vrijdag 27 mei 2011

Solar Power Plants Are a Future Goldmine

Solar energy too expensive? It depends how you make the calculation. How long will a PV power plant last? The general practice is for investors to base their calculations on a 20- to 25-year period for a megawatt ground-based PV system, using a fixed structure to calculate the return on investment. Does this give a correct calculation? Why not base it on 60 years and consider the replacement of inverters every 10 years and modules every 20 years?

Is a 25-year depreciation period realistic? What is possible with a PV power plant after 25 years? You could replace the modules by super cheap new modules. The inverters will have been replaced 5 years earlier and will still be doing fine. The rest of the system - concrete, cables, steel structures - are not likely to be eaten by rabbits or ants. Permits and grid connection are most probably still valid as well, since the world is desperate for electricity. So, by replacing the modules with new efficient cheap blue gold panels, available for - who knows - maybe as little as $0.50/Wp, the megawatt power station will be as new. Ready to produce electricity for a further 25 years.

One thing is sure: If a PV power plant is completely depreciated in the first 25 years, the production cost for electricity in the next 25 years will become extremely low. Making it a serious contender to compete directly with electricity from coal and nuclear power plants... And who would believe that electricity on the market will be cheaper in 25 years? In other words, the renewed PV power plant will, once again, become an extremely profitable electricity production site...

It is like renovating your house or building. Replace the windows, but keep the walls and structure intact. Maybe a new kitchen and a lick of paint will give the house a value even higher than ever before. So why, in a world of growing energy needs, would a PV power plant be worth less after 25 years? Isn’t it more likely that the plant is worth even more?

Why would coal and nuclear power plants be depreciated in 50 years and PV power plants in just 25 years? Don't coal power plants present higher risks? Who will be able to estimate what coal prices will be in 25 years' time? Or the costs involved for CO2 emission rights? Or, indeed, other emission reduction measures which may be introduced? These figures certainly seem to be less predictable than what the cost of solar energy will be in 25 years' time. However, it will be difficult to ascertain just how much cheaper modules will be 25 years from now...

12 opmerkingen:

  1. This is good idea. I was also thinking that we should base our calculations on a 50- to 60-year period.

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  2. Very informative! I learn a new thing every day. Hope for more. Will be coming for more http://solarwind-energy.com/.

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  3. hi. quite interesting blog. thanks for bringing out the statistical economic details out . i have employed a soar harvesting system at my home. i think i got quite a deal on the devices. check the out at

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  4. why don't people use the solar energy to produce electricy rather than heavy high loaded transformer. Although It also saves our natural resources and all.

    Thanx nice post it was dear !!

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  5. Imagine homes that are all solar powered with solar power plants supporting them. That will be less polluting and never ending source of energy such as described this blog.

    solar power products

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  6. wonderful blog post..It is great source of information as well as helpful for our energy market research
    Thanks for sharing

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  7. I agree with you that solar power plants is a hell of money in the closest future. Besides, appropriate treatment to ecology, of course=)

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  8. RLCPPL Solar Thermal Water Heating Systems

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  9. We are also manufacturers, suppliers and exporters of Solar Energy systems in India

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  10. Nice Post about Solar power Plant.. We are also manufacturer & exporter of Solar Power Plant in India

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  11. Its very Nice Information About Solar Planels its Very Useful to all,Keep Share like this hope to See More. We are also into Manufacturers and Suppliers Of Solar Panels , Thank You.

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