v

TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................ v

LIST OF TABLES ……………………………………………………………….. xvi

LIST OF FIGURES ……………………………………………………………...xviii
CHAPTER 1 ................................................................................................................. 1

INTRODUCTION........................................................................................................ 1

1.1 Background of the Study ................................................................................... 1

1.2 Statement of the Problem .................................................................................. 3

1.3 Research Objectives ........................................................................................... 4

1.4 Significance of the Study ................................................................................... 5

1.5 Scope and Limitations........................................................................................ 5

1.6 Conceptual Framework ..................................................................................... 7

CHAPTER 2 ................................................................................................................. 8

REVIEW OF RELATED LITERATURE ................................................................ 8

2.1 Introduction ........................................................................................................ 8

2.2 Solar Radiation on Earth’s Surface.................................................................. 8

2.3 Modeling Solar Radiation .................................................................................. 9

2.4 Solar Resource in the Philippines ................................................................... 10

2.5 Geography and Climate of Mindanao ............................................................ 11

2.5.1 Geography of Mindanao ........................................................................... 11

2.5.2 Climate of Mindanao ................................................................................. 12

2.6 Electrical Supply in Mindanao ....................................................................... 12

2.7 Mindanao Power Grid ..................................................................................... 13

2.8 Photovoltaic System ......................................................................................... 14

2.8.1 Basic Components of Photovoltaic System .............................................. 15

2.9 Types of Photovoltaic System .......................................................................... 17

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2.9.1 Grid Connected System............................................................................. 17

2.9.2 Stand Alone Grid Connected System....................................................... 18

2.9.3 Off- Grid System ........................................................................................ 18

2.9.4 Stand Alone Off Grid System ................................................................... 19

2.9.5 Stand Alone Off Grid Hybrid System...................................................... 20

2.10 Advantages of Solar Energy for Rural Areas .............................................. 21

2.11 Site Selection Criteria .................................................................................... 22

2.11.1 Site Survey and Considerations.............................................................. 22

2.12 Advantages and Disadvantages of Grid Connected System ....................... 23

2.12.1 Financial Benefits of Grid Connected System ...................................... 23

2.12.2 Disadvantages of Grid Connected System............................................. 24

2.13 Advantages and Disadvantages of Off Grid System ................................... 24

2.13.1 Financial Benefits of an Off-Grid System ............................................. 24

2.13.2 Disadvantages of an Off-Grid System ................................................... 24

2.14 Types of PV Cell Materials ............................................................................ 25

2.14.1 Crystalline Materials ............................................................................... 25

2.14.1.1 Mono-Crystalline Silicon .................................................................. 26

2.14.1.2 Poly- Crystalline Silicon ................................................................... 26

2.14.2 Flexible Amorphous Thin Films ............................................................. 27

2.15 Summary of PV Cell Types ........................................................................... 27

2.16 Feed in Tariff .................................................................................................. 27

2.17 Solar Photovoltaic Power Plant in the Philippines...................................... 28

2.17.1 Solar Photovoltaic, Cagayan de Oro City ............................................. 28

2.17.2 San Carlos Solar PV Power Plant .......................................................... 29

2.17.3 Solar Power Plant at SM North Edsa .................................................... 30

2.18 Factors Affecting Conversion Efficiency...................................................... 30

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2.18.1 Wavelength ............................................................................................... 30

2.18.2 Recombination ......................................................................................... 31

2.18.3 Temperature............................................................................................. 31

2.18.4 Reflection .................................................................................................. 32

2.19 Determining Conversion Efficiency .............................................................. 32

2.20 Factors That Affect Solar PV System Efficiency......................................... 33

2.20.1 Cable Thickness ....................................................................................... 33

2.20.2 Temperature............................................................................................. 34

2.20.3 Shading ..................................................................................................... 34

2.20.4 Charge Controller and Solar Cell’s IV Characteristics ....................... 35

2.20.5 Inverter Efficiency ................................................................................... 36

2.20.6 Battery Efficiency .................................................................................... 36

2.21 Assessing Solar Panel Quality ....................................................................... 36

2.21.1 Quantifying Solar PV System ................................................................. 37

2.21.1.1 Performance ...................................................................................... 37

2.21.1.2 Losses ................................................................................................. 38

2.21.1.3 Power Tolerance................................................................................ 38

2.21.1.4 Temperature Coefficient .................................................................. 39

2.21.2 Importance of Quantifying Quality of Solar PV Systems .................... 39

2.22 Solar Energy Feasibility Studies ................................................................... 40

2.22.1 Solar Feasibility Study of a Learning Center at WPI .......................... 40

2.22.1.1 Solar Learning Lab ........................................................................... 40

2.22.2 Janssen Ortho LLC Solar Power Feasibility Study ............................. 41

2.23 Economics of Solar PV Systems .................................................................... 41

2.23.1 Cumulative Cash Flow ............................................................................ 41

2.23.2 Debt-service coverage ratio (DSCR) ...................................................... 42

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2.23.3 Depreciation method ............................................................................... 42

2.23.4 Discount rate ............................................................................................ 42

2.23.5 Discounted Cash Flow (DCF) ................................................................. 42

2.23.5 Discounted Return on Investment.......................................................... 43

2.23.6 Free Cash Flow ........................................................................................ 43

2.23.7 Internal rate of return (IRR) .................................................................. 43

2.23.8 Net present value (NPV).......................................................................... 43

2.23.8 Real Interest Rate .................................................................................... 44

2.23.9 Return on Investment (ROI) .................................................................. 44

2.24 Economic Analysis Method and Approach .................................................. 44

2.24.1 Least Cost ................................................................................................. 44

2.24.2 Economic Costs ........................................................................................ 45

2.24.3 Economic Benefits.................................................................................... 46

2.24.4 Consumer Payment ................................................................................. 46

2.24.5 Benefit Analysis........................................................................................ 47

2.25 Cost Effectiveness of Solar PV Systems ....................................................... 48

2.25.1 Low Cost Systems .................................................................................... 49

2.26 State, Local, and Utility Incentives ............................................................... 49

2.26.1 Direct Cash Incentives............................................................................. 50

2.26.2 Property Tax Incentives .......................................................................... 50

2.26.3 Sales Tax Incentives................................................................................. 50

2.26.4 Tax Credits ............................................................................................... 50

2.26.5 Loan Programs ........................................................................................ 51

2.26.6 Permitting Incentives .............................................................................. 51

2.27 Payback ........................................................................................................... 51

2.28 Solar Energy Makes Sense for Consumers .................................................. 52

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2.29 Economic Analysis of Samarkand Solar Power Project ............................. 53

2.30 Solar Facilities ................................................................................................ 53

2.31 Future Installations ........................................................................................ 54

2.32 Recent Renewable Energy Survey for Interests .......................................... 55

2.33 Electric Cooperative Development and Rural Electrification ................... 56

2.33.1 Compilation of Information from the Electric Operator..................... 56

2.33.2 Standards and Materials Used ............................................................... 56

2.33.3 Plans for Network Extensions in the Project Area ............................... 56

2.33.4 Alternatives for Extension of the Electric System ................................ 57

2.33.5 Point of Origin or Supply for the Project .............................................. 58

2.33.6 Voltage Level of the Existing Distribution Lines .................................. 58

2.33.7 Number of Phases Available ................................................................... 59

2.33.8 Physical Neutral ....................................................................................... 59

2.33.9 Distance from Substation ........................................................................ 59

2.33.10 Existing Conductor Size from Substation to the Project ................... 60

2.33.11 Load in the Existing Line ...................................................................... 60

2.33.12 Average Energy Consumption in the Electrified Community........... 60

2.33.13 Existing Penetration Rate in the Electrified Area .............................. 61

2.33.14 Substation Characteristics .................................................................... 61

2.33.14.1 Source Impedance ........................................................................... 61

2.33.14.2 Capacity of the Substation ............................................................. 62

2.33.14.3 Available Capacity at the Substation ............................................ 62

2.33.14.4 Voltages on Both Sides of the Transformer .................................. 62

2.33.14.5 Available Taps in the Transformer ............................................... 63

2.33.14.6 Existence of Automatic Voltage Regulation ................................. 63

2.33.14.7 Impedance of the Transformer and Ground Connection ........... 63

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2.33.14.8 Transformer Connections .............................................................. 64

2.33.14.9 Characteristics of Overcurrent Protection Devices ..................... 64

2.33.14.10 Characteristics of Another Substation Equipment .................... 65

2.34 Field Inspection .............................................................................................. 65

2.34.1 Georeference of All Sites with GPS........................................................ 66

2.34.2 Tracks or Routes ...................................................................................... 66

2.34.3 Waypoints ................................................................................................. 67

2.34.4 Record Distances and Consumers .......................................................... 67

CHAPTER 3 ............................................................................................................... 68

RESEARCH METHODOLOGY ............................................................................. 68

3.1 Introduction ...................................................................................................... 68

3.2 Data Gathering ................................................................................................. 70

3.3 Site Identification ............................................................................................. 70

3.3.1 Location ...................................................................................................... 71

3.3.2 Meteorological Analysis ............................................................................ 71

3.3.2.1 Available Solar Energy ....................................................................... 72

3.3.2.2 Solar Insolation ................................................................................... 72

3.3.2.3 Local Climate ...................................................................................... 72

3.3.2.4 Topography ......................................................................................... 73

3.4 Site Selection Criteria for Solar PV System................................................... 73

3.5 Estimating the Demand Load ......................................................................... 76

3.6 Solar PV Power Plant Specifications .............................................................. 77

3.6.1 Sizing the Array ......................................................................................... 77

3.6.2 Number of Modules ................................................................................... 78

3.6.2.1 Number of Modules Connected in Series.......................................... 79

3.6.2.2 Number of Modules Connected in Parallel ...................................... 79

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3.6.3 Array Voltage ............................................................................................. 79

3.6.4 Array Current ............................................................................................ 80

3.6.5 Charge Controller...................................................................................... 80

3.6.6 Sizing of Battery......................................................................................... 81

3.6.12 Sizing Cable from Photovoltaic Array to Inverter ............................... 87

3.6.13 Sizing of the Circuit Breaker .................................................................. 87

3.6.14 Sizing of the Circuit Protection from PV Array to Inverter ............... 87

3.6.15 Estimation of the System Energy Output .............................................. 87

3.6.16 Capacity Factors ...................................................................................... 89

3.7 Economic Analysis for Solar PV Power Plant ............................................... 89

3.7.1 Balance of System ...................................................................................... 89

3.7.2 Life Cycle Energy Cost of Photovoltaic ................................................... 90

3.7.3 Financial Methodology and Assumptions ............................................... 91

3.7.4 System Life of Photovoltaic ...................................................................... 92

3.7.5 Balance of System (BOS) .......................................................................... 93

3.7.6 Currency Exchange Rate .......................................................................... 93

3.7.7 Module Price .............................................................................................. 94

3.7.8 Inverter Cost .............................................................................................. 94

3.7.9 Storage System Cost .................................................................................. 94

3.7.10 Replacement Costs ................................................................................... 95

3.7.10.1 Battery Replacement ........................................................................ 95

3.7.10.2 Inverter Replacement ....................................................................... 96

3.7.11 Operation and Maintenance Cost .......................................................... 96

3.7.12 Salvage Value ........................................................................................... 97

3.7.13 Life Replacement Cost ............................................................................ 97

3.7.14 Cost Per kWh ........................................................................................... 98

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3.8 Distribution Line Construction ..................................................................... 100

3.8.1 Methods Site Electrification Checking .................................................. 100

3.8.2 Methods for Electrification ..................................................................... 100

3.8.3 Specifications for Line Construction ..................................................... 103

3.8.3.1 General ............................................................................................... 103

3.8.3.2 Distribution of Poles ......................................................................... 103

3.8.3.3 Pole Setting ........................................................................................ 104

3.8.3.4 Grading of Line ................................................................................. 105

3.8.3.5 Guys and Anchors ............................................................................. 105

3.8.3.6 Locknuts............................................................................................. 105

3.8.3.7 Conductors......................................................................................... 106

3.8.3.8 Splices and Dead Ends ...................................................................... 106

3.8.3.9 Taps and Jumpers ............................................................................. 106

3.8.3.10 Hot-line Clamps and Connectors .................................................. 107

3.8.3.11 Surge Arrester Gap Settings .......................................................... 107

3.8.3.12 Conductor Ties ................................................................................ 107

3.8.3.13 Sagging Conductors ........................................................................ 107

3.8.3.14 Secondaries and Service Drops ...................................................... 108

3.8.3.15 Grounds ........................................................................................... 108

3.8.3.16 Clearing Right-of-Way ................................................................... 108

3.9 Distribution Line Cost ................................................................................... 109

3.10 Simulation ..................................................................................................... 109

3.11 Evaluation ..................................................................................................... 110

3.11.1 Economic Analysis Comparison ........................................................... 111

3.11.1.1 Return on Investments and Payback Period ................................ 111

3.11.1.2 Payback Period................................................................................ 111

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3.11.1.3 Net Benefit Analysis ........................................................................ 112

3.11.1.4 Internal Rate of Return ...................................................................... 112

3.11.2.5 Benefit Cost Ratio ........................................................................... 113

3.11.2 Technical Viability ................................................................................. 114

3.11.2.1 Voltage Regulation .......................................................................... 114

3.11.1.2 Line Losses....................................................................................... 114

3.11.1.3 Line Ampacity Limits ..................................................................... 115

3.11.1.4 Reliability ......................................................................................... 115

CHAPTER 4 ............................................................................................................. 116

RESULTS AND DISCUSSION .............................................................................. 116

4.1 Introduction .................................................................................................... 116

4.2 Site Identification ........................................................................................... 117

4.2.1 Estimate Space Required ........................................................................ 119

4.2.1.1 Land Use ............................................................................................ 120

4.2.2 Meteorological Analysis .......................................................................... 120

4.2.2.1 Available Solar Energy ..................................................................... 121

4.2.2.2 Solar Insolation ................................................................................. 123

4.2.2.3 Local Climate .................................................................................... 123

4.2.2.4 Topography ....................................................................................... 127

4.3 Site Inspection................................................................................................. 129

4.4 Estimating the Demand Load ....................................................................... 131

4.5 Sizing the Array .............................................................................................. 133

4.5.1 Number of Modules ................................................................................. 135

4.5.1.1 Number of Modules Connected in Series........................................ 136

4.5.1.2 Number of Modules Connected in Parallel .................................... 137

4.5.2 Array Voltage ........................................................................................... 137

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4.5.3 Array Current .......................................................................................... 139

4.5.4 Solar PV Modules Specifications............................................................ 139

4.6 Charge Controller .......................................................................................... 116

4.7 Sizing of Battery ............................................................................................. 143

4.7.1 Connecting Batteries in Series ................................................................ 143

4.7.2 Connecting Batteries in Parallel ............................................................. 144

4.7.3 BATTERY SPECIFICATIONS ............................................................. 146

4.8 Sizing of the Inverter...................................................................................... 147

4.8.1 INVERTER SPECIFICATIONS ........................................................... 148

4.9 Sizing of the Cables ........................................................................................ 152

4.9.1 Sizing the Cables Between PV Modules ................................................ 153

4.9.2 Sizing Cable from Photovoltaic Array to Inverter ............................... 154

4.9.3 Sizing of the Circuit Breaker .................................................................. 156

4.9.4 Sizing of the Circuit Protection Between PV Array and Inverter ...... 156

4.10 Estimation of the System Energy Output .................................................. 157

4.12 Economic Analysis for Solar PV Power Plant ........................................... 162

4.12.1 Balance of System .................................................................................. 162

4.12.2 Life Cycle Energy Cost of Photovoltaic ............................................... 163

4.12.2.1 Battery Replacement ...................................................................... 166

4.12.2.2 Inverter Replacement ..................................................................... 170

4.12.3 Cost Per kWh ......................................................................................... 171

4.13 Distribution Line Construction ................................................................... 173

4.13.1 Load Mapping ........................................................................................ 178

4.13.1.1 Household Consumers’ Map .......................................................... 178

4.14 PowerWorld Simulation .............................................................................. 179

4.15 Economic Analysis Evaluation .................................................................... 187

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4.15.1 Return on Investment for the 300-kW Solar PV Power Plant .......... 187

4.15.2 Payback Period: ..................................................................................... 189

4.15.3 Return on Investment for BUSECO’s Distribution Lines ................. 189

4.15.4 Payback Period: ..................................................................................... 191

4.15.5 Net Benefit Analysis............................................................................... 191

4.15.6 Internal Rate of Return ......................................................................... 192

4.15.7 Benefit Cost Ratio .................................................................................. 193

4.16 Technical Viability Evaluation.................................................................... 196

4.16.1 Voltage Profile........................................................................................ 196

4.16.2 Line Ampacity Limits and Line Losses for BUSECO’s Distribution
Line .................................................................................................................... 199

4.16.4 Reliability ............................................................................................... 202

4.16.4.1 Solar PV System Reliability ........................................................... 203

4.16.4.2 Utility-Distribution Lines Reliability ............................................ 206

CHAPTER 5 ............................................................................................................. 213

CONCLUSION AND RECOMMENDATIONS ................................................... 213

5.1 Introduction .................................................................................................... 213

5.2 Evaluation Summary ..................................................................................... 213

5.2.1 Economic Evaluation ............................................................................... 213

5.2.2 Technical Evaluation ............................................................................... 214

5.2 Conclusion ....................................................................................................... 215

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LIST OF FIGURES

Figure 1.1 Conceptual Framework ............................................................................ 7

Figure 2.1 Diagram of earth’s energy budget .......................................................... 9

Figure 2.2 Incoming solar radiation components ................................................... 10

Figure 2.2 Solar Energy Potential in the Philippines.............................................. 11

Figure 2.3 Mindanao Power Grid............................................................................. 14

Figure 2.4 Major Photovoltaic System ..................................................................... 14

Figure 2.5 Diagram of grid-connected photovoltaic system................................... 17

Figure 2.6 Stand Alone Grid Connected System..................................................... 18

Figure 2.7 Diagram of Off-Grid PV system with battery storage powering DC

and AC loads .............................................................................................................. 19

Figure 2.8 Stand Alone Off Grid System ................................................................. 20

Figure 2.9 Stand Alone Off Grid Hybrid System.................................................... 20

Figure 2.10 Mono- crystalline Silicon....................................................................... 26

Figure 2.11 Poly- crystalline Silicon ......................................................................... 26

Figure 2.12 Flexible Amorphous Thin Film ........................................................... 26

Figure 3.3 Continuation of Electrification Methods ............................................ 102

Figure 3.4 Methods Before Power Generation ..................................................... 102

Figure 4.1 Image of a Centralized System ............................................................ 116

Figure 4.2 Google Map Image Manolo Fortich ..................................................... 117

Figure 4.3 Google Map Image of Barangay Lunocan ......................................... 118

Figure 4.4 Direction and Distance of Site from USTP ......................................... 118

Figure 4.5 Solar Irradiance Profile of Southeast Asia .......................................... 122

Figure 4.5 Irradiation Map of the Philippines ..................................................... 123

Figure 4.6 Google Terrain Image of Sitio Calaniogan......................................... 128

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Figure 4.7 Google Terrain Image of a Closed-Up Site of Sitio Calaniogan ....... 128

Figures 4.8 Dimension of the PV Module ............................................................. 116

Figure 4.8 Series-Connected Batteries ................................................................... 144

Figure 4.9 Inverter/Charger Sunny TriPower 60 ................................................. 149

Figure 4.10 Inverter Benefits .................................................................................. 149

Figure 4.11 Inverter Efficiency Curve ................................................................... 151

Figure 4.12 Sitio Calaniogan 1-Phase Line ............................................................ 178

Figure 4.13 Google Earth Distance Plotting of Households ................................. 179

Figure 4.14 Simulation of Distribution Lines ........................................................ 181

Figure 4.15 Run Mode ............................................................................................ 182

Figure 4.16 Distribution Lines Ampacity Limits (Load 1-10) ............................ 183

Figure 4.17 Distribution Lines Ampacity Limits (Load 11-20) ........................... 183

Figure 4.18 Distribution Lines Ampacity Limits (Load 21-40) .......................... 184

Figure 4.19 Solar PV System Simulation ............................................................. 184

Figure 4.20 Run Mode Solar PV System .............................................................. 185

Figure 4.21 Solar Ampacity Limits (Load 1-10) .................................................. 185

Figure 4.22 Solar PV Ampacity Limits (Load 11-20) .......................................... 186

Figure 4.54 Solar PV Ampacity Limits (Load 21-40) .......................................... 186

Figure 4.55 Voltage Profile Graph of Utility-Distribution Lines ........................ 197

Figure 4.56 Voltage Profile Graph of Solar PV Power Plant .............................. 198

.................................................................................................................................... 205

Figure 4.57 Failure Areas ........................................................................................ 205

Figure 4.58 Failure Areas ........................................................................................ 205

Figure 4.59 Pie Chart for ECs Classification ........................................................ 211

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LIST OF TABLES

Table 2.1 Advantages of Solar PV Systems in Rural Areas ................................... 21

Table 2.1 Conversion efficiencies of various PV module technologies .................. 27

Table 3.1 Site Selection Criteria for Solar PV Systems .......................................... 74

3.2 Table for Individual Household’s Energy Demand .......................................... 77

Table 4.1 Monthly Solar Radiation in Bukidnon .................................................. 122

Table 4.2 Temperature and Rainfall Data ............................................................. 124

Table 4.3 Average Monthly Rainfall in Bukidnon ................................................ 125

Table 4.4 Monthly Cloud Data ............................................................................... 126

Table 4.5 Cloud Cover Categories .......................................................... 126

Table 4.6 Site Selection Criteria for Solar PV System ......................................... 129

Table 4.7 System 1.................................................................................................... 131

Table 4.8 System 2.................................................................................................... 131

Table 4.9 Total Energy Demand for Future Loads .............................................. 132

Table 4.10 Total Energy Demand for Actual Loads ............................................. 132

Table 4.11 Total Energy Requirement ............................................................ 133

Table 4.12 Rated Array Power Details .................................................................. 134

Table 4.13 Rated Array Power Details .................................................................. 134

Table 4.14 Summary of Rated Array Power ......................................................... 135

Table 4.15 Number of Modules............................................................................... 136

Table 4.16 Series-Connected Modules .................................................................. 136

Table 4.16 Series-Connected Modules ........................................................ 137

Table 4.17 Array Voltages ....................................................................................... 137

Table 4.18 System 1 - Array System....................................................................... 138

Table 4.19 System 2 – Array System ....................................................... 138

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Table 4.20 Array Currents ........................................................................... 139

Table 4.21 Electrical Data of Module..................................................................... 140

Table 4.22 Temperature Coefficients ..................................................................... 115

Table 4.23 Mechanical Data .................................................................................... 115

Table 4.21 Battery Capacity................................................................................. 143

Table 4.22 Storage Capacity Values ....................................................................... 144

Table 4.23 Number of Batteries .............................................................. 145

Table 4.24 Summary of Battery System ................................................................ 145

Table 4.25 Battery Specifications ........................................................................... 146

Table 4.26 Battery Charge Method ........................................................................ 147

Table 4.27 Battery Operating Temperature .......................................................... 147

Table 4.28 Inverter Size ........................................................................................... 148

Table 4.29 Inverter Technical Data ........................................................................ 150

Table. 4.30 Inverter General Data.......................................................................... 150

Table 4.31 Values for Energy Output Estimation ................................................ 157

Table 4.32 Estimated Energy Output for System 1 .............................................. 158

Table 4.33 Estimated Energy Output for System 2 .............................................. 159

Table 4.34 System 1 Data ........................................................................................ 160

Table 4.35 System 2 Data ........................................................................................ 161

Table 4.36 System 1 Balance of System ................................................................. 162

Table 4.37 System 2 Balance of System ................................................................ 163

Table 4.38 System 1 Life Cycle Cost .................................................................. 164

Table 4.39 System 1 Present Worth .................................................................... 164

Table 4.40 System 2 Life Cycle Cost ................................................................ 165

Table 4.41 System 2 Present Worth ....................................................................... 165

Table 4.42 Inflation Rate Summary in the Philippines (Statista.com)................ 166

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Table 4.43 Cost of Energy per kWh ....................................................................... 172

Table 4.44.1 Bill of Materials .................................................................................. 174

Table 4.44.2 Bill of Materials .................................................................................. 175

Table 4.45 Labor Cost ............................................................................................. 176

Table 4.46 Total Cost of Line Construction ......................................... 177

Table 4.47 Load Distances ....................................................................................... 180

Table 4.49 Distribution Line Data .......................................................................... 181

Table 4.50 Government Revenues (₱/kWh) .......................................................... 187

Table 4.51 Taxes-Value Added Tax (₱/kWh) ........................................................ 188

Table 4.52 Distribution Revenues ........................................................................... 190

Table 4.53 Net Present Value ............................................................................. 192

Table 4.54 Voltage Profile for Utility-Distribution Lines..................................... 196

Table 4.55 Voltage Profile for Solar PV Power Plant........................................... 197

Table 4.56 Utility-Distribution’s Line Limit Monitoring ..................................... 200

Table 4.57 Solar PV Power Plant’s Line Limit Monitoring ................................ 200

Table 4.58 Components and Likelihood of Failure .............................................. 203

Table 4.59 Solar PV System Reliability in 20 years .............................................. 204

Table 4.60 3rd quarter of the year ........................................................................... 211

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CHAPTER 1

INTRODUCTION

1.1 Background of the Study

Developing countries have increasingly rapid rise of electricity

production demand to meet the essential loads and support the area parameters in terms

of advancements. Access to energy offers great benefits to progress through the

provision of reliable and efficient lighting, heating, cooking, mechanical power,

telecommunication services, and transportation. It bids breakage of boundaries toward

progress, especially in the areas remotely located from the civilized and urbanized

extents. According to the United Nations (UN), Sustainable Development is not

possible without sustainable energy, which implies universal access to affordable,

reliable and modern energy. Although there is no universal definition of energy access

and data are often scarce, the International Energy Agency (IEA) defines energy access

as “household having access to electricity and to relatively clean, safe means of

cooking”. Out of the six existing forms of energy, electrical energy is the most desirable

form of energy because it is very easy to transform into types of energy that are useful

more than just to exist, but to live industriously.

Despite the developments in the field of electricity, the parameters of

the transmissions and distributions have not yet expanded. A lot of rural areas still don’t

have access to electricity even after all the upgrades in the system. One of the factors

that affect the lack of electrification in some regions is the distance of the place from

where the transmission lines can only reach. It becomes expensive for the
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consumers to afford the connection fees due to their location. Others have geographical

locations where distribution posts are almost impossible to be installed. This leads to

disconnection of some residences to the updates of the society through technology.

Then there’s minimal or no energy supply, in order to have access to gadgets and

appliances. Way of living in such zones are of lower quality due to this.

It is important to address the spotted problem, for the reason that lack of

electricity raises a list of negative effects that dramatically limit a community’s

potential rate of growth, as well as its residents’ basic quality of life. One of its most

pressing effects is the lack of lighting and power source for operating gadgets and

appliances, needed to make life easier.

In order to give aid to the crunch, one possible source of energy is the

method in which power is extracted from the incoming rays of the Sun. It is called the

Solar Energy, which is globally free and accessible to specific regions. Solar energy is

lavishly available on Earth’s surface as well as on space so that we can harvest its

energy and convert that energy into suitable form of energy and properly utilize it with

efficiency. Power generation from solar energy can be grid connected or it can be an

isolated or standalone power generating system that depends on the utility, location of

load area, availability of power grid nearby it. Thus, where the availability of grid

connection is very difficult or costly, the solar can be used to supply the power to areas

where it is implemented.

It is a great challenge to level into the electricity demand without

affecting the climate and the environment, also while overcoming technical restrictions.

While discerning about future availability and abundance of conventional foundations

 3

of power generation to remote areas, it has become very important that the renewable

energy sources must be utilized along with source of conventional energy generation

systems to fulfill the requirement of the energy demand.

This research focuses on the economic analysis and technical viability

of putting up a Solar PV System on Rural Areas that still don’t have source of electrical

energy, compared to a Utility Distributed Electrical Line. These locations can be

defined to be far from electrical distribution companies which makes it expensive for

them to pay for the fees in mounting posts for transmission lines. It can also be areas

that are still not accessible due to the roads that are not yet constructed stupendously.

Teams that will install electricity can’t easily go there with the equipment they need to

use. Another hindrance for transmission in the area is having to sacrifice a large number

of trees for the wiring and posts. The trees in the area are major contributors for

residents to earn a living.

1.2 Statement of the Problem

Majority of the rural areas, including Sitio Calaniogan of Barangay

Lunocan, have no access to the conventional source of Electrical Energy. It has a

geographical location limit being distant from the City Proper, approximately 4 km

away from the last distribution post of the Electric Cooperative, which makes it difficult

to connect lines for power transmission. The place is isolated from technologies, only

usable through electricity. With the current situation in the site, it is evident that there

is lack of lighting and limited access to technology.

