E3S Web Conf.
Volume 122, 20192019 The 2nd International Conference on Renewable Energy and Environment Engineering (REEE 2019)
|Number of page(s)||5|
|Section||Solar Energy Utilization and Photovoltaic System|
|Published online||14 October 2019|
Economic feasibility of developing large scale solar photovoltaic power plants in Spain
2 UNIVERSITY OF OVIEDO, Mining Exploitation Department, 33004 Oviedo, Spain
In 2017, electricity generation from renewable sources contributed more than one quarter (30.7%) to total EU-28 gross electricity consumption. Wind power is for the first time the most important source, followed closely by hydro power. The growth in electricity from photovoltaic energy has been dramatic, rising from just 3.8 TWh in 2007, reaching a level of 119.5 TWh in 2017. Over this period, the contribution of photovoltaic energy to all electricity generated in the EU-28 from renewable energy sources increased from 0.7% to 12.3%. During this period the investment cost of a photovoltaic power plant has decreased considerably. Fundamentally, the cost of solar panels and inverters has decreased by more than 50%. The solar photovoltaic energy potential depends on two parameters: global solar irradiation and photovoltaic panel efficiency. The average solar irradiation in Spain is 1,600 kWh m-2. This paper analyzes the economic feasibility of developing large scale solar photovoltaic power plants in Spain. Equivalent hours between 800-1,800 h year-1 and output power between 100-400 MW have been considered. The profitability analysis has been carried out considering different prices of the electricity produced in the daily market (50-60 € MWh-1). Net Present Value (NPV) and Internal Rate of Return (IRR) were estimated for all scenarios analyzed. A solar PV power plant with 400 MW of power and 1,800 h year-1, reaches a NPV of 196 M€ and the IRR is 11.01%.
© The Authors, published by EDP Sciences, 2019
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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