Large Scale Solar Power System Design
Large Scale Solar Power System Design
Large Scale Solar Power System Design
By
May 2016
The graduate project of Noor Mahammad Shaik is approved:
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Acknowledgement
providing this opportunity to carry out the present work and also I would like
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Table of Contents
Signature page ii
Acknowledgement…………………………………………………………iii
List of Figures……………………………………………………………viii
List of Abbreviations.……………………………………………………..ix
Abstract…………………………………………………………………….x
Chapter 1……………………………………………………………………01
1.3.1 Characteristics……………………………………………...08
iv
Chapter 2……………………………………………………………………17
2.1.1 Insolation…………………………………………………..17
2.1.3 Spacing…………………………………………………….22
Chapter 3……………………………………………………………………26
v
3.2.3 Multi-string Inverter……………………………………….32
3.3 Factors affecting Inverter Selection……………………………...33
3.4 Inverter Protection……………………………………………….34
3.4.1 Voltage dip and swell……………………………………...34
3.4.2 Abnormal frequency……………………………………….35
3.4.3 Reconnection………………………………………………35
3.5 Electrical design…………………………………………………36
3.5.1 DC system design………………………………………….36
3.5.2 AC System design………………………………………….45
Chapter 4……………………………………………………………………51
4.1 Issues……………………………………………………….......51
4.2 Protection……………………………………………………….59
Chapter 5……………………………………………………………………61
5.1 Solar Power system cost analysis………………………………61
5.1.2 Solar power system output analysis………..…………….62
5.1.3 Solar system financial analysis…………………….…….62
5.2 Financial Incentives…………………………………………….63
5.3 Power Purchase Agreement (PPA)……………………………..66
Conclusion………………………………………………………….…..…71
Future research work……………………………………………………...71
Appendix……………………………...…………………………………..72
References………………………………………………………………...78
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List of Figures
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Figure 3.8: Voltage dip and swell………………………………………….38
Figure 3.9: Voltage and power dependency graphs of inverter efficiency...39
Figure 3.10: Typical single wire solar cable……..………………………...41
Figure 3.11: Cable trays and Cable ties…………………………………....42
Figure 3.12: Plug connectors………….…………………..………………..42
Figure 3.13: Typical cable insulation………………...…………………….43
Figure 3.14: Combiner box wiring……………………………...……..…...44
Figure 3.15: Transformer location and voltage levels in PV plant………...48
Figure 3.16: Internet protocol based monitoring system……………….…..51
Figure 4.1: Approximate percentage of power available at meter…………51
Figure 4.2: Distortion in output due to harmonics…………………………52
Figure 4.3: 22kv powered by DER capable of islanding…………………..54
Figure 4.4: Short circuit current impact……………………………………55
Figure 4.5 Typical under voltage sag……….………….…………………..56
Figure 4.6: power variation in a whole day sample……………….……….58
Figure 4.7: Damaged wire insulation due to wire pulls can be cause for ground
faults………………………………………………………………………..59
Figure 4.8: Typical lightening protection using streamer emission and
lightning rod……………………………………………………………......60
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List of Abbreviations
PV Photovoltaic
TWH Tera watt hour
MTOE million tons of oil equivalent
EIA energy information administration
RES Renewable energy resources
SI Solar irradiance
I Insolation
SC Short circuit
OC Open circuit
NDZ Non detection zone
NEC National Electrical Code
S Solar constant
LVRT Low voltage ride through capability
STATCOM Static Synchronous Compensator
MPPT Maximum power point tracking
FiT Feed in Tariff
RMS Root mean square
STC Standard test condition
MCB Miniature circuit breaker
PPA Power purchase agreement
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Abstract
By
The objective of this project is to understand the design of large scale solar power system
design. The study involves site evaluation required for design with detailed explanation of
topologies of PV system has been carried out. Technical issues faced during grid
interconnection and construction are discussed, in addition with protection system needed
to protect PV system. One important factor in any large scale construction is economics,
this element in the context of large scale power system design is presented. Finally, the
research work carried out had very minimal references and are tough to find out. But, with
the help of solar project reports of private companies and thesis research carried out by
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Chapter 1
INTRODUCTION
In this chapter, the energy consumption rate is presented with a brief introduction of solar
energy. Additionally, basics of PV cell and its characteristics are explained. Power system
components required for the solar power system are also covered in this chapter.
Concern over supply difficulties and environmental impacts such as global warming, ozone
layer depletion, climate change, green house effects etc., has already been raised due to the
rapidly growing demand. Consumption trend has seen to be ever-rising as per the statistics
provided by the International Energy Agency [2]. From past fifteen years (2000 to 2015)
it has been observed that CO2 emissions has grown by more than 50% from fuel
combustion alone (Fig.1)
1
While the global consumption rate is growing at an average rate of 1 to 2 % with Asia
staying at the top position consistently from past two decades (1994-2014) with a
consumption rate between 2500-5500 Mtoe and North America taking the second position
with a 2500Mtoe on an average.
Publications provided by EIA state that the industrial sector consumes most of the energy
produced at 62%, while the residential sector take a 15% stake, further commercial and
transportation sector are at 7% and 15% respectively. Reference [4] indicates that there are
two primary reasons for the increase in energy consumption. Growth in number of residents
connected to grid and home appliances.
2
Any developing nation mainly relies there electricity generation on oil, coal and natural
gas. But, the point of resource are not evenly distributed throughout geographical map of
the state or nation. They may be near or far away from the load center, due to which
problems like power cuts and load shedding occur, as the demand is not meeting the supply.
This is where the renewable energy sources come in to picture, where solar energy is
noticed to be the chief candidate of all the available renewable sources in developing
nations.
The advantage of renewable energy sources are that they are abundantly available and by
taking advantage of the geographical location we can establish source point from there. For
instance, areas where it is sunny and clear in sky, we can take benefit of it and utilize the
available solar energy, same applies to biomass or wind energy. The reach of these
renewable energy resources is far better when compared to conventional energy resources.
For example, remote areas such as islands and mountains where implementing a
conventional power system line is costly and exhaustive process [4].
Though RES are proved to be the best solution they are not considered to be the primary
choice when it comes to electricity production as they are dependent on geographical
location of the countries and each renewable resource is seasonal which isn’t sustained
throughout year. Additionally, they require energy storage systems and energy
management systems for controlling the production and consumption which does account
for the demand.
To conclude, investment in RES is must despite their limitations. Considering all the
drawbacks and benefits, the best solution is coordination between Conventional energy
sources, RES, loads and Energy storage systems to provide uninterrupted power supply
despite any conditions which not only provides energy demand but also helps to maintain
a reasonably viable lifestyle for future generations.
3
1.2 Why Solar Energy?
The concept of photo voltaic effect was first discovered by Alexandre Edmond Becquerel
[6] in the year 1839, which explains how electricity can be generated when two different
brass plates dipped in a conductive solution produced an electric current when exposed to
sunlight. Though, the efficiency of solar cell was not significant as they was no quantum
theory nor any significant breakthrough in science to support his theory.
The fossil fuel energy consumption which is noticed to be a major one of all the
conventional energies [7], including with deforestation led to decrease in natural recycle
of carbon dioxide gases. This has led to rising temperature levels resulting in global
warming. An attempt to control this practice is restricted by comprehensive energy policies
and lobbying efforts of special groups.
To fight back this custom, it is essential that our nation as a whole, should be made aware
of the affects caused by waste of fossil fuel energy and encourage use of all renewable
energy technologies and to save and secure environment for future generations.
