Techno-Economic Analysis of Solar Photovoltaic in New Zealand Report

This report provides a comprehensive techno-economic analysis of solar photovoltaic (PV) energy in New Zealand. It begins with an introduction highlighting the current contribution of solar power to the country's electricity generation and the increasing demand for PV energy. The report then delves in...Read More

Running head: TECHNO-ECONOMIC ANALYSIS OF SOLAR PV IN NEW ZEALAND 1
Techno – Economic Analysis of Solar Photovoltaic in New Zealand
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TECHNO-ECONOMIC ANALYSIS OF SOLAR PV IN NEW ZEALAND 2
Introduction
The use of solar power in New Zealand in the current days contributes to more than
0.1% of the overall electricity generation in the country. With the current increasing demand
for the PV solar power, the country will have to undergo economic changes. The content of
this paper therefore analyses the photovoltaic energy generation in New Zealand.
PV Technical Characteristics
The solar energy use in New Zealand has increased since the year 2014 based on its
sustainable characteristics. The most solar energy used in New Zealand is solar photovoltaic
known as PV. The generation of PV has various technical characteristics which has resulted
into the increased use of solar energy in New Zealand. The main technical characteristic
which has made generation of PV more effective is its environmental effect (UMR-MEC
Conference on Energy, Morgan & Missouri, 2007). According to the report revealed by the
parliamentary commissioner indicates that generation of PV in the country reduces carbon
footprint in New Zealand even though the rate is low. Moreover, the photovoltaic panels have
no mechanical moving part thus very easy to use to generate electricity, the generation of PV
also occurs in one way thus direct and easy to maintain..
Another main characteristic of PV generation is its zero carbon emission ability
during the all process thus most countries are investing in the solar power to reduce the
carbon footprint. In New Zealand the carbon footprint is too low thus reduced use of the solar
power (Ogach et.al 2011). Generation of PV during the winter is too low affective. The PV
panels are made in a way not to store the converted solar power into PV for a long time and
this affects the users during the seasons. This can be improved through manufacture of
powerful batteries which can help with the storage of power generated by the solar
photovoltaic panels (Ogach et.al 2011).

TECHNO-ECONOMIC ANALYSIS OF SOLAR PV IN NEW ZEALAND 3
PV Economic Characteristics and NZEM
There are various economic characteristics of the PV and the NZEM less or more
effective and suitable for the users in New Zealand. Photovoltaic generation is economic
friendly as the process involves no use of mechanically moving machines apart from the case
of sun-tracking mechanical bases. This makes this suitable and sustainable based on the low
cost of production involve (Ogach et.al 2011). Another feature making the use of
photovoltaic generation economic friendly is the low cost of solar panels in New Zealand
many people are therefore able to acquire the panels and use the panels for the household
purposes. On the other hand PV generation has other economic characteristics which makes it
use not suitable in New Zealand.
The use of PV generated energy comes with an additional burden where for one to
use the PV panels, an individual installing the panels is required to purchase inverters.
Inverters are equipment which are used to directly convert direct electricity DC to an
alternative electricity AC which can be used on the power networks. Photovoltaic panels
does not function effectively without the use of storage batteries which also increases the cost
of solar PV panels (UMR-MEC Conference on Energy, Morgan & Missouri, 2007).
Concrete Economic Scenarios for PV
The use of solar PV energy has been witnessed in most areas in New Zealand in the
recent days. This is as a result of the low solar energy panel prices, however, the solar PV
energy remain one of the major renewable energy system that is promoted through
government subsidy funding in NZ. Solar PV energy has become most attractive investment
which is likely to make more income in terms of revenues (Renewable Energy Resources
Information Center, 2012). The use of solar PV energy has resulted into new economic
benefits and new investments. New technologies are being developed for solar PV which
include organic PV cells, perovskite PVs as well as inorganic quantum dot solar energy cells.

TECHNO-ECONOMIC ANALYSIS OF SOLAR PV IN NEW ZEALAND 4
Several ways are being used by various household to acquire the PV, however, the widely
used economic way is the net present value. Most households in NZ and other parts of the
world are resolving to the use of solar due its economic advantage. In near future, most of the
world nations will adopt solar PV energy use.
Conclusion
It is clear that the solar photovoltaic energy has various economic advantages as well
as environmental benefits. The future of the industry is great as this has resulted into various
investments in cell production. The Solar PV energy has both economic advantages and
disadvantages which makes the usage sustainable.

TECHNO-ECONOMIC ANALYSIS OF SOLAR PV IN NEW ZEALAND 5
References
Ogach, V. S., Cabraal, R. A., Exel, J., Pham, N. A., & World Bank. (2011). Vietnam:
Renewable Energy Action Plan. Hanoi: Vietnam Development Information Center.
Renewable Energy Resources Information Center, (2012). RERIC holdings list: An
occasional publication of RERIC.NZ: Renewable Energy Resources Information
Center, Asian Institute of Technology.
UMR-MEC Conference on Energy, Morgan, J. D., & Missouri. (2007). Third Annual UMR-
MEC Conference on Energy, October 12-14, 1976: Theme--energy crisis, an
evaluation of our resource potential. Rolla: University of Missouri-Rolla.