Financial Analysis of Utility Scale Solar Photovoltaic System with Battery Energy Storage System in Nepal
Authors: Narayan Shrestha, Nava Raj Karki
Abstract—This paper presents a financial analysis of grid-connected photovoltaic (PV) systems with battery energy storage systems (BESS) in Nepal. Integrating BESS into PV systems allows for storing excess energy generated during daylight hours for use during periods of low sunlight or high energy demand. Nepal has great potential for the implementation of solar energy technology, due to its high levels of solar radiation and roughly 300 days of sun per year. However, before making any investment decisions, it is important to evaluate the profitability of the PV system and ensure that the investment cost can be recovered over the life cycle. The paper compares the performance of a PV system with and without BESS, using parameters such as net present value (NPV), internal rate of return (IRR), levelized cost of electricity (LCOE), and payback period (PB). The result shows PV system has a higher NPV and IRR than the PV with the BESS system, indicating that it is more profitable and attractive for investment. However, the PV with BESS system can become more competitive and viable in the long run if the battery cost decreases. The paper also conducts a sensitivity analysis to examine the impact of varying factors such as capital cost, specific energy yield, BESS cost, and PPA Rate duration on the performance of the system.
Keywords—photovoltaic system, battery energy storage system, financial analysis, grid-connected, Nepal
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Published In: International Conference on Role of Energy for Sustainable Social Development (RESSD-2023)
Date of Conference: 14th-15th May 2023
Conference Location: Kathmandu, Nepal
Publisher: IEEE Power and Energy Society Nepal Chapter
Cite the paper as:
N. Shrestha, N. R. Karki, “Financial Analysis of Utility Scale Solar Photovoltaic System with Battery Energy Storage System in Nepal”, International Conference on Role of Energy for Sustainable Social Development, 14th-15th May 2023, Kathmandu, Nepal