Figure 18 : Forecast of Capital Cost for Large-Scale Solar PV System [ 2016-2027 ] Source : Malaysia Solar PV Roadmap 2016-2030 , MPIA Industry Engagement , June 2018
Large-Scale Solar PV power plant costs to 65 % of its current capital expenditure by 2025 as shown in Figure 18 .
According to the Malaysian Photovoltaic Industry Association ( MPIA ) forecast report [ Ref . 8 ], year 2020 LCOE for utility-scale solar photovoltaic generation ( 10MWp to 50MWp range ) plus transmission & distribution grid asset utilisation cost would be about 39 sen / kWh , lower than the forecast average electricity tariff of about 45 sen / kWh , as shown in Figure 19 .
Grid-connected distributed solar photovoltaic generation , principally solar panels used to power individual households or supply part of a building ’ s energy requirements , enjoys a large share of overall solar power production in some countries , such as the UK , the Netherlands and Singapore , where more than half of renewable generation is residential ( mostly rooftop solar ). Distributed generation could also provide other benefits , such as lower line losses due to shorter distances transmitted , productive use of unutilised rooftops , and environmental benefits . It could be particularly relevant for heavily-congested areas where adding new infrastructure is impractical .
If renewable solar PV generation costs continue to fall and energy storage capabilities / efficiencies grow rapidly ( see next section ), it can be envisioned that entire neighbourhoods or factory complexes will be served through distributed solar photovoltaic power generation and localised distribution smart grid infrastructure . This could make remote housing and manufacturing plants more viable by reducing the transmission capacity required from the central transmission grid or even eliminating the need to access the transmission grid altogether .
Future Power System : High flexibility Requirement
The flexibility of the system represents its ability to accommodate variability and uncertainty in the demand-generation balance while maintaining satisfactory levels of performance for any timescale .
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