BUSINESS & “INDUSTRY 4.0”
Solar Energy an Instrument for Reducing High Electricity Prices in Industry Sector in Albania
- 1 Department of Energy, Faculty of Mechanical Engineering. Polytechnic University of Tirana, Albania
- 2 Department of Manufacturing and Civil Engineering, Norwegian University of Science and Technology in Gjøvik, NO-2802 Gjøvik, Norway
- 3 Renewable Energy Directorate, National Agency of Natural Resources, Albania
Abstract
The research focus addresses to installation of PV modules in industry sector in Albania. Due to energy crises, the prices are going higher and with the new regulations that are defined by Albanian government, businesses that are connected to 20kV, 10kV, 6kV transmission lines must secure the energy supply by their selves in open market, since a part of price was covered by government, now companies are facing higher prices. The new price is expected to increase more than 70%, up to 0.16 €/kWh from 0.092 €/kWh. Also, companies that will be in the open market will face price volatilities, hence with the installation of PV modules, reduction of electricity price is possible, since the LCOE (levelized cost of electricity) for the PV in Albania, including 20% VAT tax, is calculated around 0.035 €/kWh. To calculate the effect in electricity price a simulation using RETScreen Expert is performed. The simulations are made for a company connected to a 20kV electricity transmission line where an on-grid PV system 217.28 kW power installed is integrated on the roof. The PV modules covers 52.4% of the company electricity demand, by generating 286055 kWh electricity yearly from which 68% of electricity generated from PV is consumed by the company and 32% is exported to grid because company works 8 h/day and there is not an electricity storage system installed. With the price increment from 0.092 €/kWh to 0.16 €/kWh, the total earnings from PV installed system will be increased by an average 65.3% and if the electricity price in the open market is doubled the total earnings will be increased by an average 85.3%.
Keywords
References
- B. K.Sovacool, “Defining, Measuring, and Exploring Energy Security”, The Routledge Handbook of Energy Security, London, (2011) ISBN 13: 978-0-415-59117-1. p. 1-42.
- European Commission. Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee and the Committee of the Regions. “Energy 2020 A strategy for competitive, sustainable and secure energy” Brussels, 10.11.2010
- A. Prontera, “The New Politics of Energy Security in the European Union and Beyond. States, Markets, Institutions”. Routledge, London, (2017) ISBN: 978-1-472-47692-0. p. 1- 40.
- J. M. Godzimirski. “European Energy Security in the Wake of the Russia-Ukraine Crisis”, Strategic File No. 27(63) (2014).
- A. Berrada, A. Ameur, A. El Maakoul, R. El Mrabet. “Optimization modeling of hybrid DG systems”. Hybrid Energy System Models (2021) Chapter 2. Pg. 45-73.
- IEA. “Contribution of Renewables to Energy Security” (2007) pg. 16. Available from: https://iea.blob.core.windows.net/assets/682ee8e1-a423-4775-bcd1- 38bf4c18717f/so_contribution.pdf
- European Commission, “Albania 2021 Report” Strasbourg, 19.10.2021 SWD(2021) 289 final. Pg. 58, 109. Available from: https://ec.europa.eu/neighbourhood-enlargement/albania-report- 2021_en
- INSTAT. “Balance of electric power” (2019). Available from: http://www.instat.gov.al/en/themes/environment-and-energy/energy/publication/2019/balance-of-electric-power-2019/
- IRENA (2021), Renewables Readiness Assessment “The Republic of Albania”, International Renewable Energy Agency, Abu Dhabi. pg. 10
- Republic of Albania, Ministry of Infrastructure and Energy, National Agency of Natural Resources. “Albania Renewable Energy Progress Reports 2018-2019” (2021) Available from: https://www.energy-community.org/dam/jcr:f7246d11-0456-4f4d- 9e7f-0acf45c30447/RES_ProgressReport_Albania-2018-2019.pdf.
- NANR. ”Energjia diellore_webpage-pnud 2016” Available from: http://www.akbn.gov.al/energjia-diellore/
- NANR “Renewable Energy” (2019) Available from: http://www.akbn.gov.al/wp-content/uploads/2019/05/Renewable- Energy.pdf
- I. Konomi, E. Bebi, L. Malka, E. Rrapaj. “An overview of agriculture sector in terms of fuel type and systems used for irrigation purposes. Case study: Divjaka region, Albania”. Mechanization In Agriculture & Conserving of The Resources. (2022) Year LXVIII, ISSUE 1, pg. 27-31.
- Gordani, D. L. (2017). “Electricity market opening and the boost of the PV in Albania” PV Europe. (Euro Elektra) Available from https://www.pveurope.eu/News/Markets-Money/Electricity-market-openingand-the-boost-of-the-PV-in-Albania
- IRENA (2022), “Renewable Technology Innovation Indicators: Mapping progress in costs, patents and standards” International Renewable Energy Agency, Abu Dhabi. Available from: www.irena.org/publications
- https://power.larc.nasa.gov/data-access-viewer/
- E. Vartiainen, G. Masson, C. Breyer, D. Moser, E. R Medina. “Impact of weighted average cost of capital,capital expenditure, and other parameters on future utility-scsle PV levelised cost of electricity” Progress in Photovoltaics: Research and Applications published by John Wiley&Sons Ltd. (2019) Pg. 1-15.
- IRENA (2012), “Renewable Energy Technologies: Cost Analysis Series. Solar Photovoltaics” Volume 1, Issue 4/5.
- U.S. Department of Energy. “Solar Photovoltaics. Supply Chain Deep Dive Assessment” (2022) Available from: https://www.energy.gov/sites/default/files/2022- 02/Solar%20Energy%20Supply%20Chain%20Report%20- %20Final.pdf
- Natural Resources Canada. “Clean Energy Project Analysis” RETScreen Engineering & Cases Textbook. Third Edition. (2005). ISBN: 0-662-39191-8