From Oil to Solar: Profitability Assessment for Implementing Large-Scale Photovoltaics in Saudi Arabia
| Autor: | Zhai, M., Mogi, G. |
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| Jazyk: | angličtina |
| Rok vydání: | 2013 |
| Předmět: | |
| DOI: | 10.4229/28theupvsec2013-6co.15.3 |
| Popis: | 28th European Photovoltaic Solar Energy Conference and Exhibition; 4541-4546 This paper assesses the potential profitability of implementing large-scale photovoltaic (PV) generation in the Kingdom of Saudi Arabia (KSA), by highlighting the opportunity cost in two possible trajectories the country may take: a business-as-usual trajectory where generation depends on conventional fuel, and a renewable trajectory where PV generation is introduced. A simulation model, which consists of baseload generation, peaking generation, PV generation, backup generation and small-scale battery storages, is created to calculate the amount of oilequivalent fuels saved due to the substitution effect of PV. The saved fuel is designated for exporting, the revenue from which is used to compensate for the investment of PV. Analysis shows that by such an approach, KSA can not only balance the contemporary high cost of PV generation, but also make considerable additional profit compared to the business-as-usual trajectory, as long as the petroleum price in the international market keeps above $80/barrel. 10.8% - 15.7% of PV penetration in the generation mix is estimated optimal when the exporting price of oil varies from $85/barrel - $105/barrel, correspondingly. |
| Databáze: | OpenAIRE |
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