An-Najah National University Faculty of Graduate studies Management of Electrical Network with PV System and Genset, case study "An-Najah Hospital". By Ahmad Nabhan Abdel-Razaq Jallad Supervisor Dr. Imad Ibrik This Thesis is Submitted in Partial Fulfillment of the Requirements for the Degree of Master in Clean Energy and Conservation Strategy Engineering, Faculty of Graduate Studies, An-Najah National University, Nablus – Palestine. 2017 III Dedication To Palestine To my parents Nabhan & Lubna To my sisters Tala, Tina and Anood To my friends To my colleagues To my teachers To everyone who works in this field To all of them I dedicate this work IV Acknowledgement First of all, thanks Allah I would like to thank my family for their support and love that they have always given me. I would like to express my special thanks and appreciation to my Dr. Imad Ibrik for his continuous support, guidance and encouragement during this work. I would like to thank also the Energy Research Center and the staff of the Clean Energy and Conservation Strategies Master Program at An- Najah National University. V رقراراإل أنا الموقع أدناه، مقدم الرسالة التي تحمل العنوان: إدارة شبكاث الكهرباء بىجىد مىلذاث الذيزل وأنظمت الخاليا الشمسيت / دراست حالت " مستشفى النجاح الىطني الجامعي " أقر بأن ما شممت عميو ىذه الرسالة إّنما ىو نتاج جيدي الخاص، باستثناء ما تّمت اإلشارة إليو ، وأّن ىذه الرسالة ككل، أو أّي جزء منيا لم يقّدم من قبل لنيل أّي درجة أو لقب عممّي حيثما ورد لدى أّي مؤسسة تعميمية أو بحثية أخرى. Declaration The work provided in this thesis, unless otherwise referenced, is the researcher‘s own work, and has not been submitted elsewhere for any other degree or qualification. Student's Name: اسم الطالب: Signature: :التورقيع Date: :التاريخ VI Table of Contents No. CONTENT Page Dedication III Acknowledgment IV Declaration V List of Tables IX List of Figures XI List of Equations XIII List of Appendix XIV Abbreviations XV Abstract XVIII Introduction 1 Chapter One: Management of Electrical Network, Literature Review 7 1.1 Peak Demand Management 8 1.1.1 Benefits of Peak Demand Management 10 1.1.2 Load factor and Power factor Improvement and Management 11 1.2 Demand Side Management 12 1.2.1 Benefits of Demand Side Management 13 1.2.2 Demand Side Management Categories 14 1.2.3 Load Shaping Methodologies 15 1.2.4 Demand Side Management Disadvantages 17 1.3 Load Managements by using other sources 18 1.4 Summary 19 Chapter Two: Demand Problems in the Palestinian Electrical Networks 20 2.1 Overview of the Palestinian Electrical Networks 21 2.2 Problems of Energy in Palestine 24 2.2.1 Supply Constraints 25 2.2.2 Lack of Electricity Constraints 26 VII 2.3 Suggested Solutions for Solving Peak Demand Problems 29 2.4 Summary 30 Chapter Three: Using Renewable Energy and Genset for Covering the Peak Demand 31 3.1 Using Solar PV for Peak Demand Management 32 3.2 Selecting of PV Elements and Technical Impacts 34 3.3 Using Diesel Generators for Peak Demand Management 38 3.4 Comparison between Solar and Genset for Solving Peak Problems 40 3.5 Summary 40 Chapter Four: Economical Evaluation of using PV and Diesel Genset for Solving Peak Problems 41 4.1 Introduction 42 4.2 Diesel Generators Fixed Costs 42 4.2.1 Fixed Initial Costs 43 4.2.2 Fixed Construction Costs 48 4.3 Diesel Generators Operational and Maintenance Costs 49 4.3.1 Fuel Consumption 49 4.3.2 Lubrication Oil Consumption 51 4.3.3 Electrical Consumptions 54 4.3.4 Batteries consumption 55 4.4 Generators Capitalized Cost (CCG) 55 4.5 Photovoltaic Prices and Cost Breakdowns 56 4.5.1 Residential-Scale System Fixed Costs 57 4.5.2 Commercial-Scale System Fixed Costs 61 4.5.3 Utility-Scale System Fixed Costs 63 4.5.4 The Recent PV Prices 67 4.6 Solar Systems O&M Fixed and Variable Costs 68 4.7 Inverters Fixed Costs 70 4.7.1 Hybrid Inverters 70 4.7.2 On-grid Inverters 71 4.7.3 Home Inverters Costs 73 4.8 Batteries fixed Costs 73 4.9 PV Systems Capitalized Cost (CCPV) 75 4.10 Summary 76 VIII Chapter Five: Peak Demand Management by Using Different Tariff Structures 77 5.1 Introduction 78 5.2 Flat Rate Tariff in Palestine 78 5.3 Time of Use Tariff in Palestine 81 5.4 Demand Management by using Different Tariff Structures 85 5.5 Summary 86 Chapter Six: An-Najah Hospital (Case Study), for Solving Peak Demand by using PV and Genset 87 6.1 An-Najah National University Hospital Load Analysis 88 6.1.1 Economical Factors 90 6.2 Feeding Loads under Flat Rate Tariff by Alternative Sources 93 6.2.1 Load Feeding by Grid and Genset 94 6.2.2 Load Feeding by Grid and PV System 95 6.2.3 Load Feeding by Grid and hybrid System 96 6.3 Feeding Loads under TOU Tariff by Alternative Sources 98 6.4 Hospital Peak Demand Management 101 6.4.1 Hospital Peak management at Winter season 102 6.4.2 Hospital Peak Management at Summer Season 106 6.5 Hospital Peak management