Two decades of progressive cost reduction: A paradigm shift for distributed solar photovoltaics and energy efficiency

• Published in: Energy (Oxford) Vol. 312; p. 133570
• Main Authors: Senatla Jaane, Mamahloko, Bansal, Ramesh C., Naidoo, Raj M., Mbungu, Nsilulu T., Mudau, Unarine Bridget, Yusuf, Teslim, Kgaswane, Keorapetse, Moodley, Prathaban
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 15-12-2024
• Subjects: Demand response; Energy efficiency; Integrated resource plan; Solar PV; Tariff; Integrated resource plan; Demand response; Energy efficiency; Solar PV; Tariff
• ISSN: 0360-5442
• DOI: 10.1016/j.energy.2024.133570

The increasing deployment of renewable energy resources has led to massive energy cost reductions worldwide in the past decade. The emergence of this cost revolution led electricity consumers to increasingly adopt distributed renewable energy resources to decrease dependence on traditional power grids. This paper applies the integrated resource planning framework, the objective of which is to design a least-cost electricity system by looking at renewable energy resources, efficient appliances, and demand response management strategies to reduce electricity bills. The results show that the commercial entity can save its electricity bill by $0.16 if it installs 6 MW solar PV over the lifetime of the solar PV plants. Besides, it was observed that wind turbines were not economically feasible to install at the site because of low wind resources. Biogas power plant is too expensive mainly because of the cost of fuel (waste). It also shows that by retrofitting 2000 compact fluorescent lamps (CFLs) with light-emitting diodes (LEDs), the company can save $0.15 million. By shifting between 0.5 MW and 1.4 MW of heating and cooling demand to periods of low tariff costs, the company can save $0.013 million annually. The climate transition plan for this company relies on PV, efficiency interventions and demand response. The study also demonstrates that an integrated resource planning framework can be used to plan a mini-grid.
•Integrated resource planning can be used by companies to size their distributed resource power plants.•Energy efficiency and demand response are useful resources in capacity planning for businesses.•A gradual transition to efficiency units is better than replacing uneconomical-based HVAC in effect program.•During periods of high solar resource, the time of use is at the second highest level in any day.•Provide an opportunity for the company to save $0.16 million per annum by installing 6 MW of PV.