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1.3 Photovoltaic cell
A photovoltaic cell or solar cell is constructed mainly from silicon semiconductor material,
as it has excellent conductivity and it is abundantly available. It approximately weighs 25%
of iron with a production of 1 million tons of metallurgical grade 99% pure silicon in steel
industry. Since, the electron binding in semiconductors are held midway between metals
and insulators they are the perfect materials for producing power in photovoltaic cells.
Semiconductors are constructed by fusing N-type and P-type silicon wafer elements. So
for an N-type material phosphor can be chosen as it creates free electron and for the P-type
material the agent which produces hole is boron [9]. The tendency of a N-type material is
to lose electrons and procure hole, so that it gains positive charge, In contrast to this P-type
material loses holes and gains electron to attain negative charge, when fused together they
form PN-junction.
5
In solar cells, when sunlight penetrates PN junction it strikes silicon atoms and energizes
the outermost electrons in the atom. The energy absorbed will allow them to break free
from their atom which in turn will lead to electric energy. The light striking the PN junction
decides the energy conversion efficiency.
Solar cell manufacturing technologies fall into three main categories [8]:
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Mono-Crystalline
Mono crystalline solar cells are cut at four sides to make silicon wafers which are
cylindrical in shape. Performance enhancement, cost reduction and characteristics look are
outcomes of this process. As, mono crystalline panels are cut at edges they can be easily
differentiated from poly crystalline as they are rectangular in shape. Efficiency level for
these crystals are 15-21%, perform well in low light conditions and live the longest. But,
these panels are most expensive of all the solar cells and have a possibility of circuit
breakdown when covered with dirt or snow.
Poly Crystalline
Unlike Mono crystalline solar panels these are not cylindrical in shape as raw silicon is
melted into a square mold which is cooled slowly and form perfect square silicon wafers.
Additionally, these manufacturing process is cost effective and simpler though there
performance is less when compared to mono crystalline solar panels
Thin layers of photo voltaic material are deposited on a substrate to form a thin film solar
panel. Efficiency levels achieved by use of this panels range from 7-13%, despite their low
efficiency levels, they are manufactured only because, mass production is simple, space
efficient and can be made flexible. Downsides of these panels are, they tend to degrade
faster and cost of PV equipment is high
7
1.3.1 Characteristics
A. Solar Irradiance
Solar irradiance is the amount of power density impacting on an imaginary unit surface
expressed in watts per square unit (W/m2) .Instantaneous peak power of any solar power
energy device can be measured by solar irradiance. The solar radiation on earth surface
isn’t constant due to orbital variation if distance between sun and earth. The amount solar
power accumulated over a period of time can be measured using solar irradiance. As such,
the generating capacity of any PV system can be determined using SI.
The Air Mass (AM) is the path length which light takes through the atmosphere, is the
mass of air between the sun and the surface that affect the spectral distribution and intensity
of sunlight .
Where ‘θ’ is the angle of sun radiation form zenith. The standard AM1.5 is defined for the
solar panels whose surface is sloped at 37 0. SI of earth’s surface rises in the morning
reaches a peak value in the afternoon and a low value in the night.
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B. Insolation
Insolation [I] can be defined as the amount of solar energy received from sun that strike
the surface of earth. Insolation is not constant as it is affected by climatic conditions such
as cloudy conditions, temperature changes and Zenith angle [1]. It is evident that earth’s
axis is tilted at 23.50 with respective sun and changes from +23.50 during June to -23.50 by
December commonly referred as seasonal changes.
The term Solar constant (S) need to be find out as it helps us to know the solar energy
striking earth’s surface. It has to be observed that the amount of solar energy entering the
atmosphere of the planet is lost by 30% approximately due to scattering and reflection of
solar rays, incoming angle of solar radiation etc. Insolation can be defined as,
9
1.3.2 Factors affecting PV panels
A. Shadow effect
When solar panels are arranged in an area they are placed in the form of arrays. These
arrays are connected in series with many parallel strings. When a solar cell connected is
shadowed by means of a structure or any climatic conditions it loses its photo voltage
thereby losing power. Even though, the shadowed string is not generating any voltage by
itself it can still carry current as it is connected in series with other solar cells but, produces
heat and I2R losses.
As this shadow effect leads to losses, other cells have to make up for it to produce higher
voltage which in turn produces low string current. This effect is more pronounced when
large number of solar cells are shadowed beyond critical limit making the whole string
value to zero. The adopted way to deal with this problem is by connecting bypass diodes
to the sub divided circuit, which come internally with modern solar modules.
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B. Temperature effect
Increase in cell temperature causes short circuit current of a solar cell to increase while
open circuit voltage of cell decreases. The effect of temperature on current and voltage can
be determined when we evaluate the power obtained, which can be done as follows
Let,
α = β = Temperature coefficients
If the temperature is increased by ΔT the new current and voltage values are given by
The value of α= 500uu per 0C and β =5mu per 0C for a single silicon cell. Power is given
as follows
The above expression indicates that there will be 0.45 percent decrease in silicon cell power
for every 0C. In order to generate more power the PV cell’s needs to operate at lower
temperature as the maximum power point (Pmax) when plotted versus voltage are obtained
at lower temperatures.
C. Effect of climate
PV modules can produce up to 80% and 30% of solar energy striking on the panel on partly
cloudy and extremely overcast day respectively. PV modules are designed to withstand
hail of golf ball size and snow usually doesn’t form on PV panels as melt or slip away due
to their angled construction
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1.4 Photo Voltaic Power System Components
1.4.1 Inverters
Inverters are electronic devices, which convert direct current from the solar photovoltaic
cells to alternating current to be supplied to the grid. The wave formation process using the
inverter can be understood from the (Fig.1.8) below.
The direct current obtained from the PV cells is split into equidistant sections of positive
and negative portions which is nothing but a square waveform. The obtained square wave
when examined using the Fourier series analysis, reveals a combination of sinusoidal
waves, which are so-called harmonics and these harmonics are filtered using an electronic
device known as a choke. The choke is an inductor which attenuates the high frequency
signals and allows the passage of low frequency signals [9]. The output signal is then
passed through a series of electronic filters which smooth out the signals into fine
sinusoidal waves. The DC to AC switching mechanism can be done by using several
inverters of example line commutated, self-commutated, square wave inverters etc. There
are different types of PV inverter systems classified on the basis of their operation as
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A. Stand-alone inverters
These type of systems primarily consist of the PV grid, a battery storage device and
the inverter connected primarily to the storage device. The PV system DC output
charges the battery and the DC output of the battery is converted to AC using the
inverter, which feeds the output to the load.
C. Bimodal inverters
Such inverters are designed with precise electronic circuitry which allows them to
operate in either modes i.e. stand-alone or grid connected. These inverters are used
in cases such as, where a constant output is required irrespective of the solar
irradiance. So in this systems the PV cell output is connected to an inverter which
converts it into AC and feeds the load, as well a battery storage system, to charge
it when the PV output is more than the demand, to be used when there is low power
output from the PV source.
Power generated from solar is high during the noon and decreases as the day progresses,
as a result, a storage device is essential to store the excess power generated to be used later
for peak load demand. The most efficient storage decide for the solar power is a battery,
which converts chemical energy to electrical energy during discharge. The Lead Acid
battery is the mostly widely used solar energy storage device as it has an efficiency of 85-
13
90%, compared to 65-80% of an alkaline i.e. Nickel-Cadmium battery. The hazardous
contents of the alkaline batteries make them expensive to dispose as well. The deep
discharge batteries have slower charging and discharging rate characteristics, and used for
power backup uses.
