Financial Analysis of a Large-Scale Photovoltaic System and Its Impact on Distribution Feeders

To promote the photovoltaic (PV) installation, a large-scale PV system installed in the Main Stadium of the 2009 World Games has been investigated for the design of selling price of PV power generation. The PV power generation is simulated according to the hourly solar irradiation and temperature provided by the weather bureau. The cash flow of annual power generation, the O&M cost, and the capital investment cost of the PV system is then used to derive the payback years and the internal rate of return for the PV system under different selling price of PV power generation. The voltage variation and the power system loss of the distribution feeder, which serves the Main Stadium, are also performed by executing the 3-φ load flow analysis for the impact analysis of the PV system. The results indicate that the reduction of voltage drop and power system loss can be obtained with the PV system installed to provide the dispersed generation for the local loads. However, the PV system penetration is limited due to the violation of voltage variation introduced by the large intermittent PV power generation. The selling price of PV generation has to be designed according to the conditions of solar irradiation and temperature so that sufficient incentives can be provided to encourage more customers to participate the PV program.