IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v34y2009i4p401-409.html
   My bibliography  Save this article

A computational tool for evaluating the economics of solar and wind microgeneration of electricity

Author

Listed:
  • Kelleher, J.
  • Ringwood, J.V.

Abstract

This paper presents a method, implemented as a freely available computer programme, which is used to estimate the economics of renewable microgeneration of electricity from wind and solar energy sources. A variety of commercial small wind turbines and photovoltaic (PV) panels are considered and combined with raw energy data gathered from a variety of locations. Both residential and holiday home user profiles are available and options are selectable concerning feed-in tariffs (if available), government incentive schemes and the cost of capital borrowing. The configuration of the generation setup, which can consist of wind, PV and combination of wind/PV, is fully selectable by the user, with a range of appropriate default data provided. A numerical example, based on Irish data, is presented, which suggests that payback periods for solar and wind microgeneration systems can vary greatly (2.5–500 years), depending on the location, installation and economic variables.

Suggested Citation

  • Kelleher, J. & Ringwood, J.V., 2009. "A computational tool for evaluating the economics of solar and wind microgeneration of electricity," Energy, Elsevier, vol. 34(4), pages 401-409.
    • Handle: RePEc:eee:energy:v:34:y:2009:i:4:p:401-409
    DOI: 10.1016/j.energy.2008.10.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544208002867
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2008.10.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Allen, S.R. & Hammond, G.P. & McManus, M.C., 2008. "Prospects for and barriers to domestic micro-generation: A United Kingdom perspective," Applied Energy, Elsevier, vol. 85(6), pages 528-544, June.
    2. Sauter, Raphael & Watson, Jim, 2007. "Strategies for the deployment of micro-generation: Implications for social acceptance," Energy Policy, Elsevier, vol. 35(5), pages 2770-2779, May.
    3. Dalton, G.J. & Lockington, D.A. & Baldock, T.E., 2008. "Feasibility analysis of stand-alone renewable energy supply options for a large hotel," Renewable Energy, Elsevier, vol. 33(7), pages 1475-1490.
    4. Watson, Jim, 2004. "Co-provision in sustainable energy systems: the case of micro-generation," Energy Policy, Elsevier, vol. 32(17), pages 1981-1990, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bortolini, Marco & Gamberi, Mauro & Graziani, Alessandro & Manzini, Riccardo & Pilati, Francesco, 2014. "Performance and viability analysis of small wind turbines in the European Union," Renewable Energy, Elsevier, vol. 62(C), pages 629-639.
    2. Janajreh, Isam & Su, Liu & Alan, Fathi, 2013. "Wind energy assessment: Masdar City case study," Renewable Energy, Elsevier, vol. 52(C), pages 8-15.
    3. Abbes, Mohamed & Belhadj, Jamel, 2012. "Wind resource estimation and wind park design in El-Kef region, Tunisia," Energy, Elsevier, vol. 40(1), pages 348-357.
    4. Yasser Maklad, 2014. "Quantification and Costing of Domestic Electricity Generation for Armidale, New South Wales, Australia Utilising Micro Wind Turbines," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 208-219.
    5. Willis, Ken & Scarpa, Riccardo & Gilroy, Rose & Hamza, Neveen, 2011. "Renewable energy adoption in an ageing population: Heterogeneity in preferences for micro-generation technology adoption," Energy Policy, Elsevier, vol. 39(10), pages 6021-6029, October.
    6. Hu, Ming-Che & Lu, Su-Ying & Chen, Yen-Haw, 2016. "Stochastic programming and market equilibrium analysis of microgrids energy management systems," Energy, Elsevier, vol. 113(C), pages 662-670.
    7. Orioli, Aldo & Di Gangi, Alessandra, 2013. "Effects of the Italian financial crisis on the photovoltaic dissemination in a southern city," Energy, Elsevier, vol. 62(C), pages 173-184.