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There is a problem with communication that is rooted from the absence

of power source in order to use telecommunications as part of the people’s culture.

Response and actions to calamity and even health related emergencies are greatly

affected by the lack of access to technology. Not having an electrical energy source in

the Sitio hinders the entities living in the area to adapt into the evolving world, and it is

undeniably a barrier for it become progressive community. Implementing the suitable

and reasonable electric connection for the area, is a major concern.

1.3 Research Objectives

The main objective of this Research Study is to successfully analyze the

economics and technical difference of a Solar PV System compared to a Utility

Distributed Electricity Connection, in the electrification of Sitio Calaniogan, Manolo

Fortich, Bukidnon.

The specific objectives of the study are as follows:

1. To conduct a site inspection to assess feasibility of establishing a Solar

Power Plant in the area.

2. To compute the Energy Demand in the area of study.

3. To determine the system specifications for both Solar PV System & the

Utility Distributed line connection

4. To model both systems and analyze the technical viability.

5. To calculate system cost of installation and evaluate the comparison of the

two systems, to determine the preferable source of electricity for Sitio

Calaniogan.
 5

1.4 Significance of the Study

In this study, to design, model and analyze two different electrical power

source connection is essential to the present situation, where a lot of remote areas still

don’t have access to electricity. It is focused into achieving an output that is most

probable to aid in the existing problem. The underlying problems with regards to the

absence of power supply in remote areas have been enumerated in the background of

the study. This Research Study is significant to:

1. Provide a concrete comparison between Solar Powered and Utility Distributed

electricity supplier.

2. Figure out the preferable convenient system to be used for energy supplication.

3. Offer convenience to rural area residences with their livelihood with the

conclusions of the study, affecting the decision-making in energization means.

4. Break the isolation barriers by sustaining rechargeable gadgets for

telecommunications.

1.5 Scope and Limitations

The scope and limitations of this study is only applied to a specific rural

area, which is Calaniogan, a Sitio located in Barangay Lunocan, situated in the

Municipality of Alae, Manolo Fortich, Bukidnon. It is a site where transmission lines

from the conventional power source have not yet stretched due to the distance gap from

the more urbanized part of the province. It is 4 kilometers away from the last

distribution post installed by the utility company BUSECO, set in Sitio Awol. There
 6

are currently 40 houses and 27 families recorded, present in the population census in

the bounds of the selected site.

The scope of the study is bounded within the factors that affect and add

up to the power demand, to be catered by the systems being compared. Concrete

difference of the economic and technical viability will be magnified in this paper. The

focus of the study will revolve around the comparison of both schemes in terms of

investment cost and the technicalities for constructing each power source. In this

manner, the limits of this study is up to the point of designing and modelling the

systems.

This will be limited with the designated rural area to be the focus of the

design and analysis requirements for system specifications. For the load forecasting and

calculation of the demand, two scenarios will be considered. One is the current load

available and the other one is the assumed load expected in the implementation of a

power source. The constraint in factors to be studied will be within the mentioned

aspects, which means that the inquisition will solely be around the boundaries of the

Sitio.
 7

1.6 Conceptual Framework

Figure 1.1 Conceptual Framework

 8

CHAPTER 2

REVIEW OF RELATED LITERATURE

2.1 Introduction
Rural electrification is often a preferred program for promoting equity and

economic development in poor countries. In most parts of the world, electricity is

considered a modem source of energy, essential to development, and areas without

access are far less developed than those with it. Electricity benefits rural areas in many

ways, including improving business and farm productivity, enhancing convenience of

household tasks, and providing a more efficient form of household lighting. Most

people agree that the availability of electricity has at least the potential to improve

quality of life and increase economic activity.

2.2 Solar Radiation on Earth’s Surface

The Sun emits a tremendous amount of energy, in the form of electromagnetic

radiation, into space. The sun’s radiation must make it through multiple barriers before

it reaches Earth’s surface. The first barrier is the atmosphere. About 26% of the sun’s

energy is reflected or scattered back into space by clouds and particulates in the

atmosphere. Another 18% of solar energy is absorbed in the atmosphere. Ozone absorbs

ultraviolet radiation, while carbon dioxide and water vapor can absorb infrared

radiation [1]. The remaining 56% of solar radiation is able to reach the surface.

However, some of this light is reflected off of snow or other bright ground surfaces, so

only 48% is available to be absorbed by land or water. Of the radiation that reaches the
 9

surface, approximately half is visible light and half is infrared light. These reflection

and absorption percentages can vary due to cloud cover and sun angle. In cloudy

weather, up to 70% of solar radiation can be absorbed or scattered by the atmosphere.

The Sun is considered to produces a constant amount of energy at the surface of the

Sun the intensity of the solar radiation is about 6.33×107 W/m2. As the Sun’s rays

spread out into space the radiation becomes less intense and by the time the rays reach

the edge of the Earth’s atmosphere they are considered to be parallel. Thus, when the

radiation reaches the outer limit of the Earth's atmosphere, several hundred kilometers

over the Earth's surface, the radiative flux is approximately1.361 kW/m² [2].

Figure 2.1 Diagram of earth’s energy budget

2.3 Modeling Solar Radiation

It can be argued that the most important factor influencing photovoltaic

electricity generation is the amount of incoming solar radiation. Solar radiation, or

insolation, is the sun’s energy reaching the earth’s surface. It is comprised of three

components: direct beam, diffuse, and ground-reflected radiation [2]. Figure 2.1

displays the way the three components reach the earth’s surface.
 10

Figure 2.2 Incoming solar radiation components

Direct radiation is the direct beam of solar energy that is intercepted by the

surface without any interactions with particles in the atmosphere. Diffuse radiation is

the intercepted radiation that is scattered in the atmosphere by gases and aerosols.

Reflected radiation is reflected from terrain and surrounding surfaces [2].

Together, direct, diffuse and reflected radiations make up global radiation, or

total radiation, reaching the surface. The amount of solar radiation reaching the

surface depends on location, atmospheric effects, and topography. Solar radiation is

affected by the earth’s geometric rotation and revolution around the sun. It also varies

with environmental factors like atmospheric attenuation effects including cloud cover

and water vapor. On the ground, topographic effects such as elevation, slope, and

orientation influence the amount of radiation reaching a surface [2].

2.4 Solar Resource in the Philippines

In the Philippines, the potential is even greater than the aspirational target of

1,528MW attributed to solar in the National Renewable Energy Plant until year 20130.

However, the country’s average solar radiation, based on sunshine duration is 161.7

watts per square meter, with a range of 128 to 203 watts per square meter. Studies shows

previous results of ground-based measurement of the daily total number of hours of

 11

sunshine duration were combined with US-NREL’S Climatological Solar Radiation

(CSR). The country has an annual potential average of 5.1 kilowatt-hour (kWh)/m2/day

[1].

Figure 2.2 Solar Energy Potential in the Philippines

2.5 Geography and Climate of Mindanao

2.5.1 Geography of Mindanao
Mindanao is the second largest and easternmost island in the Philippines. It is

also the name of one of the three island groups in the country, which consists of the

island of Mindanao and smaller surrounding islands. The other two are Luzon and the

Visayas.

The island of Mindanao is called The Land of Promise. Mindanao is the only

area of the Philippines with a significant Muslim presence. In addition, the crime rate

on the island is the highest in the country overall. Mindanao is the second largest island

in the Philippines at 104,630 square kilometers and is the eighth most populous island

in the world. The island of Mindanao is larger than 125 countries worldwide, including

the Netherlands, Austria, Portugal, Czech Republic, Hungary, and Ireland. The island

is mountainous, and is home to Mount Apo, the highest mountain in the country.
 12

Mindanao is surrounded by 4 seas which are, the Sulu Sea to the west, the Philippine

Sea to the east, and the Celebes Sea to the south, and the Mindanao Sea to the north [1].

Of all the islands of the Philippines, Mindanao shows the greatest variety of

physiographic development. High, rugged, faulted mountains, almost isolated volcanic

peaks, high rolling plateaus, and broad, level, swampy plains are found there. The island

group is divided into six regions, which are further subdivided into 26 provinces [1].

2.5.2 Climate of Mindanao

Mindanao lies below the typhoon belt, and its climate is more favorable than

that of Luzon to the north. The climate is subequatorial and monsoonal, except in the

south, where it is equatorial. Throughout the year the temperature on the plains ranges

from 25° to 28°C. Annual precipitation ranges from 1,000 to 4,000 mm. The chief rivers

are the Mindanao and its tributary, the Pulangi (about 550 km long), and the Agusan.

There are many lakes, of which the largest is Lake Lanao. The island’s tropical and

monsoonal forests consist of dipterocarps, pandanuses, and nipa palms, and other

species [17].

2.6 Electrical Supply in Mindanao

Many areas in Mindanao suffer rotating 12-hour blackouts due to the island’s

woefully inadequate power supply. The island is forecast to continue suffering from a

200-megawatt power deficit until 2015, when the private sector begins to operate new

capacity. Aboitiz Equity Ventures, a publicly listed holdings company, has committed
 13

to supplying 1,200 megawatts through a coal-fired plant on the border of Davao City

and Davao del Sur that is slated for operation by 2018 [17].

The Agus-Pulangui hydropower complex, which supplies more than half of

Mindanao’s power supply, is currently producing only 635 megawatts of its 982

megawatts capacity due to the heavy siltation of the rivers that power the complex.

Zamboanga City, an urbanised center in southwest Mindanao, is expected to begin

experience daily three-hour brownouts due to the National Power Corporation’s

decision to reduce power supply in the city by 10 megawatts [17].

2.7 Mindanao Power Grid

The Mindanao Grid sources its electricity from Diesel-fueled power plants,

Geothermal, Hydro and Solar. It is comprised of 34.81% diesel, 6.39% geothermal,

58.74% hydro and 0.06% solar based on its rated capacity. Based on dependable

capacity, the Mindanao grid is comprised of 32.91% diesel, 6.70% geothermal, 60.32%

hydro and 0.07% solar. Of the 58.74% total rated capacity and 60.32% total dependable

capacity of the Mindanao Grid sourced from hydro power plants. The Mindanao grid

has a total capacity of 1,820 MW, but many of the ageing hydroelectric plants of the

National Power Corporation are no longer operating to their full capacities [1].

.
 14

Figure 2.3 Mindanao Power Grid

2.8 Photovoltaic System

Photovoltaic systems are solar energy supply systems, which convert sunlight

directly to electricity. The chief component in PV systems is the solar panel which is

formed by putting together several PV cells. Putting together several PV cells forms a

PV module, several modules form arrays and several arrays form panels. . Solar cells

are usually made of semiconductor materials such as silicon, gallium arsenide,

cadmium telluride or copper indium diselenide. Solar cells come in two major forms

based on the nature of the material used in their production. The two main forms are

crystalline solar cells and thin film solar cells. Crystalline solar cells, so far, have the

highest conversion efficiencies when it comes to photovoltaic cells and the main types

are monocrystalline and polycrystalline cells. Thin film cells, although less efficient

than crystalline silicon offer greater promise for large-scale power generation because

of ease of mass-production and lower materials cost. The commonest example of thin

film cells is the amorphous silicon cell [6].

Figure 2.4 Major Photovoltaic System

 15

2.8.1 Basic Components of Photovoltaic System

Solar Panels – In most home DIY installations these panels will be built by you

from individual parts. You can order discount photovoltaic cells online, and assemble

these into complete 80W, 100W, or 120W Solar Panels. But if you do not have the time

or skills to build a solar panel from scratch, there are plenty of commercially available

panels to choose from. Once built, individual panels are wired together to make larger

solar arrays [56].

Solar Array Disconnect – This is basically just an electrical switch but is an

important part of the system. It allows you to disconnect and cut-off the DC power

output from your solar panels and array should any repairs be required or if there is a

problem with the solar system. This disconnect switch needs to be strong enough to

handle the full power output from the panels on a bright sunny day [26].

Battery Charge Controller – Most home solar systems are built with a battery

backup included for when the sun does not shine such as on dull days or at night. The

battery charge controller ensures that a consistent amount of electrical power is sent to

the batteries so that they are not over charged, and to ensure that the backup batteries

do not discharge back through the system at night. In many ways this component is

similar to your automotive battery charger so will not be too expensive [26].

Deep Cycle Batteries – In order to store the solar power generated by your solar

panels, your solar system will need deep cycle batteries. Deep cycle batteries are not

the same as shallow charge automotive batteries which are designed with thinner lead

plates for cars. Deep cycle storage batteries for solar systems are more robust and are

designed for the type of charging and discharging cycles they need to endure. New deep
 16

cycle batteries are expensive but reconditioned batteries are cheaper. Better still, you

may be able to get old dead batteries for free used previously in fork trucks, golf carts,

and electric buggies and recondition them yourself [26].

System Power Meter – This can be optional, but it is listed here as its inclusion will

give you a clear way to see how much free solar power is being supplied to your home

from your solar panels. Having a system power meter also helps you improve your

system to gain the maximum efficiency from your solar installation as well as having

the advantage of letting your neighbors know how much money your solar system is

saving [26].

Solar Power Converter – Your solar panels generate DC power, and your home runs

on mains AC power, the solar power converter converts the solar energy from the panels

into usable energy in the home by providing the DC to AC conversion using electronic

switching techniques. In practical terms, the converter allows us to run electric drills,

computers, vacuum cleaners, mains lighting, and most other mains electrical appliances

that can be plugged into the wall sockets of your solar panels. There are many square

waves, sine wave modified wave converters on the market but a good quality 1200W

converter likely won’t cost you more than $100 [26].

Backup Power – This for when the sun does not shine and the batteries are empty.

Most systems will include some sort of backup power. In a stand-alone installation this

would generally be a diesel generator. In a grid-tied system the utility grid itself would

provide the backup power through the converter. But a backup power source can also

be a wind turbine or a water wheel as part of a small scale hydro system [26].
 17

2.9 Types of Photovoltaic System

Photovoltaic power systems are generally classified according to their

functional and operational requirements, their component configurations, and how the

equipment is connected to other power sources and electrical loads. The two principal

classifications are grid-connected or utility-interactive systems and stand-alone

systems. Photovoltaic systems can be designed to provide DC and/or AC power service,

can operate interconnected with or independent of the utility grid, and can be connected

with other energy sources and energy storage systems [22].

2.9.1 Grid Connected System

Grid-connected photovoltaic solar installations are particular as they work on

the basis of energy exchange with the local electrical grid. In practice, in daylight hours

the consumer uses the electrical energy produced by his/her own installation, while

when there is no light or it is insufficient, or when the consumer requires more energy

than his installation is capable of providing, the electrical grid guarantees the supply of

necessary electrical energy [6].

Figure 2.5 Diagram of grid-connected photovoltaic system

 18

2.9.2 Stand Alone Grid Connected System

The "Grid-Tie with Battery Backup" PV system incorporates one or more

special AC circuits which are not directly connected to the electric grid like the rest of

the building but are always powered through the inverter and/or charge controller.

These circuits may power a refrigerator, selected lights, computers or servers. The "dual

function" inverter can supply the utility grid with any excess power produced by the

system like the "grid-tie" inverter, plus the inverter works with the PV modules and

battery bank (through the charge controller) to provide AC power to the backup circuits

when the grid is down. The charge controller manages the battery voltage, keeping them

fully charged when the grid is live, and preventing them from being depleted when the

system is drawing power from them.

Figure 2.6 Stand Alone Grid Connected System

2.9.3 Off- Grid System

Off-grid or stand-alone PV systems are very different than battery less grid-tied

systems. Without the utility as a supplemental electricity source, a PV system’s sizing

is critical. Off-grid systems require their owner participation his means living within

the original design’s energy budget, planning for future growth, and having a backup

energy source for times of high energy usage or low solar production. And it also
 19

incorporates large amounts of battery storage to provide power for a certain number of

days and nights in a row when sun is not available. The array of solar panels must be

large enough to power all energy needs at the site and recharge the batteries at the same

time [11].

Figure 2.7 Diagram of Off-Grid PV system with battery storage

powering DC and AC loads

2.9.4 Stand Alone Off Grid System

Stand Alone Off Grid System is a solar power solutions for those who are not

able or willing to be connected to the electricity grid. Storage is typically implemented

as a battery bank, but other solutions exist including fuel cells. Power drawn directly

from the battery will be direct current extra low voltage (DC ELV), and this is used

especially for lighting as well as for DC appliances. An inverter is used to generate AC

low voltage, which more typical appliances can be used with. Stand-alone photovoltaic

power systems are independent of the utility grid and may use solar panels only or may

be used in conjunction with a diesel generator or a wind turbine [3].

 20

Figure 2.8 Stand Alone Off Grid System

2.9.5 Stand Alone Off Grid Hybrid System

According to many renewable energy experts, a hybrid system that combines

wind and photovoltaic (PV) technologies offers several advantages over either single

system. In much of the United States, wind speeds are low in the summer when the sun

shines brightest and longest. The wind is strong in the winter when less sunlight is

available and may be stronger at night compared to the day. Because the peak operating

times for wind and PV occur at different times of the day and year, hybrid systems are

more likely to produce power when you need it [3].

Figure 2.9 Stand Alone Off Grid Hybrid System

 21

2.10 Advantages of Solar Energy for Rural Areas

With a basic understanding of solar energy systems, we are now ready

to analyze the advantages and disadvantages of such systems in rural areas as a means

of generating electricity [2].

Table 2.1 Advantages of Solar PV Systems in Rural Areas

 22

2.11 Site Selection Criteria

Planning a development for solar access begins with the choice and analysis of

a site. While it involves many of the same procedures used in designing conventional

developments, planning for solar access demands two additional considerations. The

first is an assessment of both the availability of sunlight and the extent of shading on

the site. Obviously, solar collectors must have access to direct sunlight. Such access

can be affected by the natural element of the site, such as topography or atmospheric

conditions, or by obstructions (man-made or natural, such as buildings or trees. And the

energy- saving features of the site must be considered. Features that moderate the local

climate (such as trees or large bodies of water) can have an enormous effect on the

efficiency of a solar energy system. Solar installation sites must be able to generate an

adequate electricity supply to ensure their long-term viability for supporting energy

demands. The most important factor for generation capacity is the average level of sun

exposure that a site experiences throughout the year [5].

2.11.1 Site Survey and Considerations

A site survey is typically conducted to determine the locations on the site

property best suited for solar photovoltaic (PV) arrays. Optimal PV array locations

maximize the available solar energy and minimize solar obstructions to reduce shading

on the PV arrays. A survey may not be absolutely necessary if there is a general

understanding that the PV array location clearly has no solar obstructions (for instance,

the array may be located on an unobstructed south-facing 10-acre field).

 23

Solar insolation data was estimated for the sample site per reference. This

software incorporates 30-year historical weather data from the National Renewable

Energy Laboratory (NREL) for specific locations in North America and estimates the

amount of solar radiation received for a given site and the amount of energy produced

for a given system. The calculated energy produced also accounts for estimated system

efficiency losses [28].

Data from the reports generated by references was used as a basis for estimating

the month-by-month solar power generated and the cost analyses described below. The

assumption for these data is that no solar obstructions/shading will be present on the

PV at any time of the year [28].

2.12 Advantages and Disadvantages of Grid Connected System

2.12.1 Financial Benefits of Grid Connected System
A Grid Tied system has many benefits, one of which is efficiency because of

higher voltage. A high-voltage system will suffer much less power loss than a system

with low voltage. Grid tied PV system is more reliable than other PV system. No use

of battery reduces its capital cost, so we go for the grid connected system. Grid tie

inverters systems are functionally more efficient at higher voltages, which in turn make

the total solar system more efficient. It also reduces the power bill as it is possible to

sell surplus electricity produced to the local electricity supplier. And Grid

interconnection of photovoltaic (PV) power generation systems has the advantage of

effective utilization of generated power because there are no storage losses involved

[42].
 24

2.12.2 Disadvantages of Grid Connected System

Installing solar systems near existing utility power lines means that photovoltaic

generated electricity costs more than that supplied by conventional methods. At its

cheapest, solar energy is estimated to be 25 cents per kilowatt hour generally between

double and quadruple the cost of utility supplied electricity. Initial costs are high so in

practice installing a grid connected solar system is like paying your electricity bill up

front, years in advance. The permits and legal requirements for installing grid connected

systems can be costly, complex and time-consuming [42].

2.13 Advantages and Disadvantages of Off Grid System

2.13.1 Financial Benefits of an Off-Grid System
Off-grid solar offers independence in several ways. In some areas, because of

heavy use of electrical appliances during extreme hot or cold weather, power outages

are frequent. Off-grid solar power gives a kind of financial freedom also. Once paid for,

the system will produce electricity, for free, for the life of the home. Off-grid solar

offers big savings in home building costs because it allows you to purchase

undeveloped land, or land that the utility company is not serving already. Costs for

pulling electricity in to a rural area can be enormous, so the value of the land is low

[36].

2.13.2 Disadvantages of an Off-Grid System

An off-grid solar system includes the need for large battery storage banks, a lack

of power if there’s no sun for more than a few days, and no emergency power if

inclement weather were to damage or destroy your system. System maintenance and
 25

troubleshooting are serious, ongoing responsibilities with off-grid systems. When you

pay your utility bill, you’re paying for those hard workers in business suits and coveralls

to take care of things. Most off-grid systems need a backup engine-generator, and this

is another big disadvantage of these systems. Generator electricity is expensive when

you calculate the cost of purchasing, fueling, and maintaining these dirty, noisy

machines [36].

2.14 Types of PV Cell Materials

A solar PV system is powered by many crystalline or thin film PV modules.

Individual solar PV cells are interconnected to form a PV module. This takes the form

of a panel for easy installation [38].

2.14.1 Crystalline Materials

The heart of most monocrystalline and polycrystalline photovoltaic solar cells

is a crystalline silicon semiconductor. This semiconductor is manufactured by a silicon

purification process, ingot fabrication, wafer slicing, etching, and doping, which finally

forms a PNP junction that traps photons. This results in the release of electrons within

the junction barrier, thereby creating a current flow. Crystalline cells are made from

ultra-pure silicon raw material such as those used in semiconductor chips. They use

silicon wafers that are typically 150-200 microns (one fifth of a millimetre) thick [38].
 26

2.14.1.1 Mono-Crystalline Silicon

Monocrystalline silicon is created by slowly pulling a monocrystalline silicon

seed crystal out of melted monocrystalline silicon using the Czochralski method to form

an ingot of silicon. A seed crystal is a small piece of silicon which is used as a

foundation for the molten molecules. 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 [38].

Figure 2.10 Mono- Figure 2.11 Poly- Figure 2.12 Flexible Amorphous
crystalline Silicon crystalline Silicon Thin Film

2.14.1.2 Poly- Crystalline Silicon

Polycrystalline silicon is also produced from a molten and highly pure molten

silicon but using a casting process. The silicon is heated to a high temperature and

cooled under controlled conditions as a mold. It sets as an irregular poly- or multi-

crystal form. The square silicon block is then cut into 0.3mm slices. The typical blue

appearance is due to the application of an anti-reflective layer. The thickness of this

layer determines the color blue has the best optical qualities. It reflects the least and

absorbs the lightest [38].

 27

2.14.2 Flexible Amorphous Thin Films

In the amorphous process, a thin wafer of silicon is deposited on a carrier

material and doped in several process steps. An amorphous silicon film is produced by

a method similar to the monocrystalline manufacturing process and is sandwiched

between glass plates, which form the basic PV solar panel module. Thin film is made

by depositing layers of semiconductor material barely 0.3 to 2 micrometers thick onto

glass or stainless-steel substrates. As the semiconductor layers are so thin, the costs of

raw material are much lower than the capital equipment and processing costs. The first

thin film solar cells were based on amorphous silicon. The technology is most

commonly used in devices that require very little power because of low efficiency rates

[38].

2.15 Summary of PV Cell Types

Table 2.1 Conversion efficiencies of various PV module technologies

Technology Module Efficiency

Mono-Crystalline Silicon 12.5-15%

Poly-Crystalline Silicon 11-14%

Amorphous Silicon 5-7%

2.16 Feed in Tariff

A FIT is a performance-based incentive rather than an investment-based

incentive. In the United States, FITs are typically used in combination with one or more
 28

of these other incentives. FIT is a policy mechanism designed to accelerate investment

in renewable energy technologies. It achieves this by offering long-term contracts to

renewable energy producers, typically based on the cost of generation of each

technology. Rather than pay an equal amount for energy, however generated,

technologies such as wind power, for instance, are awarded a lower per-kWh price,

while technologies such as solar PV and tidal power are offered a higher price,

reflecting costs that are higher now. In the Philippines the Energy Regulatory

Commission (ERC), the power regulator, has approved the disbursement and collection

guidelines for the so-called Feed in Tariff (FIT) system, a move seen to support the

renewable energy sector. Feed-in tariffs offer cost-based compensation to renewable

energy players among other perks. The FIT rate that has been approved by the Energy

Regulatory Commission (ERC), the power regulator are as follows: P9.68 per kilowatt-

hour for solar; P8.53 per kwh for wind, P6.63 per kwh for biomass and P5.90 per kwh

for hydropower projects. The Energy department has been pushing for a robust and

diverse power supply mix including renewable energy sources to help ensure the

country’s power needs [34].

2.17 Solar Photovoltaic Power Plant in the Philippines

2.17.1 Solar Photovoltaic, Cagayan de Oro City
The developing world’s first and largest (at the time of its inauguration in 2004)

on grid solar photovoltaic (PV) power plant, the 1MWp polycrystalline silicon-based

PV plant and connected with the distribution network of Cagayan Electric Power &

Light Co., Inc. (CEPALCO) in Cagayan de Oro City, has completed its third year of

commercial operations with greater than expected annual energy production. The
 29

CEPALCOs 1MWp plant, with installed costs close to 5.3 million US Dollars, users

6,480 solar panel on 2 hectares of land and was partially funded by the Global

Environment Facility (GEF) which was facilitated by the World Bank through the

International Finance Corporation. The GEF fund is a loan that turns into a grant after

five years of successful operation of the PV plant by CEPALCO. The turnkey contract

was awarded to Sumitomo Corporation of Japan. Sharp of Japan manufactured the PV

modules while Sansha manufactured the inverters. The balanced of system components

were procured locally [18].

2.17.2 San Carlos Solar PV Power Plant

San Carlos City represents an attractive location for a solar farm because it is

situated at the right coordinates for maximum solar radiation and, being in the eastern

coast of Negros, it is less prone to cloud cover and enjoys more sunshine hours than

other places. The area has long supported renewable energy due to the presence of the

sugar industry, both for power and transport fuel, thus making it a good hub for several

renewable energy technologies. The facility in San Carlos City, Negros Occidental,

which was commissioned by San Carlos Solar Energy, Inc., (SaCaSol) will generate

renewable energy for grid connection and will supply power to the Luzon-Visayas grid.

The technology to be deployed will be fixed, ground mounted solar power plant with a

gross generation capacity of 22 megawatts (MW) per day or the entire 22-MW

development. Total cost for the project had been placed at P1.9 billion. The 22 MW of

the SaCaSol solar plant commissioned, power is now being supplied to the grid at the

pre-determined feed-in-tariff rate for solar power set by the Energy Regulatory

Commission (ERC) which is currently set at P9.68/kWh. It was emphasized that such
 30

will be underpinned by the feed-in-tariff (FIT) subsidy allotment for solar technology

[17].

2.17.3 Solar Power Plant at SM North Edsa

SM North Edsa is now outfitted with a solar power system making it the world’s

biggest solar-powered mall. SM Prime, in partnership with Solar Philippines, built a

1.5-megawatt (1,500 kilowatt) solar rooftop at SM City North Edsa which will be used

to power up a significant portion of the mall’s energy requirements. Currently, the 5,760

solar panels in SM North EDSA have the capability of powering 16,000 lighting

fixtures, 59 escalators and 20 elevators while counteracting 1,200 tons of carbon

emissions (CO2) per year. The generated solar energy is expected to cover five percent

of the mall’s consumption per day, therefor saving an estimated two million pesos a

month [17].

2.18 Factors Affecting Conversion Efficiency

Not all of the sunlight that reaches a PV cell is converted into electricity. In fact,

most of it is lost. Multiple factors in solar cell design play roles in limiting a cell's ability

to convert the sunlight it receives. Designing with these factors in mind is how higher

efficiencies can be achieved [9].

2.18.1 Wavelength
Wavelength—Light is composed of photons—or packets of energy—that have

a wide range of wavelengths and energies. The sunlight that reaches the earth's surface
 31

has wavelengths from ultraviolet, through the visible range, to infrared. When light

strikes the surface of a solar cell, some photons are reflected, while others pass right

through. Some of the absorbed photons have their energy turned into heat. The

remainder have the right amount of energy to separate electrons from their atomic bonds

to produce charge carriers and electric current [6].

