FROM COSTS TO PRICES - ECONOMIC-ANALYSIS OF PHOTOVOLTAIC ENERGY AND SERVICES

A global economic analysis methodology is proposed in order to simplif y the cost and the profitability assessment of energy and services del ivered by photovoltaic (PV) systems. As examples, equations and graphi c tools derived from this methodology give directly the overall discou nted cost (ODC) of electricity delivered by grid-connected PV power pl ants and the ODC of water delivered by a stand-alone PV pumping system , The main criteria used for profitability analysis of PV projects are reviewed: net present value, internal rate of return and profitabilit y index (PI), A simple method with associated equations and graphic to ols is presented in order to assess the profitability of PV projects f rom their PI, Examples of profitability analysis of present and future grid-connected PV power plants built and operated by an independent p ower producer are presented and discussed, together with examples of s tand-alone PV water pumping systems operated by the local community in developing countries, In both cases, equations and specific graphic t ools are presented. Specific graphs can be used with different monetar y units, different sizes and different investment costs of PV projects . (C) 1998 John Wiley & Sons, Ltd.