The basic operation principle of a battery storage device can be understood from the
(Fig.1.9) shown below. In Lead-Acid batteries the electrolyte is diluted sulphuric acid.
The electrodes anode and cathode are lead oxide and metallic lead. The reactions during
charging and discharging result in the flow of electrons [1]. The shelf life of a battery is
very low usually around 12-18 months, for this reason they are shipped from the factory
with damp plates. Proper maintenance and operation of the battery can ensure a life span
of around 25years.
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1.4.3 Solar power system wiring
The wiring of any power system is very important in the aspects of cost, safety hazards to
the personnel etc. Faulty wiring design can cause fire hazards and other accidents and
decrease the dependability and efficiency of the power system. The wiring specifications
such as the sizing of the wire used, rating of the equipment, short circuit current in the
event of a fault must be given due importance.
The solar power system consists of both DC as well as AC components, hence the
personnel must be well informed and knowledgeable of the working of those equipment;
for example the inverters, emergency power back up systems, storage systems etc. The
location of the project, weather conditions all dictate the type of design of the wiring, its
specifications, insulation etc[9]. The system must be designed to withstand severe weather,
humid and flooding conditions as all of the equipment including the PV panels, wiring,
raceways, and junction boxes are open to the sky.
As per the NEC standards the PV module wiring must be designed to have a maximum
ampacity of 80% of its rated value. The insulation levels of the cables outdoors and indoors
must be taken into account as there are variations in the temperature, ultraviolet radiations
etc. Universal color coding must be followed, i.e. red or any other color for positive; white
for negative and green for the grounding wire, so that it is easy for the personnel to
differentiate between the wires. And the grounding terminals of all the equipment must be
connected together and grounded at a single location on the site.
Lightning protection for outdoor PV equipment is very much essential to protect the
systems from burnout and damage during lightning. This can be achieved by using a
lightning arrestor and superior grounding techniques [1]. The lightning arrestor should be
designed keeping in mind the voltage and the amount of charge supplied during lightning.
15
The main purpose of a lightning or surge arrestor is to provide a direct path of conduction
for the lightning charge to protect the exposed equipment; i.e. to decrease the voltage in
the shortest possible time and to conduct the maximum amount of charge. If charges are
not removed instantly the insulation of the circuits can breakdown beyond repair. The
(Fig.1.10) is a graphical representation showing the deployment of a lightning surge
arrestor.
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Chapter 2
DESIGN
Parameters required for design with factors affecting are discussed in this chapter. Layout
of PV modules, brief electrical design of both AC and DC side are explained.
2.1.1 Insolation
Solar insolation is defined as the quantity of energy received when the sun’s rays strike the
surface of the earth and this is subject to the climatic conditions like the temperature, angle
of incident of the solar rays on the surface etc. As the axis of the earth is tilted by 23.5˚,
the angle at which the sun’s rays strike the earth’s surface varies continuously, which is
known as the solar declination angle, as shown in the (Fig 2.1), and the earth revolves about
the sun in an elliptical orbit.
Figure 2.1: Variation of the solar declination angle with the seasons
17
The angle through which the earth has rotated since mid-day is known as the solar hour
angle, which is 0˚ at noon, this can be understood from the (Fig.2.2) shown below. By
applying cosine to the hour angle, we can obtain the zenith angle shown in the (Fig.2.3),
which is the zenith angle from the observer’s point looking at the sun. Using the above
information the solar constant(S), which the mean energy striking the surface of the earth
in a square meter area at 90˚
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Figure 2.3 [9]: Solar zenith angle
The amount of solar energy measured using satellite instrumentation above the earth’s
atmosphere is known to be about 1366 watts/meter2. But the energy receive on the surface
of the earth is only 1000 watts/meter2, after the scattering and reflection in the atmosphere.
And this is further reduced on a cloudy day [9]. Now the solar insolation can be calculated
using below equation:
Where, S=1000W/m2
L=Latitude
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2.1.2. Shading analysis
The shading analysis of a solar power plant is very essential as it has a direct effect on the
efficiency and life on the plant and panels. For maximum harvesting of solar energy the
shading analysis is done, in addition to adjusting the tilt angle with respect to the position
of the sun and time of the day. Say for instance a part of a PV array is under the shade, in
such situations there is a voltage and current difference and to compensate for the
voltage/current imbalance more power is drawn from the unshaded panels, which affects
their life and efficiency.
In shading analysis software such as PVSYST are used, which can project the shade cast
on the panel for different seasons, and design can be modified accordingly [1]. Commercial
products such as solar pathfinder and the shading graphs as shown in the Fig. (2.4) below,
can be used for yearly shading analysis which provide accurate data of the length, width,
height of the shadow cast by trees, high rise buildings, mountains etc. in a particular site.
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2.1.3 Meteorological data
When evaluating a site for solar PV system, it is essential to do a thorough research on the
amount of solar radiation, temperature, natural calamities, winds, seasonal flooding etc. in
the particular area, this is called the meteorological data.
This data can be measured using commercially available devices such as an anemometer,
which can be used for measuring the temperature, wind speed etc. and a pyrometer for solar
insolation measurement. The data displayed by the measuring devices usually includes the
location of the project; position of the sun and moon; history of the weather conditions in
the particular project site; the installed solar power and output etc.
For the meteorological data in the US, can be obtained from the data provided by NASA,
Atmospheric Science Data Center etc. on their respective websites. The solar radiation and
other parameters have been measured for more than a decade and made available on various
government websites.
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2.1.2 Tilt Angle
Every PV panel has an optimal tilt angle at which the power generated is maximum. But
sometimes every panel cannot be set to the optimal tilt angle because of certain factors,
which have been described below
A. Soiling: The soiling losses are caused by the accumulation of dust particles, snow etc.
on the PV panel. The rain water washes off the dust, and snow can slide down easily at the
higher tilting angles.
B. Shading effect: Higher the tilt angle, larger is the shadow generated from the panel. As
a result of which the panels placed in the shadow have lower efficiency and the output
needs to be regulated. Seasonal variation of solar insolation: The solar insolation or
irradiation is not the same during all the seasons, for example during the rainy season the
sun’s rays are obstructed by the clouds and to compensate for the loss, the tilt angle could
be adjusted.
2.1.3 Spacing
The spacing between the solar PV panels is governed by several factors such as shading,
area limit of the plant, wiring cable tracks etc. However, it is highly impossible to make
the inter-row shadowing zero, as the length of the shadows are maximum during the
mornings and evenings. The Fig 2.5 shown below can be used to explain the spacing and
shadowing effects. The angle ‘α’, is the shading limit angle, beyond which some portion
of the panels gets shaded, and there is an associated loss with it. However, this can be
reduced by decreasing the tilt angle ‘β’, or increasing the row pitch‘d’. And designers
follow a thumb rule to have no shading at the solar noon on the winter solstice [12]. And
if the annual loss is less than 1% the plant is considered to be acceptable.
22
Figure 2.5: Shading angle diagram
The single line pictorial representation of all the electrical and solar components of a PV
system is known as the electrical single line diagram. The (Fig 2.6) shown below consists
of the solar array, inverter, transformer, fuse or protection system switchgear and grid
connectivity points.
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2.1.5 Grounding plan
Grounding of any equipment with an output of 50V DC in open circuit state is essential.
Usually the ground wire is a copper conductor which runs from the body or chassis of the
equipment to the grounded electrode, to provide a dc current conduction path if the metallic
structure is energized. Generally, only a single ground location is designed in a site or
project, at which point the ground wires of all the structures and equipment is connected.
