How much does a solar power plant cost Solar Energy Course 2020 Part 11 of 12

Welcome to "How much does a solar power plant cost?". 📜Get your course certificate📜 ********************************** http://bit.ly/solar-crash-course-ipolytek SUBSCRIBE to see more courses like this one *********************************************** https://www.youtube.com/channel/UCYYX-pqg9CoVhjtC4cW4DIA?sub_confirmation=1 This is the 11th video in our online professional development course for engineers entitled "Solar Energy." In it we discuss: How much does a solar power plant cost? How does it compare with other renewable and non-renewable energy-based power plants? Find out in this video. This video is part of iPolytek's online course on solar energy. iPolytek, Professional Development Courses for Engineers. When analyzing the cost of any utility, investors look at the "Levelised Cost of Energy" (LCOE). The LCOE is the ratio between: - the lifetime cost of the energy utility and - its energy production. Put simply, the LCOE is the price the project must earn per megawatt-hour in order to break even. It involves calculating the "present value" of a. the total cost of building & operating the power plant and b. its expected electricity production over an assumed lifetime. The term "present value" means the current worth of a future sum of money or stream of cash flows given a specified rate of return. Let's take a closer look at how the LCOE is calculated. Here's what each term means. I: is the investment expenditures in the year t, ($) n: is the total economic life of the power plant (years) r: is the discount rate, (dimensionless, 0-1) in other words the desired minimum rate of return on the investment M: is the operations and maintenance expenditures in the year t, ($) F: is the fuel expenditures in the year t ($) E: is the Electricity generated in the year t, (MWh) The LCOE allows the comparison of power plant projects that - are based on different technologies - & have different economic characteristics In this video, we will learn about the LCOE of solar PV and see how it compares to other renewable and non-renewable energy technologies. This figure shows the range of LCOE for PV projects from 2010 to 2017, taking into account variations in the costs and sizes of individual projects. Between 2010 and 2017, the global weighted average LCOE fell 72%, from 0.36 USD/kWh to 0.10 USD/kWh (360 USD /MWh to 100 USD/MWh). The projected reduction in installation costs could result in an average 59% decrease in LCOE of commercial-scale PV projects between 2015 and 2025. By 2025, the global weighted average LCOE could be as low as 0.03 USD/kWh (30 USD/MWh). The majority of cost reductions will come from lower balance of system costs (BOS). BOS costs refer to all costs associated with the PV system other than the solar modules themselves. BOS costs in 2025 should be 50% lower than those of 2015. How does this compare with other electricity-producing technologies? According to IRENA's 2018 report, "Renewable Power Generation Costs in 2017", solar PV utility-scale plant costs are comparable with other renewable sources of energy as well as fossil fuel-fired plants. This figure shows the global weighted average LCOE of each technology excluding any subsidies. Notice that in 2017, the global average LCOE of solar was well within the range of fossil fuel-fired power plants. This is true for a number of regions around the world, as seen in this figure shows the regional average LCOE of each technology and excludes any subsidies. References: ************ 1. International Renewable Energy Agency, (IRENA). (2016b). The Power to Change: Solar and Wind Cost Reduction Potential to 2025, http://www.irena.org/DocumentDownload... (accessed March 10, 2017) 2. International Renewable Energy Agency, (IRENA). (2018). Renewable Power Generation Costs in 2017, International Renewable Energy Agency, Abu Dhabi http://www.irena.org/publications/201... (accessed July 25, 2018) 3. Office national de l'énergie (ONE). Adoption des sources d’énergie renouvelable au Canada – Analyse des marchés de l’énergie. https://www.neb-one.gc.ca/nrg/sttstc/.... (Accessed 25 July 2018). 4. U.S. Energy Information Administration. (EIA 2018). Levelized Cost and Levelized Avoided Cost of New Generation Resources. https://www.eia.gov/outlooks/aeo/pdf/.... (Accessed 25 July 2018). 5. National Renewable Energy Laboratory New Release. (NREL 2013). News Release: NREL Report Firms Up Land-Use Requirements of Solar. https://www.nrel.gov/news/press/2013/... (Accessed 16 Sept 2018). #SolarVSOtherTypesOfEnergy #IsSolarPowerExpensive #SolarVSCoal