RENEWABLE POWER GENERATION COSTS IN 2019

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RENEWABLE POWER GENERATION COSTS IN 2019 ( renewable-power-generation-costs-in-2019 )

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Table 3.2 Global weighted average capacity factors for utility-scale PV systems by year of commissioning, 2010–2019 SOLAR PHOTOVOLTAICS Year 5th percentile Weighted average 95th percentile 2010 10.5% 13.8% 23.0% 2011 10.1% 15.3% 26.0% 2012 10.5% 15.1% 25.4% 2013 11.9% 16.4% 23.0% 2014 10.8% 16.6% 24.4% 2015 10.8% 16.5% 29.0% 2016 10.7% 16.7% 25.9% 2017 11.5% 17.7% 27.0% 2018 12.3% 18.2% 27.0% 2019 10.7% 18.0% 23.9% Source: IRENA Renewable Cost Database. Note: These capacity factors are the AC-to-DC capacity factors, given that installed cost data in this report for solar PV (only) are expressed as per kilowatt direct current. on capacity factors. It has been reported that tracking made up 69% of the capacity installed in United States in 2018, up from 26% in 2010 (Bolinger et al., 2019). A trend towards higher Inverter Load Ratios (ILR) is, however, complicating comparisons in some cases. In the United States, for example, the median ILR reached 1.33 in 2018 – its highest value reported so far and about a tenth higher than in 2010. Depending on the context, increasing the Direct Current (DC) array relative to the Alternating Current (AC) inverter capacity to achieve a higher ILR (also known as the DC/AC ratio) can be beneficial in reducing yield variability and enhancing revenue, depending on the context (Good and Johnson, 2016). The choice of the ILR is a system design consideration and is often influenced by the type of tracking used in projects, since fixed-tilt projects can benefit more from increased ILR values than systems with tracking devices. In the United States, fixed-tilt projects recorded a median ILR of 1.41. The corresponding value for tracked systems was 7% lower (Bolinger et al., 2019). All things being equal, increasing ILR would result in a reduction of the AC/DC capacity factor. The combination of increased deployment in areas with favourable solar resource conditions and the increased use of tracking seem to have outweighed the effect of increasing ILR in the weighted- average values for the capacity factor in recent years. These factors seem to be balancing out and the weighted average capacity factor value in 2019 stayed almost flat from 2018 levels. However, better data is needed on ILR ratios globally to better assess these trends. OPERATION AND MAINTENANCE COSTS The O&M costs of utility-scale solar PV plants have declined in recent years. However, in certain markets, the share of O&M costs in total LCOE has risen, as capital costs have fallen faster than O&M costs. O&M cost declines have been driven by module efficiency improvements, that have reduced the surface area require per MW of capacity. At the same time, competitive pressures and improvements in the reliability of the technology have resulted in system designs optimised to reduce O&M costs and improved O&M strategies that take advantage of a range of innovations – from robotic cleaning to “big data” analysis of performance data to identify issues and preventative interventions ahead of failures – to drive down O&M costs and reduce downtime. 69

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