Solar Energy Deployment in Off Grid
Solar Energy Deployment in Off Grid
The solar resource in Saudi Arabia is virtually unlimited and the falling cost of
solar photovoltaic modules globally, serves as major drivers in the
deployment of solar power generation. Solar PV energy deployment can be
done through stand-alone system, hybrid system, grid tied and distributed
generation. Considering necessary regulatory frameworks are established,
there are issues to be considered before embarking into solar power
generation in off-grid or isolated areas (e.g policy, technical, operations,
commerciality, contract framework). For example, from a policy perspective,
the simple approach in choosing a generation technology might be based
alone on lowest overall levelized cost of electricity (LCOE) neglecting other
relative benefits of solar. On the technology complexities, solar photovoltaic
(PV) system and concentrating solar power (CSP), as way of solar power
generation1 both utilized suns energy but CSP cannot be just put anywhere
unlike the PV system because CSP requires accessed to water as receiver of
the heat energy and a very high irradiation level. In terms of grid connected
solar generation, variability and intermittency are the major consideration of
deployment, which could be mitigated through flexibility of resources. In
terms of commerciality, one must decide on methodologies for setting the
overall return that the project developer will receive, whether by fixed-price
or premium-price2. Lastly, contract framework requires specific manpower
not only Technical Advisor but also Legal Advisor to enable proper evaluation
1 Solar PV directly converts solar energy into electricity using PV modules, a cell
made of a semiconductor material that converts sunlight to electricity while CSP
system uses devices that concentrates energy from the suns rays to transformed
heat first into mechanical energy (by turbines or other engines) and then into
electricity solar thermal electricity (STE)
2 Fixed-price is a Feed-in Tariff (FIT) payment structure where total payment is
independent with the market price and is a pre-determined payment for a
guaranteed period while Premium-price offered payment as a premium on top of the
spot market price.