cost $0.34/kW-hr when it costs ~$9/Wp to install and we expect the panels to last for 25 years?
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11 http://sunpowercorp.cleanpowerestimator.com/sites/sunpowercorp/residential/spLoadInputs.aspx
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12 Cost Breakdown of 1 st Generation PV Systems
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13 When will PV provide 1TW of Power?
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This note was uploaded on 12/01/2011 for the course MS&E 302 taught by Professor Mcghee during the Spring '08 term at Stanford.

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9.+Economics+of+PV - Materials Science 302: Solar Cells...

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