On the value of decentralised PV systems for the GCC residential sector

• Published in: Energy policy Vol. 39; no. 4; pp. 2020 - 2027
• Main Author: Radhi, Hassan
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.04.2011; Elsevier; Elsevier Science Ltd
• Series: Energy Policy
• Subjects: Applied sciences; Benefits; BiPV; BiPV Economic assessment GCC countries; building construction; construction materials; Cost; Cost analysis; Cost engineering; Cost-effectiveness; Economic assessment; Economic data; Economic performance; Economics; Electric energy; Electric power; Electricity; Energy; Energy economics; Energy policy; Exact sciences and technology; Financing; GCC countries; General, economic and professional studies; Gulf cooperation council; Gulfs; Investment; Investments; Middle East; Natural energy; Persian gulf region; Photovoltaic cells; Photovoltaic power generation; Power generation; Renewable energy sources; Residential areas; Residential buildings; residential housing; Residential location; Solar cells; Solar energy; Solar power; Studies; Subsidies; Tariff; Tariffs; Technology; Middle East; BiPV; GCC countries; Economic assessment
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2011.01.038

Based on the rich natural potential of the Gulf region, solar energy is expected to play a greater role in the future of the Gulf Corporation Council (GCC) countries. This study examines whether the integration of the photovoltaic (PV) into individual residential buildings in the GCC countries is worth the investment. A prototype residential building is developed and a building integrated photovoltaic (BiPV) system is then designed. The system performance is simulated, and through economic analysis, it is shown that the current BiPV technology is not a cost-effective option for the GCC countries based on the present electricity tariff, PV system cost and system efficiency. The only way such a system would be viable with current technology is if the electricity tariff were to increase substantially. However, if the tariff remains constant for the foreseeable future, BiPV solar energy technology will only be feasible if the total system cost drops drastically. This study shows that BiPV systems offer cost reductions in both energy and economic terms over centralised PV plants, especially if the costs of avoided building construction materials are taken into account. To bring about the benefits of BiPV technology for the GCC residential sector, therefore, the first logical and most practical step is the implementation of a continuous promotion strategy that consists of both subsidies for investments and reasonable tariffs. ► Techno-economic analysis of decentralised PV systems for the GCC residential sector. ► The current BiPV technology is not a cost-effective option for the GCC countries based on the present electricity tariff, PV system cost and system efficiency. ► The only way such a system would be viable with current technology is if the electricity tariff were to increase substantially. ► If the tariff remains constant for the foreseeable future, BiPV solar energy technology will only be feasible if the total system cost drops drastically.