Creara (Madrid, Spain) has published the 2nd issue of the PV Grid Parity Monitor, dedicated to the commercial segment (30 kW PV systems). As such, it analyzes PV competitiveness with electricity prices for commercial consumers and assesses local regulation for solar power self-consumption in seven different countries: Brazil, Chile, France, Germany, Italy, Mexico, and Spain.
The results of the analysis show that the main driver of PV grid parity is the decrease in solar PV system prices, one of the main parameters that determine levelized cost of electricity (LCOE).
Retail electricity prices for a commercial electricity consumer can be complex, combining diverse charges such as energy and capacity costs. The GPM only considers the costs associated to energy consumption (generally, this equates to the energy charge) to compare against the LCOE, but the reader must bear in mind that if self-consumption results in a change on the consumption pattern of the user, the additional avoided costs (e.g. capacity costs) should also be accounted for.
Solar power self-consumption needs governmental support
The analysis shows that only in Germany, France, and Chile average retail electricity prices for commercial consumers have been increasing. Those countries with a competitive LCOE and relatively high electricity rates are already at grid parity in the commercial segment.
However, grid parity by itself is no guarantee of market creation, Creara emphasizes. Solar PV self-consumption will only be fostered if grid parity is combined with governmental support. The chart illustrates the positioning of each country in terms of these two variables (“Grid Parity Proximity” and “Regulatory support”).
The following main conclusions can be drawn from the above figure:
- In Brazil, high installation prices and a high discount rate still prevent PV from being competitive against grid electricity, but the regulatory support (an attractive net metering system) is a good example of an effective incentive for market creation.
- Chile remains far from grid parity, mainly due to high installation prices, a high discount rate, and low electricity prices.
- In France, high irradiation levels (in the South) do not compensate for low electricity rates in the commercial sector and the high installation prices for BAPV systems.
- In Germany and Italy, low PV installation prices, a low discount rate, and high retail electricity prices all contribute to reach full grid parity.
- In Mexico, certain commercial electricity consumers (“Tarifa 2”), have reached grid parity. For other consumers, low electricity tariffs still represent a barrier.
- In Spain, grid parity has been reached, owing to high irradiation and competitive system prices, but poor regulatory support is a barrier for market creation. The recent draft law on self-consumption, which includes a fee on self-consumption, has not been considered in the LCOE analysis (neither has been the tax on electricity generation).
In order to explain the content of this issue, Creara has organized two webinars sessions that will take place on 12th June at 10:30 am (Madrid time zone) and 30th June at 5 pm (Madrid time zone). Please find below the links to register:
Download the complete analysis: http://ift.tt/1faVkwa
2015-05-26 | Courtesy: Creara | solarserver.com © Heindl Server GmbH
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