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Definition of competitiveness for photovoltaics and development of measures to accompany PV to grid parity and beyond

Grid Integration Cost of PhotoVoltaic Power Generation - Direct Costs Analysis related to Grid Impacts of Photovoltaics

The objective of this report is to analyse the impacts of increased penetration of PV technology on European electricity systems and quantify the grid integration cost and benefits of PV for selected target European countries. The analyses described in this report focuses on the impacts of PV on the capacity requirement of generation for security reasons, impacts of PV on the main European transmission corridors, and distribution systems as well as the impacts of PV on the operating reserve requirements and losses. Insights from these studies will be used to inform the work on determining the grid parity of PV technology.

Cost and Benefits of PV Grid Integration

Overview of the parameters to be considered for the cost/benefit analysis

Penetration of PV technology is likely to have impacts on our energy system that need to be understood and analyzed quantitatively. This project will evaluate the impacts of increased penetration of PV technology on European electricity systems and quantify the system integration cost and benefits of PV.

The analyses will focus on the impacts of PV on the capacity of generation, main European transmission corridors, and distribution system as well as the impacts of PV on the operating reserve requirements and losses. The system costs and system benefits of PV will also be quantified. Insights from these studies will be used to inform the work on determining the grid parity of PV technology.

Please, find the detailed report below:

External Costs of PV electricity

This report provides an overview of the external costs associated with PV electricity and puts into perspective vis-à-vis those associated with conventional electricity generating technologies.

‘External costs’ refer to all the costs, associated with the purchase and use of a saleable item, that are not included in the market price. For electricity,they include the increased insurance, health, social and environmental costs associated with damages to health, infrastructure and environment, as well as tax payments that subsidize producers of electricity or fuels, and their markets. All these costs are real, but sometimes difficult to quantify because they are less visible when they are factored into other payments, such as taxes or insurance. 

The external costs of electricity may be broken down into the following categories :  1)Environmental and health costs;  2) Subsidies & Energy security costs; 3) Costs for energy reliability