Pietro Elia Campana

An economic analysis of photovoltaic water pumping irrigation systems

ABSTRACT Irrigation using the photovoltaic water pumping (PVWP) systems represents a sustainable and attractive solution, which can combat Chinese grassland desertification and promote a sustainable development of the agricultural sector. This paper investigates the economics of PVWP systems taking into consideration the effects of the key components on the initial capital cost (ICC), life cycle cost (LCC), and revenues. Sensitivity analyses are conducted regarding the crop yield and price, cost of photovoltaic modules, and system components included in the ICC. Results show that the cost of the PVWP system is the most sensitive parameter affecting the ICC under the assumptions made, especially the cost of the PV modules; whereas, the crop production and price affect the net present value (NPV) and payback period (PBP) clearly. The PVWP has surplus power output when the crop water demand is low or it is non-irrigation season. The potential benefit from selling the surplus electricity is also discussed. In addition, the indirect benefits of carbon sequestration and CO2 emission reduction by applying PVWP systems are addressed in this paper.

On-Grid Photovoltaic Water Pumping Systems for Agricultural Purposes: Comparison of the Potential Benefits Under Three Incentive Schemes

Electricity self-consumption represents a key issue to shorten the photovoltaic (PV) systems’ payback period (PBP). To achieve high self-consumption rates, load control or storage systems are commonly used. Water pumping for irrigation is an interesting application that can largely increase the share of PV electricity self-consumption. The main objective of this chapter is to analyze the potential benefits of on-grid photovoltaic water pumping (PVWP) systems compared to those of conventional PV installations without water pumping. Three countries with different incentive schemes for PV installations have been studied: China with feed-in tariff, Italy with investment subsidies and net metering, and Sweden with tax reduction, investment subsidies, and green certificates. Wheat, maize, and potatoes have been chosen as reference crops to investigate the feasibility of PVWP systems as they are some of the most irrigated crops in China, Italy, and Sweden, respectively. The results show that the grid-connected PVWP systems lead to a lower PBP, between 1 and 2 years, compared to PV installations without pumping. Owing to the low cost of electricity and feed-in tariffs, China presented the longest PBP. The PVWP systems in Italy have the shortest PBP mostly due to the more favorable incentive scheme compared to China and Sweden. The PBP of PVWP systems in Sweden is extremely affected by the uncertainty to benefit of the investment subsidies.