The cost of electricity generated by photovoltaic (PV) systems is an important criteria that determines the competitiveness of PV in general compared to other - fossil and renewable - methods of electricity generation and that serves also to determine the best choice - from the economic point of view - in terms of PV module technology and system configuration for a given application and given specific geographical location. The reduction of the cost of PV-generated electricity is the driving force behind all research and development activities along the whole value chain of PV manufacturing, starting from the purification of the silicon feedstock and ending with the design and construction of PV systems and their components as well as of their efficient operation and maintenance (O&M). The levelized cost of electricity (LCOE) is a widely used metric that aims to include, on the one hand, the complete cost (e.g. in euro or USD) related to the construction and operation of a PV system and on the other hand, all factors that have an impact on the total electricity generated (in kWh) during the lifetime of the PV system. In the following, the concept of the LCOE and its application to PV will be shortly introduced and the impact of the use of bifacial - instead of monofacial - PV modules on LCOE will be discussed.

Chapter Contents:

• 6.1 Levelized cost of electricity for photovoltaic systems
• 6.1.1 Introduction
• 6.1.2 Parameters involved in the calculation of the LCOE
• 6.1.3 Risk management in bifacial PV systems
• 6.1.4 Importance of the weighted average cost of capital
• 6.2 Sensitivity study for LCOE of bifacial PV
• 6.2.1 General assumptions and LCOE of monofacial PV
• 6.2.1.1 Definition of performance ratio of a PV system
• 6.2.2 LCOE of bifacial PV and monofacial PV: sensitivity study
• 6.2.3 Sensitivity analysis: bifacial gain versus ground cover ratio and resulting LCOE
• 6.2.4 Summary
• References

Inspec keywords: photovoltaic power systems; power generation economics

Other keywords: levelized cost of electricity; LCOE; photovoltaic systems; electricity generation; PV-generated electricity levelized cost; bifaciality impact; operation and maintenance; PV manufacturing

Subjects: Power system management, operation and economics; Solar power stations and photovoltaic power systems