Development of a solar PV capacity addition plan for Sri Lanka to maximize economic benefits

Abstract

Sri Lanka has set various targets to integrate renewable energy-based power plants into the main grid while keeping a stronger focus on solar photovoltaic (PV) and wind power plants. A proper economic justification is not available, specially for targets set on increasing the capacity of solar PV systems. This research addresses this drawback by quantifying the economic costs and benefits related to electricity generated by solar PV systems under penetration of different solar PV capacities. An optimum capacity which maximizes the net economic benefits was derived as the final output of the research. Sri Lankan power system at generation level was modelled using a dispatch modelling software (PLEXOS) to obtain displaced fossil fuel and variable operation and maintenance (O&M) costs, by electricity generated by solar PV systems. A spreadsheet-based economic benefits evaluation model was used to calculate the present value of net benefits of the analysed solar PV penetration levels.