PV-Powered Motor-Generator Sets: an LCOE Study and Grid Strength Incentive Model

In this paper, an economic evaluation by means of a levelised cost of electricity (LCOE) study is conducted on a novel solar photovoltaic (PV) farm system which aims to improve the grid strength of utility-scale solar PV farms. The proposed PV farm makes use of motor-generator sets that can provide grid strength and stability to the grid. A model for remunerating the provision of grid strength is also proposed in order to incentivise the proposed system over conventional PV farm systems from a financial perspective. The resulting LCOE study concludes that the proposed system is a competitive alternative to conventional PV farms if the benefit of providing grid strength is remunerated. When examining the internal rate of return (IRR), the study concludes that while the proposed system requires a larger initial investment than a conventional PV farm, it results in a greater yearly revenue to accommodate the larger initial investment cost.