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 Europe’s Demographic Future. Where the Regions Are Heading after a Decade of Crises
10.08.2017 | Berlin-Institut für Bevölkerung und Entwicklung

nachricht Scientists reveal source of human heartbeat in 3-D
07.08.2017 | University of Manchester

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: Exotic quantum states made from light: Physicists create optical “wells” for a super-photon

Physicists at the University of Bonn have managed to create optical hollows and more complex patterns into which the light of a Bose-Einstein condensate flows. The creation of such highly low-loss structures for light is a prerequisite for complex light circuits, such as for quantum information processing for a new generation of computers. The researchers are now presenting their results in the journal Nature Photonics.

Light particles (photons) occur as tiny, indivisible portions. Many thousands of these light portions can be merged to form a single super-photon if they are...

Im Focus: Circular RNA linked to brain function

For the first time, scientists have shown that circular RNA is linked to brain function. When a RNA molecule called Cdr1as was deleted from the genome of mice, the animals had problems filtering out unnecessary information – like patients suffering from neuropsychiatric disorders.

While hundreds of circular RNAs (circRNAs) are abundant in mammalian brains, one big question has remained unanswered: What are they actually good for? In the...

Im Focus: RAVAN CubeSat measures Earth's outgoing energy

An experimental small satellite has successfully collected and delivered data on a key measurement for predicting changes in Earth's climate.

The Radiometer Assessment using Vertically Aligned Nanotubes (RAVAN) CubeSat was launched into low-Earth orbit on Nov. 11, 2016, in order to test new...

Im Focus: Scientists shine new light on the “other high temperature superconductor”

A study led by scientists of the Max Planck Institute for the Structure and Dynamics of Matter (MPSD) at the Center for Free-Electron Laser Science in Hamburg presents evidence of the coexistence of superconductivity and “charge-density-waves” in compounds of the poorly-studied family of bismuthates. This observation opens up new perspectives for a deeper understanding of the phenomenon of high-temperature superconductivity, a topic which is at the core of condensed matter research since more than 30 years. The paper by Nicoletti et al has been published in the PNAS.

Since the beginning of the 20th century, superconductivity had been observed in some metals at temperatures only a few degrees above the absolute zero (minus...

Im Focus: Scientists improve forecast of increasing hazard on Ecuadorian volcano

Researchers from the University of Miami (UM) Rosenstiel School of Marine and Atmospheric Science, the Italian Space Agency (ASI), and the Instituto Geofisico--Escuela Politecnica Nacional (IGEPN) of Ecuador, showed an increasing volcanic danger on Cotopaxi in Ecuador using a powerful technique known as Interferometric Synthetic Aperture Radar (InSAR).

The Andes region in which Cotopaxi volcano is located is known to contain some of the world's most serious volcanic hazard. A mid- to large-size eruption has...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Call for Papers – ICNFT 2018, 5th International Conference on New Forming Technology

16.08.2017 | Event News

Sustainability is the business model of tomorrow

04.08.2017 | Event News

Clash of Realities 2017: Registration now open. International Conference at TH Köln

26.07.2017 | Event News

 
Latest News

New thruster design increases efficiency for future spaceflight

16.08.2017 | Physics and Astronomy

Transporting spin: A graphene and boron nitride heterostructure creates large spin signals

16.08.2017 | Materials Sciences

A new method for the 3-D printing of living tissues

16.08.2017 | Interdisciplinary Research

VideoLinks
B2B-VideoLinks
More VideoLinks >>>