RIO '02--ENERGY POLICIES AND TECHNOLOGIES FOR A SUSTAINABLE FUTURE--

January 6-11, 2002 RIO de JANEIRO, BRAZIL

As a result of the 1992 UN RIO Conference on the Environment and Development, the greenhouse effect became a major planetary concern.

The RIO '02 Conference took place to maintain the momentum to reduce global warming.

The objectives of this Conference were to:

• analyze current developments in published research
• demonstrate the latest technologies
• discuss appropriate methods for reducing global warming

 I presented my paper Computing the Levelized Cost (B R¢/kWh [US ¢/kWh]) of Solar Electricity Generated at Brazilian Grid Connected Photovoltaic (PV) Generating Plants, RIO '02 - World Climate & Energy Event, January 6-11, 2002, Rio de Janeiro, Brazil

Abstract

A simple worksheet (spreadsheet) has been designed to compute the levelized cost (in B R¢/kWh [US ¢/kWh]) of grid connected PV generated electricity. A previous version of this paper was presented at the American Solar Energy Association’s SOLAR FORUM 2001(Stavy, 2001). This paper presents an updated version of this levelized cost worksheet for a new international audience in Brazilian Reals (B R$). The paper first reviews the technical, financial and economic basis underlying the worksheet. The technical analysis involves the physical life and electric production of the PV plant.  The financial and economic analysis involves using financial annuities to cost account for the capital recovery (depreciation and amortization) of the initial capital and for the financial expense (interest and return on equity) of using the initial capital through out the predicted physical life of the PV plant.  The cost accounting also involves computing the plant’s yearly fixed and variable operating and maintenance expenses.  The paper then analyzes, in more depth, the specific inputs (capacity-W_P, capital cost-B R$/W_P [US $/W_P], efficiency, physical life, solar radiation, capital recovery method, interest rate, return on investment, tax adjustments, fixed and variable operating and maintenance expenses) used in the worksheet.  Near the end of this paper is a printed copy of the “Levelized Cost Worksheet for a 1 kWp PV Electric Generating Plant”.  The worksheet has benchmark values in B R$ for a model solar electric plant located in Rio de Janeiro, Brazil and  in US $  for a model solar electric plant located  in Chicago, IL.

 A row of wind turbines at a Palm Springs, California wind farm. It is not Brazil but the turbines look good.

 CONSULTATIONS IN CHICAGO

If you did not have time to meet with me while we were both at RIO '02 in Brazil, you can arrange an appointment at my office in Chicago.

Chicago has great hotels and restaurants. It is convenient to fly to Chicago from RIO as well as from other departure points all over the planet.

I look forward to seeing you in Chicago.

Michael

Michael with a Brazilian client on his arm.

Rev: April 4, 2005