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Mention of firm names or commercial products does not constitute an endorsement by UNIDO. FAIR USE POLICY Any part of this publication may be quoted and referenced for educational and research purposes without additional permission from UNIDO. However, those who make use of quoting and referencing this publication are requested to follow the Fair Use Policy of giving due credit to UNIDO. CONTACT Please contact [email protected] for further information concerning UNIDO publications. For more information about UNIDO, please visit us at www.unido.org UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Tel: (+43-1) 26026-0 · www.unido.org · [email protected] UNIDO Photovoltaic System Iran Pre-Feasibility Study Tehran, Iran 8/1/2014 Table of Contents 1. Solar PV technology………………………………………………………………………………………….3 1.1 Composition of a PV system………………………………………………………………….3 1.2 System Monitoring…………………………………………………………………………..13 1.3 Operation and Maintenance……………………………………………………………….13 2. Siting in Iran………………………………………………………………………………………………...14 2.1 Birjand…………………………………………………………………………………………17 2.2 Mashhad………………………………………………………………………………………18 2.3 Sabzevar……………………………………………………………………………………….21 2.4 Zabol……………………………………………………………………………………………22 2.5 Zahedan……………………………………………………………………………………….23 2.6 Kerman…………………………………………………………………………………..……24 2.7 Yazd…………………………………………………………………………………………….25 3 Policy………………………………………………………………………………………………………….27 3.1 Implementing the project in terms of policies…………………………………………..27 3.2 Registration procedure ……………………………………………………………………..27 3.3 Foreign Investment Promotion and Protection Act (FIPPA) …………………………..27 3.4 Taxation in Iran……………………………………………………………………………….28 4 Financial analysis……………………………………………………………………………………………29 4.1 PV Modules ………………………………………………………………………………….29 4.2 Inverter………………………………………………………………………………………..35 4.3 Cost Analysis………………………………………………………………………………….37 4.4 Benefits……………………………………………………………………………………….39 1 1. Solar PV technology Solar PV technology converts energy from solar radiation directly into electricity. Solar PV cells are the electricity-generating component of a solar energy system. When sunlight (photons) strikes a PV cell, an electric current is produced by stimulated electrons (negative charges) in a layer in the cell designed to lose electrons easily. The existing electric field in the solar cell pulls these electrons to another layer. By connecting the cell to an external load, this current (movement of charges) can then be used to power the load (e.g., as in a light bulb). A photovoltaic power station, also known as a solar park, is a large-scale photovoltaic system (PV) designed for the supply of merchant power into the electricity grid. Most solar parks use ground mounted (sometimes called free-field or stand-alone) arrays. They can either be fixed tilt or tracking, either single axis or dual axis. Tracking increases the output, but also the installation and maintenance cost. The DC power output of the solar arrays is converted to AC by inverters, and connection to the grid is through a high voltage three phase step up transformer, usually to 10 kV or above 1.1 Composition of a PV system Figure 1 Composition of a PV system A typical PV system is made up of several key components ( figure 1) , including: . PV modules, made of cells . Inverter . Transformer . Balance-of-system (BOS) component Optionally, a photovoltaic system may include any or all of the following: renewable energy credit revenue-grade meter, maximum power point tracker (MPPT), battery system and charger, GPS solar tracker, energy management software, solar concentrators, solar 2 irradiance sensors, anemometer, or task-specific accessories designed to meet specialized requirements for a system owner. 1.1.1 Photovoltaic modules The diagram (figure 2) illustrates the operation of a basic photovoltaic cell, also called a solar cell. Solar cells are made of the same kinds of semiconductor materials, such as silicon, used in the microelectronics industry. For solar cells, a thin Figure 2 Generation of electricity from a PV cell ( Source: EPA) semiconductor wafer is specially treated to form an electric field, positive on one side and negative on the other. When light energy strikes the solar cell, electrons are knocked loose from the atoms in the semiconductor material. If electrical conductors are attached to the positive and negative sides, forming an electrical circuit, the electrons can be captured in the form of an electric current -- that is, electricity. 3 Figure 3 Outline of a PV Cell A number of solar cells electrically connected to each other and mounted in a support structure or frame is called a photovoltaic module( figure 4) . Modules are designed to supply electricity at a certain voltage, such as a common 12 volts system. The current produced is directly dependent on how much light strikes the module. Multiple modules can be wired together to form an array. In general, the larger the area of a module or array, the more electricity will be produced. Photovoltaic modules and arrays produce direct-current (dc) electricity. They can be connected in both series and parallel electrical arrangements to produce any required voltage and current combination Module technologies are differentiated by the type of PV material used, resulting in a range of conversion efficiencies from light energy to electrical energy. The module efficiency is a measure of the percentage of solar energy converted into electricity. Most solar cells are currently produced from silicon, which is abundant and nontoxic. This technology has been demonstrated for a consistent and high efficiency over 30 years in the field. The performance degradation, a reduction in power generation due to long-term exposure, is under 1% per year. Silicon modules have a lifespan in the 25- to 30-year range but can keep producing energy beyond this range. Typical overall efficiency of silicon solar panels is between 12% and 18%( Table 1). However, some manufacturers of mono-crystalline panels claim an overall efficiency nearing 20%. This range of efficiencies represents significant variation among the crystalline silicon technologies available. The technology is generally divided into mono- and multi-crystalline technologies, which indicates the presence of grain-boundaries (i.e., multiple crystals) in the cell materials, and it is controlled by raw material selection and manufacturing technique. 4 Table 1 Efficiency range of different types of PV cell The four general types of photovoltaic cells are: Monocrystalline silicon. Polycrystalline silicon (also known as multicrystal silicon). Amorphous silicon (abbreviated as "aSi," also known as thin film silicon) Multi-junction cells 1. Monocrystalline silicon photovoltaic cells Monocrystalline silicon photovoltaic cells are the oldest form of photovoltaic cells and have the highest conversion efficiency among all commercial photovoltaic cells today, but they require thinly sliced silicon of high purity. They need energy and capital investment to produce monocrystalline silicon, which boosts its price. Figure 4 Monocrystalline cell 2. Polycrystalline silicon photovoltaic cells The difference is that a lower cost silicon is used. While their heat conversion efficiency falls short of monocrystalline cells, they are inexpensive and thus are the current mainstream. Figure 5 Polycrystalline cell 5 3. Thin-film silicon photovoltaic cells These are photovoltaic cells produced by depositioning silicon film onto substrate glass. While the cost is kept low because less silicon is used compared to crystalline types, conversion is less efficient than crystalline types. But efficiency can be improved by layering several cells and generating power from each one (multijunction); something that can only be done using thin-film types. Disadvantages include higher manufacturing costs, lower efficiency, and greater corresponding space needed for energy equivalency. Thin-film modules basically include three technological benefits when compared to crystalline modules; firstly, they use sunlight more efficiently at low levels of sun irradiation; secondly, they have lower temperature coefficients, i.e., their power output does not drop as quickly when they get hot. Thirdly, thin-film modules may be produced in a continuous manufacturing process, resulting in significant benefits in terms of manufacturing technology. The greater need for space in comparison with modules employing crystalline Si solar cells is a significant reason why thin-film solar modules in utility-scale PV play only