2.18.2 Recombination
Recombination—One way for electric current to flow in a semiconductor is for

a "charge carrier," such as a negatively-charged electron, to flow across the material.

Another such charge carrier is known as a "hole," which represents the absence of an

electron within the material and acts like a positive charge carrier. When an electron

encounters a hole, they may recombine and therefore cancel out their contributions to

the electrical current. Direct recombination, in which light-generated electrons and

holes encounter each other, recombine, and emit a photon, reverses the process from

which electricity is generated in a solar cell. It is one of the fundamental factors that

limits efficiency. Indirect recombination is a process in which the electrons or holes

encounter an impurity, a defect in the crystal structure, or interface that makes it easier

for them to recombine and release their energy as heat [6].

2.18.3 Temperature
Temperature—Solar cells generally work best at low temperatures. Higher

temperatures cause the semiconductor properties to shift, resulting in a slight increase

in current, but a much larger decrease in voltage. Extreme increases in temperature can
 32

also damage the cell and other module materials, leading to shorter operating lifetimes.

Since much of the sunlight shining on cells becomes heat, proper thermal management

improves both efficiency and lifetime [6].

2.18.4 Reflection
Reflection—A cell's efficiency can be increased by minimizing the amount of

light reflected away from the cell's surface. For example, untreated silicon reflects more

than 30% of incident light. Anti-reflection coatings and textured surfaces help decrease

reflection. A high-efficiency cell will appear dark blue or black [6].

2.19 Determining Conversion Efficiency

Researchers measure the performance of a photovoltaic (PV) device to predict

the power the cell will produce. Electrical power is the product of current and voltage.

Current-voltage relationships measure the electrical characteristics of PV devices. If a

certain "load" resistance is connected to the two terminals of a cell or module, the

current and voltage being produced will adjust according to Ohm's law (the current

through a conductor between two points is directly proportional to the potential

difference across the two points). Efficiencies are obtained by exposing the cell to a

constant, standard level of light while maintaining a constant cell temperature and

measuring the current and voltage that are produced for different load resistances [6].
 33

2.20 Factors That Affect Solar PV System Efficiency

Energy efficiency factors must be carefully considered while designing any

solar PV systems if you want to get the best out of your efforts and investment. If you

have appliances that are not very energy efficient you will need a rather large PV system

(and large dent in the bank balance too!). It does not make much sense, even if you are

filthy rich. An alternate power source such as solar is considered because fossil fuel is

dirty and is not ever lasting (looking at the galloping pace of increase in energy

consumption across the globe). Therefore, you would like to use it in the best possible

manner [23].

However, even after you have replaced the electrical load with the most efficient

appliances, you still have to keep in mind inefficiencies of the PV system which are

always lurking around. Hence, it pays to have knowledge of different factors that can

potentially degrade your system, so that you can make efforts to minimize them right

at the planning stage. Here are 6 important considerations [23].

2.20.1 Cable Thickness

We generally have electrical appliances working at 220V which is significantly

higher compared with the usual PV system DC voltages of 12V, 24V or 48V. For the

same wattage much, higher currents are involved in the PV systems. This brings into

picture resistance losses in the wiring [23].

 34

2.20.2 Temperature
Solar cells perform better in cold rather than in hot climate and as things stand,

panels are rated at 25˚C which can be significantly different from the real outdoor

situation. For each degree rise in temperature above 25˚C the panel output decays by

about 0.25% for amorphous cells and about 0.4-0.5% for crystalline cells [23].

Thus, in hot summer days panel temperature can easily reach 70˚C or more.

What it means is that the panels will put out up to 25% less power compared to what

they are rated for at 25˚C. Thus, a 100W panel will produce only 75W in May/June in

most parts of India where temperatures reach 45˚C and beyond in summer and

electricity demand is high [23].

2.20.3 Shading
Ideally solar panels should be located such that there will never be shadows on

them because a shadow on even a small part of the panel can have a surprisingly large

effect on the output. The cells within a panel are normally all wired in series and the

shaded cells affect the current flow of the whole panel. But there can be situations where

it cannot be avoided, and thus the effects of partial shading should be considered while

planning. If the affected panel is wired in series (in a string) with other panels, then the

output of all those panels will be affected by the partial shading of one panel. In such a

situation, an obvious solution is to avoid wiring panels in series if possible [23].

 35

2.20.4 Charge Controller and Solar Cell’s IV Characteristics

An inherent characteristic of solar silicon cells is that the current produced by a

light level is virtually constant up to a certain voltage (about 0.5V for silicon) and then

drops off abruptly. What it means is that mainly the voltage varies with light intensity.

A solar panel with a nominal voltage of 12 volts would normally have 36 cells, resulting

in a constant current up to about 18 volts. Above this voltage, current drops off rapidly,

resulting in maximum power output being produced at around 18 volts [23].

When the panel is connected to the battery through a simple charge regulator,

its voltage will be pulled down to near that of the battery. This led to lower watt power

(watt = Amp x Volt) output from the panel. Thus, the panel will be able to produce its

maximum power when the battery voltage is near its maximum (fully charged). So it

helps to design a system in such as way that the batteries normally don’t remain less

than full charged for long. In times of rainy or heavy clouded days a situation may occur

when the batteries remain in the state of less than full charge. This would further pull

down the panel voltage; thus, degrading the output further [23].

This is also where an MPPT (Maximum Power Point Tracking) Charge

Controller comes into picture. It tries keeping the panel at its maximum voltage and

simultaneously produces the voltage required by the battery. A basic charge controller

simply prevents damage of batteries by over-charging, by effectively cutting off the

current from the solar panels (or by reducing it to a pulse) when the battery voltage

reaches a certain level. On the other hand, a Maximum Power Point Tracker (MPPT)

controller performs an extra function to improve your system efficiency [23].

 36

2.20.5 Inverter Efficiency

When the solar PV system is catering to the needs of the AC loads an inverter

is needed. As things stand, in real world nothing is 100% efficient. Although inverters

come with wide ranging efficiencies, but typically affordable solar inverters are

between 80% to 90% efficient [23].

2.20.6 Battery Efficiency

Whenever backup is required batteries are needed for charge storage. Lead acid

batteries are most commonly used. All batteries discharge less than what go into them;

the efficiency depends on the battery design and quality of construction; some are

certainly more efficient than others [23].

2.21 Assessing Solar Panel Quality

The quality of panels varies greatly with different manufactures. However, most

small-scale PV owners are unaware of the manufacturer of their system, and

subsequently the quality standards to which it was built (Duke, 2002). While cost is a

major factor effecting the decision to purchase a solar PV system, the quality of the

overall system is an extremely important component that is often overlooked by

consumers in exchange for a more cost-effective system. Quality is characterized by

two attributes: performance and reliability. Quality affects the longevity and return on

investment of the system, which is vital to ensuring a successful solar PV venture.

Fabrication materials, system design, and installation are all factors affecting quality

[43].
 37

The Australian government also has strict regulations regarding which products

are suitable for use in the country. Every module, inverter, and PV mounting system

must be approved by the Joint Accreditation System of Australia and New Zealand

(JAS-ANZ) (Clean Energy Council, 2014). In addition, they must also abide by the

Clean Energy Council’s guidelines for the installation, design, and supervision of

photovoltaic systems. These regulations guarantee a certain quality standard by

addressing concerns such as safety, reliability, efficiency, and environmental

implications. While all systems must adhere to this standard, a variance in quality of

systems still exists. Therefore, a comprehensive assessment methodology is required to

differentiate between system components [43].

2.21.1 Quantifying Solar PV System

2.21.1.1 Performance
The most commonly used metric to quantify solar system performance is

efficiency. Efficiency can be defined as the percentage of solar irradiance a system

converts to electricity. A typical panel converts between 8-20% of solar irradiance into

electricity. It is crucial that solar systems operate at a high level of efficiency in order

to produce the maximum profit for investors. Therefore, monitoring and recording

efficiency data can provide insight into the system’s degradation over time, and help to

quantify its life-long performance. However, panels begin degrading and lose their

efficiency in electricity production each year. Many manufacturers guarantee a

maximum loss of 20% efficiency over the first 25 years after the installment date [42].
 38

2.21.1.2 Losses
This loss in efficiency creates the need to record the annual degradation rate of

a panel. The majority of solar PV modules have a degradation rate of approximately

0.7% each year. Metrics such as efficiency data are essential in quantifying PV system

performance, and in turn quality. In order to properly gauge a PV system’s

performance, analysis must be done over time, with respect to change in impactful

factors such as irradiance, temperature, and shading. This means that the same solar

system will perform differently as a function of geography, rather than simply a linear

function of solar irradiance. Climatic data is combined with the material and system

properties of the solar module in question, and an expected system performance is

calculated using various algorithms. It should be noted that as technology continues to

improve, assessments must be revised to account for these changes [10].

2.21.1.3 Power Tolerance

Another important factor to consider is power tolerance. This metric indicates

how the power output of a solar panel differs from its nameplate rating. Unavoidable

factors can impact power output during solar panel manufacturing. Tolerance is

typically measured as a plus or minus percentage, indicating the range in which its

efficiency lies. For example, 250-watt panel with a ±5% power tolerance could produce

anywhere from 237.5 watts to 262.5 watts under ideal conditions. A smaller tolerance

percentage range means more certainty and is to be viewed in correspondence with

solar panel ratings. The temperature coefficient of the panel also plays a role when

examining system quality. While solar panels are designed to absorb the sun’s energy,
 39

efficiency can decrease once the ambient air temperature reaches 25 degrees Celsius

(°C) [10].

2.21.1.4 Temperature Coefficient

The temperature coefficient quantifies how a panel’s power capacity decreases

after it reaches this cap. Many panels produce 1% less electricity for every 2°C increase

after 25°C. Panels with a smaller temperature coefficient perform better in higher

temperature regions and are more reliable long term (EnergySage, 2016). This is an

important metric to review for the Australian case due to the high temperatures the

country experiences. Reliability can be seen as the probability of adequate function

(Ahadi, 2014). Solar PV systems can be susceptible to damage, both inside and out.

The lifecycle reliability can be massively altered by changes in temperature, power

surges, and other environmental factors (Zhang, 2013). Therefore, assessing this makes

it possible to optimize design, service, and cost in the face of these damaging factors.

2.21.2 Importance of Quantifying Quality of Solar PV Systems

Throughout the team’s research it was identified that the solar photovoltaic

industry lacks metrics indicative of system quality. Manufacturers are extremely

hesitant to publish failure information regarding their products, third party test results

are not always unbiased or comprehensive, and products are changing so rapidly that

performing reliability tests is extremely difficult. However, use of information of this

nature has the potential to provide justifiable, uniform comparisons of PV system

 40

quality. For this reason, the team developed a methodology for performing a reliability

analysis capable of generating this quantifiable data [23].

2.22 Solar Energy Feasibility Studies

2.22.1 Solar Feasibility Study of a Learning Center at WPI
The Feasibility Study of a Solar Learning Lab at WPI was an incredibly

insightful case study due to its similar location to our target and the use of photovoltaic

panels. The goal of this Interactive Qualifying Project was to determine the feasibility

of acquiring a Solar Learning Lab somewhere on the WPI campus. A Solar Learning

Lab would give the students of WPI the ability to study the effects of solar energy

without leaving campus. While the objective of this project was not to generate power

for the school, the similarities between this project and ours gave us a good idea of the

steps we would have to take to determine if the meteorological conditions were

acceptable for using photovoltaics [12].

2.22.1.1 Solar Learning Lab

A Solar Learning Lab is the term used to describe a photovoltaic system

integrated with a Heliotronics educational monitoring system. The entire system is used

to bring current solar information to a computer display where students are then capable

of manipulating the data to generate graphs and plot trend lines. A Solar Learning Lab

is designed to provide students with a handson understanding of how photovoltaics

work without purchasing a large system [38].

 41

2.22.2 Janssen Ortho LLC Solar Power Feasibility Study

Janssen Ortho LLC is a subsidiary of Johnson and Johnson based in Puerto Rico

and had an IQP team evaluate the feasibility of a solar panel installation. This project

discussed the history of Janssen Ortho LLC and the importance of being

environmentally friendly to the company. Johnson and Johnson follow a credo, part of

which states that it will be a leader in helping the environment. Janssen Ortho LLC

consumes 33 million kWh yearly, certainly too much to be generated entirely from solar

power. The project group consulted with Powerlight Corporation, a world leader in

solar installations, and eventually recommended a pilot installation. The pilot system

would product 101kWp (kilowatts peak), less than 1% of Janssen Ortho’s power

consumption; however, it would demonstrate to the community that they were

interested in alternative energy. This group also proposed a possible larger scale

solution that would involve the construction of a solar panel mounting structure over

the parking lots. Due to the high expense of building on top of the parking lots, the

group only recommended pursuing this if they were able to get 70% government aid.

The group also created brochures for employees and for the community to spread

information regarding the benefits of solar projects [5].

2.23 Economics of Solar PV Systems

2.23.1 Cumulative Cash Flow
A sum of operational, financial and investment activities and their cash flows.

If the cumulative cash flow is negative the company is not generating enough profit,

thus the expenses exceed the profit. In the cumulative cash flow each period’s cash

flows are added to each other to get a better picture of the total cash flows [31].
 42

2.23.2 Debt-service coverage ratio (DSCR)

A measures a business’s ability to pay a certain required amount of debt

payment along with interest. The Debt-service coverage ratio is very important in

analyzing the business’s capability to handle its liabilities [31]

2.23.3 Depreciation method

This method must be considered when investing in a solar power plant, as the

value of an asset will decrease in usage over the time. The depreciation method can be

chosen by the company for tax reasons [31].

2.23.4 Discount rate

Affects the time-value of money and is used when generating discounted cash

flows to assess the investment's value in the future. It is useful also because it takes into

account the future risks related to the cash flows [31].

2.23.5 Discounted Cash Flow (DCF)

This takes into account all the predicted future free cash flows and discounts

them taking into consideration the time-value of money. Therefore, it is more realistic

than other methods. Especially in inflationary periods the time value of money becomes

crucial [31].
 43

2.23.5 Discounted Return on Investment

Calculated from the discounted cash flow, giving a more careful estimate, and

is affected by the chosen discount rate to show the relative return in relation to an

alternative investment [31].

2.23.6 Free Cash Flow

Is a very important indicator of fiscal performance of any company. Free Cash

Flow indicates the company’s cash generation after all necessary capital expenditures

and business operation expenses have been deducted. A company must be able to

generate profit for its shareholders but also at the same time be able to manage its assets.

Most investors are interested in free cash flow for analyzing purposes [31].

2.23.7 Internal rate of return (IRR)

Is one capital budgeting technique used to measure the profitability of an

investment. IRR shows the discount rate that turns the net present value of all cash

flows to zero [31].

2.23.8 Net present value (NPV)

Is one of the capital budgeting techniques that can be used when evaluating the

profitability of future investments. Net present value is used to find out the present

value of a certain investment. It indicates the present value of future cash flows [31].
 44

2.23.8 Real Interest Rate

Tells the borrower and the lender the real costs and yields of an investment when

inflation is taken into account. Real interest rate can be negative which means that the

inflation rate exceeds the nominal interest rate. Real interest rate is used to provide a

more valid measurement of the benefits of acquiring loans from abroad [31].

2.23.9 Return on Investment (ROI)

Is considered as one of the most important measurement ratios on investments.

It will show whether it is wise to invest as it shows the actual return on investment [31].

2.24 Economic Analysis Method and Approach

2.24.1 Least Cost
Among various proven and commercially available solar energy technologies,

crystalline photovoltaic technology with fixed tilt structure was selected for the project

based on the least cost approach. Presently, photovoltaic is more cost effective than

concentrated solar power both in terms of investment costs and O&M costs. The

levelized energy cost is generally lower for photovoltaic ($0.16/kilowatt-hour (kWh) to

$0.27/kWh) than for concentrating solar power ($0.16/kWh to $0.33/kWh).2 Within

the commercially available photovoltaic technologies, crystalline silicon technologies

are generally more efficient (13%–19%) than thin-film technologies (4%–12%) and

require less land area, which improves the cost advantage of crystalline silicon

technologies. While the tracking system with a single axis device may be more efficient,

it requires a higher investment cost, a larger land area, and more sophisticated
 45

operational know-how than the fixed-tilt support structure; thus, it is not considered a

technology appropriate for the project [31].

The project site is selected to minimize the construction cost of the transmission

line connection to the nearest 220 kilovolt power grid. Solar power is one of many

renewable energy technologies the government would like to promote as an essential

part of its energy diversification policy, and this project is expected to pave the way for

many solar projects to be developed [31].

2.24.2 Economic Costs

The analysis numeraire is border price in 2013 constant prices. The project

financial investment costs are converted into economic costs by applying the standard

conversion factor of 0.9 to the non-traded costs components and a conversion factor of

0.75 to the unskilled labor portion of the local component (assumed to be 20% of the

local civil work cost).3 The major difference between economic and financial costs

results from the exclusion of taxes and duties from economic cost. O&M costs are also

converted into economic costs by applying the conversion factor to the financial costs.

The capital outlay of the project extends over 5 years (2014–2019). The

economic internal rate of return (EIRR) analysis includes the cost of the solar

photovoltaic power plant turnkey contract, transmission line equipment supply and

installation works, supporting infrastructure (e.g., access road, fences,

telecommunication, water supply), costs of environmental and social mitigation

measures, consulting services, land acquisition, recurrent cost, and physical

contingencies, but excludes taxes and duties, price contingencies, and financial costs
 46

such as interest during construction and commitment charges. The economic cost of

land acquisition is estimated by the replacement value of productive land and crops

[31].

2.24.3 Economic Benefits

The economic benefits will be incremental. The electricity consumption will

increase in the Samarkand region because the electricity demand is currently suppressed

because of supply constraint. The power generated from the power plant will allow the

growing power demand in the area to be met. The power generated from the plant is

expected to be 159 GWh in the first year and will be reduced by 0.5% per annum

because of a technical feature of photovoltaic technology. The consumed electricity is

estimated by taking into account the technical losses. The population and small and

medium enterprises will be the primary beneficiaries who enjoy reliable electricity

supply from an affordable source. The project output is valued using the willingness to

pay for the electricity [31].

2.24.4 Consumer Payment

Willingness to pay is defined as the maximum amount consumers are prepared

to pay for electricity or alternative energy sources. Some consumers are able and willing

to pay more than others, and in the absence of electricity from the grid will, for example,

buy a diesel generator or use candles for lighting. The demographic profile of the region

(79.5% of non-poor and 20.5% of poor households)5 and the cost of its respective
 47

alternative options for electricity are taken into consideration to estimate the weighted

average value of the willingness to pay for incremental electricity [31].

The willingness to pay can be estimated as the area under the demand curve,

which can be calculated as the tariff plus the consumer surplus. For the sake of

simplicity, the average sales tariff of $0.06/kWh in 2016 is taken as tariff. The consumer

surplus is calculated as 40% of the difference between the maximum of the weighted

average willingness to pay $0.591/kWh and the average tariff of $0.06/kWh (with the

factor of 0.4 reflecting the concave negative slope in the demand curve) [31].

Thus, a willingness to pay for the incremental benefits was estimated at

$0.251/kWh. The amount of electricity consumed was estimated by the power

generated from the power plant minus technical losses in the grid system [31].

2.24.5 Benefit Analysis

Not all benefits have been taken into account for the analysis. The project

improves the power security for the Samarkand region where there is no dedicated

power plant and all electricity needs to be transmitted from power plants in other

regions. In the long run, Uzbekistan aims to install 4 GW of solar capacity, and this is

the very first large-scale solar power project that will pave the way for solar energy

development in the country. The project is a cornerstone for solar energy development

that will substitute the presently dominant fossil fueled power generation and contribute

to fuel savings [31].

Fuel saving is important since the natural gas saved can be exported to increase

foreign currency earnings. Further, solar energy development that substitutes fossil
 48

fueled power generation contributes to carbon emission reduction. If the carbon

emission avoidance is measured by carbon abatement costs, which includes the cost of

externalities, the benefit of photovoltaic power generation is estimated to be over $20

per ton of carbon dioxide equivalent,6 or $1.76 million per year.

Moreover, it is expected that the project capacity development component

through technology transfer will contribute to fostering the domestic industry for solar

energy technologies. However, these benefits are difficult to accurately quantify and

monetize so they are considered as unquantifiable benefits that are in addition to and

not incorporated in the EIRR analysis [31].

2.25 Cost Effectiveness of Solar PV Systems

A recent study was conducted in Australia in partnership with the ATA

regarding the approximate return on investment times for 2.0 kW solar systems in each

state and territory. A 2.0 kW PV system is typically enough electricity to provide for a

two to three-person household. According to the ATA’s calculations, it takes about

seven or eight years to return the initial investment when exporting 50% of power via

the solar system with an installation cost of 4,400 AUD. Solar photovoltaic systems

have a degradation rate of about 0.5% per year and lose about 20% of their generation

capability after 25 years. The inverter must also be replaced every 10 years on average,

resulting in an approximately 800 AUD charge each time. A good solar panel is

expected to last 20 to 25 years before it needs to be replaced. The ATA also calculates

a 0.25% increase in annual retail electricity cost. If the system is expected to last about

20 to 25 years, with a return on investment taking about seven to eight years, replacing

the system will pay for itself and the consumer will still receive a hefty profit. However,
 49

not all systems have the same cost as the prediction. It is important for a consumer to

find the optimal balance between quality and price when purchasing a photovoltaic

system [14].

2.25.1 Low Cost Systems

A low system cost can sometimes be the result of manufacturers cutting corners

or not using the best manufacturing practices and materials. A high cost can signify a

system of higher quality; however, it may not be worth the extra expenses when

compared to the performance and reliability of an average priced system. This project

worked to better identify system quality to assist consumers in finding the correct

balance between quality and price of photovoltaic systems throughout their life cycles.

Something to consider when evaluating the cost-quality ratio is the willingness of the

consumer to pay more [14].

2.26 State, Local, and Utility Incentives

Many states, local governments, and utilities offer solar PV incentives that

should be considered when financing a solar installation. These include such incentives

as upfront cash incentives, performance-based incentives (including feed-in tariffs),

and many property and sales tax incentives. These incentives vary by state and location

and some incentives are limited by certain funding levels or volume of participants.

Again, the DSIRE website is the best source when searching for what incentives apply

to your project or projects [15].

 50

2.26.1 Direct Cash Incentives

These incentives are offered in a variety of ways and include upfront rebates,

and grants. Typically, these types of incentives help to reduce upfront costs.

Alternatively, performance-based incentives provide a secure income stream that is

attractive when pursuing traditional financing. More than 20 states and 200 utilities

offer these types of incentives and they can cover as much as 30% of projects costs

[34].

2.26.2 Property Tax Incentives

These tax incentives offer exemptions, abatements, credits, or special

assessment that mitigate or eliminate the increase in assessed taxable value of a

property. More than 30 states offer various forms of property tax incentives for solar

installations [34].

2.26.3 Sales Tax Incentives

This type of tax incentive allows for exemptions (or refunds) of sales tax for the

purchase and installation of a solar PV system. Currently, 20 states offer some form of

sales tax incentives for solar installations [34].

2.26.4 Tax Credits

Similar to the federal ITC, some states have their own investment tax credits.

These credits operate in the same way as the federal credit and provide a direct

reduction in a tax payer’s tax liability for a portion of the costs associated with a solar
 51

installation. However, state tax credits are often spread out over multiple years rather

than applicable in a single year like the federal ITC. Today, approximately 20 states

offer corporate investment tax credits to help offset the cost of purchasing and installing

solar [34].

2.26.5 Loan Programs

State and local governments offer a variety of loans that can be applied to

nonresidential projects. These typically have maximum loan amounts of around $1

million [34].

2.26.6 Permitting Incentives

Permitting incentives reduce or take away local building permit fees, plan check

fees, design review fees, and/or other charges that businesses will incur when installing

a solar energy system. The incentives are typically provided at the local level and vary

widely by location [34].

2.27 Payback
The payback time depends on the price of equipment cost which includes

photovoltaic panel, inverters, cabling, connectors, frame price and Labor cost which

includes planning cost, Assembly, commissioning cost, permit cost as well as interest

rate [31].

The exact payback period depends on the different factors, including:

 52

 The amount of green energy produced from the designed PV system.

 The price of grid electricity in the locality. In markets with expensive utility

rates, the payback times are relatively shorter.

 The total cost of the installation including incentives.

The price of PV modules has been dropped dramatically in recent years. The main

reason for the price drop was because of the low rate of raw material polysilicon and

increasing efficiency of solar cells, dramatic manufacturing technology improvements,

economies of scale and intense competition which resulted to module oversupply [31].

2.28 Solar Energy Makes Sense for Consumers

Solar energy makes sense for consumers Solar energy provides an immediate

solution to the country’s energy woes. It is the only cost-effective technology that can

be installed and commissioned in as short as a few days to a few months. According to

the EPIA, a 1-MW solar power plant can be installed in as short as six weeks, while

smaller systems only take a day to install [36].

A 70MW solar power plant in Italy was built and commissioned in just nine months,

less than a third of the time it took to construct and power up a coal-fired generation

facility. Areas such as Visayas and Mindanao, which are already experiencing rotating

brownouts, cannot wait three to five years before adequate power supply can be made

available [36].
 53

2.29 Economic Analysis of Samarkand Solar Power Project

The economic analysis of the Samarkand Solar Power Project was conducted in

accordance with the Asian Development Bank (ADB) Guidelines for Economic

Analysis of Projects.1 The analytical framework was carried out from the country

viewpoint. The economic viability assessed the costs and benefits of the project by

comparing with-project and without-project scenarios. A sensitivity analysis examined

the robustness of the project against cost increases as well as benefit reduction [22].

The project constructs a 100-megawatt photovoltaic solar power plant. The

plant is located in Samarkand and is connected to Uzbekistan’s national power grid.

The power plant is expected to be commissioned in 2016 and operated and maintained

by the turnkey contractor for the first 3 years, after which operation and maintenance

(O&M) will be handed over to the project executing agency [22].

2.30 Solar Facilities

Solar facilities are also easy to put up, scalable, and relatively unobtrusive. Contrary

to what some perceive, solar technology is not restricted to square and flat panels. Solar

facilities can be shaped and bent, allowing these to be more easily integrated into

housing and building designs. Solar panels can also be placed on rooftops and other

parts of a building to provide power to such establishments without taking up too much

space. These solar panels are also relatively maintenance-free.

The country can also take advantage of its abundant sunlight. According to the

National Renewable Energy Laboratory, the Philippines' average solar radiation ranges
 54

from 128-203 watts per square meter, or an average of 161.7 watts per square meter,

based on sunlight duration [38].

This translates to potential power generating capacity of 4.5-5.5 kWh per square

meter per day. Both the northern and southern parts of the country provide ideal

locations for installing solar power facilities. The northern part of the country has

enough sunlight to generate an average of 4.5-5 kWh per square meter per day, while

areas in the south can produce an average of 5-5.5 kWh per square meter of solar power

per day [38].

2.31 Future Installations

The Philippines is well positioned for solar energy, not just in terms of

geography. It also has a lot of room to take advantage of the investments and jobs that

can be created by future solar power installations, as well as look forward to cheaper

and cleaner power that is not affected by geopolitics. Reducing fuel consumption makes

solar an economically viable electricity source for Philippine consumers and industries

[32].

Over the past 30 years, the cost of solar power systems has significantly gone down.

In 2011, the price of solar panels fell 48.4 per cent. According to Bloomberg New

Energy Finance, the price of solar panels is seen declining by 55 per cent by 2020.

Based on trends, prices of PV panels drop by as much as 22 per cent every time the

cumulative installed capacity doubles. PV system costs have dropped by more than 30

per cent since 2008. In some countries, the IEA notes that the costs of solar PV systems

have fallen by as much as 75 per cent in the last three years [32].
 55

At the rate that solar installations is growing worldwide, experts note that grid parity

– or the level at which the price of electricity produced by solar technologies meet prices

of electricity currently being injected into the grid – is just around the corner [32].

2.32 Recent Renewable Energy Survey for Interests

A recent survey was conducted on Australian tourists regarding renewable

energy supply in hotels. When asked if Australian consumers would be interested in a

hotel that used renewable energy sources, the majority of the consumers responded

positively. However, when asked if they would be willing to pay extra for this service,

only 49% responded positively. Of those willing to pay more, 92% said they would

only be willing to pay between 1% and 5% extra (Dalton, 2008). This shows a

population willing to make the change to solar PV, but only after a reduction in system

price. Therefore, it is crucial to find the correct balance in system price and quality

when advising a consumer on what product would be best for them. Quality is not the

only factor that affects system cost. In order to minimize life cycle expenses, an

accredited solar system installer should be used. These installers ensure the system is

properly wired and positioned for maximum efficiency (Energy Matters, 2017a). There

are numerous components that make up a solar panel installation that can inhibit the

production or cost effectiveness of a solar system. Failure to use an accredited solar

installer could result in serious repair expenses, damaging the return on investment.

