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Economic Assessment of a PV-HP System for Drying Alfalfa in The North of Spain

Authors: Quijano González, Antonio; Lorenzo Navarro, Celena; Narvarte Fernández, Luis;

Economic Assessment of a PV-HP System for Drying Alfalfa in The North of Spain

Abstract

This paper presents an economic assessment of three drying systems (DS) with different configurations: diesel-powered (DDS), grid-powered (GDS), and photovoltaic-powered (PVDS). The third configuration, PVDS, presents important technological innovations regarding the electric configuration (stand-alone PV, without batteries or grid support) and the heat pump technology used (optimized for drying the recirculated air, which permits a reduction in the electricity consumption by more than 45% if compared to a diesel air-heater or an electric resistance). The profitability of the investment required for the installation of the three systems is proven by calculating the profitability index (PI), the internal rate of return (IRR), the payback period (PBP), and the levelized cost of energy (LCOE). All the indicators show good profitabilities for the three technologies (the PI values range from 6.78 to 10.11, the IRR values range from 24% to 37%, and the PBPs are between 3 and 4 years), but the PVDS clearly offers important economic advantages: its PI and IRR are more than 40% higher, the PBP is 25% shorter, and the LCOE is between 40 and 47% lower than for the two other systems. The results of this analysis correspond to a particular base case but are obviously sensitive to geopolitical and economic changes: the ultimate strength of the PVDS configuration is its resilience against a possible rise in electricity and diesel prices, reducing the uncertainty for investors and policymakers.

Country
Spain
Related Organizations
Keywords

Technology, Telecomunicaciones, T, economic assessment, photovoltaic, Energías Renovables, heat pumps, drying, heat pumps; photovoltaic; drying; economic assessment

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    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
4
Top 10%
Average
Average
gold