The ground wire is required to carry all the short circuit current, and is designed
accordingly to carry 125% of the ground current as a safety measure. A ground relay is
connected to the circuit, which is actuated in the event of a fault. All grid connected and
stand-alone PV systems are required to have a grounding, as per the NEC standards. Some
of the equipment that required grounding include metallic enclosures, disconnect switches,
junction boxes etc. The (Fig 2.7) shows the grounding for a solar power system.
24
2.3 DC & AC Design
DC Design: The DC design of a PV system encompasses all the layout till the
inverter i.e. the arrangement of the PV modules, type of modules to be installed,
size, length etc. and the size and placement of the inverter. It also includes the sizing
of the wires from the combiners to the inverters and the tolerable voltage drop, their
insulation, ampacity of the conductors etc. [10]. All the system components must
be designed in accordance with the NEC code and the utility requirements.
AC Design: The AC design starts from the inverter and it involves the single line
diagram in which the wire lengths are identified for the entire system from the DC
side to the combiner, recombiner and inverter till the main panel board of the power
station. A conductor schedule is done which defines the characteristics of the wire
used such as its size, protection against over-current, NEC de-rated current etc.,
which provide the required calculations for the maximum tolerable voltage drop,
overcurrent protection and de-rated current.
25
Chapter 3
CONTROL
Classification of inverter types, factors affecting inverter selection including its protection
system is discussed in this chapter. Furthermore, electrical design (both AC and DC) of
utility scale power system with factors affecting system design and cost are studied.
Design of Utility scale power system requires a great deal of experience and technical
comprehension. In order to meet the ideal balance between performance and cost, many
trade-offs have to be made [12]. So, each and every characteristic of the PV system should
be thoroughly examined and enhanced since potential benefits from such analysis will
reduce future costs and will save from revenue losses.
Annual Energy yield can be increased by means of reducing the system losses which can
be done by optimizing the performance of solar plant. But, this increases the cost of the
plant and also efforts to decrease losses incurred by one type might trigger another one. It
is the skill of plant designer to design solar plant with lower costs and good efficiency
levels.
26
PV panels absorb the solar energy and generate DC power, they need to be converted to
AC in order to be fed to grid which thereby be supplied to ordinary electrical equipments.
Interconnection between grid and PV system is made possible by Inverter. So, inverter
plays a vital role for grid connected solar systems to have safe and reliable operation of PV
system.
For any plant design, PV modules installed have a significant effect on system cost. But,
maximum power demand, sun angel, shading, location, equipment quality, metering,
wiring system, automatic control system are other factors that affect cost of grid connected
PV system.
27
3.1.1 Basic components
PV array: Solar energy incident on this panel is converted to DC power, while the
arrangement of these panels are made in series and/or parallel fashion. The
important parameters that need to be considered while designing PV plant are tilt
angle, irradiance, shading temperature etc.
Inverter: Conversion of DC power obtained from the PV modules to AC is done
using an inverter. Since the Inverter forms a bridge between grid and PV system,
the output obtained from inverter should match the grid voltage, frequency and
power limits.
Transformer: Obtained power from Inverter can be boosted to required limits by
transformer. The design of PV system can also be made transformer less.
Switchgear: protective devices like circuit breakers, relays are present here. They
not only provide protection to the system, but also make sure that the
interconnection between grid and PV panels always exists.
Meters and other devices: Filters and converters can be used in order to enhance
system performance and meters are used to measure the power drawn and fed to
utility.
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3.1.2. Conditions and requirements for Grid Interconnection
In order to get an appropriate interconnection between grid and PV system few conditions
have to be met without fail, which are
iii) Low voltage ride through capability (LVRT): Inverter design’s should be
provided with LVRT and reactive power capability as utility scale PV system
connected at distribution level can be affected in the event of disturbance which
may affect grid stability.
iv) Frequency and Voltage matching: Voltage and frequency levels of SPV
system should be same as grid, otherwise synchronization is not possible.
Though, it is possible to maintain SPV system frequency at slightly higher (0.1
to 0.5) than grid with a matching phase sequence (1200 phase apart for 3-phase).
29
3.2 Topologies of PV systems
Selection of an inverter for a PV system requires assessment of both financial and technical
facets. No single inverter is finest for all solutions, based upon PV module technologies
different PV system layouts require different inverter topologies [14]. Shaded PV module
efficiencies is not only diminished by decrease in solar energy but also due to mismatch
losses that occur in PV modules.
Latest advancements in PV system architectures will not reduce the mismatch losses but
will also reduce impact of shaded module on photovoltaic array. Annual revenue of PV
plant is affected by the conversion efficiency produced by inverter which is differs by
variables such as load, site temperature, altitude on which they are mounted, DC input
voltage etc., the rated power of PV installations determines which topologies to be selected
viz.,
1. Centralized inverters
3. String inverters
Figure 3.3 [14]: PV installation topologies used according to their rated power
30
3.2.1 Centralized Inverters
Centralized inverters are known to be the most common used layout of all Solar PV system
topologies. The arrangement consists of modules connected in series manner also known
as PV strings where in, these strings are connected in parallel in order to meet voltage and
power demand. The below figure 3.4(a) depicts the structure of centralized inverters
installation. Despite this type of installation requires low maintenance and converter costs,
they suffer from downsides like mismatch losses, low upgradability, security risks due to
high DC voltage flow in cables. Regardless of these issues, these topology is proven to be
1.5% less efficient than string inverters by a recent study [14] in total energy conversion
with 60% less installation costs of power conversion units
Figure 3.4 [14]: PV system topologies - (a) Centralized inverter (b) String inverter (c)
team concept (d) Multi string inverter
31
Figure 3.5: Centralized inverter
Further developments in topologies led to ‘team’ concept where the strings are connected
by means of DC switches. This will make the system function as one whole unit as seen in
centralized topology making the conversion from DC to AC by using only one inverter.
This concept shows a 4% increase in overall efficiency even though the advantage mainly
lies in staying connected to grid with low solar irradiance.
32
Figure 3.6 String Inverter topology
Multi string inverter topology adds DC-DC converter to each string reducing the inverter
work by transferring MPPT control strategy to it. Moreover, the string voltage is increased
by the converter to high voltage DC bus using this MPPT strategy. To this topology Dc-
Dc converters can be added to few strings keeping the specifications of inverter in mind.
Surely, modules used differ in technology, size and power values. Since, conversion of
power from DC to AC is pooled between converters and inverter, measure and surveillance
of electrical variables, grid current oscillation and price cuts can be made on converter
configurations.
33
3.3 Factors affecting Inverter Selection
Selection of an inverter for a large scale PV system has lot of variables and technical
constraints to be considered [15]. There are few criteria’s that are desired to be met by an
inverter, which are mentioned below:
34
3.4 Inverter Protection
As the interconnection between grid and the PV system is made through inverter, it is very
important to protect inverter under any unusual conditions mentioned below, so that it can
be disconnected form grid
There are certain limitations that are required to be followed by an inverter such as, step
voltage, which is to be varied only between 207V to 253V. If the voltage is less than 207v
it is considered as undervoltage or voltage dip and if the voltage is higher than 253V then
it is said to be voltage swell or overvoltage, hence the voltage limit can be set as ±10% of
nominal voltage rating.
Figure 3.8 [15]: (a) Voltage dip caused by SC in grid (b) Voltage swell caused by large
load disconnection [253V- Blue line; 207V- Red line]
Voltage dip can be explained as reduction of its nominal RMS voltage below 90% and
higher than 5% for 10ms and 1 minute which are usually caused by short circuits (SC),
large load connection to grid and reconnection errors. On the other hand voltage swell is
observed when nominal RMS voltage exceeds 110% of agreed voltage level within 10ms
to 1 minute triggered due to disconnection of load, wrong transformer stepping. It must be
noted that if voltage level deviates within 10% of nominal voltage then inverter needs to
be disconnected from grid within 60 sec but, if it exceeds by 115% then it need to be
disconnected within 0.2sec.