Therefore, it is important to consider the experience and practices of a solar provider

when assessing PV systems [25].

 56

2.33 Electric Cooperative Development and Rural Electrification

2.33.1 Compilation of Information from the Electric Operator
It is very important to start the electric design of a project with information from

the company that will undertake the role of operator upon completion of the work, to

obtain all existing data available on the project area and to take into account the rules

of the company that is to maintain and operate the lines. When the project designer

visits the office of the operating company, he or she should gather information essential

for the project plan [45].

2.33.2 Standards and Materials Used

Every distribution company has preferences as to the use of materials and line

hardware. Some companies use wooden poles while others use concrete or metal or a

mix of all. Normally, electric companies have standardized structures, often based on

RUS standards. It is also usual to have standardized conductor sizes for a company’s

distribution systems. Therefore, the project engineer should start the electric design

from the standards established by the electric company, as long as they comply with

the technical criteria included in this module [45].

2.33.3 Plans for Network Extensions in the Project Area

The electric company may have plans to extend its lines to the area

contemplated in the project, and they might even have a final design for the extension

project. Many times, these plans are compiled by local governments, such as the

prefecture or the municipality, and can be highly politically motivated. The designs
 57

prepared under these conditions usually have many serious flaws and cannot be applied

directly.

The electrical design may have been based on social pressure (such as the

decision to install three-phase lines, though the demand does not justify this

configuration), or the mechanical design failed to consider the criteria of the mechanical

design guide. Even so, these plans may contain useful information for elaborating a

final design according to the procedures of this module. Such useful information

generally includes the identification of communities in the project area and the number

of potential users. It is always necessary, however, to validate the data received, as these

often prove to be biased, to confirm the distance between towns and communities, and

to verify the technical information on the existing system to which the project is to be

connected [25].

2.33.4 Alternatives for Extension of the Electric System

The electric company may have or know about an expansion plan for the present

system, which would affect the project being considered. Examples of possible

expansion plans are the construction of new sub-transmission lines, substations and/ or

generating plants. Such information would have great value for planning the new

project [48].

Take expansion plans into account with caution, however, because most

distribution companies’ expansion plans for rural areas are either overly general,

without financing, or based on out-of-date information about major configurations for

transmission systems. Although taking into account the plans of other companies may
 58

prevent unnecessary expenditures in the development of a project, it is important not to

condition the design on the existence of other projects that may not be executed in time

[48].

The project engineer should start the electric design from the standards

established by the electric company, as long as they comply with the technical criteria

included in this module [48].

2.33.5 Point of Origin or Supply for the Project

During the visit of the project designer to the office of the electric company,

obtain all available information on the source or supply point for the new project.

Whether or not the electric company has all the necessary information, it is also

necessary to pay a visit to the project site to verify the data. The data to be obtained

from the electric company are the following [48].

2.33.6 Voltage Level of the Existing Distribution Lines

Existing voltage levels may be of the 15kV, 25kV, or 35kV class, each of which

comprises a number of options. For example, the 15kVvoltage class includes 11kV,

12.47kV, 13.2kV, and 13.8kV. The 25kV level includes 20kV, 22kV, and 24.9kV, etc.

The 35kV level includes voltages like 33kV and 34.5kV. An electric company must

have more than one voltage level in its system, e.g., 12.5kV and 34.5kV. Then, even if

a line is currently energized at a lower voltage, for example at 12.5kV, the company

may be willing to consider a conversion to 34.5kV, if this is technically justifiable. In

Bolivia, the system voltage used by distribution companies is in the process of being
 59

standardized at 35kV, 25kV, and 15kV. Few companies there are still maintaining

systems in other voltages [22].

2.33.7 Number of Phases Available

It is important to know how many phases are available in the project sector: one,

two or three phases. If three phases are not available at the initial point (usually at the

end of the existing line), one must find out how far the three-phase line goes, so as to

take it into account if conversion to a three-phase line is necessary [16].

2.33.8 Physical Neutral

Some rural area distributors have adopted systems without a physical neutral.

The system used for single-phase configurations without a physical neutral, is referred

to as Single Wire Earth Return (SWER), must still comply with and respect various

design criteria. If no physical neutral exists at the initial point, it is necessary to

determine where the neutral of the existing system ends, so as to take into account the

costs of adding the neutral [16].

2.33.9 Distance from Substation

If the electric company has updated and sufficiently detailed maps, one can

determine with their help the distance from the substation to the initial point of the

project. This information is necessary to model the voltage drop in the existing line, as

well as to simulate the power fl ow and the voltage drop in the proposed project [16].
 60

2.33.10 Existing Conductor Size from Substation to the Project

To carry out a power fl ow analysis, one needs to know the cross-section of the

existing conductor in the line from the substation up to the initial point of the project to

be studied. The cross-section of the neutral conductor (if it exists) must be determined,

as well as the cross-section of phase conductors. If there are conductors of more than

one cross-section in the line between the substation and the initial point, record each

cross-section of the conductor in the corresponding stretch, as well as its respective

length [50].

2.33.11 Load in the Existing Line

The load in the existing line is another critical component in defining the

conductor cross-section and/or number of phases of the system that will be analyzed in

the power fl ow study in order to determine the voltage drop in the existing line. If there

are important loads, record their location so as to be able to model their effect in the

power flow study. If the existing line has to be divided into segments, for the reasons

indicated in the previous section, be sure to divide the existing load among the same

segments [50].

2.33.12 Average Energy Consumption in the Electrified Community

In rural electrification projects it is possible to estimate energy consumption in

the communities to be electrified examining the energy consumption in the nearby

communities that already have electric service. Quite probably the electric company
 61

will have information on the energy consumption of existing users in these nearby

communities. If the electric company furnishes financial data only, such as the monthly

amount collected, the kWh consumption can be calculated using the company’s current

tariff structure.

2.33.13 Existing Penetration Rate in the Electrified Area

To size the new project, it is necessary to know how many users out of a total

of potential users will be connected to the project in the fi rst year, and the period over

which the rest are likely to begin service. The penetration rate is the proportion of

potential consumers who receive service in any particular year, expressed as a

percentage of total potential users. One can project a penetration rate for the area of the

proposed project by knowing the penetration rate in nearby areas that have already been

electrifised [32].

2.33.14 Substation Characteristics

Another piece of important information for the electrical model of the system

concerns the characteristics of the substation. The following characteristics must be

obtained from the electric company [16].

2.33.14.1 Source Impedance

Conducting a fault current or short-circuit study so as to specify the overcurrent

protection scheme requires obtaining the impedance on the high-voltage side of the

substation. Many times, the electric distribution company will have to request this
 62

information from the company in charge of transmission. The data may come directly

as impedances of positive and zero sequence, but very often it is shown as magnitude

of the fault current for a three-phase fault and a single-phase fault [16].

2.33.14.2 Capacity of the Substation

Information must be compiled on the kVA capacity of power transformers at

the substation. If there is more than one transformer, compile data on all of them and

record whether they are connected in a bank, in parallel, in series, or independently

(serving separate low voltage buses) [16].

2.33.14.3 Available Capacity at the Substation

After recording the capacity of each transformer at the substation, one must

record the maximum demand of each transformer to be able to calculate the capacity

available for the proposed project. If there is a lack of capacity in the substation

transformers, either an increase of capacity would have to be budgeted at the existing

substation or a new substation installed closer to the project area [16].

2.33.14.4 Voltages on Both Sides of the Transformer

In every transformer at the substation, record the rated (nameplate) voltage for

both the high voltage winding and the low voltage winding. In many instances the

nominal voltages of transformers are not the same as the nominal voltages of the system

and the difference may influence the results of power flows [16].
 63

2.33.14.5 Available Taps in the Transformer

Always record the presence of voltage adjusting taps on both sides of the

transformer, as they influence the transformation relationship and therefore the output

voltage of the transformer. There are usually five taps of +/- 5% on the high voltage

side, i.e. +5%, +2.5%, 0% (nominal), -2.5% and –5%, but this varies according to the

manufacturer and the purchase specification of the transformer. Also determine the

position of the tap switch and therefore the tap position on which the transformer is

operating [16].

2.33.14.6 Existence of Automatic Voltage Regulation

Another important factor to model in the power fl ow is the presence or absence

of devices for voltage regulation. If the substation has voltage regulation equipment,

verify whether it is incorporated into the transformer or separated, along with whether

it is automatic or manually operated [16].

2.33.14.7 Impedance of the Transformer and Ground

Connection
One of the most important pieces of information in the substation electrical

model is the impedance of transformers and the way in which the neutral, if any is

grounded. This information is usually presented on transformer name plates as %Z at

the self-cooled or OA rating. In the case of an autotransformer or a three-winding

transformer, record three impedances: primary secondary, primary tertiary, and

secondary tertiary.
 64

In some substations, where it is necessary to limit the magnitude of the fault

current to ground, an impedance may be installed in the ground connection. If such an

impedance exists, record its value, so as to include it in the power fl ow model. If the

relation X/R of the transformer impedance is not specified, adopt the relation 10:1.

2.33.14.8 Transformer Connections

All three-phase transformers, or single-phase transformers connected in three-

phase banks, can be defined by the connection configuration of delta or star windings,

both on the high voltage side and on the low voltage side. Record the configuration of

the connection on both sides of the transformer. This configuration does not influence

the power fl ow model, but it does influence the fault current model, which is normally

calculated using the same model of the electric system. The calculation of these fault

currents influences the determination of the protection system that the project will need

so as to be reliable [48].

2.33.14.9 Characteristics of Overcurrent Protection Devices

At every substation there should be overcurrent protective devices (such as

fuses, reclosers, breakers, etc.) both on the high voltage side and low voltage side. For

each device, record these characteristics: the type of device,

 the brand,

 the pickup current,

 relay settings (if any)

 the current transformer taps (if any)

 65

Always record the presence of voltage adjusting taps on both sides of the

transformer, as they influence the transformation relationship and therefore the output

voltage of the transformer [48].

This information must be recorded for two reasons. First, it ensures that all

devices are properly coordinated. Second, it ensures that with the loads of the new

project, the load currents in the feeder do not exceed the pickup current of the protective

device [48].

2.33.14.10 Characteristics of Another Substation Equipment

There may be other equipment in the substation that could have a great influence

on the power flow model, such as capacitors and reactors, so be sure to record their

capacity and form of connection to the system. For capacitors, record the control mode,

whether it is automatic or manual. For automatic capacitors, also record the operation

criteria (voltage, phase current, power factor, or time of day) [49].

2.34 Field Inspection

After compiling the available information at the office of the electric operator,

it is necessary to can rm and complement that information by visiting the project area

to establish the geographic relationship between the loads to be electrified. During this

visit, the basic configuration of the system to be installed will take shape, subject to

modification during the process of analysis. For this reason, during this visit, one needs

some way to establish distances and locations of towns and probable loads. The

traditional way to perform this task is to get the best map available of the area and
 66

measure the distance between key points using the odometer in the vehicle. Although

this procedure meets the needs of the project, modern technology affords a more

accurate and advantageous option through use of GPS satellites for establishing

geographic references. A GPS unit is portable and low cost, with geographic accuracy

of +/- 7 meters in autonomous operation. Additional technologies offer the capacity for

greater accuracy, but for this kind of project design they are not necessary [49].

Apart from their ability to accurately locate key points, most GPS units allow

for the recording of a “track,” which serves as a basis to construct a power fl ow model.

Given the availability of these instruments at low cost and their advantages in laying

out a plan for rural systems, there is no reason to resort to old techniques. This module

therefore assumes the use of a GPS device during the field visit. The field visit thus

includes the following steps:

2.34.1 Georeference of All Sites with GPS

During the visit to the site, the engineer should use the GPS to obtain

georeferenced data for the routes followed (and/or the probable route for electrical lines

to be installed) and of all the points of interest, such as the substation, the end of the

three-phase line, the initial point of the project and the center of each community to be

considered in the project [48].

2.34.2 Tracks or Routes

All along the route, the GPS can mark out and record the route followed. The

engineer must make certain that the GPS is in the right mode to mark and record the
 67

route, because upon returning to the offi ce, this information will be very useful in

determining the length of both the existing lines and those to be installed [48].

2.34.3 Waypoints
The GPS capacity can also mark the location of points of interest for the project,

such as the location of the substation, the end point of the three-phase line, the initial

point and the center of each community to be considered in the project. Each such point

should be recorded with an indicative name, which could be the complete name of the

community (according to the GPS capacity) or a simpler indicative name. In any case,

keep a written fi le of all waypoints with the indicative name, the real name of the

community, and the additional characteristics of each point [48].

There may be other equipment in the substation that could have a great influence

on the power fl ow model, such as capacitors and reactors, so be sure to record their

capacity and form of connection to the system [48].

2.34.4 Record Distances and Consumers

While using the GPS to record the route followed and the points of interest, keep

a record of distances between all points, as well as the accumulated distance so far, to

facilitate the calculation of distances later. This record gives the engineer the distances

between communities or other points of interest without having to measure them again.

Record the number of users in each community in the same record [48].
 68

CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction
This chapter shows the method of the researcher that is customary according to

its objectives. It also specifies the procedures or stages undertaken by the researcher,

which are to be used in evaluating the feasibility of rural electrification through Off-

Grid Solar PV System, in comparison with an electricity connection from the present

distribution utility - BUSECO. The methods revolve around the viability, for technical

and economic analysis of both systems.

The assessment of an energy system for its techno-economic feasibility is of

utmost importance if the system must function satisfactorily at a given location. The

techno-economic feasibility assessment of a particular technology begins with

evaluating the technological appropriateness, economic viability and other financial

incentives of a technology for it to get successfully disseminated at a given location.

Methodology for the feasibility of creating a ground-mounted Solar PV System

starts with the data gathering. This is essential to get the specific details needed for the

inspection and survey of site. The data will be used for the verification if such

technology is possible for the energization of the setting. Load estimation will follow

before the technical properties are decided. Designing the system is another big step to

analyze and model. Cost analysis will only be achievable if the aforementioned

processes are finished.

 69

Figure 3.1 Methodology Framework

Figure 3.1.1 Technical and Economic Analysis

 70

3.2 Data Gathering

The gathering of data is focused on the existing problems in rural areas that

cause electrification to be difficult. The reasons as to why the areas are still out of

energy sources are gathered through literatures and researches. Visiting the location is

also part of the applied approaches to collect specific information regarding the

situation of the area, which was already done before the start of this study. It is also

essential to accurately determine the distance of the location site from the nearest point

reached by the Distribution Utility catering the Barangay of Sitio Calaniogan.

The research will start with data collection of the site’s information,

establishment of the power load of the village, overview of component characteristics

and costs, research on the off-grid system configurations and modeling, selection of

optimum system based on assessment of the load requirement in the area and the

selected system.

In the data to be gathered, the load demand will be forecasted and estimated. In

order to calculate generated power of the system, the details of its specifications must

be fixed and the analysis of the electricity demand. The cost and technical viability of

the system is determined through examining the energy generation and the construction

cost of the Solar PV System and the Utility Distributed Electricity connection.

3.3 Site Identification

This part is concerned with the physical conditions of the Sitio and the area

around it that would affect the installation of a solar PV system. The nature of a solar

array requires that the site analysis take into account the physical structure and layout
 71

of the available space, as well as the weather. The weather plays an important role with

such a system, determining the amount of sunlight that can be gathered by the panels

and to be converted into energy.

After a brief introduction to the location of the site, this chapter begins by

discussing the meteorological findings for the area in which the Sitio Calaniogan is

located. The next section describes the physical layout of the vacant lot for installation

space. This is followed by an analysis of the site’s energy usage, and a look into the

installation process

3.3.1 Location
Location is a specific plotting of the site’s coordinates. This also identifies the

mapping of the area to which it is part of a bigger land expanse. Full statement of the

site’s structural and physical description is included in this part.

3.3.2 Meteorological Analysis

Gathering and summarizing meteorological data is a vital aspect for creating the

site analysis. Obtaining meteorological data is done with relative ease these days. The

resources of weather data are provided by PAGASA and Weather Sparks. It includes

information such as the hours of daylight and twilight as well as sunrise and sunset

durations. The Solar Insolation and Solar Irradiance must also be presented to examine

the availability of solar energy in the area. Certain mobile applications offer a way to

automatically gauge these two important data.

 72

3.3.2.1 Available Solar Energy

Information on the convenience of solar energy has a great importance and

impact to the study. Therefore, the data will be gathered to look at the general

availability of solar energy in the Philippines. If there are available data for the specific

location, it is a better basis.

The amount of solar energy intercepted by the earth every minute is greater than

the amount of energy the world uses in fossil fuels each year. Tropical absorbs 560

trillion gigajoules of solar energy each year equivalent to 1,600 times the world's annual

energy use.

3.3.2.2 Solar Insolation

The accurate solar resource data is important for the proper sizing and life cycle

cost analysis of solar photovoltaic technologies. Knowledge of the spatial distribution

of the solar resource for various tilt angles will allow for more cost-effective design and

operations of photovoltaic systems for distributed loads.

3.3.2.3 Local Climate

Apart from obtaining the irradiance of the site selected, there are other aspects

related with the climate important for the development of a PV solar power plant

project. The temperature of the location will determine the efficiency of the solar cells

and extreme temperatures can be critical for the correct operation of the PV plant.
 73

3.3.2.4 Topography
It is important to study in detail the topography of the site selected because it is

directly correlated with the cost of installation and the future energy production. The

ideal situation would be a flat terrain or with a slight south-facing slope, other

configurations of the terrain could have a negative impact on the cost of the project due

to more complex mounting structures. Besides, the presence of mountains near can

produce undesirable shades. For this project the terrain where the PV modules are going

to be installed is considered flat and the presence of near mountains is neglected.

3.4 Site Selection Criteria for Solar PV System

Planning a development for solar access begins with the choice and analysis of

a site. While it involves many of the same procedures used in designing conventional

developments, planning for solar access demands two additional considerations. The

first is an assessment of both the availability of sunlight and the extent of shading on

the site. Obviously, solar collectors must have access to direct sunlight. Such access

can be affected by the natural element of the site, such as topography or atmospheric

conditions, or by obstructions (man-made or natural, such as buildings or trees. And the

energy- saving features of the site must be considered. Features that moderate the local

climate (such as trees or large bodies of water) can have an enormous effect on the

efficiency of a solar energy system. Solar installation sites must be able to generate an

adequate electricity supply to ensure their long-term viability for supporting energy

demands. The most important factor for generation capacity is the average level of sun

exposure that a site experiences throughout the year. Below are the comprehensive lists

of evaluation criteria develop for siting ground-mounted solar installations.


Table 3.1 Site Selection Criteria for Solar PV Systems
PHYSICAL SITE CHARACTERISTICS
Consideration
Quantity and quality of solar
energy or the solar irradiance
throughout the site.
Vegetation and shading (on and
off property)
Shading from nearby buildings
and other structures, and by local
topography (on and off
property).
74
Comment Evaluation
The amount of solar energy that Acceptable: mostly un
is incident upon a given land shaded by vegetation or
surface area is dependent upon structures, flat or
several factors. These include generally sloping south.
latitude, which determines the Needs further
angle of the sun and the hours of evaluation: some
sunlight throughout the year, and shade, generally east
the amount and density of cloud or west slope, or
cover, which will reduce the moderate northward
amount of solar energy. Sites that slope.
are level, or slope generally south Unacceptable: partial
toward the sun are preferable to or full shade;
those that slope northward, away significant northward
from the sun. slope
Sites that are forested or covered Acceptable: unforested
with dense vegetation are less solar array would have
desirable for solar arrays because minimal impact on
trees would have to be cut down plant life.
and vegetation controlled in order Needs further
to optimize electricity generation. evaluation:
(Even a partial shadow on a solar judged possible to cut
panel can reduce its generation trees with minimal
capacity to zero.) Moreover, trees impact on neighbors or
and other vegetation have value conservation.
as species habitat and for Unacceptable: site is
recreational and aesthetic forested, and it is
reasons. unlikely to be
acceptable to cut trees;
or major impact.
As with shading by trees, shading Acceptable: no
from other structures or hills, shading from nearby
even during part of the day, can structures.
substantially reduce the value of Unacceptable: partial
a solar array. Sites that are or full shading from
shaded by the presence of these nearby structures or
elements were deemed potential building
unsuitable. development
 75

Proximity for interconnection to
existing transmission (the present
electricity grid.)
Sites with close and easy Acceptable: site
interconnection to the electricity borders right-of-way
grid are preferable because their leading to inter-
cost to connect them to the grid connection point.
will be much less than sites that Needs further
are distant, or whose terrain or evaluation: Is the site
other factors make them more located near future grid
difficult to connect. expansion
Unacceptable: site is
land locked and/or
difficult and expensive
to access.

Soils and ground stability.
Because solar arrays are Acceptable: stable soil,
structures, they need stable or can be easily
ground upon which their stabilized.
foundations can be built. Access Needs further
for maintenance vehicles is also a evaluation: Soil
requirement. Loose or soft soils testing recommended
are less desirable, as are those on to determine soil
ledge or rock that would add bearing capacity and
complexity to building ground water elevation.
foundations. Unacceptable:
unstable, loose,
sandy, organics, etc.
soils or exposed or
shallow ledge.

Topography and micro-climate.
Level, dry sites are ideal. Acceptable: generally
Irregular or hilly sites, or those flat or moderate
prone to fog or seasonable variation in terrain.
moisture are less so. Unacceptable: very
hilly, steep, or irregular
terrain; or
pockets in terrain that
would trap fog;
wetlands

Access for maintenance Although solar arrays require Acceptable: site

little maintenance, they still need
occasional repair, upgrades, and
cleaning. Thus, the best sites
border public ways, and
landlocked sites are much less
desirable.
borders public ways
and vehicle access
can be incorporated.
Unacceptable:
landlocked site or
otherwise difficult and
expensive to provide
access for vehicles.
 76

Regulatory / legislative issues
Sites that are otherwise very
suitable for solar arrays may be
burdened with legal or regulatory
restrictions.
Acceptable: site is
unencumbered by law
or regulation.
Unacceptable: law
or regulation prohibits
use as solar site.

3.5 Estimating the Demand Load

In designing a Solar Photovoltaic Power System, the first step is to determine

the system load and to determine the needed system capacity. The subject for estimation

is the site selected for this project. Approximation of load will be done in two setups.

The first estimation will be for the future loads of the households in Sitio Calaniogan

when electricity is already possible in the area. The second setup will be on average

household loads currently existing as of today.

Typical households in the Sitio are chosen as model houses for the calculation

of the power demand. For complex loads of households, at times it is difficult to

anticipate every electrical load. The estimation is done by multiplying each of the

appliance's power to the average number of usage hours. Then 20% of the product must

be added as an allotment for losses caused by wiring, DC to AC conversion, modules

and batteries.

The power rating will be based on each appliance that is to be connected to the

source. Every appliance has its own different power rating according to the

manufacturer. The energy demand per household will only be represented by one model

and the data is tabulated.

 77

3.2 Table for Individual Household’s Energy Demand

ENERGY DEMAND ESTIMATION

RATED
DAILY USAGE
LOAD DESCRIPTION QUANTITY POWER ENERGY (Wh/Day)
(hrs/Day)
(W)

TOTAL ENERGY DEMAND (Kilo - Watt)

3.6 Solar PV Power Plant Specifications

In this section of the chapter it is showed the calculation methodology followed

for the obtention of the design parameters, energy results, associated cost of the plant

and other important parameters required for the plant performance assessment.

3.6.1 Sizing the Array

Photovoltaic array consists of modules connected in series and parallel

depending on the desired voltage and current. If the Power Demand EP is given, the

required rated array power PR can be calculated with equation 1. Rated Array Power is

obtained using the worst mean monthly irradiance of the year.

𝐼𝑆𝑇𝐶
PR = EP KB (3.1)
𝐻𝑑

Where ISTC is the irradiance at standard condition = 1 kW/m2. The KB is the modified

performance ratio. Hd is the irradiation on the array surface during a specific period or

Solar Insolation (1 kWh/m2).

KB = K * NB * KBC (3.2)
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K = performance ratio

NB = battery charging efficiency

KBC = control factor in battery charging

Performance ratio (K) is defined as a ratio of the actual generated electric power

during a specific period and the calculated power (rated output of the PV array * same

energy irradiated on the array surface). The K includes all loss factors from the array

surface to the output terminal of the inverter or controller. Theoretically, it is difficult

to account for these loss factors, however the overall loss factor can be known

empirically as “Performance Ratio (K)”. This is a practical way to introduce the factor

K for system planning.

The average value for a grid-connected system with the power maximum

control is approximately 0.75 (0.65-0.8, mainly affected by module temperature and

inverter loss). If the system without maximum power control and/or the quality is poor,

the value of K will show lower value (0.6-0.7).

3.6.2 Number of Modules

An Off-Grid photovoltaic system has a specific capacity. Therefore, it will be

the basis of the calculation for its number of modules. The desired power capacity of

photovoltaic system PR, rated power of the photovoltaic module technology chosen

PSTC and total number of modules N0 can be calculated using equation 3. Calculated

number of modules with decimal numbers must then be rounded-off to the next whole

number.
 79

𝑃𝑅
No = (3.3)
𝑃𝑆𝑇𝐶

3.6.2.1 Number of Modules Connected in Series

The system will have modules connected in series, therefore it must be

calculated according to the DC Voltage capacity of the inverter to be used, and the

Maximum Power Voltage of the modules selected. This is solved using equation 4.

𝑉𝐷𝐶 (𝑖𝑛𝑣𝑒𝑟𝑡𝑒𝑟)
Ns = (3.4)
𝑉𝑚𝑝 (𝑚𝑜𝑑𝑢𝑙𝑒)

3.6.2.2 Number of Modules Connected in Parallel

The system will have modules connected in parallel, therefore it must be

calculated according to the number of modules, and the number of modules in series.

This is solved using equation 5.

𝑁𝑜
NP = (3.5)
𝑁𝑠

3.6.3 Array Voltage

In setting up the array in series or parallel, array voltage must be determined.

The total voltage of the modules connected in series for PV system array can be solved

using the given equation 6.

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There is a need to calculate the voltage for the interconnection of inverter,

corresponding the minimum and maximum operating temperature according to the

inverter's specified voltage. This is for proper functionality.

VA = VMO * NS (3.6)

3.6.4 Array Current

When photovoltaic modules are exposed to sunlight, the array current is then

produced. The total current produced in the array is equal to the module current rating,

multiplied to the number of array modules in parallel.

IA = IMO * NP (3.7)

3.6.5 Charge Controller

Selecting the better charge controller among the available ones is essential. The

life-span and efficiency of your entire solar power system depends on it greatly. Solar

Charge Controllers protect the storage from excess amount of currents in the system.

There are different currents to monitor including: array-to-controller, controller-to-load

and battery-to-controller currents.

𝑊𝑠𝑦𝑠𝑡𝑒𝑚
A= (3.8)
𝑆𝑦𝑠𝑡𝑒𝑚 𝑉𝑜𝑙𝑡𝑎𝑔𝑒

𝐴
No. of Charge Controllers = (3.9)
66.67 𝐴
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3.6.6 Sizing of Battery

Sizing the battery for cyclic applications to a maximum discharge depth of 50%

will be advised for most of the battery manufacturers. Therefore, there is a need to

double to size of the battery compared to the maximum supposed capacity. Battery

storage capacity for a Solar PV System can be calculated using the two methods and

equations.

First method:

𝐸𝑝 ∗𝑁𝐷 ∗𝑅𝐵
BkWh = (3.10)
𝐶𝐵𝐷 ∗𝑈𝐵 ∗𝛿𝐵𝐷

Where:

BkWh = battery capacity (kWh)

ND = number of continuous no sunshine days (3-5)

𝑘𝑊ℎ
Ep = power demand per day ( 𝑑𝑎𝑦 )

RB = design margin of a battery (1.0-1.3)

CBD = degradation factor (usually equal to 1.0)

UB = available depth of discharge (0.5-0.8)

𝛿BD = ratio of voltage at discharge (1.0)

𝐵𝑘𝑊ℎ
Ah of Battery = (3.11)
𝑉𝑆

Where:

BkWh = battery capacity (kWh)

 82

VS = battery system voltage (6V, 12V, 24V or 48V)

Second Method:

𝑁𝐶 ∗𝑃𝑅
Storage Capacity = (3.12)
𝐷𝑂𝐷

NC = largest number of continuous cloudy days

PR = average daily load demand

DOD = depth of discharge of battery

𝑆𝑡𝑜𝑟𝑎𝑔𝑒 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦
Ah of Battery = (3.13)
𝑆𝑦𝑠𝑡𝑒𝑚 𝑉𝑜𝑙𝑡𝑎𝑔𝑒

Depth of discharge for a battery is the ratio of the discharged electric energy to

the battery capacity. It is zero when the battery is fully charged. It is 0.5 when one half

of the capacity is discharged. If over-discharging continues, the battery life is shortened.