    8. Watts, David & Durán, Pablo & Flores, Yarela, 2017. "How does El Niño Southern Oscillation impact the wind resource in Chile? A techno-economical assessment of the influence of El Niño and La Niña on the wind power," Renewable Energy, Elsevier, vol. 103(C), pages 128-142.
    9. Keyhani, A. & Ghasemi-Varnamkhasti, M. & Khanali, M. & Abbaszadeh, R., 2010. "An assessment of wind energy potential as a power generation source in the capital of Iran, Tehran," Energy, Elsevier, vol. 35(1), pages 188-201.
    10. Fahd Diab & Hai Lan & Lijun Zhang & Salwa Ali, 2015. "An Environmentally-Friendly Tourist Village in Egypt Based on a Hybrid Renewable Energy System––Part One: What Is the Optimum City?," Energies, MDPI, vol. 8(7), pages 1-19, July.
    11. Chen, Yen-Haw & Lu, Su-Ying & Chang, Yung-Ruei & Lee, Ta-Tung & Hu, Ming-Che, 2013. "Economic analysis and optimal energy management models for microgrid systems: A case study in Taiwan," Applied Energy, Elsevier, vol. 103(C), pages 145-154.
    12. Li, Zhe & Reynolds, Anthony & Boyle, Fergal, 2014. "Domestic integration of micro-renewable electricity generation in Ireland – The current status and economic reality," Renewable Energy, Elsevier, vol. 64(C), pages 244-254.
    13. Fulong Ning & Nengyou Wu & Guosheng Jiang & Ling Zhang & Jin’an Guan & Yibing Yu & Fenglin Tang, 2010. "A Method to Use Solar Energy for the Production of Gas from Marine Hydrate-Bearing Sediments: A Case Study on the Shenhu Area," Energies, MDPI, vol. 3(12), pages 1-19, December.
    14. Li, Chong & Ge, Xinfeng & Zheng, Yuan & Xu, Chang & Ren, Yan & Song, Chenguang & Yang, Chunxia, 2013. "Techno-economic feasibility study of autonomous hybrid wind/PV/battery power system for a household in Urumqi, China," Energy, Elsevier, vol. 55(C), pages 263-272.
    15. Li, Zhe & Boyle, Fergal & Reynolds, Anthony, 2012. "Domestic application of micro wind turbines in Ireland: Investigation of their economic viability," Renewable Energy, Elsevier, vol. 41(C), pages 64-74.
    16. Li, Zhe & Boyle, Fergal & Reynolds, Anthony, 2011. "Domestic application of solar PV systems in Ireland: The reality of their economic viability," Energy, Elsevier, vol. 36(10), pages 5865-5876.
    17. Hua, Jian & Shiu, Hong-Gwo, 2018. "Sustainable development of renewable energy on Wangan Island, Taiwan," Utilities Policy, Elsevier, vol. 55(C), pages 200-208.
    18. Walters, Ryan & Walsh, Philip R., 2011. "Examining the financial performance of micro-generation wind projects and the subsidy effect of feed-in tariffs for urban locations in the United Kingdom," Energy Policy, Elsevier, vol. 39(9), pages 5167-5181, September.
    19. de Jesus, Ábio Xavier Cardoso & Pinheiro Neto, Daywes & Domingues, Elder Geraldo, 2023. "Computational tool for technical-economic analysis of photovoltaic microgeneration in Brazil," Energy, Elsevier, vol. 271(C).
    20. Klingler, Anna-Lena, 2017. "Self-consumption with PV+Battery systems: A market diffusion model considering individual consumer behaviour and preferences," Applied Energy, Elsevier, vol. 205(C), pages 1560-1570.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boon, Frank Pieter & Dieperink, Carel, 2014. "Local civil society based renewable energy organisations in the Netherlands: Exploring the factors that stimulate their emergence and development," Energy Policy, Elsevier, vol. 69(C), pages 297-307.
    2. Juntunen, Jouni K. & Hyysalo, Sampsa, 2015. "Renewable micro-generation of heat and electricity—Review on common and missing socio-technical configurations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 857-870.
    3. Marko, Wolfgang A., 2014. "Small-scale, Big Impact – Utilities’ New Business Models for “Energiewende”," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(3), pages 201-220.
    4. von Wirth, Timo & Gislason, Linda & Seidl, Roman, 2018. "Distributed energy systems on a neighborhood scale: Reviewing drivers of and barriers to social acceptance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2618-2628.
    5. Gordon, Joel A. & Balta-Ozkan, Nazmiye & Nabavi, Seyed Ali, 2023. "Socio-technical barriers to domestic hydrogen futures: Repurposing pipelines, policies, and public perceptions," Applied Energy, Elsevier, vol. 336(C).
