Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Hybridising electricity grids with solar photovoltaic (PV) saves costs - New FS UNEP Study

01.06.2015

The Frankfurt School – UNEP Collaborating Centre for Climate & Sustainable Energy Finance has published a new study about economic benefits of hybridising diesel-powered electricity grids with solar photovoltaic (PV). In areas distant from main power grids, regional isolated grids – often referred to as mini-grids – are often the main source of electricity to industry and households. Power generation usually relies on diesel fuel, often imported over long distances. Yet generating costs can be reduced by hybridising these grids with PV or other renewable power sources.

On the basis of seven case studies in as many countries, this study finds that financing costs for a hybridisation project can be a major driver of electricity generation costs. Amongst other things, financing costs largely depend on the ownership structure of the power plant. “Relatively low ‘public sector’ return expectations can be assumed if the project is financed on the balance-sheet of a state-owned utility, and on concessional debt terms.


In this case, hybridisation could achieve significant cost reductions at all seven sites” says Torsten Becker, co-author of the study. However, assuming private sector return expectation – as possibly occurring if the hybrid is realised by an independent power producer (IPP) under a project finance structure – cost savings at six of seven sites would be insignificant or even negative.

Consequently, as Frankfurt School’s President Udo Steffens points out: “The analysis contributes to the very topical discussions on the affordability of climate change mitigation, and the challenges in crowding-in the private sector. It is part of our endeavour to advocate green energy without neglecting market realities and real economic costs.”

Diesel-powered grids can be hybridised using different types of system-integration technologies and renewable energy sources. This analysis compares diesel plants to a ‘100-percent-peak PV penetration’ hybrid technology, with which existing diesel generators can be switched off during peak availability of solar radiation.

The focus on this technology, however, is illustrative only, and does not imply its general advantage compared to other hybrid technologies (likewise, solar PV was selected as only one of several options for hybridisation).

Find the full Study online: “Renewable Energy in Hybrid Mini-Grids and Isolated Grids: Economic Benefits and Business Cases”.

Call for comments: The FS-UNEP Centre welcomes any feedback on the approach and results of this analysis. In particular, providers of other technologies are invited to get in touch with the Centre for a possible follow-up analysis of alternative hybrid solutions.

The Frankfurt School – UNEP Collaborating Centre for Climate & Sustainable Energy Finance is a strategic cooperation between Frankfurt School of Finance & Management and the United Nations Environment Programme (UNEP). It is committed to facilitating the necessary structural change of energy supply and use around the globe by helping to catalyse private sector capital flows towards investments in sustainable energy, climate change mitigation and adaptation. The hybrid study was furthermore supported by the International Renewable Energy Agency (IRENA) and Siemens AG.

About Frankfurt School of Finance & Management

Frankfurt School of Finance & Management is a research-led business school that is accredited by EQUIS and AACSB International. Frankfurt School offers educational programmes covering a wide variety of financial, economic and management subjects, including Bachelor’s and Master’s degree courses, a doctoral programme, executive education programmes, certification programmes, open seminars and training courses for professionals, and seminars and workshops for corporate and vocational trainees. In their research, Frankfurt School faculty members address topical issues in business, management, banking and finance. Furthermore, Frankfurt School experts manage advisory and training projects covering financial disciplines in emerging markets and developing countries, with particular focus on topics relating to microfinance and finance for energy from renewable sources. Frankfurt School’s Master of Finance programme is the only Master of Finance degree taught by a German business school to feature in the current Financial Times ranking (at number 20 in June 2014). In the Handelsblatt ranking published in December 2014, which rated the research credentials of German-language business studies lecturers and faculties, the Frankfurt School faculty took fifth place in Germany; several Frankfurt School professors were also awarded high individual rankings. In addition to the business school’s main campus in Frankfurt, Frankfurt School operates study centres in Hamburg and Munich, as well as international offices in Istanbul (Turkey), Dushanbe (Tajikistan), Beijing (China), Pune (India) and Nairobi (Kenya). Frankfurt School is a globally networked business school working with nearly 100 partner universities.

For more details, visit www.frankfurt-school.de

Weitere Informationen:

http://fs-unep-centre.org/publications/renewable-energy-hybrid-mini-grids-and-is...

Angelika Werner | idw - Informationsdienst Wissenschaft

More articles from Studies and Analyses:

nachricht Drone vs. truck deliveries: Which create less carbon pollution?
31.05.2017 | University of Washington

nachricht New study: How does Europe become a leading player for software and IT services?
03.04.2017 | Fraunhofer-Institut für System- und Innovationsforschung (ISI)

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Climate satellite: Tracking methane with robust laser technology

Heatwaves in the Arctic, longer periods of vegetation in Europe, severe floods in West Africa – starting in 2021, scientists want to explore the emissions of the greenhouse gas methane with the German-French satellite MERLIN. This is made possible by a new robust laser system of the Fraunhofer Institute for Laser Technology ILT in Aachen, which achieves unprecedented measurement accuracy.

Methane is primarily the result of the decomposition of organic matter. The gas has a 25 times greater warming potential than carbon dioxide, but is not as...

Im Focus: How protons move through a fuel cell

Hydrogen is regarded as the energy source of the future: It is produced with solar power and can be used to generate heat and electricity in fuel cells. Empa researchers have now succeeded in decoding the movement of hydrogen ions in crystals – a key step towards more efficient energy conversion in the hydrogen industry of tomorrow.

As charge carriers, electrons and ions play the leading role in electrochemical energy storage devices and converters such as batteries and fuel cells. Proton...

Im Focus: A unique data centre for cosmological simulations

Scientists from the Excellence Cluster Universe at the Ludwig-Maximilians-Universität Munich have establised "Cosmowebportal", a unique data centre for cosmological simulations located at the Leibniz Supercomputing Centre (LRZ) of the Bavarian Academy of Sciences. The complete results of a series of large hydrodynamical cosmological simulations are available, with data volumes typically exceeding several hundred terabytes. Scientists worldwide can interactively explore these complex simulations via a web interface and directly access the results.

With current telescopes, scientists can observe our Universe’s galaxies and galaxy clusters and their distribution along an invisible cosmic web. From the...

Im Focus: Scientists develop molecular thermometer for contactless measurement using infrared light

Temperature measurements possible even on the smallest scale / Molecular ruby for use in material sciences, biology, and medicine

Chemists at Johannes Gutenberg University Mainz (JGU) in cooperation with researchers of the German Federal Institute for Materials Research and Testing (BAM)...

Im Focus: Optoelectronic Inline Measurement – Accurate to the Nanometer

Germany counts high-precision manufacturing processes among its advantages as a location. It’s not just the aerospace and automotive industries that require almost waste-free, high-precision manufacturing to provide an efficient way of testing the shape and orientation tolerances of products. Since current inline measurement technology not yet provides the required accuracy, the Fraunhofer Institute for Laser Technology ILT is collaborating with four renowned industry partners in the INSPIRE project to develop inline sensors with a new accuracy class. Funded by the German Federal Ministry of Education and Research (BMBF), the project is scheduled to run until the end of 2019.

New Manufacturing Technologies for New Products

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Plants are networkers

19.06.2017 | Event News

Digital Survival Training for Executives

13.06.2017 | Event News

Global Learning Council Summit 2017

13.06.2017 | Event News

 
Latest News

A new technique isolates neuronal activity during memory consolidation

22.06.2017 | Life Sciences

Plant inspiration could lead to flexible electronics

22.06.2017 | Materials Sciences

A rhodium-based catalyst for making organosilicon using less precious metal

22.06.2017 | Materials Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>