Therefor, it is necessary to control the state of the battery charge via the controller.

Normally, the depth of discharge factor is about 0.5. The control voltage that manages

that depth of discharge is fixed for some controllers.

3.6.7 Connecting Batteries in Series

For batteries in series, one path is set for the current to flow. The total voltage

is the sum of the individual battery voltages, and the total capacity is the same as one

battery. If batteries or cells with different capacities are connected in series, the capacity

of the string is limited to the one with lower battery capacity.

 83

The voltages of batteries available on the market are 2V, 6V, 12V, and 24V.

When battery voltage is insufficient for the circuit voltage, multiple batteries are

connected in a series to meet circuit voltage.

𝑐𝑖𝑟𝑐𝑢𝑖𝑡 𝑣𝑜𝑙𝑡𝑎𝑔𝑒
Number of batteries in series = (3.13.1)
𝑟𝑎𝑡𝑒𝑑 𝑣𝑜𝑙𝑡𝑎𝑔𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑏𝑎𝑡𝑡𝑒𝑟𝑦 𝑠𝑒𝑙𝑒𝑐𝑡𝑒𝑑

3.6.8 Connecting Batteries in Parallel

Reliant on the number of parallel branches, the batteries in parallel connection

have the same count for its current flow path. Similar batteries connected in parallel

will have the same voltage across the individual parallel branches in the entire circuit.

The overall capacity is the sum of the parallel branch capacities.

𝐷𝑒𝑠𝑖𝑔𝑛 𝑊ℎ 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦
= Design Ah capacity (3.13.2)
𝑠𝑦𝑠𝑡𝑒𝑚 𝑐𝑖𝑟𝑐𝑢𝑖𝑡 𝑣𝑜𝑙𝑡𝑎𝑔𝑒

𝐷𝑒𝑠𝑖𝑔𝑛 𝐴ℎ 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦
Number of batteries in parallel ≧ (3.13.3)
𝐴ℎ 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑜𝑓 𝑠𝑒𝑙𝑒𝑐𝑡𝑒𝑑 𝑏𝑎𝑡𝑡𝑒𝑟𝑖𝑒𝑠

Total number of batteries = Nsbattey* Npbattery (3.13.4)

Battery system capacity [Wh] = (Unit Capacity * Nominal Voltage) * Ntotal (3.13.5)

3.6.9 Sizing of Inverter

The inverter is used to change DC power to AC power. Electric appliances

require AC power. The inverter has all the required functions.

 84

(a) The circuit voltage of the system is the same as the input voltage of the inverter.

(b) AC output meets the load requirements.

(c) Peak capacity of the loads is satisfied.

(d) The inverter can apply to the rush power of the loads.

In determining the size of inverter you’ll have to use for an electrical system,

total power requirement must first be calculated. The result is a good baseline to work

out the value needed for selecting the effective inverter capacity. The wattage must

have an additional of at least 10% to 20% for the safety margin that we want for our

system.

Energy systems necessarily need to have an inverter where the absorbed power

can proceed. In order to effectively interconnect inverters with respect to the selected

modules, verification is a must.

First, verify that the no load Voltage VOC at the output of the strings at minimum

prospective temperatures (-20oC), is lower than the maximum temperature which the

inverter can withstand.

VOC < Vmax_inv (3.14)

VOC (T) = VOC_STC – [ℽv Ns * (Tmin – TSTC)] (3.15)

VOC is max no-load voltage of the PV field in correspondence with the minimum

operation temperature expected for the PV modules. VOC_STC is the open circuit voltage at

STC. ℽv is the voltage temperature coefficient oC while Tmin is the expected minimum
 85

daily cell temperature. TSTC is the cell temperature at STC measured in oC. Ns is the

number of series-connected cells in the module.

Next is make sure that the minimum voltage (at 60oC) at the corresponding

maximum power at the output of the string under standard solar radiation conditions,

shall be higher than the minimum operating operation voltage. VMPPT_max which is the

maximum input voltage admitted by the inverter and Vmax must be calculated.

Vmax = VMPPT_max (3.16)

Vmax = VMMPT_STC – [ℽv Ns * (Tcell_cell – TSTC)] (3.17)

Where Vmax is the voltage at the maximum power point (MPP) of the

photovoltaic field in correspondence with the minimum operating temperature expected

to the photovoltaic modules. VMMPT_STC is the Maximum Power Point Voltage at STC.

Tcell_cell is the cell temperature at specified temperature. TSTC is the cell temperature at

STC, measured in oC.

Lastly, the minimum voltage (at 20oC) at the corresponding maximum power at

the output of the string under standard solar radiation conditions, shall be higher than

the minimum operating operation voltage. VMPPT_max which is the maximum input voltage

admitted by the inverter and Vmax must be calculated.

Vmin = VMPPT_max (3.18)

Vmin = VMMPT_STC – [ℽv Ns * (Tcell_cell – TSTC)] (3.19)

Where Vmin is the voltage at the minimum power point (MPP) of the

photovoltaic field in correspondence with the minimum operating temperature expected

to the photovoltaic modules.

 86

3.6.10 Sizing of the Cables

The accurate selection of the system wiring cables is very essential. In order that

the system is safe, the wiring must not reduce its performance in any of the components.

Cables in an off-grid Solar PV System must be sized correctly to reduce the voltage

drop. This is also done to make the current handling capacity safe without exceeding

its limit.

𝐼∗𝐿∗2
Vd = ℘ (3.20)
𝐴

A is the cross-sectional area (CSA) in mm2 while I is the current through the

cables in ampere. L is the length of the cables in meters. ℘ is the resistivity of the

copper wire normally equal to 0.00183. The multiplication by 2 accounts for the total

circuit wire.

3.6.11 Sizing the Cables Between PV Modules

Sizing of the cables between PV modules can be done through equation 20.

Where the length of the cable is 1.5 inches and the maximum current be multiplied by

125% of its short circuit current. The voltage drop can be calculated using equation 22.

Imax = 125% * I (3.21)

Vd = 5% * Vmmp (3.22)
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3.6.12 Sizing Cable from Photovoltaic Array to Inverter

Sizing the cables from the PV array to inverter is based on equation 21. Where

the length of the cable is 20 meters and the maximum current be multiplied by 125%

of its short circuit current, then multiplied again by the number of modules in parallel

and the voltage drop is 5% of the system voltage related to equation 22.

Imax = 125% * ISC * Np (3.23)

3.6.13 Sizing of the Circuit Breaker

In accordance with the Philippine Electrical Code (PEC), the circuit breaker to

be installed in a stand-alone PV system must be able to cater 125% of the current

flowing through the wirings. This is for over-current protection of the whole system

lines.

3.6.14 Sizing of the Circuit Protection from PV Array to Inverter

There are two ways of undertaking the circuit protection between photovoltaic

array and inverter in general. First one is on each parallel strings of modules which can

be fused before entering DC collection point. Second one is the total output of the

photovoltaic array, be fused before being connected to the inverter.

3.6.15 Estimation of the System Energy Output

System Energy Output is the energy that developed in the stand-alone power

source. The power delivered from the generator to the consumers is the total output at
 88

day time. This generation is during the charging hours where the energy storages are

being filled for the hours without heat from the sun.

Monthly system output calculation is shown:

E = A * r * H * Pr (3.24)

Where:

E = Energy output (kWh)

A = total solar panel area (m2)

R = Solar Panel Yield (%) [electrical power per panel/area of each panel m2)

Pr = Performance Ratio

Daily output calculation:

𝐸
EDoutput = (3.25)
𝑁𝑜.𝑜𝑓 𝐷𝑎𝑦𝑠 𝑖𝑛 𝑎 𝑚𝑜𝑛𝑡ℎ

Yearly Output calculation:

EYoutput = ∑𝑛
𝑑=1 𝐸𝐷𝑜𝑢𝑡𝑝𝑢𝑡 (3.26)

n = the day of the year (1 - 365)

Energy production by year can be computed. Set as a function of D, is

determines energy increasing every year. N is the year number considered and D is the

degradation factor for each year.

ED = (1 – D (N-1)) EYoutput (3.27)

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3.6.16 Capacity Factors

To calculate the Capacity Factor, take the total amount of energy produced

during a period of time and divide by the amount of energy the plant would have

produced at full capacity. The Capacity Factor is the ratio of the PV energy produced

by a stand-alone system in each time, to the energy that could be produced during the

time if the system had been continuously generating its fully rated output.

𝐸𝑛𝑒𝑟𝑔𝑦 𝐺𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑
C.F = 𝐻 x100 (3.28)
(365 𝑑𝑎𝑦𝑠)(24 𝑑𝑎𝑦)(𝑃𝑉 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦)
1

3.7 Economic Analysis for Solar PV Power Plant

After designing and determining system specifications of a Stand-Along Solar

PV System, calculation of the total installation cost shall follow. This is essential in

shaping the feasibility of establishing a plant. Focused on the pricing of the materials

and the rest of the financial aspects.

3.7.1 Balance of System

The Solar PV Balance of System or BOS denotes to the mechanisms and

equipment that move DC energy produced by Solar Panels through the conversion

system which in turn produces AC electricity. The BOS components include most of

the pieces, which make up roughly 10%-50% of Solar Purchasing and Installation costs,

and account for the majority of maintenance requirements.

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3.7.2 Life Cycle Energy Cost of Photovoltaic

Life-Cycle Costing Methodology also known as LCC is a method used for

carrying out the evaluation of economic analysis. It is a tool useful in comparing

ultimate delivered costs of utilized technologies, having different structures rather than

comparing only the initial capital costs or operating costs. LCC analysis points out

calculation of the cost of delivering a service over the expected life of the proposed

project. The summary of LCC must be equal to the total energy output.

LCC = Etotalcost (3.29)

LCC = C + Mpw + Rpw + Ppw - Spw (3.30)

𝑐𝑜𝑠𝑡
𝐸𝑜𝑢𝑡𝑝𝑢𝑡 (1−𝐷)(𝑁−1)
Etotalcost = ∑25
𝑁=1
𝑘𝑊ℎ
(3.31)
1+𝑖 𝑁

Future costs must be discounted since the time value of money varies in years

that pass. One peso received today is worth more than its value for the following year.

A peso today can be invested and multiply interests through time. Future sum amounts

of money must also be discounted in the same manner. The inherent risk of future

events not occurring might sabotage plans, therefore, it is good to have defense

beforehand. Several factors should be considered when the period for an LCC analysis

is chosen.

Equipment life span is the first one to check. Most PV modules are marked with

a 20-year minimum life span, to operate without failure. To analyze a PV system over

a 5-year period would not give due credit to its durability and reliability. Twenty years

is the normal period to evaluate photovoltaic projects.

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3.7.3 Financial Methodology and Assumptions

 Single Present Worth (P)

𝐹
P= (3.32)
(1+𝑖)𝑁

Where:

F = future sum of money

N = given year
i = given discount rate

 Uniform Present Worth (Pu)

(1+𝑖)𝑁 −1
P = 𝐴( ) (3.33)
𝑖(1+𝑖)𝑁

Where:

A = annual sum
N = period of years annual sum is being received
i = given discount rate

 Modified Uniform Present Worth (Pmu) of an annual sum (A) that

escalated at a rate (E) over a period of years (N) at a given discount rate

(i) is:

1+𝐸 (1+𝐸) 𝑁
Pmu = 𝐴{(1−𝐸) ∗ [(1) − (( (1+𝑖) ) )]} (3.34)
 92

 Annual Payment on a loan (A)

𝑖
A = P {([1−(1+𝑖)−𝑁 ])} (3.35)

Where:

Pamount = principal amount

i = interest rate
N = given period of years to pay

3.7.4 System Life of Photovoltaic

Photovoltaic (PV) modules typically come with 20-year warranties that

guarantee that the panels will produce at least 80% of the rated power after 20 years of

use. The general rule of thumb is that the panels will degrade by about 1% each year.

The system life of a matured photovoltaic module has a life expectancy of 20

years as specified by almost all manufacturers. Thus, it is reasonable to assume that

Solar PV Power Plant’s life to last for 20 years. The researcher also assumes that the

system is to be established a year after the approval of the project, which will be on

2020. A span of 1 year is allotted to finish the construction for official operation.

Therefore, all materials, equipment, and services costs, discount and escalation rates,

and electric utility rate is based in this year. 20 years after 2021 will be the

decommissioning of the photovoltaic system.

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3.7.5 Balance of System (BOS)

BOS components include most of the major pieces, which make up roughly

10%-50% of solar purchasing and installation costs and account for the majority of

maintenance requirements.

Essentially it is through the balance-of-system components that we: control

cost, increase efficiency, and modernize solar PV systems. Costs are steadily decreasing

regarding solar panels and inverters (formerly 50% of solar PV investment costs).

3.7.6 Currency Exchange Rate

An exchange rate is the price of a nation’s currency in terms of another currency.

Thus, an exchange rate has two components, the domestic currency, and a foreign

currency, and can be quoted either directly or indirectly. In a direct quotation, the price

of a unit of foreign currency is expressed in terms of the domestic currency. In an

indirect quotation, the price of a unit of domestic currency is expressed in terms of the

foreign currency. Exchange rates are quoted in values against the US dollar. However,

exchange rates can also be quoted against another nation's currency, which is known as

a cross currency, or cross rate.

The Philippine peso to US dollar exchange rate used in this study is the recent

exchange rate according to X-Rates. The currency exchange rate of 1 US dollar is equal

to 52.39 Philippine Peso.

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3.7.7 Module Price

The cost of a photovoltaic module depends on the technology used, module

efficiency, brand, nominal power, and module specifications. As the efficiency

increases the more the module gets expensive, same as through with the nominal power

or rated power of a module. Since it is the vital component of a solar power plant, the

cost of modules is given the most consideration in the material selection.

3.7.8 Inverter Cost

Most inverters require regular maintenance to ensure they’re functioning as

efficiently as possible and sometimes require repair. It is also important to note that

most inverters come with life expectancy of approximately 10 years, which is much

shorter than the life of the panels themselves. Panels normally last 20-25 years.

As a result, most inverters need replacement after about 11 years of service.

Replacing an inverter is usually the most expensive aspect with often the largest

maintenance cost associated with owning a solar power plant. A long-term solar

warranty can be purchased to cover this cost.

3.7.9 Storage System Cost

Considering that a solar battery storage system’s lifespan lasts 5 to 15 years, the

battery may have to be replaced several times over the lifespan of your solar panels,

increasing your solar battery storage system costs. Suffice it to say, solar power plant

storage system costs are not inexpensive, but the advantages of having a solar battery

can more than make up for the cost if implemented effectively.

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3.7.10 Replacement Costs

A replacement cost is the cost to replace an asset of a company at the same or

equal value, where the asset to be replaced could be a building, investment securities,

accounts receivable or liens. The replacement cost can change, depending on changes

in market value of the asset and any other costs required to prepare the asset for use.

Accountants use depreciation to expense the cost of the asset over its useful life.

Replacing an asset can be an expensive decision, and companies analyze the net

present value (NPV) of the future cash inflows and outflows to make purchasing

decisions. Once an asset is purchased, the company determines a useful life for the asset

and depreciates the asset's cost over the useful life.

The term replacement cost or replacement value refers to the amount that an

entity would have to pay to replace an asset at the present time, according to its current

worth. The span of time for replacements will depend on the system life expectancy.

3.7.10.1 Battery Replacement

The parameter is set for the battery replacement time span. In 5 years long, the

storage system must be replaced with new batteries to keep the losses low-slung and

prevent the efficiency of the system to sag.

Life-Cycle Cost Analysis is used to determine the cost of replacing the batteries

within 10 years, starting from the 5-year life span of the storage system.

1+𝐸𝑟 1+𝐸𝑟
LRC = ARC( 𝑑−𝐸𝑟){1 − (1+𝐷𝑟)𝑁 } (3.36)

Where;
 96

LCR = Life Replacement Cost

ARC = Annual Replacement Cost
Er = Escalation (inflation rate)
Dr = discount factor
N = Life Cycle Period
LCCA = Life Cycle Cost Analysis Factor

𝐶𝑜𝑠𝑡 𝑜𝑓 𝐵𝑎𝑡𝑡𝑒𝑟𝑦+𝑖𝑛𝑠𝑡𝑎𝑙𝑙𝑎𝑡𝑖𝑜𝑛
ARC = (3.37)
𝑝𝑒𝑟𝑖𝑜𝑑 𝑜𝑓 𝑟𝑒𝑝𝑙𝑎𝑐𝑒𝑚𝑒𝑛𝑡

LRC = ARC x LCCA (3.38)

3.7.10.2 Inverter Replacement

The inverter is used for AC loads which means that the system converts DC to

AC. Given that this system works non-stop as long as the minimum voltage is reached,

it must be well-maintained and replaced constantly at a period of time.

𝐶𝑜𝑠𝑡 𝑜𝑓 𝐼𝑛𝑣𝑒𝑟𝑡𝑒𝑟+𝐼𝑛𝑠𝑡𝑎𝑙𝑙𝑎𝑡𝑖𝑜𝑛 𝐶𝑜𝑠𝑡

ARCINV = (3.39)
𝑁𝑜.𝑜𝑓 𝑌𝑒𝑎𝑟𝑠

3.7.11 Operation and Maintenance Cost

Several major approaches for handling the operation and maintenance of solar

photovoltaic system exist in the marketplace today, each with different system

efficiency and system/component lifespan tradeoffs. Estimations of personnel costs

over the project lifetime, particularly in labor-intensive projects of long duration can be

an important component of any LCC analysis. Operation and Maintenance costs are
 97

assumed to be 5% per year of the initial cost. Maintenance is assumed to be constant in

this research study on the lifespan of the preferred modules.

3.7.12 Salvage Value

The salvage value is used in conjunction with the purchase price and accounting

method to determine the amount by which an asset depreciates each period. The salvage

value of a system is its net worth in the final year of the life-cycle period. It is a common

practice to assign a salvage value of 20 percent of original cost for mechanical

equipment that can be moved. This rate can be modified depending on other factors

such as obsolescence and condition of equipment. It is the recovery value of the

equipment is the net value used at the end of the system’s service life.

The researcher assumes 0% of the original cost for the photovoltaic modules,

inverter and balance of system.

3.7.13 Life Replacement Cost

Life Replacement Cost or the LRC for the whole system consist of the overall

cost of batteries, inverters, controllers and installations. The modules are not included

in this calculation because of its different life-span. Use equation 40 to solve the cost

of replacement.

1+𝐸𝑟 1+𝐸𝑟
LRC = ARC( 𝑑−𝐸𝑟){1 − (1+𝐷𝑟)𝑁 } (3.40)
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𝑏𝑎𝑡𝑡𝑒𝑟𝑦 𝑐𝑜𝑠𝑡+𝑖𝑛𝑣𝑒𝑟𝑡𝑒𝑟 𝑐𝑜𝑠𝑡+𝑐𝑜𝑛𝑡𝑟𝑜𝑙𝑙𝑒𝑟 𝑐𝑜𝑠𝑡+𝑖𝑛𝑠𝑡𝑎𝑙𝑙𝑎𝑡𝑖𝑜𝑛 𝑐𝑜𝑠

ARCtotal = (3.41)
𝑁𝑜.𝑜𝑓 𝑌𝑒𝑎𝑟𝑠

3.7.14 Cost Per kWh

It is important to know how much the energy costs as it generates for

consumption. This is dependent on the values of the output energy of the system to the

total cost of establishment.

𝐶𝐶+𝐿𝐹𝐶+𝐿𝑀𝐶+𝐿𝑅𝐶
CT = (3.42)
𝑁 𝑥 365 𝑥 𝑘𝑊ℎ

Where;

CT = Total cost per kWh

CC = Capital Cost
LFC = Life Fuel Cost
LMC = Life Maintenance Cost
LRC = Life Replacement Cost
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3.8 Distribution Line Construction

For a specific area subjected by the project, there are also specifications to

suffice the load demand. The methodology for system specifications are referenced

from BUSECO’s given data to the researcher of this study.

3.8.1 Methods Site Electrification Checking

The first step in checking the site for electrification is to identify lot owners or

representatives of the residences. It is essential to know people to contact in cases where

the lot spaces shall be used as part of the line extensions. Next is the line survey

conducted in the vicinity of the area for electrification.

Table 3.3 Steps in Site Survey

STEPS DESCRIPTION PERSON RECORD/
RESPONSIBLE REF
1. Look for Surveyor
owner/repre
sentative
2. Line Survey 1. Take GPS Waypoints Surveyor and Survey Survey
2. Stake Aid Form
3. Identify the lot owners
of the area

3.8.2 Methods for Electrification

The methodology of establishing an energy source for a specific area presented

starting from the application request from the residents of the place. An energization

project for a location wherein no existing poles stand, has longer methods since it

includes construction of extension lines from the nearest existing tapping pole.
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Figure 3.1 BUSECO Methods for Electrification

Figure 3.2 A & B parts of Electrification Methods

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Figure 3.3 Continuation of Electrification Methods

Figure 3.4 Methods Before Power Generation

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3.8.3 Specifications for Line Construction

NEA has revised Specifications and Drawings for 7.6/13.2 kV Line

Construction (August 1973), and it has been renamed NEA Engineering Bulletin

DX1320, Specifications and Drawings for Distribution Line Construction, 13.2 kV and

24 kV.

Changes include the addition of post insulator drawings and the correction of

minor errors. Some drawings were revised for conformance with the latest edition of

the Philippine Electrical Safety Code. Many of the drawings are available on autoCAD

files for use by Registered Electric Cooperatives.

3.8.3.1 General
All construction work shall be done in accordance with the staking sheets, plans

and specifications, and the construction drawings. When specifying 24 kV construction

use a “V” prefix on all primary units, i.e. VCI, to indicate the higher insolation level.

The latest edition of the Philippine Electrical Safety Code shall be followed

except here local regulations are more stringent, in which case local regulations shall

govern.

3.8.3.2 Distribution of Poles

In distributing the poles, large, choice, dense poles shall be used at transformer,

dead-end, angle, and corner locations.

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3.8.3.3 Pole Setting

The minimum depth for setting poles shall be as follows:

Length of Pole (feet) Setting in Soil (feet) Setting in All Solid Rock
(feet)
25 5.0 3.5
30 5.5 3.5
35 6.0 4.0
40 6.0 4.0
45 6.5 4.5
50 7.0 4.5
55 7.5 5.0
60 8.0 5.0

“Setting in Soil” depths shall apply:

a. Where poles are to be set in soil.

b. Where there is a layer of soil of more that two (2) feet in depth over solid rock.

c. Where the hole in solid rock is not substantially vertical or the diameter of the

hole at the surface of the rock exceeds approximately twice the diameter of the

pole at the same level.

“Setting in All Solid Rock” depths shall apply where poles are to be set in solid

rock and where the hole is substantially vertical, approximately uniform in diameter

and large enough to permit the use of tamping bars the full depth of the hole.

Where there is a layer of soil two (2) feet or less in depth over solid rock, the

depth of the hole shall be the depth of soil in addition to depth specified under “Setting

in All Solid Rock” provided, however, that such depth shall not exceed the depth

specified under “Setting in Soil”.

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3.8.3.4 Grading of Line

When using high poles to clear obstacles such as buildings, foreign wire

crossings, railroads, etc., there shall be no up strain on pin-type or post-type insulators

in the grading line each way to lower poles.

3.8.3.5 Guys and Anchors

Guys shall be placed before the conductors are strung and shall be attached to

the pole as shown in the construction drawings.

All anchors and rods shall be in line with the strain and shall be installed so that

approximately 6 inches of the rod remain out of the ground. In cultivated fields or other

locations, as deemed necessary, the projection of the anchor rod above earth may be

increased to a maximum of 12 inches to prevent burial of the rod eye. The backfill of

all anchor holes must be thoroughly tamped the full depth.

After a cone anchor has been set in place, the hole shall be backfilled with coarse

crushed rock for 2 feet above the anchor tamping during the filling. The remainder of

the hole shall be backfilled and tamped with dirt.

3.8.3.6 Locknuts
A locknut shall be installed with each nut, eye nut or other fastener on bolts or

threaded hardware such as insulator pins and studs, upset bolts, double arming bolts,

etc.
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3.8.3.7 Conductors
Conductors must be handled with care. Conductors shall neither be trampled on

nor run over by vehicles. Each reel shall be examined, and the wire shall be inspected

for cuts, kinks, or other injuries. Injured portions shall be cut out and the conductor

spliced. The conductors shall be pulled over suitable rollers or stringing blocks properly

mounted on the pole or crossarm if necessary, to prevent binding while stringing.

3.8.3.8 Splices and Dead Ends

Conductors shall be spliced and dead-end as shown on the construction

drawings. There shall be no more than one splice per conductor in any span and splices

shall be located at least 10 feet from the conductor support. No splices shall be located

in Grade B crossing spans and preferably not in the manufacturer’s recommendations.

3.8.3.9 Taps and Jumpers

Jumpers and other leads connected to line conductors shall have enough slack

to allow free movement of the conductors. Where slack is not shown on the construction

drawings, it will be provided by at least two (2) bends in a vertical plane, or one (1) in

a horizontal plane, or the equivalent. In areas where aeolian vibration occurs, special

measures to minimize the effects of jumper breaks shall be used as specified.

All leads on equipment such as transformers, reclosers, etc., shall be a minimum

of #6 copper conductivity. Where aluminum jumpers are used, a connection to an

unplotted bronze terminal shall be made by splicing a short stub copper to the aluminum

jumper using a compression connector suitable for the bimetallic connection.

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3.8.3.10 Hot-line Clamps and Connectors

Connectors and hot-line clamps suitable for the purpose shall be installed, where

the clamp and jumper shall be installed so that they are permanently bonded to the load

side of the line, allowing the jumper to be energized when the clamp is disconnected.

3.8.3.11 Surge Arrester Gap Settings

The external gap electrodes of surge arresters, combination arrester cutout units,

and transformer mounted arresters shall be adjusted to the manufacturer’s

recommended spacing. Care shall be taken that the adjusted gap is not disturbed when

the equipment is installed.

3.8.3.12 Conductor Ties

Hand-formed ties shall be in accordance with construction drawings. Factory-

formed ties shall be installed in accordance with the manufacturer’s recommendations.

3.8.3.13 Sagging Conductors

Conductors shall be sagged in accordance with the conductor manufacturer’s

recommendations. All conductors shall be sagged evenly. The air temperature at the

time and place of sagging shall be determined by a certified thermometer.

The sag of all conductors after stringing shall be in accordance with the

engineer’s instructions.
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3.8.3.14 Secondaries and Service Drops

Secondary conductors may be bare or covered wires or multi-conductor service

cable. The conductors shall be sagged in accordance with the manufacturer’s

recommendations. Conductors for secondary under build on primary lines will

normally be bare, except in those instances where prevailing conditions may limit

primary span lengths to the extent that covered wires or services cables may be used.

Service drops shall be covered wire or service cable.

3.8.3.15 Grounds
Grounds rods shall be driven full length in undisturbed earth in accordance with

the construction’s drawings provided project plan. The top shall be at least 12 inches

below the surface of the earth. The ground wire shall be attached to the rod with a clamp

and shall be secured to the pole with staples. The staples on the ground wire shall be

spaced 2 feet apart, except for 8 feet above the ground and 8 feet down from the top of

the pole where they shall be 6 inches apart.

All equipment shall have at least two (2) connections from the frame, case or

tank to the multi-ground neutral conductor. The equipment ground, neutral wires, and

surge-protection equipment shall be interconnected and attached to a common ground

wire.

3.8.3.16 Clearing Right-of-Way

The right-of-way shall be prepared by removing trees, clearing under bush, and

trimming trees so that the right-of-way is cleared close to the ground and is the width

specified, except that low growing shrubs which will not interfere with the operation or
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maintenance f the line shall be left undisturbed if so, directed by the owner. Slash may

be chipped and blown on the right-of-way. The landowner’s written permission shall

be received prior to cutting trees outside the right-of way. Trees fronting each side of

the right-of-way shall be trimmed symmetrically unless otherwise specified. Dead trees

beyond the right-of-way which would strike the line in falling and which would require

topping if not removed, shall either be removed or topped, except that shade, fruit, or

ornamental trees shall be trimmed and not removed, unless otherwise authorized.

3.9 Distribution Line Cost

The conceivable extension of distribution lines for electrification is to be

considered in the area to determine which is more economical. The distribution line

cost will determine if the electric cooperative can gain back their investment for the

area. The distribution line must be part of these studies to determine if stand-alone

photovoltaic system is more economical than using electric utilities for rural

electrification. In cooperating between the electric cooperative (BUSECO) will

determine the total distribution line cost.

