| Work Detail |
Researchers from Sweden and Italy analyzed the economics of single-axis, vertical, and elevated photovoltaic systems for agrivoltaic applications and found that elevated agrivoltaic systems perform better the further south they are located in Europe, i.e., closer to the Earths equator. The discounted payback period and levelized cost of electricity were also calculated and compared. Researchers from Sweden and Italy modeled the profitability and cost-effectiveness of various types of agrivoltaic (APV) systems for European crop rotations and locations. Using a stochastic approach with Monte Carlo simulations (MCA), which they described as a “powerful tool” for assessing the effects of uncertainty in certain economic input parameters on PV project performance, they compared single-axis, vertical, and elevated agrivoltaic systems with conventional ground-mounted PV systems. According to Tekai Eddine Khalil Zidane, co-author of the study, the model predicted the profitability and cost-effectiveness of each agrivoltaic system by applying key performance indicators such as net present value (NPV), discounted payback period (DPBP), and levelized cost of energy (LCOE) assessments. “This approach offers a comprehensive economic assessment to support decision-making in the development of agrivoltaics across Europe,” Zidane told pv magazine , noting that the study also focused on the potential performance of the three APV variants in Sweden, Denmark, Germany, and Italy. “Unlike several previous studies that focused on a single system type, crop rotation, specific locations, and specific costs or revenues, our goal was to provide a more comprehensive analysis of the economic performance of agrivoltaic systems,” co-author Pietro Elia Campana told pv magazine . He added that MCA allowed for a wide range of inputs to be incorporated to determine their impact on economic profitability. Interestingly, our analysis revealed that aerial agrivoltaic systems performed better than vertical ones as we moved from Northern to Southern Europe. This improvement was due to increased electricity production and rising electricity prices, which offset the higher initial investment costs, says Campana. Within the studys assumptions, the single-axis APV system across Europe was more cost-effective and cost-efficient than the vertical and elevated configurations. The LCOE of the single-axis APV system was 20–25% lower than that of the vertical APV system and 30% lower than that of the elevated APV configuration, indicating greater profitability in electricity generation, according to the research. The NPV is mostly positive across Europe for single-axis, vertical, and elevated systems. Furthermore, the DPBP of the single-axis APV system was 25–30% faster than that of the vertical APV system and 35% faster than that of the elevated APV configuration. Furthermore, the single-axis APV system showed a shorter DPBP and a lower LCOE than the benchmark conventional ground-mounted PV (CGMPV) system. In Germany and Italy, elevated PV systems are more cost-effective than vertical ones, as their higher electricity production offsets the higher costs associated with their installation, researchers note. In Sweden and Denmark, vertical systems are more profitable, while those located in Denmark offer significantly higher profitability due to the high electricity sales prices. The most significant parameters influencing the variation in electricity-agriculture NPV and electricity-only NPV are electricity sales prices, PV system-specific costs, and the weighted average real cost of capital (WACC), the researchers noted. Furthermore, it was observed that the average profit from crop rotation is the most important parameter influencing the agricultural NPV, while the project LCOE is primarily influenced by the specific cost of the PV system, the operating and maintenance cost, and the actual WACC. The studys findings are particularly significant for decision-makers and stakeholders involved in agrivoltaic policy development, the researchers note. Their work is described in “ Economic evaluation of one-axis, vertical , and elevated agrivoltaic systems across Europe: a Monte Carlo analysis,” published in Applied Energy . The researchers were from Mälardalen University in Sweden and Università Cattolica del Sacro Cuore in Italy. Looking ahead, the teams intend to continue focusing their research efforts on agrivoltaic systems, according to Zidane. |
