The economic viability of a feed-in tariff scheme that solely rewards self-consumption to promote the use of integrated photovoltaic battery systems

Brusco, Giovanni; Burgio, Alessandro; Menniti, Daniele; Pinnarelli, Anna; Sorrentino, N.

doi:10.1016/j.apenergy.2016.09.004

Cited by 50 publications

(25 citation statements)

References 16 publications

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“…The reduction is more significant with greater sizes of battery, because the subsidies given are directly linked to the initial investment. works define as the definition of subsidies, that they must require careful analysis and an evaluation of the socio-economic impact and energy policy [45,46]. FIT provides subsidies that are not concentrated in a single rate and a progressive reduction over time [47,48].…”

Section: Sensitivity Analysismentioning

confidence: 99%

The Economic Feasibility of Residential Energy Storage Combined with PV Panels: The Role of Subsidies in Italy

2017

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A solar photovoltaic system produces electricity by converting energy from the sun. By the end of 2016, the global installed solar photovoltaic capacity reached 305 GW. Its growth is impressive in the last years; in fact, it was only equal to 41 GW in 2010. However, Europe has installed only 6.9 GW in 2016 (−1.7 GW in comparison to previous year) and this annual power installed is equal to 9% of global one in according to data released by Solar Power Europe. The profitability of PV systems in mature markets depends on the harmonization between demanded energy and produced one residential energy storage when combined with photovoltaic panels is able to increase the share of self-consumption. This work proposes a mathematical model, in which a Discounted Cash Flow analysis is conducted to evaluate the financial feasibility of photovoltaic-integrated lead acid battery systems in Italy. The indicator used is Net Present Value. Furthermore, a break-even point analysis, in terms of an increase of self-consumption, is conducted. The residential sector is investigated and energy storage system investment is incentivized by fiscal deduction and regional subsidies. The analysis provides several case studies, determined by combinations of the following variables: photovoltaic plant size, battery capacity, the increase of the share of self-consumption, and the useful lifetime of energy storage system. The same case studies are proposed also in four alternative scenarios, where is the modified the structure of subsidies. Results confirm that the profitability can be reached in presence of subsidies.

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Section: Sensitivity Analysismentioning

confidence: 99%

The Economic Feasibility of Residential Energy Storage Combined with PV Panels: The Role of Subsidies in Italy

2017

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“…The grid feedin limitation is assumed to be 50 % of the installed PV capacity [36,37,38]. The constraint for the grid feed-in, grid supply, and curtailment are given in (9).…”

Section: Problem Formulationmentioning

confidence: 99%

“…Grid-connected microgrids with BESS in a different configuration and under consideration of time-of-use tariffs got more attention [5,6]. The BESS studies in terms of self-consumption based on demand forecasting have been studied in [7][8][9][10][11][12]13]. Similarly, self-consumption with different electricity prices has been analyzed in [14].…”

Section: Introductionmentioning

confidence: 99%

Optimal storage operation with flexible tariff under consideration of sector coupling and renewable energy sources in a new settlement area

Tayyab¹,

Hauer²,

Kärgel³

et al. 2019

Proceedings of the 13th International Renewable Energy Storage Conference 2019 (IRES 2019)

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Energy storages are important to manage the high amount of electricity generation from renewable energy sources in microgrids. Furthermore, the economic benefits of battery energy storage (BESS) such as self-consumption maximization have proven its feasibility. In the present paper, a settlement area with photovoltaic and storage systems is investigated, where electrical loads including the heating load profile by using a heat pump. Different battery operation strategies have been analyzed and compared under consideration of the Brazilian white tariffs with the goal to decrease the grid supply. For this purpose, linear programming has been used. The results have been compared with the flat electricity tariffs to analyze the white tariffs effect on these types of systems. The result shows a significant increase in profit using white tariff. However, considering the investment cost of the battery, 5 years of payback time is required.

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“…On the regulatory side, self-consumption legislation has been approved in a significant number of countries [20]. Self-consumption policies aim at redesigning the PV remuneration tariffs to incentivize an adequate sizing of the PV installations and to promote the investment in behind-the-meter storage technologies [6], reducing the PV injection into the grid. On the technical side, several solutions to improve the supervision and control of the distribution grid to avoid the contingencies caused by the excess of PV generation have been proposed.…”

Section: Outline the Available Fit Payment Plans Ie Percentage Fitmentioning

confidence: 99%

“…Europe are shown in [5] and in [6]. Other measures are capital subsidies for equipment purchase [7] as well as financial incentives and remuneration compensation schemes, such as self-consumption [8] , net-metering [9] and net-billing [10].…”

Section: Outline the Available Fit Payment Plans Ie Percentage Fitmentioning

confidence: 99%

Coordinated microgrid investment and planning process considering the system operator

et al. 2017

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Nowadays, a significant number of distribution systems are facing problems to accommodate more photovoltaic (PV) capacity, namely due to the overvoltages during the daylight periods. This has an impact on the private investments in distributed energy resources (DER), since it occurs exactly when the PV prices are becoming attractive, and the opportunity to an energy transition based on solar technologies is being wasted. In particular, this limitation of the networks is a barrier for larger consumers, such as commercial and public buildings, aiming at investing in PV capacity and start operating as microgrids connected to the MV network. To address this challenge, this paper presents a coordinated approach to the microgrid investment and planning problem, where the system operator and the microgrid owner collaborate to improve the voltage control capabilities of the distribution network, increasing the PV potential. The results prove that this collaboration has the benefit of increasing the value of the microgrid investments while improving the quality of service of the system and it should be considered in the future regulatory framework. KeywordsDistribution grid voltage control, microgrid design, model predictive control, photovoltaics. IntroductionThe number of photovoltaic (PV) installations have exponentially increased over the last decades and a more accelerated growth, pulled by the emerging economies, is expected by In addition, in order to maximize the on-site DER penetration it is a common practice to apply Demand Response (DR) procedures to decrease the load in peak hour conditions, These technical approaches to improve grid controllability proved to be very efficient in increasing the capabilities of distribution systems to host more PV capacity. However, they entail investment and operational costs to the distribution system operators (DSO) and, especially in scenarios of unbundling electricity sectors, DSOs have no interest in making those investments and bearing those costs. In fact, they have no motivation to enable more PV capacity, since their remuneration depends on electricity consumption and the 6 challenges of solar integration are mostly peak power related [19]. Moreover, the installation of photovoltaic units has the practical effect of reducing the net consumption of the prosumers, which decreases the income of the DSOs.The difficulties of the system to accommodate more solar power persist in most distribution networks, especially those that already have a considerable number of photovoltaic installations connected to the LV network. This is a particular barrier for larger consumers, such as commercial and public buildings, aiming at investing in PV capacity and start operating as microgrids connected to the MV network (e.g., [26] and [27]). Three main reasons explain the limitations imposed by the distribution grids to the microgrids investment and planning process: 1) microgrids require a significant amount of PV to justify the investments and, since all the capacity is conc...

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The economic viability of a feed-in tariff scheme that solely rewards self-consumption to promote the use of integrated photovoltaic battery systems

Cited by 50 publications

References 16 publications

The Economic Feasibility of Residential Energy Storage Combined with PV Panels: The Role of Subsidies in Italy

The Economic Feasibility of Residential Energy Storage Combined with PV Panels: The Role of Subsidies in Italy

Optimal storage operation with flexible tariff under consideration of sector coupling and renewable energy sources in a new settlement area

Coordinated microgrid investment and planning process considering the system operator

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