3.10 Simulation
Power system modeling takes the real-world information from the field (wire

size, wire length, impedance, capacitor banks, motors, generators, loading, protective

devices, and even historical event/loading data) to create a computational “model” of

the system. This model will be used to theoretically show what would happen on the

system given certain inputs or occurrences (like a fault, or loss of a transmission line,
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etc.). Sometimes, as is the case in short circuit analysis, this testing would be dangerous

to personnel and impractical on field devices.

PowerWorld Simulator is an interactive power system simulation package

designed to simulate high voltage power system operation on a time frame ranging from

several minutes to several days. The software contains a highly effective power flow

analysis package capable of efficiently solving systems of up to 250,000 buses. This

simulator PC application is used for the modelling of both systems in comparison to

each other. The power flow is to be observed and its optimization with the total

connected load calculated.

3.11 Evaluation
Results from technology feasibility analysis efforts provide input to balanced

portfolio development and technology validation plans. The economic competitiveness

of a technology is assessed by evaluating its implementation costs for a given process

compared to the costs incurred by current technology. These analyses are therefore

useful in determining which projects have the highest potential for near-, mid-, and

long-term success. Parameters studied include production volume benefits, economies

of scale, process configuration, materials, and resource requirements. Of principle

importance, technology feasibility analyses can help direct research toward areas in

which improvements will result in the largest cost reductions.

In order to evaluate and come up with the better power source for rural

electrification in Sitio Calaniogan, analysis of the data gathered and results from the
 111

subject of this study is a must. The comparison between the Solar PV System and Utility

Distribution Line Connection, is weighed by the outcomes in the methods conducted.

A cheaper cost for construction and implementation with enough energy, is the better

system to be implemented in the area. The most viable system in terms of technicalities

shall also prevail for a successful electrification.

3.11.1 Economic Analysis Comparison

3.11.1.1 Return on Investments and Payback Period

Return on Investments (ROI) measures the gain or loss generated on an

investment relative to the amount of money invested. ROI is usually expressed as a

percentage and is typically used for personal financial decisions, to compare a

company’s profitability or to compare the efficiency of different investments.

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
Return on Investment = 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡 𝑥100 (3.37)

3.11.1.2 Payback Period

Payback period PB is the financial metric for cash flow analysis that addresses

questions such as:

1. How long does it take for investments or actions to pay for themselves?

2. How long does it take for incoming returns to cover for costs?
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The answer to such questions is a measure of time – the payback period.

Investment Payback period is the time it takes for “cumulative returns” or to equal

“cumulative costs”. In other words, the payback period is the break-even point in time.

𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡

PB = (3.44)
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡

3.11.1.3 Net Benefit Analysis

Net Benefit Analysis is an indicator of how much value an investment or project

adds to the value of the firm. The criterion of the NPV method is to consider a project

attractive if the NPV of its cash flow stream is positive for a given interest rate.

Mutually exclusive project is that when at most one project out of the group can be

chosen.

NPV = Total Present Worth of Savings – Cost of Project (3.45)

where;

Net Annual Cash Flow = Total Present Worth * [ r(1+r)t / (1+r)t – 1 ] (3.46)

3.11.1.4 Internal Rate of Return

The Internal Rate of Return (IRR) is the discount rate that makes the net present

value (NPV) of a project zero. In other words, it is the expected compound annual rate

of return that will be earned on a project or investment.

When calculating the IRR, expected cash flows for a project or investment are

given and the NPV equals zero. Put another way, the initial cash investment for the
 113

beginning period will be equal to the present value of the future cash flows of that

investment.

Once the IRR is determined, it is typically compared to a company’s hurdle rate

or cost of capital. If the IRR is greater than or equal to the cost of capital, the company

would accept the project as a good investment. If the IRR is lower than the hurdle rate,

then it would be rejected.

CF1 CF2 n CF
0 = NPV = CF0 + + 2 + ⋯ + (1+IRR)n (3.47)
(1+IRR) (1+IRR)

Where;

CF0 = Initial Investment

CFn = Cash Flows
n = each period
N = Holding Period
IRR = Internal Rate of Return

3.11.2.5 Benefit Cost Ratio

The Benefit Cost Ratio (BCR) is the method of selecting alternatives for

analyzing the desirability of a project. BCR is one means to arrive at an informed

decision on which project to invest.

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𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑒𝑠𝑒𝑛𝑡 𝑊𝑜𝑟𝑡ℎ 𝑜𝑓 𝑆𝑎𝑣𝑖𝑛𝑔𝑠

BCR = (3.47)
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑃𝑟𝑜𝑗𝑒𝑐𝑡

3.11.2 Technical Viability

It is validating the technology assumptions and design of a product or project.

This focuses on the capacity and performance characteristics of a system, confirming

that the equipment and materials support the project requirements.

3.11.2.1 Voltage Regulation

This is a measure of change in the voltage magnitude between the sending and

receiving end of a component, such as a transmission or distribution line. Voltage

regulation describes the ability of a system to provide near constant voltage over a wide

range load condition. The term may refer to a passive property that results in voltage

drop under various load conditions, or to the active intervention with devices for the

specific purpose of adjusting voltage.

3.11.1.2 Line Losses

Distribution of electrical power through long distances result to system losses.

Technical loss is energy loss due to the physics of the system. It is the physical

properties of the components of the network that induces energy losses. Technical

losses include conductor loss and transformer core loss.

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3.11.1.3 Line Ampacity Limits

This refers to the capacity of the lines in terms of its maximum allowable value

of current that can flow through transmission lines without adversely affecting the

mechanical and electrical properties of the conductor.

3.11.1.4 Reliability

Reliability of a system is important to check upon operations. This is the

probability that a system, including all hardware, firmware, and software, will

satisfactorily perform the task for which it was designed or intended, for a specified

environment.
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CHAPTER 4

RESULTS AND DISCUSSION

4.1 Introduction
This chapter presents every result garnered during the process and methods

conducted. It is in the order according to what is needed from the previous chapter,

where the methodology is laid down. Every available data and information are in

rationality with the study conducted.

Solar Power Plants have different types. This study will focus on designing

Centralized PV System. In this type, the PV arrays are centrally installed in one place

in a certain village. A centralized PV system is composed of a PV Array, a storage

battery, an inverter, a controller, and a mini-grid for power distribution. The DC Power

generated by the PV array is stored in a storage battery and converted into AC Power

is distributed to all connected households by the mini-grid.

Figure 4.1 Image of a Centralized System

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A centralized PV system is most applicable in densely populated areas. A well-

organized community usually results to the sustainable operation of the system.

Common uses of electricity are for lighting and TV. For the promotion of sustainable

operation, additional applications may be useful. If the system is designed to supply

enough power, a centralized PV system can supply power to various appliances. For

example, ice-making by a chest freezer is possible. Storage of fresh food such as a fish

and meat are also possible with a cool box, chest freezer, etc. A small size well pump

without a storage tank can also be used. The new application of electricity may create

small business opportunities in the village.

4.2 Site Identification

Sitio Calaniogan is in Barangay Lunocan which belonged to the municipality of

Manolo Fortich in the province of Bukidnon. It is 3.5 kilometers away from the last

distribution post installed by the utility company BUSECO, set in Sitio Awol. There

are currently 40 houses and 27 families recorded, present in the population census in

the bounds of the selected site.

Figure 4.2 Google Map Image Manolo Fortich

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Sitio Calaniogan a part of Barangay Lunocan, is situated at approximately

8.4439, 124.8443, in the island of Mindanao. Elevation at these coordinates is estimated

at 346.5 meters or 1,136.8 feet above mean sea level.

Figure 4.3 Google Map Image of Barangay Lunocan

Figure 4.4 Direction and Distance of Site from USTP

If travelled by a private vehicle, Barangay Lunocan is a 57-minute ride from the

University of Science and Technology. It is 31.4 kilometers away from the City Proper

of Cagayan de Oro.
 119

4.2.1 Estimate Space Required

1 kW of solar panels require approximately 100 square feet or 10 square meters,

when used on rooftops and in small ground mounted installations. This is for estimates

and without accurate calculations.

Generalizing this, a 300 kW Solar PV Power Plant should require about 30,000

square feet (about 0.75 acres, or 0.3 hectare). However, since large-scale, ground

mounted Solar PV farms require space for other accessories and components, the total

land required for a 300 kW of Solar PV Power Plant will be about 1.2 acres.

The above estimate is however for conventional solar PV power plants – those

that are based on crystalline silicon and do not use trackers. A 1 kW of thin film solar

plant will require about 30% more area than a similar power plant with crystalline solar

modules.

A 300-kW solar PV power plant will require:

 1.2 acres if it uses crystalline solar panels without trackers

 1.8 acres if it uses thin film solar panels without trackers

High efficiency solar panels will require less area for the same wattage capacity

than lower efficiency panels.

Thus, a 300-kW solar power plant with crystalline panels (about 18%

efficiency) will require about 1.2 acres, while the same plant with thin film technology

(12% efficiency) will require about 1.8 acres. The area required by thin film panels is

about 50% more than that for the crystalline, as the latter are about 50% more efficient

than the former.

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But for precise area prerequisite, further calculations are made to surely

determine the land area needed for the establishment of the Solar Power Plant. This is

dependent on the number of modules vital.

4.2.1.1 Land Use

The land selected for the installation of the PV solar power plant should be

purchased or leased during the operational life-time. The land where these types of

installations is placed is normally unused land or land for agricultural purposes, in this

last case reclassification taxes should be paid. Also, before the construction of the plant,

it is important to obtain the corresponding permission of the government, therefore the

project should be done in collaboration with the competent authorities.

For the case of the current project it is assumed that the site selected has no

restrictions for the construction of a PV solar power plant. The area is a residential one,

where each household owns the land. The area that agriculture is being developed is

owned by the residents in Sitio Calaniogan. For the sake of electrification, the land is

to be used for establishing a 300-kW Solar PV System Plant. Appropriate compensation

shall be for the entity whom the land is entitled to.

4.2.2 Meteorological Analysis

The data for the meteorological analysis is taken from the Philippine

Atmospheric Geophysical and Astronomical Services Administration (PAGASA),

Malabalay City branch. The data were fetched personally and encoded per sheet with

consent, due to the fact that it is not allowed for the information to be given fully in soft
 121

or hard copies. Some references also include WeatherSparks and RETScreen. But the

tables presented in this part of the researcher’s paper, only includes accurate data from

PAGASA.

4.2.2.1 Available Solar Energy

Philippines is well positioned for solar energy, not just in terms of geography.

The country can take advantage of its abundant sunlight. According to the National

Renewable Energy Laboratory, the average solar radiation ranges from 128-203 watts

per square meter, or an average of 161.7 watts per square meter, based on sunlight

duration.

This translates to potential power generating capacity of 4.5-5.5 kWh per square

meter per day. Both the northern and southern part of the country provide ideal locations

for installing solar facilities. The northern part of the country has enough sunlight to

generate an average of 4.5-5 kWh per square meter per day, while areas in the south

can produce an average of 5-5.5 kWh per square meter of solar power per day.

Philippines' climate is characterized as monsoonal because it is tropical country.

Solar energy resources in general average, known as insolation varies from 5.0 - 6.5

kWh/m2/day during dry season (March to May) and 3.0 - 5.5 kWh/m2/day during wet

season (November to January). The source of solar energy in the Philippines varies in

an average irradiance of 4.9 kWh/m2/day. For Bukidnon Province, the Monthly

Average Solar Radiation varies.

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Table 4.1 Monthly Solar Radiation in Bukidnon

MONTHLY AVERAGE SOLAR RADIATION
YEAR 2018 2017 2016 2015

MONTH TOTAL MEAN TOTAL MEAN TOTAL MEAN TOTAL MEAN

JANUARY 111.70 3.60 91.00 2.90 208.70 6.70 149.80 -
FEBRUARY 172.60 5.60 146.90 5.20 201.10 6.90 185.10 6.60
MARCH 199.30 6.40 161.10 5.20 227.10 7.30 230.70 7.40
APRIL 204.70 6.60 197.80 6.60 203.50 6.80 215.50 6.90
MAY 195.40 6.30 196.20 6.30 187.40 6.00 215.30 6.90
JUNE 131.50 4.20 174.00 5.80 162.40 5.40 135.10 4.50
JULY 157.70 5.10 132.40 4.30 149.20 4.80 148.00 4.80
AUGUST 135.70 4.40 150.20 4.80
SEPTEMBER 148.80 5.00 139.60 4.70 111.20 3.70
OCTOBER 175.10 5.60
NOVEMBER 134.70 4.30 123.70 4.10 171.60 5.70
DECEMBER 128.20 4.10 133.90 8.40 185.10 6.00

Figure 4.5 Solar Irradiance Profile of Southeast Asia

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Figure 4.5 Irradiation Map of the Philippines

4.2.2.2 Solar Insolation

The Philippines is positioned just above the equator, which means it does not

give the country a vast potential for solar applications. However, the country's average

solar radiation based on sunshine duration is 161.7 watts per square meter with a range

of 128 to 203 watts per square meter.

4.2.2.3 Local Climate

The Climate of the Philippines is tropical and maritime. It is characterized by

relatively high temperature, high humidity and abundant rainfall. It is similar in many

respects to the climate of the countries of Central America. Temperature, humidity, and
 124

rainfall, which are presented hereunder, are the most important elements of the

country’s weather and climate.

According to the data gathered, the location selected does not have extreme

temperatures. Also, extreme wind speeds can damage the PV system specially, when

solar tracking systems are installed. The location of Sitio Calaniogan has no significant

risks of extreme wind speeds recorded. The rain can reduce the energy production of

the plant during rainy seasons and add additional cost related with mounting structures

modifications and mitigating measures. The site does not always have consistent rain.

Amount of rainfall only climbs up depending on the season.

Table 4.2 Temperature and Rainfall Data

Based on the average of all the weather stations in the Philippines, excluding

Baguio, the mean annual temperature is 26.6 oC. The coolest months fall in January

with a mean temperature of 25.5 oC while the warmest month occurs in May with a

mean temperature of 28.3 oC. Latitude is an insignificant factor in the variation of

temperature while altitude shows greater contrast in temperature.

The difference between the mean annual temperature of the southernmost

station in Zamboanga and that of the northernmost station in Laoag is insignificant. In

other words, there is essentially no difference in the mean annual temperature of places

in Luzon, Visayas or Mindanao measure at or near sea level.

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In the data gathered by PAG-ASA Bukidnon Province, the temperature for the

month of January has lowest minimum temperature for all the years presented in the

table. The data concedes to the general data regarding the whole country’s temperature.

It is also evident that the mean temperature does not fall below 23oC, which clearly tells

it is on the average for a regular basis.

Rainfall is the most important climactic element in the Philippines. Rainfall

distribution throughout the country varies from one region to another, depending upon

the direction of the moisture-bearing winds and the location of the mountain systems.

Table 4.3 Average Monthly Rainfall in Bukidnon

The mean annual rainfall of the Philippines varies from 965 to 4,064 millimeters

annually. The tabulated data shows that the Province doesn’t constitute much of the

mean annual rainfall of the country. Although the temperature isn’t very high, the

climate is on the average scale and not much rainfall is reaped from the location.
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Table 4.4 Monthly Cloud Data

Table 4.5 Cloud Cover Categories

Humidity refers to the moisture content of the atmosphere. Due to high

temperature and the surrounding bodies of water, Philippines has a high relative

humidity. The average monthly relative humidity. The average monthly relative

humidity varies between 71 percent in March and 85 percent in September. The

combination of warm temperature and high relative absolute humidity give rise to high

sensible temperature throughout the archipelago.

For Bukidnon, specifically in Sitio Calaniogan, the humidity is high because a

large body of water is just right beside it. Tagoloan river lies beside the land area, plus

the temperature due to a flat surface where energy from the sun can directly reach the

terrestrial. The combination of humidity and temperature can affect the system

efficiency.
 127

Higher humidity drags two environmental factors in the picture. The first is the

likelihood of cloud formation or fog blocking or diffusing irradiance. Cloud formation

blocks the sun rays from reaching the solar panels and as a result, the efficiency is

affected. The other is the likelihood of warmer outside-air temperatures allowing for

the higher humidity. If the outside-air temperature is higher, the battery cell will reach

the maximum voltage. Since cell voltage is inversely proportional to heat, cell

maximum voltage is then reduced.

The ideal condition to keep a Solar Power Plant running at a sustainable

efficiency for high humidity locations, is under 25oC – temperature. In this case,

PAGASA recorded temperatures roughly close to the model state of the area for

efficient operation. For the year 2017, the highest mean temperature only reached

26.10oC. This shows that the humidity in the area which greatly affects the system, can

be aided by its temperature data.

4.2.2.4 Topography
For this project the terrain where the PV modules are going to be installed is

considered flat and the presence of near mountains is neglected. The surrounding

mountains do not interrupt the rays of the sun, allowing solar energy to reach towards

the land surface. The topography of the site is not a hindrance to energy development.
 128

Figure 4.6 Google Terrain Image of Sitio Calaniogan

Figure 4.7 Google Terrain Image of a Closed-Up Site of Sitio Calaniogan

It is evident that the location is surrounded by mountains. However, they do not

affect the Solar Energy that hits the surface. There is a wide space for a Solar Power

Plant to be established in the area. The plain land is another factor that can make the

proposal of putting Solar PV System in Sitio Calaniogan.


4.3 Site Inspection
Table 4.6 Site Selection Criteria for Solar PV System
PHYSICAL SITE CHARACTERISTICS
Consideration
Quantity and quality of solar
energy or the solar irradiance
throughout the site
Vegetation and shading (on and
off property)
Shading from nearby buildings
and other structures, and by
local topography (on and off
property)
Comment
The amount of solar energy that
is incident upon a given land
surface area is dependent upon
several factors. These include
latitude, which determines the
angle of the sun and the hours of
sunlight throughout the year, and
the amount and density of cloud
cover, which will reduce the
amount of solar energy. Sites that
are level, or slope generally south
toward the sun are preferable to
those that slope northward, away
from the sun.
Sites that are forested or covered
with dense vegetation are less
desirable for solar arrays because
trees would have to be cut down
and vegetation controlled in order
to optimize electricity generation.
(Even a partial shadow on a solar
panel can reduce its generation
capacity to zero.) Moreover, trees
and other vegetation have value
as species habitat and for
recreational and aesthetic
reasons.
As with shading by trees, shading
from other structures or hills,
even during part of the day, can
substantially reduce the value of
a solar array. Sites that are
shaded by the presence of these
elements were deemed
unsuitable.
129
Evaluation
Acceptable: mostly un
shaded by vegetation or
structures, wide area
with no shading
Acceptable: the
amount of solar
irradiance is enough,
and the cloud data tells
that area can have
quality solar energy
Acceptable: The site
has specific unforested
area where solar array
would have minimal
impact on plant life.
Acceptable: no
shading from nearby
structures.
Unacceptable: partial
or full shading from
nearby structures or
potential building
development

Proximity for interconnection
to existing transmission (the
present electricity grid)
Soil and ground stability
Topography and micro-climate
Access for maintenance
Regulatory / legislative issues
Sites with close and easy
interconnection to the electricity
grid are preferable because their
cost to connect them to the grid
will be much less than sites that
are distant, or whose terrain or
other factors make them more
difficult to connect.
Because solar arrays are
structures, they need stable
ground upon which their
foundations can be built. Access
for maintenance vehicles is also a
requirement. Loose or soft soils
are less desirable, as are those on
ledge or rock that would add
complexity to building
foundations.
Level, dry sites are ideal.
Irregular or hilly sites, or those
prone to fog or seasonable
moisture are less so.
Although solar arrays require
little maintenance, they still need
occasional repair, upgrades, and
cleaning. Thus, the best sites
border public ways, and
landlocked sites are much less
desirable.
Sites that are otherwise very
suitable for solar arrays may be
burdened with legal or regulatory
restrictions.
130
Acceptable:
Residential Area where
residents are willing to
offer land parts for
electrification purposes.
Needs further
evaluation: Is the site
located near future grid
expansion
Acceptable: Almost
the overall total ground
of Sitio Calaniogan has
a stable soil due to
ledges and rocks.
Vegetation in the area
also helped the
firmness of the soil.
Heavy rocks in the area
are visible evidences
that it can carry much
heavier weight.
Acceptable: Generally
flat surface with
moderate variation in
terrain
Difficult and expensive
to provide access for
vehicles. Needs to go
down a hill to reach the
residential part of the
Sitio.
According to Barangay
Lunocan’s information,
the site is owned by
residents in the area of
the Sitio.
 131

4.4 Estimating the Demand Load

First thing to do in designing a Solar PV Power Plant is to determine the load to

be supplied by the system. Estimating the demand load is possible through interviews

and surveys. The load demand is calculated per household. Loads are taken as the

uniform load for the number of houses subject of this study. There are two setups for

system’s the load demand. System 2 is for the existing demand load of Sitio Calaniogan.

Table 4.7 System 1

Table 4.8 System 2

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Tables 4.7 and 4.8 are the tabulated data for the individual household loads for

both systems, 1 and 2 accordingly. For the present load, it is only a total of 3.39 kW

while future total load reaches a sum of 7.7 kW per house. The rated power for each

load is from a general source of basic appliances power rating in watts.

Table 4.9 Total Energy Demand for Future Loads

Table 4.10 Total Energy Demand for Actual Loads

The total energy demand for the future and actual loads are presented in tables

4.9 and 4.10. Each month has a specific number of average sun hours per day from the

data given by PAGASA. Data is in order from January down to December. Energy

demand is multiplied to the number of total households in the site which is 40. Total
 133

monthly energy demand for System 1 is a total of 308.26 kW. System 2 has a lower

sum of 135.6 kW which is just less than half of the estimated future load.

Table 4.11 Total Energy Requirement

For System 1, the rated array power requirement is a total of 168.0887 kW as

the average of all the values for each month accessible in the projected data. On the

other hand, 73.9407 kW is the total average rated power required for System 2.

Utility-Scale Energy Demand shown in table 4.11 shows the total energy

requirement of the whole system to suffice the Sitio’s electricity needs. An

approximation of 500 kW for System 1 and 300 kW for System 2 is made from the

calculations gathered.

4.5 Sizing the Array

In sizing the array of a Solar PV Power Plant, the value of the rated array power

must first be determined. PR is obtained through using equation 1 and the corresponding

constants given and the calculated power demand. Calculations are documented

wherein the formula for each needed value are already inserted into excel files.

ISTC = irradiance at standard condition (varies with month)

HD = 4.53
KB = 0.5265
 134

Table 4.12 Rated Array Power Details

Table 4.13 Rated Array Power Details

The detailed tabulation of results for each month’s rated array power is

presented in tables 4.12 and 4.13 with an average of 168,091.0137 watts for system 1,

while system 2 has a rated array power requirement of 73,941.28808 watts. These

values are equal to that of the summary for rated array power, presented in Table 4.11
 135

Table 4.14 Summary of Rated Array Power

Rated array power is essential in sizing the system. It plays a big role in the

capacity estimation to verify the specifications of the Power Plant to be established. HD

is the irradiation on the array surface which is taken from the worst monthly irradiance

data from the Monthly Global Insolation. Taking the average of the worst values of the

monthly insolation for a year, HD is equal to 4.53. KB is the modified performance ratio

attained from solving equation 2 which results to 0.5265. Given that:

K = all loss factors is equivalent to 0.65

NB = battery charging efficiency is 0.9, much lesser that the actually
KBC = control factor in battery charging which reaches at least 0.9

4.5.1 Number of Modules

Specific capacity of a Solar Power PV Plant is to be decided as it is the important

basis of the number of modules necessary for its edifice. From equation 3, it is evident

that the number of modules for this project is grand. Rounding-off to the nearest

decimal point, system 1 will need 494 modules and system 2 will be possible to

establish if there are 217 modules available, both systems having 340 watts of solar

panel module rated power.

 136

Table 4.15 Number of Modules

How great the power rating needed for the system is, critically affects the

number of modules needed to be installed. But this part of the design calculation is also

dependent with the power rating of the modules nominated. Using a module with

considerably large rating can be helpful in minimizing the number of modules, to

sustain the power needs of the area of installation.

4.5.1.1 Number of Modules Connected in Series

Series-connected modules are numbered specifically. The quantity depends on

the DC voltage of the inverter and the module rated voltage. For this study, the number

of modules connected in series with each other are the same for both Solar PV Power

Plant System 1 and 2. Rounding-off to the nearest decimal point, the value is equal to

13 modules approximately.

Table 4.16 Series-Connected Modules

 137

4.5.1.2 Number of Modules Connected in Parallel

The scale of how large the number of panels connected in parallel would be, is

dependent on the result of calculating the number of modules in series and the total

number of modules for the system.

Table 4.16 Series-Connected Modules

4.5.2 Array Voltage

Array Voltage is the total voltage for the modules connected altogether to make

a generalized generator of energy. This is an indispensable part of the calculation as the

inverter size and capacity depends on the value of array voltage.

Table 4.17 Array Voltages

Below shows table 4.18 with the Array System data for the Future Loads or the

identified System 1 of this project plan. There are 2 arrays with an approximation of

500V for the nominal voltage of each arrays. Since it is in parallel, the total array

voltage will be equal to 500V. The total array power reaches 168.091 kW with an array

area of 480.6216 m2 required for the establishment of the generating array.

 138

Table 4.18 System 1 - Array System

Table 4.19 is a tabulated information for the values of the Array System for

System 2. This shows that a lesser value of power demand will require lesser number

of parallel-connected panels in the array system. In this case, 8 panels in parallel are

vital with the same number of arrays with System 1 which one array. The array power

in totality is equal to 73.9412 kW that can occupy an area of 422.8397 m2.

Table 4.19 System 2 – Array System

 139

4.5.3 Array Current

The calculation of array current is possible with the calculated values for the

number of modules in an array. This is specifically targeting the parallel-connected

modules. The current rating for each solar panel module is also critical for this part

since it is multiplied to the parallel-connected module numbers to get the current rating

for each array.

Table 4.20 Array Currents

Since the number of modules connected parallel for the arrays of Systems 1 and

2 differ, then with the same current rating of the modules multiplied, the results have

big differences. For System 1, the current for each array is 88.0193A. On the other

hand, System 2 have 77.4374A.

4.5.4 Solar PV Modules Specifications

TSM-PD14
Type of Technology: Multi-crystalline solar cells
Number of cells: 72-cell module
Power Output Range: 320-340W
Maximum Efficiency: 17.5%
 140

Tallmax module is picked as the choice since it is ideal for large installation,

given the fact that it is a utility-scale project. Its high-power footprint reduces

installation time & BOS costs. It it one of the industry’s most trusted modules today,

field proven. Trina Solar’s financial solidity consistently confirmed by banks and

investors according to further research and background checks.

Highly reliable due to stringent quality control. All modules for distribution

have to pass electroluminescence (EL) inspection. In-house testing goes beyond

certificate requirements. The modules are PID resistant. Also, 1000V UL/1000V IEC

Certified.

Certified to withstand challenging environmental conditions:

 130 km/h wind load (2400 Pa)  Ammonia resistance
 900 kg snow load per module  Salt mist resistance
(5400 Pa)  Resistance to stand and dust
 35 mm hail stones at 97 km/h abrasion
Linear Performance Warranty:
o 10-Year Product Warranty
o 25-Year Linear Power Warranty

Table 4.21 Electrical Data of Module

ELECTRICAL DATA @ STC @NOCT
Peak Power Watts – Pmax (Wp)* 340 252 (Wp)
Power Output Tolerance – Pmax 0/+5 0/+5
(W)
Maximum Power Voltage – Vmpp 37.8 35
(V)
Maximum Power Current – Impp 8.99 7.21
(A)
Open Circuit Voltage – Vsc (V) 46.2 42.8
Short Circuit Current - Isc (A) 9.42 4.6
 115

Module Efficiency ηm (%) 16.5 16.5

Maximum System Voltage (V) 1000 V 1000V
Nominal Operating Cell 44oC(±K)
Temperature

STC: Irradiance at1000 W/m2 NOCT: Irradiance at 800 W/m2

Cell temperature = 25o C Ambient temperature = 20o C
Air Mass = AM1.5 Wind Speed = 1 m/s
Measuring Tolerance: ±3%
Table 4.22 Temperature Coefficients
Temperature Coefficient of Pmax -0.41%/K
Temperature Coefficient of VOC -0.32%/K
Temperature Coefficient of ISC 0.05%/K

Table 4.23 Mechanical Data

MECHANICAL DATA DESCRIPTION
Solar Cells Multi-crystalline 156.7 x 156.7 mm
Cell Orientation 72 cells (6x12)
Module Dimension 1960 x 992 x 40 mm
Weight 22.5 kg
Glass 3.2 mm, high transparency, AR coated
and heat tempered solar glass
Back sheet White
Frame Silver Anodized Aluminum Alloy
J-Box IP67 or IP 68 rated
Cables Photovoltaic Technology Cable 4.0
mm2, 1200 mm
Connector EU countries: 28 MC4/UTX/TS4
Non-EU countries: 28 QC4 / TS4
 116

Figures 4.8 Dimension of the PV Module

4.6 Charge Controller

For a Solar Power Plant with bigger energy outputs that the usual Solar PV

System created for houses and establishment scales, a charge controller is important.

