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Economic Performance of a Liquid-Based Solar Photovoltaic/Thermal (PVT) System Over Large Geographical Cities Around the World

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Economic Performance of a Liquid-Based Solar Photovoltaic/Thermal (PVT) System Over Large Geographical Cities Around the World Master Level Thesis European Solar Engineering School No. 264, June 2020 Digital Mapping of Techno- Economic Performance of a Liquid-Based Solar Photovoltaic/Thermal (PVT) System over Large Geographical Cities Around the World Master thesis 15 credits, 2020 Solar Energy Engineering Author: Santhan Reddy Penaka Supervisors: Puneet Kumar Saini Xingxing Zhang Dalarna University Examiner: Solar Energy Ewa Wäckelgård Engineering Course Code: EG3022 Examination date: 2020-06-17 K i Abstract Photovoltaic thermal (PVT) collectors are widely used to harness a large fraction of the solar spectrum to generate electricity and heat from a single collector. The circulation of the working medium will pass through the collector which cools down the PV cell temperature and also increases the water temperature, which will increase the electrical and thermal performance at the same time. PVT is an emerging technology and is demonstrated for domestic and industrial applications. There has also been a major gap for the techno- economic analysis of PVT system in different climatic conditions and further developing reliable financial models that can be applied in different regions. This thesis paper presents a techno-economic evaluation of a liquid-based PVT collector system developed by Abora Solar, Spain across a wide range of climatic conditions and contexts. The various performance indicators are visualized by digital mapping approach for 86 different locations all over the world. The databank obtained from the analysis is further used to establish a general correlation between collector performance and meteorological parameters such as Global horizontal irradiation and ambient temperature. The collector energetic performance is simulated using a validated and proprietary simulation tool developed by Abora Solar company. The complete energy system consists of a PVT collector, a water storage tank, and the associated DHW demand simulator. The collector energetic performance has reflected following the analysed Global horizontal irradiation and ambient temperature trend. The highest and lowest energy utilization ratio of the collector has been recorded in Reykjavik, Iceland (63%) and Medina, Saudi Arabia (54%) respectively. The highest and lowest exergetic efficiency of the collector has been recorded in Reykjavik, Iceland (23%) and Medina, Saudi Arabia (17%) respectively. The exergetic efficiency collector has shown better performance with the less ambient temperature and less quality of work in high ambient temperatures. Furthermore, the energy utilization ratio and exergetic efficiencies of collector production are analysed. The economic analysis is carried out in realistic approach using two different financial scenarios: mode (1) The total system cost is capital investment in the first year; mode (2) Only 25 % of total system cost is a capital investment and remaining 75 % investment is considered with financing period with certain interest rate. The economic performance of the collector has been decided mainly based on the Net Present Value per unit collector area, whereas it expressed high dependency on thermal energy savings. The average NPV per unit collector area of 86 geographical cities for first financial model 1 and financial model 2 are 1886€ and 2221€ respectively. Besides, the Payback Period has also been estimated for the first financing model in all selected locations. The first financial model (1) has shown better results in locations with a high interest rate and highly recommended for the locations with interest rate. The significant work of understanding of PVT components behaviour at the system level, the collector energetic and economic performance at different climatic conditions across the world have been highlighted which reflects the concrete developments to this research subject area and helps market decision-makers for market penetration. Keywords: PVT, Liquid-based, Techno-economic analysis, Digital mapping, Large geographical cities ii Acknowledgement It has been my pleasure to contribute to the Dalarna University-Abora Solar collaboration. I would like to begin this acknowledgement by thanking Solar Energy Research Centre (SERC)-Dalarna University for offering me a motivating platform with technical expertise, database to carry out my research. I would like to thank my Supervisors Mr Puneet Kumar Saini, Dr Xingxing Zhang for continuous support and encouragement during research. My special thanks to Dr Alejandro del Amo, CEO of Abora Solar, Spain for giving access to their valuable database mainly solar PVT collector and Abora simulation tool, and valuable feedback until the end of this research. I would also like to convey my wishes to my family and friends for being my personal support, I believe that this research would not have been completed in time without them. iii Contents 1 Introduction ................................................................................................................................... 1 2 Aims and objectives ...................................................................................................................... 2 3 Methodology .................................................................................................................................. 3 4 Previous work ................................................................................................................................ 5 Solar PVT collectors 5 Abora liquid-based hybrid PVT collector 6 Techno-economic analysis of PVT systems 8 5 Abora Hybrid Solar simulation tool ........................................................................................... 9 Location and detailed demand analysis 9 System modelling and configuration 10 Output results from tool 10 System pricing and Optimization 11 6 Results and Discussion ............................................................................................................... 14 Boundary conditions 14 Energy performance evaluation of PV/T panel 15 6.2.1. Collector thermal and electrical production 15 6.2.2. Collector energy utilization ratio 19 6.2.3. Collector exergetic efficiency 21 Economic performance evaluation of PVT collector 22 6.3.1. Collector economic performance in Financing model 1 23 6.3.2. Collector economic performance in Financing model 2 25 Uncertainty analysis 27 7 Conclusions .................................................................................................................................. 29 iv 1 Introduction In today’s world, global warming is being a severe hazard to the human beings and other living creatures because of polluting emissions exposed by fossil fuels in order to meet the significantly increasing energy demand which is leading to the destruction of the ecosystem and economic growth in many regions. Solar energy is one of the reliable sources in renewable energy sources which is an adequate solution and alternative to fossil fuels[1]. However, there is an urgency to take required measures to control global warming which is helping solar energy to grow rapidly mainly solar photovoltaic(PV) technology[2]. PV technology will generate DC electricity using sunlight where it’s been an interesting subject area for many researchers, global leaders, manufacturers because of its reliability, sustainability, easy installation and economic feasibility[3]. Due to these facts, solar markets are being shifted to solar photovoltaic technology whereas solar thermal technology is beneficial in terms of efficiency and storage. There is huge potential for properly designed systems by combining both solar photovoltaics and thermal technologies. An innovative hybrid solar technology which can achieve the electrical and thermal energy demands together has been emerging in recent years is known as solar photovoltaic/thermal(PVT) technology[4]. International Energy Agency (IEA) has initiated a task 60 part of Solar Heating and Cooling Programme (SHC) named as ‘PVT Systems: Application of PVT Collectors and New Solutions in HVAC Systems’. The target of the task is to discover current existing PVT solutions and encourage the developments of new PVT solutions whereas it intends to improve safety, reliability, economic feasibility and energy yield of PVT systems[5]. From a technical point of view, PVT technology has been well developed and it can be coupled with various energy systems. However, according to the IEA SHC task 60, the main barriers currently in PVT development and deployment are international standards, uncertain financial rules and business models across different regions in such a niche market for PVT technology. Therefore, the potential of PVT solution is not explored although it can be a breakthrough for the current heating industry markets such as Building Integrated PV and Façade Integrated PV in all type buildings and also go hand-in-hand with the emerging awareness of heat pump technology with also borehole storage[6]. There are several studies concerning the techno-economic analysis of PVT collectors with a focus on the component and system design[4], [7]–[10]. However, most of the studies are focused on one particular climate and with the simple economic analysis. Furthermore, complicated procedures or expensive software are used to estimate the performance of PVT collectors, where it lacks a comprehensive simulation of PVT’s techno-economic performance through a common tool over a large geographic area, aiming for application feasibility and potentials. 1 2 Aims and objectives
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