35
3.4.2 Abnormal frequency
When isolated grids are controlled by utility company or when generators are the only
source for a grid functioning then frequency problems may occur. It is the operator’s
responsibility to maintain the system frequency within predefined limits which are 50 Hz
± 2 % (49-51 Hz) [16]. If the frequency deviates from the prescribed limits then generators
are to be disconnected, frequency control of active production and start of gas generators
is demanded to keep frequency in above stated limits. The maximum disconnection time
given to an inverter is 0.2 sec during abnormal frequency situation.
3.4.3 Reconnection
The above cases mentioned are to be satisfied, during a faulty or unusual situation, which
leads to inverter disconnection to protect grid. The reconnection time when the fault is
resolved depends on how long fault lasts. If the faults lasts less than 3sec then the allowed
time of inverter reconnection is 5sec while, if the faults lasts greater than 3sec then the
allowed time to reconnect is 30sec.
36
3.5 Electrical Design
The electrical design of PV system can be divided into two systems viz., DC system and
AC system. While there is no one size fit while designing a PV plant as the design of plant
comprises of lot of variables and constraints [12]. Additionally country specific electric
codes should be followed in order to develop a safe and efficient installation. The solar PV
system design will be divided into two section which are DC and AC electric design
explained in the following sections
Using the maximum output of individual modules the maximum voltage and current ratings
of individual strings and PV array should be calculated. Their results should be checked
manually even though if simulation programs have been run. For mono and multi
crystalline silicon cells, their rating should be made as follows
37
Components used in DC electrical design should be allowed with thermal and voltage
limits using multiplication factors stated above. These are location dependent and values
vary for which National standards and codes should be consulted. DC component
manufacturers provide ratings of non-crystalline silicon modules to which temperature and
irradiance coefficients need to be added to get the voltage and current ratings. Moreover,
the effect of initial settling period should be taken into account as the values of Voc and Isc
are much higher.
A. Array design
Inverter specifications will decide the PV array design as the power output produced from
array need to be matched with inverter. Even though, ohmic losses can be minimized when
many modules are connected in series, safety issues and national regulations have to be
considered while doing so
Maximum no. of modules in a string: The DC input voltage (VMAX (INV, DC) of
inverter should never be exceeded by voltage that is being produced by modules in
the string as this will have an effect on operational lifetime of inverter. Hence, the
maximum number of module that are to be connected in a string is decided by
inverter specifications. To calculate the highest module voltage that can occur, open
circuit voltage must be measured in the coldest temperature at site location.
Maximum number of modules that can be connected in a string (nmax) is given by
below formula:
Voc (module)@coldest module operating temperature x nmax < Vmax (INC, DC)
Minimum no. of modules in a string: Maximum power point (MPP) of inverter
decides minimum number of modules in a string as the system has to keep its
voltage within MPP range of the inverter. The system will underperform if the
PV string voltage drops below the minimum MPP inverter voltage. When the
module operates under high temperature the system efficiency is expected to be
lowest. Minimum number of modules that can be connected in a string (nmax) is
given by below formula:
VMPP (MODULE)@highest module operating temperature x nmin > VMPP (INV min)
38
Voltage optimization: It is advised to optimize the design by closely toning array
operating voltage and inverter optimum voltage as the inverter efficiency is
dependent on operating voltage. So, inverter manufacturer should be requested with
voltage dependency graphs, if not provided, they can be found from independent
sources. If the operating voltage of array and inverter are matched then the plant
yield can be increased significantly. Below graph provides voltage and power
dependency graphs for inverter efficiency
Figure 3.9 [12]: Voltage and power dependency graphs of inverter efficiency
Number of strings: PV array current and maximum inverter current decide number
of strings permitted in a PV array. If the number of strings attached to array limit is
increased than the predefined value then it leads to premature inverter aging and
yield loss which isn’t suggested.
39
B. Inverter sizing
Parameters such as solar irradiance and module tilt angle play an important role when
selecting an optimal inverter sizing as there is no strategy that applies to all cases. It is
suggested to use inverter to array power ratio less than one while designing when designing
inverter. For instance, this choice might lead to a circumstance where inverter succeeds in
cutting down power spikes produced by irradiance profile which are unexpected or when
reactive power injection is required by inverter it might fail to comply with grid codes.
Most plants have inverter sizing within below mentioned limits:
System sizing software provided by manufacturers help in inverter and PV array sizing as
they provide guidance in total number of inverter required. Further, there are number of
guidelines that need to be followed when sizing an inverter:
Max. Voc measured in coldest daytime temperature should always be less than
maximum DC input voltage (V INV,DC max)
Max. inverter DC current should be greater than PV arrays current
Minimum Voc in the hottest day temperature should be less than inverter DC turn
off voltage
Site conditions , irradiation profiles, inverter ventilation, lightening, cabinet heating
cost and economics should be taken into consideration when designing
Initial degradation period, wherein the voltage produced from thin-films modules
might be higher than nominal voltage, this factor must also be considered
40
C. Cable sizing and selection
National codes and regulations are to be referred when selecting and sizing DC cables for
PV power plant. There are three main factors that are to be considered when sizing cables:
Cable voltage rating: voltage limits of PV string or array cable should be taken
into account. To decide voltage limit of cable, Voc of the modules are calculated for
site design minimum temperature.
Current carrying capacity of cable: location of cable, number of cores,
temperature and method of laying should be taken into account. In addition to that
the cable should be sized as per the maximum current it will carry. Reverse current
in an array might happened during an unusual situation which needed to be taken
care.
Minimization of cable losses: The favorable percent for voltage drop is 3% and
the cable losses should be as low as 1%. So, power losses and the associated voltage
losses should be kept as low as possible. In practice, these are the two main factors
which will be limiting in deciding the size of cables
41
D. Cable management
String cables and module cables which are over-grounded are to be secured safely and
properly routed to the mounting structure using cable trays or cable ties. Further, they
should be protected from standing water, direct sunshine and scouring by sharp edges of
support structures.
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E. Module and String cables
Number of strings per array and number of modules that are connected need to be
considered while rating the cable. As the voltage to be carried is decided by number of
modules and number of strings used decides the maximum reverse current flow through
string. Hence, single conductor, double insulation cables are preferable for module
connection. Moreover, the cables are to be rated for highest temperature (eg: 800 C) as they
may experience these temperatures as per their location and installation method.
F. Main DC cable
While carrying standard test conditions (STC) the maximum voltage that is allowable is 3
percent. So, voltage drop between PV array and inverter should be minimized in order to
reduce losses. Though, the cost of cable is increased if the cable is oversized it is
worthwhile investment as it reduces power losses.
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G. Combiner boxes
Individual strings forming an array are rationalized and connected together in parallel,
using combiner boxes, through the DC main cable before leaving to inverter. In order to
prevent overheating and losses junctions are made with high quality screw terminals.
Combiner boxes are provided with protective components and isolation equipment such as
fuses and disconnectors which are rated for outdoor placement using, for instance, ingress
protection. Multiple junction boxes are used depending upon solar PV architecture and
size.
For safety reasons combiner boxes should be labelled with warning signs correctly to
inform anyone working on the junction box, as the module side of the terminal of a DC PV
system remain live during the day. In order to protect the PV system, fuses and
disconnectors should be provided as they protect against faults and isolation of individual
strings respectively. The duty of disconnectors is to break the normal load and keep apart
on both positive and negative string cables.