However, in this study, the inverter selected is a dual device. There will be no more

charge controllers because the inverter product nominated is an Inverter/Charger. It is

a combination of an Inverter and a Battery Charge Controller with a transfer switch all

in one complete system device. For small plants or mid-range utility-scale systems, an

inverter/charger is suitable.
 143

4.7 Sizing of Battery

From equation 10, battery sizing can be detailed. The values for each given

variable are constant, except for the Power Demand for each system. The higher the

power that the battery must be able to supply, the greater the capacity should be.

Table 4.21 Battery Capacity

In table 4.21, the battery capacity is calculated to be 46.239 kWh for System 1

and 20.34 kWh for System 2. However, these values only offer the right battery capacity

for individual houses. Since there are 40 households in Sitio Calaniogan, the demand

would be 308.36 kW and 135.6 kW for Systems 1 & 2 respectively. The second method

for calculation storage capacity for Solar PV Power Plant is used to determine the

specifications of the battery system for this study.

4.7.1 Connecting Batteries in Series

The nominal battery voltage selected is 12V according to the model specified.

To consider the number of batteries in series, the researcher must weigh in the

possibilities of resulting into a much greater number of batteries for the power plant.

The circuit voltage will be the product of the nominal voltage and the number of

batteries in series. 8 batteries shall be connected in series which means that the circuit

voltage will then be equal to 96V.

 144

Figure 4.8 Series-Connected Batteries

4.7.2 Connecting Batteries in Parallel

The number of batteries in parallel depends on the ampere-hour capacity of the

whole system and the capacity for each battery. The bigger the capacity for each battery

is, the smaller the number of parallel-connected batteries will be. Its number is the

quotient of the system’s capacity and the battery’s.

Table 4.22 Storage Capacity Values

The series-connected battery number can be the researcher’s decision whether

to raise it higher. But the number of batteries to be used will still be dependent on the

Ampere-Hour capacity needed for the storage system of the Power Plant. For System

1, the capacity is set to 19, 266.25 Ah while System 2 is 8,475 Ah. The values differ

due to the gap of values for the power demand.

 145

Table 4.23 Number of Batteries

For the number of batteries needed for the system to be sustainable, table 4.23

shows the details of calculation. The Ah capacity for the batteries to be used is selected

by scanning through different brands and models. Ah is the number of hours for which

a battery can provide a current equal to the discharge rate at the nominal voltage of the

battery. It can be lower or higher than the 500 Ah nominated in this study. Still, the

disadvantage for using a much lower Ah capacity is a larger number of batteries.

Table 4.24 Summary of Battery System

Summary of the battery system shows the total number of batteries required to

establish a stable supply for the Sito. The battery capacity represents the maximum

amount of energy that can be extracted from it in normal charging conditions.

It is to be noted that a stand-alone or off-grid Solar PV Power Plant has to have

a massive storage system capacity to be able to attain sustainability Since it will be

providing electricity 24/7 to the whole site. A bigger storage means that the storing of

energy can exceed its utilization time. During the day, the generation of energy will be
 146

continuous. At night, there will be no sunlight, therefore no generation is conducted.

The system must be prepared for electricity usage even when there’s no supply of

energy from the sun. Having been able to store more than the power demand, without

generation there will still be supplication of electricity to the distribution lines.

The Battery Capacity of the systems are shown in table 4.24. For System 1, with

a total number of 308 batteries, the capacity is about 1,849.56 kWh. System 2 has 813.6

kWh from the 136 batteries in array.

4.7.3 BATTERY SPECIFICATIONS

12V 500-AH Lithium Ion Battery

Model: S13500 – 12V – 500AH

General Specifications
Table 4.25 Battery Specifications
Case Material Steel Case
Standard Capacity 500AH
Rated Voltage 12V
Maximum Charge Voltage 14.6
Cut-off Voltage 10.0V
Standard Charge/Discharge Current 60A/300A
Max Discharge Current 400A
Peak Discharge Current 400A
Dimensions 610 x 481 x 366 mm
 147

Weight 90kg
Impedance (Max at 1000Hz) ≤20 milli-ohms

Charge Method
Table 4.26 Battery Charge Method
Standard CC 0.2 C 14.6V cut-off
CV 14.6V 0.01C cut-off
Rapid CC 1C 14.6V cut-off
CV 14.6V 0.05C cut-off

Operating Temperature
Table 4.27 Battery Operating Temperature
Charge 0oC ~ 45oC
Discharge -20oC ~ 60oC
Storage -20oC ~ 45oC

4.8 Sizing of the Inverter

In determining the size of inverter you’ll have to use for an electrical system,

total power requirement must first be calculated. The result is a good baseline to work

out the value needed for selecting the effective inverter capacity.
 148

Table 4.28 Inverter Size

4.8.1 INVERTER SPECIFICATIONS

Listed below are the specifications of the inverter selected. The researcher

inquired through email, for the specific details and pricing of their inverter of different

models. Via international phone call, the company confirmed to give full details of their

product and even offered transactions with discounted costs.

SUNNY TRIPOWER 60
 149

Figure 4.9 Inverter/Charger Sunny TriPower 60

Figure 4.10 Inverter Benefits

SUNNY TRIPOWER 60 The Best of Two Worlds, the new Sunny Tripower 60

is part of an innovative, global system solution for commercial and industrial PV plants.

This solution combines the advantages of a decentralized system layout with the

benefits of centralized inverter designs in order to get the best of two worlds. High

efficiency, flexible system design, easy installation, simple commissioning and low

maintenance requirements contribute decisively to reducing the operating costs for the

entire system.

Technical Data
 150

Table 4.29 Inverter Technical Data

General Data
Table. 4.30 Inverter General Data
 151

Figure 4.11 Inverter Efficiency Curve

Energy systems necessarily need to have an inverter where the absorbed power

can proceed. In order to effectively interconnect inverters with respect to the selected

modules, verification is a must.

First, verify that the no load Voltage VOC at the output of the strings at minimum

prospective temperatures (-20oC), is lower than the maximum temperature which the

inverter can withstand.

VOC < Vmax_inv (3.14)

VOC = 46.2V

Vmax_inv = 1000V
 152

VOC (T) = VOC_STC – [ℽv Ns * (Tmin – TSTC)] (3.15)

VOC_STC = 46.2oC
ℽv = -0.32%/K = 1.1758 x 10-5
Ns = 13
Tmin = 20oC
TSTC =25oC

VOC is max no-load voltage of the PV field in correspondence with the minimum

operation temperature expected for the PV modules. VOC_STC is the open circuit voltage at

STC. ℽv is the voltage temperature coefficient oC while Tmin is the expected minimum

daily cell temperature. TSTC is the cell temperature at STC measured in oC. Ns is the

number of series-connected cells in the module.

VOC (T) = 46.2 – [(1.1758x10-5) (13) * (25 – 20)]

VOC (T) = 46.2

Equation 14 is true since the value of equation 15 is less than that of Vmax_inv.

Therefore, the first step of the verification process is passed by the conditions given.

4.9 Sizing of the Cables

Selection of the system wiring is essential to be accurately done. This is for

safety’s purposes. Determining the following values are required to calculate the

minimum wire size for each connection:

 153

Vd = voltage drop
℘= resistivity of the copper wire (normally equal to 0.0183)
I= current through the cables in copper
L=length of cables in meters
A = cross-sectional area of the panel in square millimeters

The wiring must not reduce its performance in any of the components, to have

complete safety in the system. Cables in an off-grid Solar PV System must be sized

correctly to reduce the voltage drop. This is also done to make the current handling

capacity safe without exceeding its limit. Using equation 20:

(9.42)∗(0.0381)∗2
Vd = (0.0183) 1.944

To calculate the voltage drop, equation 22 from Chapter 3 can be used.

Vd = 5% * Vmmp

Vd = 5% x Vmmp = 0.05 x 37.8 = 1.89 (Maximum Allowable Voltage Drop)

A is the cross-sectional area (CSA) in mm2 while I is the current through the

cables in ampere. L is the length of the cables in meters. ℘ is the resistivity of the

copper wire normally equal to 0.00183. The multiplication by 2 accounts for the total

circuit wire.

4.9.1 Sizing the Cables Between PV Modules

In solving for the maximum current that will pass through the cables from one

PV to another, the module current is multiplied to the number of parallel-connected

modules. The product is then multiplied to the 125% tolerance. Sizing of the cables
 154

between PV modules can be done through equation 20. Where the length of the cable

is 1.5 inches and the maximum current be multiplied by 125% of its short circuit

current.

Imax = 125% * I

System 1: Imax = 125% x 9.42 = 11.775 A

System 2: Imax = 125% x 9.42 = 11.775 A

Area of cables between PV modules is calculated:

I∗L∗2 (11.775)∗(1.5)∗(2)
A= ℘ =(0.01836)( )
Vd 1.89

A = 0.343 mm2

The cross-sectional area for the cables to be used in connecting the modules into

an array shall not be less than the calculated minimum area of 0.343 mm2.

4.9.2 Sizing Cable from Photovoltaic Array to Inverter

Sizing the cables from the PV array to inverter is based on equation 21. Where

the length of the cable is 20 meters and the maximum current be multiplied by 125%

of its short circuit current, then multiplied again by the number of modules in parallel

and the voltage drop is 5% of the system voltage related to equation 22.

Imax = 125% * ISC * Np

 155

System 1: Imax = 125% x 9.42 x 9 = 105.975 A

System 2: Imax = 125% x 9.42 x 8 = 94.2 A

Vd = 5% * Vmmp

Vd = 5% x Vmmp = 0.05 x 500 = 25V (Maximum Allowable Voltage Drop)

Area of cables from PV Array to Inverter is calculated:

System 1:

I∗L∗2 (105.975)∗(1.5)∗(2)
A= ℘ =(0.01836)( )
Vd 25

A = 0.2335 mm2

System 2:

I∗L∗2 (94.2)∗(1.5)∗(2)
A= ℘ =(0.01836)( )
Vd 25

A = 0.2075 mm2

The cross-sectional area for the cables to be used in connecting the PV array

into the inverter shall not be less than the calculated minimum area of 0.2335 mm2 for

System 1 and 0.2075 mm2 for System 2.

 156

4.9.3 Sizing of the Circuit Breaker

In accordance with the Philippine Electrical Code (PEC), the circuit breaker to

be installed in a stand-alone PV system must be able to cater 125% of the current

flowing through the wirings. This is for over-current protection of the whole system

lines.

System 1: 88.0195 A x 125% = 110.024375 A

System 2: 77.4374 A x 125% = 96.79675 A

The circuit breaker for the whole system lines shall not be lower than

110.0233A and 96.79675 A for Systems 1 & 2 respectively.

4.9.4 Sizing of the Circuit Protection Between PV Array and Inverter

Circuit Protection is very necessary for a system to run securely. In any case of

unwanted failure in the system lines, bigger damages are prevented by the protection

system. There are two ways of undertaking the circuit protection between photovoltaic

array and inverter in general. First one is on each parallel strings of modules which can

be fused before entering DC collection point. Second one is the total output of the

photovoltaic array, be fused before being connected to the inverter.

Maximum Current from Inverter at Full Load on the line:

𝐼𝑛𝑣𝑒𝑟𝑡𝑒𝑟 𝑉𝐴 60 000 𝑉𝐴
System 1: Imax_inv = = = 272.72 A
𝑉𝑜𝑢𝑡𝑝𝑢𝑡 220 𝑉

𝐼𝑛𝑣𝑒𝑟𝑡𝑒𝑟 𝑉𝐴 60 000 𝑉𝐴
System 2: Imax_inv = = = 272.72 A
𝑉𝑜𝑢𝑡𝑝𝑢𝑡 220 𝑉
 157

Minimum rate of AC circuit protection is:

125%
I= 𝑥 272.72 = 340.9 A
100

4.10 Estimation of the System Energy Output

Monthly system output calculation can be made possible through equation 24

from Chapter 3. System Energy Output is the energy that developed in the stand-alone

power source. The power delivered from the generator to the consumers is the total

output at day time. This generation is during the charging hours where the energy

storages are being filled for the hours without heat from the sun.

E = A * r * H * Pr (3.24)

E = Energy output (kWh)

A = total solar panel area (m2)
R = Solar Panel Yield (%) [electrical power per panel/area of each panel m2)
Pr = Performance Ratio

Table 4.31 Values for Energy Output Estimation

By using the values given in table 4.3, energy output can be estimated. These

values are taken from the general data for calculating Solar PV Systems. Specific data
 158

from the model of panels chosen such as the solar panel area and rated power are also

used.

Table 4.32 Estimated Energy Output for System 1

The energy output for System 1 are tabulated in the table shown above. The

smallest amount of energy produced by the Solar PV Power Plant is expected to be in

the month of January. The month has the lowest insolation data, consequently giving a

difficult time for the modules to give off maximum power, only allowing 9,822.3993

kWh. The highest is in the month of April which reaches up to 21,633.3156 kWh. This

is due to the fact that the summer season can provide more sun hours that allows the

system to maximize its power.

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Table 4.33 Estimated Energy Output for System 2

For System 2, the same goes with the effect of the average daily global radiation.

Since January has the lowest with only 2.9 kWh/m2/day, the energy output for the

month is just 4,320.75835 kWh. Its highest output is 9,516.2419 kWh for the month of

April with the highest value of solar radiation.

4.11 Capacity Factor

Capacity Factor for this PV system is taken from the monthly estimated energy

output. The Capacity Factor is the ratio of the PV energy produced by a stand-alone

system in each time, to the energy that could be produced during the time if the system

had been continuously generating its fully rated output.

𝐸𝑛𝑒𝑟𝑔𝑦 𝐺𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑
C.F = 𝐻 x100
(365 𝑑𝑎𝑦𝑠)(24 𝑑𝑎𝑦)(𝑃𝑉 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦)
1
 160

In determining the Capacity Factor of the system, equation 28 in Chapter 3 is

used in calculations. For monthly generation output, the PV capacity is only multiplied

to the number of days per month and the number of hours in a day. Below is the

modified equation to determine only the monthly Capacity Factor of the systems.

𝐸𝑛𝑒𝑟𝑔𝑦 𝐺𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑
C.F = 𝐻 x100
(31 𝑑𝑎𝑦𝑠)(24 𝑑𝑎𝑦)(𝑃𝑉 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦)
1

Table 4.34 System 1 Data

The tables 4.34 and 4.35 tabulates the data for the estimated energy output with

an additional information. The capacity factor is determined and shown in the tables for

both Systems 1 and 2. Capacity factor is the ratio of the actual energy produced in each

period, to the hypothetical maximum possible, i.e. running full time at rated maximum

power.

Within a given technology or a given plant, it can generally be stated that a

higher capacity factor is better and in particular, more economical. But it does not make
 161

sense to compare capacity factors of different technologies and ways of electrification.

The capacity factor is just one of many factors judging if a power plant is feasible.

Table 4.35 System 2 Data

Having a look at the national average for the Philippines, from March to

September, the length of the day is longer, about 12.5 hours on the average. So, solar

power would produce electricity from 7AM to 6PM at 5% to 65%. Note that it can

never reach a hundred percent in any circumstance., of its rated capacity. The average

capacity factor in the Philippines is about 18%. Results of the calculation for Sitio

Calaniogan shows that it almost reached the average, this clearly means that the Solar

PV Power Plant in the site would be satisfactory.

 162

4.12 Economic Analysis for Solar PV Power Plant

The economic viability assessed the costs and benefits of the project. The cost

of the total installation of the system is essential part of the analysis. Upon the end of

system design and specifications, the financial planning comes after. This is very

important in determining the practicability of establishing a plant.

4.12.1 Balance of System

A Solar PV Balance-of-System or BOS refers to the components and equipment

that move DC energy produced by solar panels through the conversion system which

in turn produces AC electricity.

Most often, BOS refers to all components of a PV system other than the

modules. In addition to inverters and racking, this includes the cables/wires, switches,

enclosures, fuses, ground fault detectors, and more. BOS applies to all types of solar

applications.

Table 4.36 System 1 Balance of System

 163

Table 4.37 System 2 Balance of System

In the BOS tables, the costs are already fixed. For the scheme of how these

values were calculated, section 12.2 in this Chapter has the flow of calculations using

equations from the previous chapter.

4.12.2 Life Cycle Energy Cost of Photovoltaic

Life-Cycle Costing Methodology also known as LCC is a method used for

carrying out the evaluation of economic analysis. It is a tool useful in comparing

ultimate delivered costs of utilized technologies, having different structures rather than

comparing only the initial capital costs or operating costs. LCC analysis points out

calculation of the cost of delivering a service over the expected life of the proposed

project. The summary of LCC must be equal to the total energy output.
 164

Table 4.38 System 1 Life Cycle Cost

The Life Cycle Cost of System 1 is calculated with the values in tables 4.3.

These shows the total cost of the system in with the corresponding details of how big

the land surface would it utilize and the power output within a year. The maintenance

cost of the Solar Power Plant for a year is just ₱ 413,895.54. In the table below, the

maintenance cost is the sum for the cost of maintaining the system in 10 years’ time.

Table 4.39 System 1 Present Worth

Present Worth includes the future cost of replacing components of the power

plant. This is considered as present worth for the assumption that this plant will require

maintenance to prevent increase in losses. For System 1, the Life Cycle cost is

premeditated to reach a total of ₱ 31,439,586.44 (pesos).

 165

Table 4.40 System 2 Life Cycle Cost

Table 4.41 System 2 Present Worth

Given the summary of the system, the LCC for System 2 is shown in table 4.40

where the total cost is about ₱ 9,854,580.4654 which does not yet include the

maintenance for the whole plant for 10-year time span. The total Present of Worth is ₱

14,498,629.93 (pesos).
 166

4.12.2.1 Battery Replacement

Life-Cycle Cost Analysis is used to determine the cost of replacing the batteries

within 10 years life span of the storage system.

1+𝐸𝑟 1+𝐸𝑟
LRC = ARC( 𝑑−𝐸𝑟){1 − (1+𝐷𝑟)𝑁 }

Where;

LCR = Life Replacement Cost

ARC = Annual Replacement Cost
Er = 4%
Dr = 4.75%
N = 10
LCCA = 10.5137

Table 4.42 Inflation Rate Summary in the Philippines (Statista.com)

Year Inflation Rate (Compared to Every
Previous Year)
2022 3%
2021 3.07%
2020 3.35%
2019 4%
2018 4.95%
2017 2.85%
2016 1.25%
2015 0.67%
2014 3.61%
2013 2.58%

The Philippines’ annual inflation rate according to Trading Economics, eased

to a 10-month low of 4.4 percent in January of 2019 from 5.1 percent in the previous
 167

month. The latest reading was slightly below market estimates of 4.5%. amid a marked

slowdown cost of food and transport. On a monthly basis, consumer prices rose by 0.1

percent in January, after 0.4 percent fall in December 2018. It marked the first month

increase in three months. Inflation Rate in the country averaged 8.39 percent from 1958

until 2019, reaching an all-time high of 62.80 percent in September of 1984 and a record

low of -2.10 percent in January of 1959.

According to a research study conducted by Prof. Dr. Phoebe Koundouri of

Athens university of Economics & Business, different countries use different methods

for discounting. Discounting is a technique used to compare costs and benefits that

occur in different time periods. This is a separate thing from inflation rate, because it is

based on time preference: generally, people prefer to receive goods and services now

rather than never. This leads to different value of the discount rate or factor of every

nation. The Philippine Central Bank held the rate on its overnight reverse repurchase

facility at 4.75 percent on February 7th, as widely expected, saying inflation

expectations declined further while economic growth moderates. The Central Bank

paused its tightening cycle in December following five straight hikes in previous

meetings. Interest Rate in the Philippines averaged 7.88 percent from 1985 until 2019,

reaching an all-time high of 31 percent in January 1985 and a record low of 3 percent

in June 2016. Low discount rates favor investment in future generations. High discount

rates cause the present generation to invest in high yield projects which will best benefit

the future.
 168

LCCA value is fixed. However, the factor value is dependent on the time span.

For 10 years’ time, LCCA is equal to 10.5137. For 20 years span, LCCA is equal to

22.0236. This data is from the Journal of Energy Technologies and Policy.

𝐶𝑜𝑠𝑡 𝑜𝑓 𝐵𝑎𝑡𝑡𝑒𝑟𝑦+𝑖𝑛𝑠𝑡𝑎𝑙𝑙𝑎𝑡𝑖𝑜𝑛
ARC = 𝑝𝑒𝑟𝑖𝑜𝑑 𝑜𝑓 𝑟𝑒𝑝𝑙𝑎𝑐𝑒𝑚𝑒𝑛𝑡

LRC = ARC x LCCA

SYTETEM 1 Calculation:

Battery replacement cost in 10 years is calculated with the given values of

battery cost which is ₱ 6,970,803.84 during the installation. The installation cost for the

whole system is divided by 4 to get the part for the storage system establishment since

there are four major components. These are the PV modules, inverter/charger, battery

and the wiring. The four components enumerated need specific installation process. For

20 years, the replacement cost will reach up to ₱ 9,106,462.769.

5,195,710.0426
6,970,803.84+( )
4
ARC = = 826,973.1351
10

LRC = 826,973.1351 x 10.5137

LRC = ₱ 8,694,547.451

5,195,710.0426
6,970,803.84+( )
4
ARC = = 413,486.5676
20

LRC = 413,486.5676 x 22.0236

LRC = ₱ 9,106,462.769
 169

The present cost of the batteries is subtracted separately from the cost for

replacing the batteries in 10 years and 20 years. This value will be the added amount in

calculating the Life Cycle Cost. There’s no need to add up the whole amount of

replacement because the tabulated data includes the present worth. It means that only

the excess amount is needed in the tabulation to calculate the total life cycle cost.

SYSTEM 2 Calculation:

Battery replacement cost in 10 years is calculated with the given values of

battery cost which is ₱ 3,078,017.28 during the installation. The installation cost equal

to ₱ 2,285,532.6087 for the whole system is divided by 4 to get the part for the storage

system establishment since there are four major components. These are the PV

modules, inverter/charger, battery and the wiring. The four components enumerated

need specific installation process.

2,285,532.6087
3,078,017.28+( )
4
ARC = = 364,940.0432
10

LRC = 364,940.0432 x 10.5137

LRC = ₱ 3,836,870.13

2,285,532.6087
3,078,017.28+( )
4
ARC = = 182,470.0216
20

LRC = 182,470.0216 x 22.0236

LRC = ₱ 4,018,646.77
 170

The LRC values are the costs of replacing the batteries after a period of time

set. However, in tabulating the present worth of the whole system, the costs of first

installation for batteries are subtracted separately to their LRC values.

4.12.2.2 Inverter Replacement

The inverter is used for AC loads which means that the system converts DC to

AC. Given that this system works non-stop as long as the minimum voltage is reached,

it must be well-maintained and replaced constantly at a period of time.

SYSTEM 1:

𝐶𝑜𝑠𝑡 𝑜𝑓 𝐼𝑛𝑣𝑒𝑟𝑡𝑒𝑟+𝐼𝑛𝑠𝑡𝑎𝑙𝑙𝑎𝑡𝑖𝑜𝑛 𝐶𝑜𝑠𝑡

ARCINV = 𝑁𝑜.𝑜𝑓 𝑌𝑒𝑎𝑟𝑠

5,195,710.0426
993,859.2560+( )
4
ARCINV = = 229,278.6767
10

LRC = 229,278.6767 x 10.5137

LRC = ₱ 2,410,567.223

5,195,710.0426
993,859.2560+( )
4
ARCINV = = 114,639.3383
20

LRC = 114,639.3383 x 22.0236

LRC = ₱ 2,524,770.932

SYSTEM 2:

2,285,532.6087
496,929.6280+( )
4
ARCINV = = 106,831.278
10

LRC = 106,831.278 x 10.5137

LRC = ₱ 1,123,192.01
 171

2,285,532.6087
496,929.6280+( )
4
ARCINV = = 53,415.63901
20

LRC = 53,415.63901 x 22.0236

LRC = ₱ 1,176,404.67

4.12.3 Cost Per kWh

Solar Power is indeed a good source of renewable energy since it only needs the

sun to generate electricity. No harmful effects to the environment or even direct

consumers of its power. It is important to know how much the energy costs as it

generates for consumption. This is dependent on the values of the output energy of the

system to the total cost of establishment.

Capital Cost is the systems Balance of System Cost, the raw total amount for

the system’s component costs, including the installation and maintenance cost. LFC is

the Life Fuel Cost, which obviously equates to zero since the Solar Power Plant doesn’t

need any fuel to enable the system. Life Replacement Cost (LRC) consists the overall

cost of batteries, inverters controller replacements. Solar is not included because the

life span is thirty years. N is the number of years considered in calculating the life cycle

cost.

𝐶𝐶+𝐿𝐹𝐶+𝐿𝑀𝐶+𝐿𝑅𝐶
CT = 𝑁 𝑥 365 𝑥 𝑘𝑊ℎ

System 1:

CT = Total cost per kWh LMC = ₱ 11,175,179.49

CC = ₱ 20,907,504.4287 LRC = ₱ 22,736,348.37
LFC = ₱ 0.00 N = 20 years
 172

₱ 20,907,504.4287+ ₱ 0.00 + ₱ 11,175,179.49 + ₱ 22,736,348.37

CT = 20 𝑦𝑒𝑎𝑟𝑠 𝑥 365 𝑥 112,639 𝑘𝑊ℎ

System 2:

CT = Total cost per kWh

CC = ₱ 9,854,580.4654
LFC = ₱ 0.00
LMC = ₱ 4,915,832.13
LRC = ₱ 10,155,113.58
N = 20 years

₱ 9,854,580.4654+ ₱ 0.00 + ₱ 4,915,832.13 + ₱ 10,155,113.58

CT = 20 𝑦𝑒𝑎𝑟𝑠 𝑥 365 𝑥 49,494𝑘𝑊ℎ

Table 4.43 Cost of Energy per kWh

 173

The energy generated by the Solar PV System costs ₱ 0.06/kWh for System 1,

while on the other hand ₱ 0.07/kWh for System 2 which has lower load demand. On

the average of these two amounts, the cost of solar energy is ₱ 0.06/kWh. According to

the FIT-rate for renewable energy such as Solar Power, the cost of energy per kWh

should be ₱ 9.68/kWh or less.

4.13 Distribution Line Construction

The researcher communicated with BUSECO, the electric cooperative that

caters Sitio Calaniogan, being a part of Barangay Lunocan of Manolo Fortich,

Bukidnon. A request letter has been sent to ask for data from the cooperative regarding

the electrification process and the materials used for distribution line construction.
 174

Table 4.44.1 Bill of Materials

 175

Table 4.44.2 Bill of Materials

From BUSECO’s survey results, these are the required materials for the

extension of distribution lines to Sitio Calaniogan for energization. The cost is

calculated from the prices coming from the National Electrification Administration

(NEA) Price Index Standards. The materials and quantity for each item are the

estimation product of the surveying team. The Technical Services Department (TSD)

engineer surveyors were given ample time to survey the area and analyze the right

system to establish. Table 4.41 shows the tabulation of the materials with complete

details on the quantity and units for each material listed on it. The prices are inputs from

NEA Price Index, given by BUSECO to the researcher for accurate reference.
 176

Table 4.45 Labor Cost

 177

Bill of Materials (BOM) the comprehensive inventory of the raw materials,

assemblies, subassemblies, parts, and components, as well as the quantities of each,

needed to manufacture a product. In a nutshell, the tables presented above are the

tabulation of the complete list of all the items that are required to construct the

distribution line from the last pole nearest to the selected location of this study. This

serves as the foundation of production planning systems, and the information in it

provides the basic data for product costing, material provision for production and plant

maintenance.

For this case, all the materials in BUSECO’s BOM are already subject for

procurement after finalization of plan, since availability of materials has been checked.

The probability of being able to get the right materials with the exact desired

specifications were previously secured.

Table 4.46 Total Cost of Line Construction

The total cost of the line construction for Sitio Calaniogan’s energization,

reaches up to ₱ 2,100,701.62. This amount already includes cost tabulated in table 4.45

for the installation labor. Contingency is 5% of the total material cost (TMC). This item

refers to unforeseeable cost likely to be incurred during the operations of the system.

Freight and Handling is 10% of the TMC, which is the allocated cost for moving the

materials and equipment from the warehouse to the site.

 178

4.13.1 Load Mapping

In extending distribution line for electrification, the load map is important. From

the data given by BUSECO’s survey, the most possible tapping point to energize Sitio

Calaniogan is in Sitio Awol which is 3.5 kilometers away from the specified site. There

will be 39 poles after the tapping point, 35 feet high each.

