On the use of hourly pricing in techno-economic analyses for solar photovoltaic systems. (15th September 2015)

• Record Type: Journal Article
• Authors: Sommerfeldt, Nelson; Madani, Hatef
• Is Part Of: Energy conversion and management. Volume 102(2015)
• Page Start: 180
• Page End: 189
• Publication Date: 2015-09-15
• Subjects: Solar PV -- Techno-economic analysis -- Dynamic prices -- Time-of-use -- Hourly -- Typical price year; Direct energy conversion -- Periodicals; Energy storage -- Periodicals; Energy transfer -- Periodicals; Énergie -- Conversion directe -- Périodiques; Direct energy conversion; Periodicals; 621.3105
• DOI: 10.1016/j.enconman.2015.02.054
• Languages: English
• ISSNs: 0196-8904

Abstract

Highlights: The typical price year (TPY) method is described. The impact of pricing simplification models on revenues and NPV are tested. The TPY is shown to be a good long-term price curve for techno-economic studies. A static mean annual price can replace hourly in the Swedish market with minimal error. Abstract: The use of hourly prices in distributed photovoltaic (PV) techno-economic analysis is rare, but may become necessary as time-of-day retail pricing becomes more common. A methodology is presented for selecting an hourly price curve suitable for long-term analysis, called the typical price year (TPY), which is based on the methodology for TMY weather data. Using a techno-economic analysis with annual revenues and net present value as indicators, a TPY curve for the Swedish market is validated and then compared to 18 price simplification methods to determine the error introduced by the use of non-hourly prices. Results show that the TPY method produces a curve which accurately represents long term pricing trends, but using a static annual mean introduces minor revenue errors of 1.3%. This suggests the TPY may not be necessary in the Swedish market, but further analysis of the method is suggested for other markets.