44
H. String fuses /Miniature circuit breakers (MCB)
While specifying rating for fuses, national codes and regulations should be consulted and
care should be taken that they must be rated for DC operation rated for over current
protection. The following rules relate for MCB –
If arrays are formed with more than four strings then it should be provided with
breaker. Additionally, breakers should be installed at certain regions in PV plant
where there is possibility of reverse current in the event of fault
Breakers should be installed on all unearthed cables as fault occurs on both
unearthed cables
Junction boxes should be kept in shade as they are prone to overheating which will
lead to nuisance tripping. Breakers should be rated at value which is 1.25 greater
than nominal string current to avoid unnecessary tripping
During standard test conditions breaker must trip less than twice the string short
circuit current (Isc) or less than string cable current carrying capability
The trigger current of MCB should not be larger than the current at which the string
cable is rated
Below formulae should be used in order to rate string fuse voltage and also based
upon the string voltage MCB should be rated:
I. DC switching
In order to provide isolation and protection capabilities in a solar PV plant, switches are
installed. DC disconnector or circuit breaker are used as switches for this purpose. They
allow us to manually isolate entire PV arrays electrically required during situations like
maintenance or installation. Below are factors which should be possessed by a DC switch
for providing protection
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DC Switch
They should be of double pole structure as they have to segregate both positive and
negative PV array cables
Capable of disconnecting circuit under full load, rated for DC operation
Rated for the system voltage and maximum current expected
DC circuit breaker
In an unusual situation where the MCB have to disconnect the PV system to protect
it from fault, MCB fail to operate as the trigger current is higher than that of fault
current. Hence, it is suggested to install a circuit breaker between grid connected
inverter and PV array field. Today, circuit breakers are pre-installed within inverter,
adding additional MCB is unnecessary for this kind of construction.
46
A. AC Cabling
Transmission of power from inverter to transformers and beyond is done by the means of
AC cabling. While selecting AC cabling system, cost and safety are main factors to be
considered. Short circuit current (Isc) and operating voltage range should be considered
while sizing and rating cables.
B. AC switchgear
AC switchgear comprises of components which provide disconnection, isolation, earthing
and protection. Disconnectors should be provide at the output side of inverter as to isolate
PV array in the event of maintenance or installation. Switchgear selection is mainly
dependent upon voltage it is operating, usually internal metal-clad, cubicle-type with gas-
or air insulated busbars and vacuum or SF6 breakers are used if the system is rated for up
to 33KV. Otherwise air-insulated outdoor switchgear or, if space is constrained, gas-
insulated indoor switchgear is installed if voltage limits are higher than 33KV.
47
AC switchgear system should be:
Should comply with national standards and codes
Rated for operational voltage, current and also comply with short circuit currents
Must be provide with earthing and secured by locks in off/earth positions
Clearly show the ON and OFF positions with suitable tags
C. Selecting Transformers
Transformer position in an electrical system will decide voltage levels on primary and
secondary side. Solar power plants require high voltage levels, typically 11KV but
inverters operate at low voltages (say 330-450V). So, one or more transformers are needed
in order to boost voltage from inverter to grid connection point.
The above fig. depicts a single line diagram for the AC system of solar plant with typical
voltage levels. If there is any need to supply power to the plant then auxiliary transformers
are required and also these transformers should follow international standards including
local codes.
48
Technical aspects of the PV plant such as capacity, position to be placed, environmental
conditions and physical location should be considered while selecting appropriate
transformer. Maximum power that can be produced form PV array decides capacity of the
plant. When output power from PV array is known then cyclic duty in accordance with
path of sun through the day can be acknowledged which will allow us to know the dynamic
rating that needs to be applied to transformer. The design should think through following
points:
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D. Plant monitoring
EPC contractor’s last job is to finish plant monitoring system as it is important part of PV
plant. This system help us to calculate liquidated damages and allows to collect data from
PV system. Automatic data acquisition and monitoring technology provides us high level
of performance, reduce system recess time and speedy fault detection.
Monitoring system acts as reference as it acquires data from system and compares it with
theoretically calculated value, rising warnings if the system under performs. It maintains
system performance at appreciable level by detecting and eliminating faults before they
have any impact on the system. Revenue loss can be expected in the absence of monitoring
system as it takes very long time to identify the problem and rectify it.
Weather station installed within the PV system provides us with array irradiance, module
and ambient temperature, preferably global horizontal irradiance, humidity and wind
speed. Simulation measurements of solar irradiance, environmental conditions and plant
power output must be carried out as it aids in fault detection and monitoring system
effectively.
When monitoring large scale solar power system, voltage and current data at inverter,
combiner box, or string level will be kept under observation. This level of monitoring
provides in depth knowledge of system component performance and enhance fault
detection. Yet, contractors install monitoring system only at inverter level as it reduces the
cost of plant but, it has to be realized that installing monitoring system at above mentioned
three levels will benefit the system yield and provide more information.
Data from system components will be collected by data loggers and sent to monitoring
system via Ethernet. Communication protocol usually ‘Modbus’ will be carried out after
obtaining data. Protocol converters will be used if more than one communication protocol
are considered in monitoring system.
50
Figure 3.16 [12]: Internet protocol based monitoring system
51
Chapter 4
4.1 Issues
A. Losses [17]: Inverter inefficiency, wiring, mismatch and other losses when
converting from DC to AC power are to be considered as losses in utility scale solar
system. There are other conditions which impact PV system such as component
failure, high PV module temperature which leads to increase in resistance,
reflection form PV module leading to incomplete utilization of solar irradiance,
high system rundown time.
52
Moreover, PV system itself possess some losses such as, failing to capture available
solar irradiance known as PV array losses and also inverter losses. Deviation from
maximum power point will give rise to power losses which is usually caused by sudden
variation in solar irradiance, voltage ripple, faster DC variation and non-linear solar
cell characteristic with low voltage range.
B. Low and High frequency harmonics: harmonics can be categorized in two ways
viz., low and high harmonics. Non-uniform characteristic of PV inverter installed
in solar plant will give rise to low harmonics. Moreover, this issue will have an
effect on output produced from inverter, as it will produce output which is not
purely sinusoidal and includes harmonics besides its fundamental frequency.
One of the proposed solution for this problem is by a scheme called pulse width modulation
(PWM) technique as they minimize harmonics and are equipped to power condition system
(PCS) by default. On the contrary, high frequency harmonics are induced as power
conditioned systems use high frequency (say kHz) to convert DC to AC which may cause
electromagnetic noises and subsequently causing interference to the electric cables. Filters
are employed to mitigate high order harmonics while low order harmonics are eliminated
via current loop in inverter.
53
C. Frequency Fluctuation: Control of power system is always challenging. With
increasing penetration of renewable energy sources, maintaining power quality is a
difficult task to utility operators. When large scale solar system are to be connected
to grid they can alter the schedule of generating plants which might contribute to
power variation ending up in frequency fluctuation. These are commonly caused
due to differences in supply and demand leading to resonance, chain reaction
collapse situation may occur within generators.
Frequency in PV systems depends upon factors like type and size of clouds passing,
temperature, region covered by cloud. Total power generation produced will not
include this random fluctuations of PV output and PV system with battery are
considered to have more efficiency with faster response time. Special algorithms
added with benefits of fast response times will provide less frequency fluctuations.
However, batteries will add up additional cost to large scale PV system and used
batteries might have impact on environment.