Figure 4.12 Sitio Calaniogan 1-Phase Line

4.13.1.1 Household Consumers’ Map

A map for the actual load is necessary to determine the distance of load to

another load. This is also used for the measuring of the distance from the tapping point

to the individual loads subjected for this study.

 179

Figure 4.13 Google Earth Distance Plotting of Households

4.14 PowerWorld Simulation

The purpose of simulating is to look at the load flow for both systems. The

simulation allows theoretical visualization of how the generated electricity successfully

passes through the lines of the specific loads.

Since there are 40 households, there should have been 40 buses for the load side

of the simulation. However, the application only supports a maximum of 40 buses.

There are different styles set for the system to be complete. Individual households are

on tapped individually via separate buses. The distances of each load are shown in table

4.47 below. A set of 10 households are connected two loads in a bus. The distance for

both loads is added up to somehow be accurate in the details with the line impedance.
 180

Another 10 households are assumed to be connected five loads in a bus. The distances

of the five households from the transformer are summed up.

Table 4.47 Load Distances

The distances in miles are used to calculate per distance impedances for the

distribution line. The details of the generating substation that will be able to supply

Sitio Calaniogan for electrification is shown in table 4.48 from BUSECO’s data.
 181

Table 4.49 Distribution Line Data

Figure 4.14 Simulation of Distribution Lines

Between the conversion of 69kV to 13.2 kV is a transformer set at typical

parameters for 25MWA. The substation in Lunocan caters other existing loads, but the

data allowed to be given to the researcher is only for the Sitio Calaniogan.

The tapping point is boxed in red with an arrow pointing it. The is 3.5 km away

from the Sitio. Four transformers are tapped to it. Electric Cooperative like BUSECO

put up transformers with several loads connected directly to it. But the simulation shows

different ways of tapping the loads such as; (1) load-to-load & (2) bulk loads.
 182

Figure 4.15 Run Mode

It is evident that the simulation was successfully created through the run mode

wherein the load flow is visible through the running arrows. The ampacity limits are

monitored using the blue circles indicating ammeters on the transmission lines created.

Demand per load is in the Energy Demand Calculation table which is 0.0077065MV

per household.
 183

Figure 4.16 Distribution Lines Ampacity Limits (Load 1-10)

Figure 4.17 Distribution Lines Ampacity Limits (Load 11-20)

 184

Figure 4.18 Distribution Lines Ampacity Limits (Load 21-40)

There are 40 buses in total with 40 loads tapped. The load is a total of 0.3 MW

or 300-kW which is the demand calculated for the system in Sitio Calaniogan.

Ampacity limits consumed by each of the 33 lines created are shown.

Figure 4.19 Solar PV System Simulation

 185

Figure 4.20 Run Mode Solar PV System

Figure 4.21 Solar Ampacity Limits (Load 1-10)

 186

Figure 4.22 Solar PV Ampacity Limits (Load 11-20)

Figure 4.54 Solar PV Ampacity Limits (Load 21-40)

Figures 4.52 to 4.54 show the percentage from the ampacity limit of the wiring,

taken up by the current flowing to the loads through the lines. Ampacity is the current-

carrying capacity of the conductor. The power transfer capacity of a transmission line

is primarily constrained by three factors: stability, voltage, and thermal limits.

The ampacity of a conductor depends on its ability to dissipate heat without

damage to the conductor or its insulation. Typically, ampacity of long lines is set by the
 187

stability or voltage limits, the ampacity of short lines is determined by thermal limits.

The highest percentage shown in the figures above is just 33% which is 102.3A of the

310-ampacity limit set for 1/0 ACSR conductor.

4.15 Economic Analysis Evaluation

4.15.1 Return on Investment for the 300-kW Solar PV Power Plant
Calculation for ROI has a net return rather than net profit gain in the numerator.

This is because returns from an investment can often be negative instead of positive.

To compute ROI with greater accuracy, total returns and total costs should be

considered.

The total investment cost of the system is the total cost of establishing the whole

Solar PV Power Plant. This should include the labor fees and even the maintenance cost

for its total life span. The average cost for the Solar Energy output is the average of

System 1 and System 2 calculated cost per kWh. Government revenues and Value Add

Tax are subtracted from the energy cost of the Solar PV Power Plant to get the net cost

of electricity.

Table 4.50 Government Revenues (₱/kWh)

ME-NPC-SPUG 0.1544
ME Renewable Energy Development 0.0017
Environmental Charge 0.0025
UC Stranded Debt. 0.0265
UC Stranded Contract Cost 0.0220
Fit-All Renewable 0.2563
Total ₱ 0.4634/kWh
 188

Table 4.51 Taxes-Value Added Tax (₱/kWh)

Real Property Tax 0.0228
Business Tax 0.0000
GRAM VAT 0.000440
ICERA VAT -0.000220
ACRM VAT 0.1077
Transmission VAT 0.0593
System Loss VAT 0.1200
Others VAT 0.1200
Total ₱ 0.43002/kWh

FIT-rate Solar Energy Cost/kWh = ₱ 9.68

Yearly Minimum Energy Demand: 112,639 kWh
Net Cost per kWh: ₱ 8.73
Yearly Profit: ₱ 983,338.47
Annual Maintenance Cost: ₱ 413, 895.54
Annual Investment Cost: ₱ 31,439,586.44/20 = ₱ 1,571,979.322

Yearly Net Profit:

₱ 983,338.47 - ₱ 413, 895.54 = ₱ 569,442.93

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
Return on Investment = 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡 𝑥100

₱ 569,442.93
Return on Investment = ₱ 1,571,979.322 𝑥100 = 36.2246%
 189

4.15.2 Payback Period:

𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡

The total investment cost used for the calculation of the system’s Payback

Period is the sum of initial cost of the project and annual the maintenance cost.

Total Investment Cost: ₱ 20,907,504.4207 + ₱413,895.54

= ₱ 21,321,399.96
Net Profit: ₱ 569,442.93

₱ 21,321,399.96
= 37.44 years
₱ 569,442.93

4.15.3 Return on Investment for BUSECO’s Distribution Lines

The total investment cost of the system is the total cost of constructing the

extension line from the tapping point to the Sitio. This already includes other

installation fees. The maintenance cost is assumed to be 10% of its total system cost.

The cost per kWh of electricity for BUSECO is calculated below from an actual

consumer’s electric bill.

Present Reading: 13000.00

Previous Reading: 12877.00

ADD kWh: 0.00

Energy used for the month: 123 kWh

 190

Current Bill: ₱1,377.14

₱𝟏,𝟑𝟕𝟕.𝟏𝟒
Cost/kWh = = ₱ 11.196
𝟏𝟐𝟑 𝒌𝑾𝒉

Table 4.52 Distribution Revenues

Distribution Energy Charge (₱/kWh) ₱ 0.5134
Distribution Demand Charge (₱/kWh) ₱ 0.0020
Supply Energy Charge (₱/kWh) ₱ 0.5828
Supply Customer Charge (₱/kWh) ₱ 0.0022
Metering Energy Charge (₱/kWh) ₱ 0.3669
Metering Customer Charge (₱/kWh) ₱ 5.0202
RFSC (₱/kWh) ₱ 0.2508
Additional RFSC (₱/kWh) ₱ 0.7419
TOTAL ₱ 7.4802/kWh

Total System Cost: ₱ 2,100,701.62

Maintenance Cost: 10% of System Cost = ₱ 210,070.162

1 Year Life Cycle: ₱ 2,310,771.782

Yearly Minimum Energy Demand: 112,639 kWh

Profit in 1 year:
112,639 kWh x ₱ 7.4802/kWh = ₱ 876,353.9478
Net Profit:
₱ 876,353.9478 - ₱ 210,070.162 = ₱ 666,283.7858

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
Return on Investment = 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡 𝑥100
₱ 666,283.7858
Return on Investment = ₱ 2,310,771.782 𝑥100 = 28.83%
 191

4.15.4 Payback Period:

𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡

₱ 2,310,771.782
= 3.47 years
₱ 666,283.7858

4.15.5 Net Benefit Analysis

Net Benefit Analysis is an indicator of how much value an investment or project

adds to the value of the firm. The criterion of the NPV method is to consider a project

attractive if the NPV of its cash flow stream is positive for a given interest rate.

Mutually exclusive project is that when at most one project out of the group can be

chosen. In table 5.4, red-colored values are negative amounts or payouts.

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Table 4.53 Net Present Value

4.15.6 Internal Rate of Return

The Internal Rate of Return (IRR) is the discount rate that makes the net present

value (NPV) of a project zero. In other words, it is the expected compound annual rate

of return that will be earned on a project or investment.

When calculating the IRR, expected cash flows for a project or investment are

given and the NPV equals zero. Put another way, the initial cash investment for the

beginning period will be equal to the present value of the future cash flows of that

investment.

Once the IRR is determined, it is typically compared to a company’s hurdle rate

or cost of capital. If the IRR is greater than or equal to the cost of capital, the company
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would accept the project as a good investment. If the IRR is lower than the hurdle rate,

then it would be rejected.

CF1 CF2 CFn

0 = NPV = CF0 + + + ⋯ + (1+IRR) (3.47)
(1+IRR) (1+IRR)2 n

Where;

CF0 = Initial Investment

CFn = Cash Flows
n = each period
N = Holding Period
IRR = Internal Rate of Return

Solar PV Power Plant’s IRR = 4%

Utility-Distribution Lines = 32%

The higher the IRR of a project, and the greater the amount by which it exceeds

the cost of capital, the higher the net cash flows to the investor. However, that may not

always be rigidly enforced. A lower IRR is preferred if a project provides intangible

benefits, such as environmental conservation and utilization of renewable energy.

4.15.7 Benefit Cost Ratio

The Benefit Cost Ratio (BCR) is the method of selecting alternatives for

analyzing the desirability of a project. BCR is one means to arrive at an informed

decision on which project to invest.

𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑒𝑠𝑒𝑛𝑡 𝑊𝑜𝑟𝑡ℎ 𝑜𝑓 𝑆𝑎𝑣𝑖𝑛𝑔𝑠

BCR = (3.47)
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑃𝑟𝑜𝑗𝑒𝑐𝑡
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Solar PV Power Plant:

₱ 22,418,764.02
BCR = ₱20,907,504.4287 = 1.07228

Utility-Distributed Electricity:

₱ 3,781,803.18
BCR = ₱ 2,100,701.62 = 1.80025

BCR equal to one suggests a cost-neutral project. The business will neither

make nor lose money if it green-lights this scheme. A BCR greater than one is a positive

return. The business should consider moving forward with this project, especially if the

BCR is significantly greater than one. A BCR of less than one means the cost outweigh

the benefits and the project would run at a loss.

In the calculation above, Utility-Distribution Company’s line has a greater

benefit-cost ratio than that of the Solar PV Power Plant. This is due to the expensive

establishment of the plant compared to the extension of distribution lines of BUSECO.

However, the Power Plant is still a good business, since it gains benefits more than its

cost according to the 1.07228 BCR value.

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4.16 Technical Viability Evaluation

4.16.1 Voltage Profile

Normally, when using a power flow solution tool, you only look at the voltages

at the terminal buses of transmission lines. However, for transmission line which have

a large shunt charging susceptance (B) terms, the voltage at intermediate points of the

transmission line can become much higher (or even lower) than the terminal bus values.

To see these voltages directly, PowerWorld Simulator provides a tool for showing the

Long Line Voltage Profile of a transmission line.

Table 4.54 Voltage Profile for Utility-Distribution Lines

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Figure 4.55 Voltage Profile Graph of Utility-Distribution Lines

Table 4.55 Voltage Profile for Solar PV Power Plant

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Figure 4.56 Voltage Profile Graph of Solar PV Power Plant

The enumerations of the purposes of each column in the tables are as follows;

Volt (kV) is the bus’s actual voltage magnitude in kV. This is the per unit voltage

magnitude multiplied by the bus’s nominal voltage. Limit Low PU Volt is the bus’s

individual low voltage limit used when the bus is set to use specific voltage limits other

than the default voltage limit defined in the bus’s limit group. The value will then reflect

the low per unit voltage limit specified in one of the eight low voltage limit sets that

can be defined with the bus. Limit High PU Volt is the bus’s individual high voltage

limit used when the bus is set to use specific voltage limits other than the default voltage

limit defined in the bus’s limit group. The value will then reflect the high per unit

voltage limit specified in one of the eight high voltage limit sets that can be defined

with the bus.

Contingency Limit Low PU Volt is the bus’s individual low voltage limit used

during a contingency when the bus is set to use specific voltage limits other than the

default voltage limit defined in the bus’s limit group. The value will then reflect the

contingency low per unit voltage limit specified in one of the eight contingency low
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voltage limit sets that can be defined with the bus. Contingency Limit High PU Volt is

the bus’s individual high voltage limit used during a contingency when the bus is set to

use specific voltage limits other than the default voltage limit defined in the bus’s limit

group. The value will then reflect the contingency high per unit voltage limit specified

in one of the eight contingency high voltage limit sets that can be defined with the bus.

The data shown in tables 4.54 & 4.55, with their graphs on figures 4.55 & 4.56

are in constant voltage graph. This only means that the voltage regulations from one

bus to another don’t have fluctuations. This is because the voltage changes can only be

visible if they’re studied with respect to a specific parameter. Parameters that affect

voltage regulations include time frequency, the generator input and the distance

variations.

4.16.2 Line Ampacity Limits and Line Losses for BUSECO’s

Distribution Line

The measured ampacity percentage used up by the conductor for distribution is

dependent on the value of the ampacity limit set for each line. From the feeder to the

lateral point, ACSR 4/0 has an ampacity limit of 480A. Connecting the Lateral Point

and the Tapping Point is a 2/0 ACSR with 360A ampacity limit. From the Tapping

Point to the loads of the area, ACSR 1/0 conductors are used with lesser ampacity limit

of 310A.
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Table 4.56 Utility-Distribution’s Line Limit Monitoring

Table 4.57 Solar PV Power Plant’s Line Limit Monitoring

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Table 4.56 shows the tabulation of the buses showing the monitored values of

the line limits set for each. Amps or MVA shows the limits for transmission lines and

transformers are which always entered in MVA. However, when reporting limit

violations, it is common to check transmission line limits in terms of their amp

loading. The limits for transmission lines in table 4.56 are reported in either amps or

MVA. In table 4.57, limits for both transmission lines and transformers are expressed

in MVA. For reference, note that the amp rating of a line is derived from the MVA

rating using the formula

(4.1)

Also note that the reported Amp% and MVA% will be different by a factor of

the per unit voltage at the bus terminal at which the limiting flow is determined. This

is often a point of confusion as the expectation might be that the percent loading would

be the same regardless of which reporting method is used:

Amp% = MVA%*(Per Unit Voltage) (4.2)

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4.16.4 Reliability

Reliability is crucial for system planning and long-term operation, as it allows

to facilitate risk assessment and limit revenue losses. It further enables predicting

system behavior over time and planning maintenance strategies accordingly. However,

it is commonly limited by lacking robust data. In this paper, the data needed for

determining reliability of systems are taken from studies conducted in the past.

In all variety of techniques used to determine system reliability, to record the

failures is the most essential part. Before even starting to pinpoint failures, defining

what failure is, should be itemized. Here are the types of issues to be recorded:

1. Service ticket - A record of an issue affecting the PV system that may impact

the energy output depending on the severity. The failure area includes the

subsystem and components of the whole system. The root cause is the general

and specific reason of the manifestation of the issue.

2. Outage - An issue affecting a critical subsystem that is visible immediately due

to a power interruption that makes it a priority for urgent addressing of the

system issues.

3. Impairment - An issue affecting a non-critical subsystem that is visible with

advanced analytics or high-granularity monitoring. It can be addressed in

opportune timing. This includes sensor or communications issues. They do not

affect power production, nonetheless, it must be addressed immediately.

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4.16.4.1 Solar PV System Reliability

A Solar PV Plant is comprised of components essential for its energy

production. With the materials and components used to establish such system, not every

part of it is prone to failures.

Table 4.58 Components and Likelihood of Failure

A 2017 report from the National Renewable Energy Laboratory (NREL) at the

U.S. Department of Energy examined 54,500 PV systems installed between 2005 and

2015 to identify the number of “failed panels,” or panels that need to be replaced. NREL

found a median failure rate of just 5 out of 10,000 panels annually, which comes out to

a 0.05% failure rate on all photovoltaics.

Of note, the study also compared solar panel failure rates between 1980 and

2000 to the data above (2000-2015) and found that panels installed between 1980 and

2000 failed at twice the rate of more modern installations. This is further reason to be

optimistic about the reliability of your solar panels – not only are failure rates extremely

low at not more than 0.05%, but they are improving over time, as technology advances

and installations become more resilient and high-quality.

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This number is an average for all solar installations and does obscure some

important insights. Solar panels in harsher climates – hot and humid climates, for

example – exhibit higher failure rates, which are balanced out in the averaging equation

by panels installed in colder climates. Additionally, some panel manufacturers are

known to have produced defective batches of panels, and those panels are hidden in the

numbers by most high-quality, reliable solar panels. This is all to say that solar panels

are very reliable, but there can be oddball cases, as with any consumer product, where

internal or external factors cause unexpected failure.

Table 4.59 Solar PV System Reliability in 20 years

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Table 4.59 shows the Failure rate (A), Mean Time Between Failure (MTBF) in

years assuming 4015 hours of operation per year, reliability after 20 years. There are

extrapolated values determined from O&M reports (as taken from different power

plants). These figures are the selected values, which are used in this study. These were

taken from the journal of the study “Impact of Component Reliability on Large Scale

Photovoltaic Systems’ Performance”.

Figure 4.57 Failure Areas

Figure 4.58 Failure Areas

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Figure 4.58 and 4.59 shows the tabulation of failure areas with percent for the

frequency of failures and its energy impact. This is a study conducted by Dr. Anastasios

Golnas and Steve Voss of SunEdison. This data is applicable to large-scale Solar PV

Systems, as this is a result of studying Operations and Maintenance (O&M) information

from 27 systems.

The most frequent failure area with in between 40-45% failure rate, that causes

ticket issue is in the inverter of the system. It affects 36% of the energy production. For

root cause of this failure, the highest contributor is the portion of the Parts/Materials of

the system. The reliability of the whole Solar PV Power Plant system given that there

are 27 failure areas calculated from table 4.59 is on the average of 69.7%

If this failure areas are well-maintained and given proper attention of the

system’s operator, the issues are likely to be prevented. However, if we look on the

reliability of the system, it is already affected by this forecasted failure rates.

4.16.4.2 Utility-Distribution Lines Reliability

A transmission system's reliability index is normally expressed in percent of

system average availability and is typically more than 99 percent. Even if it were, the

number would be much less than the number of outage minutes attributable to

distribution reliability.

Transmission systems' design plays the biggest role in providing such high

availability levels. They are meshed networks (grids) that deliver large amounts of

electric power at high voltages. Because transmission systems are networks, the loss of
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any one segment, such as a transmission line, transformer or generator, usually causes

only a minor disturbance to the system. The network allows the power to take different

paths from the generation source to the load, and it usually can take a second or even

third contingency before disastrous results occur. Typical causes of transmission

outages include lightning strikes, transformer failures, line splice failures, switching

surges, wind toppled towers, lines in contact with trees or vegetation, and insulator

flashovers due to animals or contamination buildup.

While distribution systems are quite reliable, they do not enjoy the high

availability rate that transmission systems do. Just like with transmission systems,

distribution system design plays a significant role in system performance. Distribution

systems are usually, but not always, "radial" systems, which means power flows from

the supply point, usually a substation connected to the transmission system,

downstream to customers distributed along the line. Unlike the transmission system,

little if any redundancy exists on a distribution feeder: It is a series of segments and

components, resembling a chain, and like a chain, it is only as strong as its weakest

link.

The availability of a reliable power supply at a reasonable cost is crucial for the

economic growth and development of a country. This data is according to the

Reliability Assessment of Distribution Systems conducted by the Norwegian

University of Science & Technology. Electric power utilities throughout the world

therefore endeavor to meet customer demands as economically as possible at a

reasonable service of reliability. To meet customer demands, the power utility must

evolve, and the distribution system have to be upgraded, operated and maintained
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accordingly. An analysis throughout the world shows that around 90% of all customer

reliability problems are due to the problem in distribution system, hence, improving

distribution reliability is the key to improving customer reliability.

Quantitative reliability evaluation of a distribution system can be divided into

two basic segments; measuring of the past performance and predicting the future

performance. Some of the basic indices that have been used to assess the past

performance are:

• System Average Interruption Frequency Index (SAIFI)

• System Average Interruption Duration Index (SAIDI)

• Customer Average Interruption Duration Index (CAIDI)

• The Average Service Availability Index {Unavailability} (ASAI){ASUI}

• Energy not supplied (ENS)

Past performance statistics provide valuable reliability profile of the existing

system. However, distribution planning involves the analysis of future systems and

evaluation of system reliability when there are changes in; configuration, operation

conditions or in protection schemes. This estimates the future performance of the

system based on system topology and failure data of the components. Due to stochastic

nature of failure occurrence and outage duration, it is generally based on probabilistic

models. The basic indices associated with system load points are; failure rate, average

outage duration and annual unavailability.

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SAIFI indicates how often an average customer is subjected to sustained

interruption over a predefine time interval where as SAIDI indicates the total duration

of interruption an average customer is subjected for a predefined time interval. CAIDI

indicates the average time required to restore the service. ASAI specifies the fraction

of time that a customer has received the power during the predefine interval of time and

is vice versa for ASUI. ENS specifies the average energy the customer has not received

in the predefined time.

National Energy Administration Annual Report

Since statistical technique for the reliability of a distribution system requires

past performance data to forecast future failure probabilities, technical reports from the

National Energy Administration (NEA) is used as basis for the monitoring of

BUSECO’s distribution system.

1. Compliance to Technical Standards

Based on the assessment of the technical standards and parameters, there is an

improvement of the system loss on the national level from 12.21% for the second

quarter to 12.16% in the third quarter.

The system loss level of eight (8) regions improved while the system loss of

eight (8) regions retrogressed. By and large, the system loss level of the ECs in Luzon,

Visayas and Mindanao had improved for the third quarter.

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2. System Average Interruption Frequency Index (SAIFI)

There is a slight improvement in the compliances to SAIFI for the third quarter

compared to the second quarter. For the third quarter, thirty-eight (38) ECs or 31% are

within standard, sixty-five (65) ECs or 54% are below standard and eighteen (18) ECs

or 15% have not submitted any data.

For the second quarter, thirty-four (34) ECs or 28% are within standard,

seventy-nine (79) ECs or 66% are below standard and seven (7) ECs or 6% have not

submitted any data. For the first quarter, eighty-six (86) ECs or 72% are within

standard, six (6) ECs or 5% are below standard and twenty-eight (28) ECs or 23% have

not submitted any data.

3. System Average Interruption Duration Index (SAIDI)

There is a significant improvement in the compliances to SAIDI for the third

quarter compared to the second quarter. For the third quarter, fifty-five (55) ECs or 45%

are within standard, forty-eight (48) ECs or 40% are below standard while eighteen (18)

ECs or 15% have not submitted any data.

For the second quarter, only thirty-nine (39) ECs or 32% are within standard,

seventy-four (74) ECs or 62% are below standard and seven (7) ECs or 6% have not

submitted any data. For the first quarter, eighty-three (83) ECs or 69% are within

standard, nine (9) ECs or 8% are below standard and 28 ECs or 23% have not submitted

any data.
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Power Reliability

Power Reliability Reports are used to measure service reliability of ECs. The

System Average Interruption Frequency Index (SAIFI) was logged at 16.27

interruption/consumer and 77 ECs passed the allowable SAIFI of 25

interruptions/consumer, with 65.08% rate of passing.

Meanwhile, the System Average Interruption Duration Index (SAIDI) was

documented at 1,154.7 minutes/consumer. There were 86 ECs which passed the

acceptable SAIDI of 2,700 minutes/consumer, with 42.77% rate of passing.

The average Power Reliability for the systems under Green ECs is equivalent

to 53.925% which is the average of the percentage for the SAIFI and SAIDI recorded.

Table 4.60 3rd quarter of the year

Figure 4.59 Pie Chart for ECs Classification

The eleven (11) Yellow-1 ECs for the second quarter which have been

classified as Green ECs for the third quarter are, as follows:

1. CAGELCO I 7. MORESCO II
2. CAGELCO II 8. FIBECO
3. BENECO 9. BUSECO
4. NEECO II - Area 2 10. SOCOTECO II
5. BATELEC I 11. ASELCO
6. MORESCO I
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Classified Green ECs are those complaint with the standards set by NEA for

reliable and sustainable distribution. BUSECO is included in the Green ECs which

assures its reliability in distributing power into its consumers.

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CHAPTER 5

CONCLUSION AND RECOMMENDATIONS

5.1 Introduction
This chapter presents the conclusion of results shown in the previous chapter

for this study. The summary and checking of the objectives set at the beginning of the

study is included as part of evaluating the completeness of the research.

Recommendations from experts, the adviser and the members of the panel cross-

examined the details of the study are all part of this chapter. This will be essential for

future further studies.

5.2 Evaluation Summary

5.2.1 Economic Evaluation
The total cost for building the Solar PV Power Plant in the Sitio is ₱

20,907,504.42 with NPV equal to ₱ 22,418,764.15. On the other hand, a distribution

system will cost BUSECO ₱ 2,100,701.62 with NPV equal to ₱ 3,781,803.18.

Essentially, net present value measures the total amount of gain or loss a project will

produce compared to the amount that could be earned simply by saving the money in a

bank or investing it in some other opportunity that generates a return equal to the

discount rate. Since both projects has a positive net present value, then it is expected to

produce more income than what could be gained by earning the discount rate, which

means the company should go ahead with the project.

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A good value for the return of investment is just around +15% a year. For this case, the

Solar PV Power Plant has an ROI of 32.22% from its total investment cost and an IRR

of 4%. While the distribution line from BUSECO has a negative ROI of 28.83% a year

with 32% IRR. The higher the IRR of a project, and the greater the amount by which it

exceeds the cost of capital, the higher the net cash flows to the investor. However, that

may not always be rigidly enforced. A lower IRR is preferred if a project provides

intangible benefits, such as environmental conservation and utilization of renewable

energy.

The payback period for the distribution line from BUSECO’s tapping point is

about 3.47 years having a BCR of 1.8. Given that the income for BUSECO is per year

is much smaller than that of the Solar PV Power Plant, the payback period is way

shorter. The Solar PV Power Plant will have to generate income for 37.44 years in order

to earn back the cost of investment in the establishment of the whole system. It takes

longer than the distribution line’s payback period with 1.07 BCR. Projects with BCR

higher than 1 are all acceptable.

5.2.2 Technical Evaluation

For the evaluation of the systems technical properties, it focused on the

reliability of the system. Wherein it shows that the Solar PV Power Plant has 69.7%.

This is the average reliability for all the components prone to failures. Utility-

Distribution System of BUSECO II has an average reliability equal to the Green ECs

monitored Cooperatives under the supervision of NEA, which is 53.925%.

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The system specifications show that the system have different material and

equipment requirement. This makes the comparison of the technical part for each, a

little harder. The difference will be tough to pinpoint. But the basis for viability is the

availability of materials. Both systems have warranty for their components.

Maintenance is a must for the two, at constant periods. However, the quality of

materials is only tested on the operation of the systems.

5.2 Conclusion
The output for this study is a catalyst for decision-making in choosing the

preferable system to be installed in Sitio Calaniogan for energization. The evaluation is

the main part of the conclusion. This is basically, the most important output desired for

this research study.

Solar Energy is renewable and free, but to utilize it is costly. Building Solar PV

Power Plants is very expensive, while its maintenance is also crucial to prevent power

losses. Power from the Grid is cheaper to construct and install, but payment for the

generation and transmission is a constant. The production of energy is paid per kWh

while Solar Energy only demands for the investment to be returned. What we pay for

in Solar PV Power Plants is for the components and materials, including the

maintenance fees.

In the long run, Solar Energy is beneficial. After its payback period, the energy

we use from it is almost guaranteed as free energy, excluding the preventive

maintenance fees. In the status quo, individuals and businesses have been attracted not

just to the environmental benefits of solar power, but also to the ability to generate their
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own power and to the fixed and competitive price of electricity that this system

provides. In the technical side of the comparison, the Solar PV System as an off-grid

source of energy is more reliable than the distribution line from the distribution

company. It is very dependent on the grid on long-transmission line. There are too many

factors in the reliability of the distribution system. For Solar Energy, so long as the sun

gives off light, and the storage system is larger than the load capacity, it will suffice the

demands. With proper maintenance of the components specially the failure areas,

energy losses and interruptions can be avoided.

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APPENDIX A
 218

APPENDIX B