Modelling dynamic “PV Parity” in different European countries

Abstract

By increasing market shares and decreasing cost of photovoltaic (PV) in recent years, the future point of time of competitiveness of PV for the European energy system will be a more interesting question. The competitiveness of PV is referred to as "PV Parity", i.e. the "Levelized Cost of Electricity" (LCOE) of PV is compared according to market participants and market segment of the energy system with the traditional cost factors. Through a dynamic economic analysis of the PV system over its lifetime compared to a conventional energy system, the "PV Parity" is reached when the PVaddition of PV to the electricity supply decreases the overall price of the electricity consumed. By sensitivity analysis of the influence parameters of the LCOE of PV and developing of scenarios of future price a window of time or framework conditions for different European countries for achieving the "PV Parity" for different market participants can be determined.