However, these transformers add up cost and are subjected to saturation which may
inject current harmonics into grid. This effect will give rise to distortion of
magnetizing current in transformer, increases heat in magnetic components and
malfunction of protection system. Transformer less inverters with split capacitor
branch as neutral return, will avoid DC component flow. But, this requires high
voltage rated IGBTs which will have switching losses. Use of shunt active or dual
stage RC filter is considered as other solution for this problem.
54
E. Unintended islanding: when the grid gets disconnected from one or more PV
systems the network continues to perform even in the absence of grid, this operation
is called islanding. This operation can be intentional, to carryout maintenance or to
clear fault etc.,
In the event of islanding, there will be no control on loads. Further, there will be no
aspect to detect whether grid is off or on. So, islanding is usually not preferred as it
will cause safety issues for the workers and problems like service reclosing will rise
to huge inrush currents and phase shift between voltages of two separated networks.
In order to detect unintended islanding there are two methods available viz., active
and passive methods. In Passive method, there will be a circuit which monitors the
parameters like voltage, current and frequency of grid and decides abnormality in
them. While in active method, it induces some disturbances such as frequency shift,
variation in power and send this signals to grid. Response from grid will decide
whether utility is present or not.
Inverters are provided with voltage and frequency protection systems in order to
detect islanding. If, power consumed by RLC loads is equal to power generated by
PV array then protection systems won’t operate as thy fall into Non detection zone
(NDZ). Use of power line carrier communications or integration of inverters into
SCADA will overcome the above weakness. If inverters are operated at unity power
factor islanding condition can be prevented. Otherwise, balanced conditions (NDZ)
will eventually intensify and help to fulfill the condition of islanding.
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F. Short circuit: By using SC of the power plant the SC of the grid can be increased
at the point of coupling. With increase in penetration level of PV plant into grid the
SC capacity of whole system is increased more than the pre-determined short circuit
value. Circuit breakers can’t clear the fault if the value of SC current is higher than
rupturing capacity of over current circuit breaker at the customers end.
During fault conditions PV system may be incapable of detecting fault and continue
to supply considerable fraction of fault current which may lead to mis-coordination
of relays and circuit breakers. Voltage controlled inverters are preferred over
current controlled inverters during contributions in SC currents as they are less
effective during this conditions.
Severe stress is observed on the installations connected to the branch of grid where
SC occurs. If the branch protection system interrupts SC current then voltage sag
followed by transient over voltage is observed due to circuit breaker operation.
Inverter should be equipped with over current limiter as it would help prevent stress
on electronic devises connected to it.
56
G. Under voltages: Decrease in 90% of its rated voltage for more than 1 minute is
referred as undervoltage, it would have a significant impact in power quality as they
effect on equipment and may lead to its failure. These condition can be caused due
to sudden failure of PV or if cloud blocks the solar irradiation onto PV panel will
give rise to severe voltage dips.
Under voltages appear due to short circuit currents and switching of large loads.
This issue can cause severe problems, for instance, system stability will be
disturbed when large scale PV plant production gets suddenly dropped due to
internal disturbances in the network. Hence, power system should not be
disconnected from grid, especially large scale plants.
57
H. Voltage Variation: The generation of power form PV plant is not constant, it varies
depending upon many factors and also the load fluctuates continuously. Cloud
passage can be considered as one of the reason for this type of generation and
tripping of inverters due to fault or voltage dip initiated from thousands of miles
also effects voltage generation.
By using low voltage ride through technique the voltage tolerance can be extended
and this allows inverter to function at low voltages for a particular time. Storage
systems integrated into PV systems can also eliminate this problem and AC power
component compensator inserted into PV array can control its output.
I. Over voltages: reverse current gets flown from grid when more power gets
generated at PV system than required demand giving rise to voltage rise as it passes
down the line. Electric components like voltage regulator and protection
coordination network gets disturbed due to this issue. Large capacitor banks gets
energized when large loads are switched off due to asymmetrical faults affecting
the unfaulty phases.
58
J. Power fluctuation: PV system output is decided by many factors such as sun,
seasons, location diversity, cloud shading, etc. Power fluctuation of one single
location is more when compared to multiple PV plants connected to one single
point. Severity of these power fluctuations is affected by type of clouds, penetration
level of the PV system, topology of the PV system and topology of the electric
network.
Power fluctuations can be short term or long term depending upon severity. Short
term power fluctuations will effect voltage and power factor while long term
fluctuations require backup power supply. Components like tap-changers and
capacitor switches life time gets deteriorated as they continuously switch in order
to maintain power quality.
To address these issues two solutions have been suggested, one of them is solar
radiation forecasting and storage system and latter is decreasing charge discharge
cycle times, warranting safe operation, reducing costs, increasing power and energy
densities
59
4.2 Protection
A. Ground protection: Ground faults are usually caused due to module breakage,
damage in insulation system due to foreign objects, damaged insulation, and
corrosion effect. The effect of ground fault is not distributed, they are localized and
magnitude depends upon impedance of fault current. Leakage currents are low in
magnitude but possess high voltage say 100V [16] and they are spread throughout
array.
Figure 4.7: Damaged wire insulation due to wire pulls can be cause for ground faults
60
B. Earthing and Surge protection: Earthing provides PV system protection against
electric shock, lightening and fire hazard. During storm situations, electric shock that
gathers in the system is prevented. It includes following components:
Consultation should be taken from national codes and regulations while designing earthing
solution as to minimize risk of damage and people working on site or any fire hazard.
Protection mainly comprises of streamer emission and lightning conductor air terminals.
The air terminal connection should be able to handle multiple strikes of lightning current
and must be maintenance free. Air terminals are connected to earthing stations which are
further inter-connected by means of galvanized iron tapes to form an earthing grid, vary
upon factors like inverter requirements, lightening risk etc.,
Figure 4.8: Typical lightening protection using streamer emission and lightning rod
61
Chapter 5
ECONOMICS
Policies and support mechanisms for power projects, system cost analysis, PPA
agreements, rebate programs are focused in this chapter
There are specific important factors that are desired to be developed in order to design
profile for solar power system costing
Feasibility study
Shading analysis
Solar system testing
Construction supervision
Field test and solar platform design
Grid integration
Transmission system
Environmental report
Civil design expenses
Financing
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5.1.2 Solar power system output analysis
In order to deliver comprehensive cost evaluation of solar power system following analysis
has to be carried out. Operation performance, dynamic power degradation, present or
contractual unit energy cost/kWh, project grid electrical energy cost escalation, rebate
profile for Performance Based Incentive (PBI), initial cost investment, salvage value are
the parameters that influence the cost of the system.
Moreover, this analysis must include power purchase agreement (PPA), unit purchase rate,
and annual cost unit energy escalation. In order to test future trends factors that needed to
be considered are:
Average annual AC power output and unit energy cost escalation for entire life
cycle of contract
Cost income from end of rebate period to end of system contractual life cycle
Maintenance fee and annual income
Depreciation of solar power output for system
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5.2 Financial Incentives
In order to commercially attract and infuse funds into large scale PV projects, financial
incentives are to be provided by government. Incentives such as production tax credits,
support schemes- soft loans or an equity participation by a public entity are few of
supportive mechanisms. These policies differ from country to country and care should be
taken by developer under which conditions they accept these policies. Below are few types
of supportive schemes [12]:
Feed in Tariffs (FiTs): A long term contract typically ranging between 10-25
years, will have to be signed up between government and developer for which every
unit of electricity generated by solar PV plant will be paid for a pre-defined price.
In order to receive this facility, PV plants should meet eligibility criteria and grid
access as well. The feed in tariff is subjected to inflation and is adjusted
accordingly. Tariff is decided at such a price that developer is able to make profit
even after energy generation costs deduction.
