Techno-Economic Aspects of PV Plant Construction for Various Conditions

Photovoltaic plants penetrate rapidly in power system. They decrease CO₂ gas emission and produce clean energy. Potential problems can be in their integration on power grid, but in literature that problem is clarified. But, to build photovoltaic plant for electrical energy production, some economic particulars must be clarified. Investors will construct PV plant only if it would make a profit. Profit can approve economic parameters that consider time, value of money: NPV (net present value), IRR (internal rate of return), PI (profitability index) and DPB (discounted payback period). These parameters can give opposite results but investor must choose referential parameters. These economic parameters can give an answer on size (rated power) of photovoltaic plant in terms of profitability. Today, photovoltaic plants are usually profitable only if they are in one of support scheme mechanisms made commonly by government. On the other side, decreasing of capital costs for photovoltaic plants construction has a great influence on economic profitability. In this paper, economic profitability of photovoltaic plants construction in Herzegovina region (Federation of Bosnia and Herzegovina) in case of valid support schemes and without support schemes will be analysed. Paper should give answers to investors about (non)profitability of photovoltaic plants construction in this region. Herzegovina as region has high potential for photovoltaic plants construction due to a large number of sunny hours on annual basis. Presented results can then be compared with other regions/countries.