This post is part of a series reviewing the status of various power generation technologies in Africa, their current status of deployment, cost competitiveness and long term potential to contribute to powering the continent.
Solar Photovoltaics (PV) converts solar energy directly into electricity using a PV cell made of a semiconductor (or thin film), as illustrated below.
PV is the most widely-deployed, power generation technology, with 139,155 MW of capacity installed at the end of 2013 - 37,000 MW installed in 2013 alone.
Source: SBC Energy Institute, Solar Photovoltaic, September 2013
PV power systems are usually classified according to two major types – those that are grid connected, that is convert direct current (DC) to alternative current (AC) in order to connect to the grid; and (b) those that are off grid – installed mainly to supply isolated areas or to create mini-grids (occasionally with generator back-up). DC/AC conversion is not needed where system is only supplying a single point.
There are three commercially proven types of PV technologies at varying stages of maturity, with assorted prospects for the continent.
Source: http://acpobservatory.jrc.ec.europa.eu/content/photovoltaic-potential-africa
There is a further 2,055MW capacity that has been proposed or is in some stage of planning.
The diagram below shows all the known projects that are in operation, under construction, or proposed.
Source: http://www.wiki-solar.org/map/continent/index.html?Africa?f and other news sources
Source: EIA, Levelised Cost of New Generation Resources in Annual Energy Outlook 2014, April 2014
Despite the advantages cited, given limited grid infrastructure in much of the continent – PV has a considerable advantage particularly for application in rural areas. Moreover, cost competitiveness has improved dramatically and will get better, while fossil fuels are likely to become more expensive. Average module cost is currently $0.7/W - 20% of what it was in 2007). As a result, total hardware costs are an increasingly small part of total system costs.
The majority of system costs are increasingly in soft costs such as installation labor, permitting, inspection, and interconnection, overheads & margins within the supply chain. These costs depend, to a large degree, on local costs, regulatory framework in place to enable solar as well as the scale of deployment.
Concluding comments: PV has a bright future in the continent as the cost of PV declines further in coming years, we expect to see significant investment in coming years and believe it will play a major role in powering the continent.
Solar Photovoltaics (PV) converts solar energy directly into electricity using a PV cell made of a semiconductor (or thin film), as illustrated below.
PV is the most widely-deployed, power generation technology, with 139,155 MW of capacity installed at the end of 2013 - 37,000 MW installed in 2013 alone.
PV technology description
Illustration of a solar PV systemSource: SBC Energy Institute, Solar Photovoltaic, September 2013
PV power systems are usually classified according to two major types – those that are grid connected, that is convert direct current (DC) to alternative current (AC) in order to connect to the grid; and (b) those that are off grid – installed mainly to supply isolated areas or to create mini-grids (occasionally with generator back-up). DC/AC conversion is not needed where system is only supplying a single point.
There are three commercially proven types of PV technologies at varying stages of maturity, with assorted prospects for the continent.
- Crystalline, silicon-based PV- this is the main commercially deployed PV technology and is the most efficient technology today. It accounts for 85-90% of all installed capacity.
- Thin films – made from semi-conductors deposited in layers on a low-cost backing, and are less efficient, but cheaper. They account for 10-15% of capacity.
- Concentrated PV (CPV) - use mirrors or lenses to concentrate and focus solar radiation on high-efficiency cells.
PV potential in the continent
Most parts of the African continent are endowed with abundant sunshine. As the Figure below highlights, the levels of global radiation measured in terms of kWh/M2 – the darker the red shading the higher the radiation – and the higher the potential. Compare the shading for instance with Europe, which despite limited potential has been on the vanguard of solar deployment globally.PV installed capacity and projects under construction in Africa.
Despite the abundance of potential highlighted, solar PV deployment is limited. There is a small volume of off grid capacity installed that (difficult to quantify). However, from various sources, we believe as of to-date, there is 1,154MW of capacity operating or under construction. Of these, 83% or 952.3MW is in South Africa.There is a further 2,055MW capacity that has been proposed or is in some stage of planning.
The diagram below shows all the known projects that are in operation, under construction, or proposed.
Source: http://www.wiki-solar.org/map/continent/index.html?Africa?f and other news sources
PV cost competitiveness and commentary on its potential
Solar PV has the advantage that it can be utilized off-grid and in small scale. However, at a levelised cost of $130/MWh, it is considerably more expensive than hydro at $84/MWh; geothermal ($48/MWh); coal ($96/MWh) or gas ($66/MWh). It is also intermittent and not dispatachable (unless backed up with battery storage).Source: EIA, Levelised Cost of New Generation Resources in Annual Energy Outlook 2014, April 2014
Despite the advantages cited, given limited grid infrastructure in much of the continent – PV has a considerable advantage particularly for application in rural areas. Moreover, cost competitiveness has improved dramatically and will get better, while fossil fuels are likely to become more expensive. Average module cost is currently $0.7/W - 20% of what it was in 2007). As a result, total hardware costs are an increasingly small part of total system costs.
The majority of system costs are increasingly in soft costs such as installation labor, permitting, inspection, and interconnection, overheads & margins within the supply chain. These costs depend, to a large degree, on local costs, regulatory framework in place to enable solar as well as the scale of deployment.
Concluding comments: PV has a bright future in the continent as the cost of PV declines further in coming years, we expect to see significant investment in coming years and believe it will play a major role in powering the continent.
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