FiT’s play very important role in supporting PV plant growth especially in early
generation stages as it protects PV plant project from price fluctuations and stabilize
profits. Moreover, these long term projects are profit making entities in long run
and hence they are easier to finance.
There are certain limitations for FiT’s such as capacity limit for the maximum level
of energy (MW or GWh) eligible for FiT. Although, there is no limit for the projects
which are of small scale energy generation. Before approval for FiT for any project
there are certain requirements that need to be met such as permit from planning
authorities, energy regulators or environmental authorities which stuck during
approval time.
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Reverse Auction and Tenders: This mechanism involves auctioning for energy
procurement which involves independent power producers as participants at a
specific site or without specification of place where plant will be built. After
selection of specific site for building solar PV plant a tender will be released by
government so that participants can bid for rights.
This mechanism also helps in deciding the FiT eligibility to a solar PV project, with
this manner of determining FiT level, payment for the developer from off-taker will
be decided competitively. Moreover, with this type of competitive environment
tariff level will be driven to lowest level which will in turn support project
development.
After the announcement from government, developers who are willing to take PV
project are subjected to prove their eligibility. They need to meet certain criteria
such as financial ability to implement project, technical experience in this line of
work. Tenders will be awarded to those developers who have lowest tariff bid and
electrical production cost. After tender bid conformation for a project developer
they are subjected to sign a PPA on proposed tariff.
Despite this mechanism involves lot of advantages, it has risks which a developer
has to bear in order to win a bid. Primarily, developer has to spend considerable
amount of time and money in order to lease or get land rights without any certainty
of winning bid. The costs involved in this process are not refundable so these should
be solely bared by developer, who has to calculate his tradeoffs or risks in case if
an individual fails to win bid. Secondly, due to competitive pressure, profit margins
will get low due to which lesser resources are driven out of market.
65
Tax Incentives: Government provides tax incentives in order to encourage private
developers to invest in PV projects. These benefits helps project owners to balance
capital costs or profits and also reduce import taxes, VAT charges, corporate
income tax etc. Though this supportive mechanism has been proven successful in
markets like U.S, due to difference tax leaving system in different countries it may
or may not be relevant in emerging markets.
Developer has to take a thorough review on tax laws in their respective states so as
to take full benefit of tax benefits even though they are difficult to find, and have
tough eligibility criteria’s to meet. United States offers 30 percent tax credit on
capital expenditure which is said to be largest market to support solar PV projects
with tax credits. This model has been proven successful as it attracts huge investors
and reduces their tax burden.
Import duties and tax paid on equipment required for PV projects can be cut down
with few tax policies which are currently being utilized in countries like India and
Thailand. Policies have to be thoroughly scrutinized as they have a risk of policy
expiration. Further, in order to support funds inflow into PV projects, loans with
low interest have been proposed. Soft loans are often part of a broader renewable
energy policy platform that also includes other incentives, such as a guaranteed
Feed-in Tariff.
In order to meet renewable energy targets, government play very important role by
issuing subsidized loans or concessional loans. As the soft loans are issued during
the start stage of project they attract more developers rather than policy-based
incentives. In some markets, the soft loan system has been restricted to small set of
financial institutes, this will have effect on captivating large scale financial entities.
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5.3 Power Purchase Agreement (PPA)
Power produced from solar projects will be sold to end users depending upon regulatory
framework that it has been formed on or depends on power system structure [15]. PV plant
make revenue by selling power generated to either government or any commercial entities.
So in order to sell power to customer there has to be agreement made with government
called power purchase agreement (PPA).
PPA are made between power purchaser and power seller, who usually in most cases, will
be owner of plant. Power seller can be developer, Power Company or power trader whose
best option is to sell power to company or partially government owned who are already
integrated with power system. Merchant PV power plants are rare as the construction of
PV plant involves huge investment but, with decline in PV costs, merchant PV plants may
be more regular.
A clear PPA agreement will help de risk projects as it is main instrument on which revenue
stream is built upon. PPAs for solar PV projects have historically been shaped by the
supporting regulatory framework, they can be negotiable or standardized or can also be
open for bilateral negotiations. While designing PPA model, developers should be
alongside with market developments and consider risks and opportunities during pricing.
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5.3.1 Tariff
If the finance provided to build PV project is obtained from foreign then, foreign exchange
rates will affect the tariff, this factor also needs to be taken into account. Additionally, with
more PPAs being introduced, the levels of market risk are increased. The terms specified
in PPA agreement include capacity of PV plant and its annual electricity production. Based
upon the installed capacity, solar irradiation annual production rate can be determined.
Annual prediction rate has to take system losses, seasonal variations, degradation of system
components into account as it determines system efficiency which may be reduced year on
year over life span of PV plant. This prediction level defines the revenue level of seller and
comfort levels of receiver which usually depends upon market conditions. Annual
production rates can be obtained by using solar software tools but these are acceptable only
at small scale distribution level. For utility scale PV plant these analysis should be carried
out by experienced consultant and should be rated of producing “bank grade”.
During project planning and operation energy yield predictions will act as reference values
against which anomalies can be checked. Meters installed will help in knowing the amount
of electrical energy produced, under the event of failure the energy predictions made prior
will act as backup meters. Usually electricity is sold on ‘take or pay’ or ‘obligation to take’
basis, which means generated power should be completely taken by grid. If it is not done
in this way then, amount of power carried out by grid should be specified with clear
penalties due in case of outage.
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5.3.2 PPA Duration
A PV project is undertaken by any developer so that to generate revenue out of it, in order
to do so PPA should last longer than period of time required to repay project lender. Project
start and termination dates will be mentioned in PPA agreement, but in some cases these
will be decided by government or regulatory firm offering project, sometimes PPA duration
can be negotiable.
PPA will have terms of grid connection agreement, in case of delay in grid connection fines
or damage costs will have to pay to seller if the grid is responsible for this. In order to
connect PV plant to grid, procedure and codes will be specified by grid operator. If specific
codes have not been be assigned to they can be negotiated and adopted.
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5.3.4 Scheduled and unscheduled outages
When forming a PPA agreement energy delivery and acceptance periods are to be stated.
If the outage is planned due to certain circumstances such as maintenance or repair then it
referred as scheduled outage. Outages which are not under control, caused due to random
events such as electrical fault is referred as unscheduled outage which might cause whole
PV plat to shut down.
For a planned or scheduled outage, grid operator should be notified in advance and these
conditions must be clearly mentioned in PPA agreement. Maintenance staff should be made
aware of these conditions as the O&M contractor is responsible for delivering information
to grid operator. It would be in best interest of both supplier and receiver if specific time
for scheduling an outage is mentioned prior as this would minimize impact on electricity
production. For instance, night would be best time for PV plant for a scheduled outage
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Conclusion
Research work presented here can be further carried out at various subject matters. For
instance, since the PV system efficiency levels mainly depend on losses incurring, a further
research on minimizing PCs losses, temperature rise, mismatch losses etc. would enhance
the PV system performance. PV system design can be done with different electrical
appliances like DC-DC booster, transformer less design which would further benefit PV
system design. Finally, local government should support large scale solar power system
investors by means of incentives and support mechanisms that would boost solar energy
generation.
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Appendix
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73
Table 1.2: PV array installation [18]
Requirements for PV array installation for different countries are mentioned in the below table
74
75
Table 1.3: Invertor selection [18]
Requirements for Invertor selection for different countries are mentioned in the below table
76
77
Table 1.4: List of standards used by different countries for grounding and protection [18]
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