    6. Fuentes González, Fabián & Webb, Janette & Sharmina, Maria & Hannon, Matthew & Pappas, Dimitrios & Tingey, Margaret, 2021. "Characterising a local energy business sector in the United Kingdom: Participants, revenue sources, and estimates of localism and smartness," Energy, Elsevier, vol. 223(C).
    7. Watson, Jim & Sauter, Raphael & Bahaj, Bakr & James, Patrick & Myers, Luke & Wing, Robert, 2008. "Domestic micro-generation: Economic, regulatory and policy issues for the UK," Energy Policy, Elsevier, vol. 36(8), pages 3085-3096, August.
    8. Dalton, G.J. & Lockington, D.A. & Baldock, T.E., 2009. "Feasibility analysis of renewable energy supply options for a grid-connected large hotel," Renewable Energy, Elsevier, vol. 34(4), pages 955-964.
    9. Burford, Neil & Onyango, Vincent & Wright, Frances, 2019. "LZCGT impact on GHG reductions in Scotland's new domestic buildings," Energy Policy, Elsevier, vol. 129(C), pages 34-52.
    10. Provance, Mike & Donnelly, Richard G. & Carayannis, Elias G., 2011. "Institutional influences on business model choice by new ventures in the microgenerated energy industry," Energy Policy, Elsevier, vol. 39(9), pages 5630-5637, September.
    11. Dalton, G.J. & Lockington, D.A. & Baldock, T.E., 2009. "Case study feasibility analysis of renewable energy supply options for small to medium-sized tourist accommodations," Renewable Energy, Elsevier, vol. 34(4), pages 1134-1144.
    12. Adil, Ali M. & Ko, Yekang, 2016. "Socio-technical evolution of Decentralized Energy Systems: A critical review and implications for urban planning and policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1025-1037.
    13. Ross, S.J. & McHenry, M.P. & Whale, J., 2012. "The impact of state feed-in tariffs and federal tradable quota support policies on grid-connected small wind turbine installed capacity in Australia," Renewable Energy, Elsevier, vol. 46(C), pages 141-147.
    14. Beau Warbroek & Thomas Hoppe, 2017. "Modes of Governing and Policy of Local and Regional Governments Supporting Local Low-Carbon Energy Initiatives; Exploring the Cases of the Dutch Regions of Overijssel and Fryslân," Sustainability, MDPI, vol. 9(1), pages 1-36, January.
    15. Dalia Streimikiene & Tomas Balezentis & Ilona Alisauskaite-Seskiene & Gintare Stankuniene & Zaneta Simanaviciene, 2019. "A Review of Willingness to Pay Studies for Climate Change Mitigation in the Energy Sector," Energies, MDPI, vol. 12(8), pages 1-38, April.
    16. Ma, Xiandong & Wang, Yifei & Qin, Jianrong, 2013. "Generic model of a community-based microgrid integrating wind turbines, photovoltaics and CHP generations," Applied Energy, Elsevier, vol. 112(C), pages 1475-1482.
    17. Good, Nicholas & Martínez Ceseña, Eduardo A. & Heltorp, Christopher & Mancarella, Pierluigi, 2019. "A transactive energy modelling and assessment framework for demand response business cases in smart distributed multi-energy systems," Energy, Elsevier, vol. 184(C), pages 165-179.
    18. Saunders, R.W. & Gross, R.J.K. & Wade, J., 2012. "Can premium tariffs for micro-generation and small scale renewable heat help the fuel poor, and if so, how? Case studies of innovative finance for community energy schemes in the UK," Energy Policy, Elsevier, vol. 42(C), pages 78-88.
    19. Allan, Grant & Eromenko, Igor & Gilmartin, Michelle & Kockar, Ivana & McGregor, Peter, 2015. "The economics of distributed energy generation: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 543-556.
    20. Francesco Pasimeni & Tommaso Ciarli, 2018. "Diffusion of Shared Goods in Consumer Coalitions. An Agent-Based Model," SPRU Working Paper Series 2018-24, SPRU - Science Policy Research Unit, University of Sussex Business School.

    More about this item

    Keywords

    Microgeneration; Wind power; Solar power; Payback period; Economics;
    All these keywords.

    JEL classification:

    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:34:y:2009:i:4:p:401-409. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.