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A methodology for assessing the value of PV generated electricity for stand-alone and grid supply applications is described. The avoided cost provides a convenient basis for assessing the economic value of a PV system. Formulae are presented for deriving the unit electricity cost for PV systems, wind systems, diesel generators and grid-extension. The application of the methodology is illustrated by means of several examples. The value of PV systems for small stand-alone applications is found to be high. There are significant and growing markets for PV systems at today's prices for these applications. The value of PV generated electricity for grid-connected applications depends on many factors. The avoided cost at times of peak demand on the grid can be several times the average grid generation cost. Although not economic at today's prices, PV systems could in time be viable for grid supply applications. Improved techniques for energy storage and long distance transmission would also be important aspects. Achieving the necessary cost targets will require major efforts but the potential benefits are very large.

Additional information

Authors: KREBS K H, JRC Ispra (IT);STARR M, Consulting Engineer, Faringdon, Oxon. (GB)
Bibliographic Reference: Paper presented: 9th European Photovoltaic Solar Energy Conference and Exhibition, Freiburg (DE), Sept. 25-29, 1989
Availability: Available from (1) as Paper EN 35047 ORA
Record Number: 199010036 / Last updated on: 1994-12-01
Original language: en
Available languages: en
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