for Off-grid Systems 107 6.6 Thesis Results in the Management of Peak Demand 110 Chapter Seven: Conclusion and Recommendation 115 7.1 Conclusion 116 7.2 Recommendation 117 References 118 Appendices 123 ب الممخص IX List of Tables No. Table Page Table (1.1) Load Factor Ranges for several loads 12 Table (1.2) Low P.f penalties in Palestine 12 Table (2.1) Maximum demand of Discos in different months 23 Table (2.2) Indicators about the continuity and the interruptions of supply for distribution sector in 2015 27 Table (4.1) British generators initial prices 43 Table (4.2) Prices of British generators have Turkish agencies 45 Table (4.3) Turkish generators initial prices 47 Table (4.4) Generators fixed construction costs 49 Table (4.5) Lubrication oil for each kVA 52 Table (4.6) Batteries size and costs 55 Table (4.7) Key residential modeling assumptions 59 Table (4.8) Key commercial modeling assumptions 63 Table (4.9) Key utility modeling assumptions 66 Table (4.10) Price changes od solar systems from (Q4 2013) 67 Table (4.11) Commercial crystalline modules prices at Nov.2016 68 Table (4.12) Solar systems O&M fixed costs 69 Table (4.13) Hybrid inverter costs 70 Table (4.14) On-grid inverter costs 72 Table (4.15) Home inverter costs 73 Table (4.16) Batteries fixed costs 74 Table (4.17) Costs of the PV system land used 75 Table (5.1) Residential tariff categories 79 Table (5.2) Tariff categories for Jericho and the Jordan Valley 79 Table (5.3) Commercial tariff categories 80 Table (5.4) L.V networks industrial tariff categories 80 Table (5.5) M.V networks industrial tariff categories 81 Table (5.6) L.V networks industrial tariff categories 81 Table (5.7) Agricultural tariff categories 81 Table (5.8) Sliding scale tariff for the L.V networks 82 Table (5.9) Sliding scale tariff for the M.V networks 83 Table (5.10) Consumption‘s costs during summer and winter seasons 86 Table (6.1) Daily consumed energies of An-Najah Hospital 88 Table (6.2) Demand factor for several utilities 91 Table (6.3) Comparison table of load feeding by Grid and Genset 95 X Table (6.4) Comparison table of load feeding by grid and PV system 96 Table (6.5) Comparison table of load feeding by Grid, PV system and Genset 97 Table (6.6) Comparison table of load feeding by grid and PV System 103 Table (6.7) Results of load feeding by grid and DG 103 Table (6.8) Load feeding by Grid, 20% from PV and 60% from DG 104 Table (6.9) Load feeding by Grid, 20% from PV and 60% from DG 105 Table (6.10) Load feeding by Grid, 60% from PV and 20% from DG 105 Table (6.11) Comparison table of load feeding by Grid and PV System 106 Table (6.12) Load feeding by Off-grid solar power system 108 Table (6.13) Load feeding by diesel gensets 109 Table (6.14) Load feeding by 25% Gensets and 75% PV system 109 Table (6.15) Load feeding by 75% Gensets and 25% PV system 109 XI List of Figures No. Figure Page Figure (1.1) Load Shaping Techniques 16 Figure (2.1) Primary energy sources in Palestine 22 Figure (2.2) Energy not supplied 28 Figure (3.1) Standalone photovoltaic system 33 Figure (3.2) Grid-Tied photovoltaic systems 34 Figure (3.3) Daily radiation curve by HOMER program 36 Figure (3.4) Diesel generators components 39 Figure (4.1) British generators prices 44 Figure (4.2) The prices of British generators have Turkish agencies 46 Figure (4.3) Turkish generators prices 47 Figure (4.4) Approximate fuel consumption and the cost of it for each kVA 50 Figure (4.5) Generator Oil Consumption in liter per hour 53 Figure (4.6) Benchmark price summery 56 Figure (4.7) Hardware, soft cost and installation contribution percentage 57 Figure (4.8) Residential PV system model schematic 58 Figure (4.9) Residential roof top PV system prices 59 Figure (4.10) Schematic of commercial system model 61 Figure (4.11) Modeled commercial PV system price 62 Figure (4.12) Schematic of utility-scale system model 64 Figure (4.13) Modeled utility- scale PV system prices 65 Figure (4.14) Fixed PV systems O&M costs curve 69 Figure (4.15) Hybrid inverters Prices 71 Figure (4.16) On-grid inverters Prices 72 Figure (4.17) Batteries fixed costs curve 75 Figure (5.1) Winter season tariff 84 Figure (5.2) Spring and autumn season‘s tariff 84 XII Figure (5.3) Summer season tariff 84 Figure (5.4) Supposed daily load curve 85 Figure (6.1) An-Najah Hospital daily load curve 89 Figure (6.2) Tariff values during winter season 99 Figure (6.3) Tariff values during autumn and spring seasons 100 Figure (6.4) Tariff values during summer season 101 Figure (6.5) COE for several options under flat rate tariff 112 Figure (6.6) COE for several options under winter TOU tariff 113 Figure (6.7) COE for several options under summer TOU tariff 113 XIII List of Equations No. Equations Page Eq. (1.1) First Load Factor Equation 11 Eq. (1.2) Second Load Factor Equation 11 Eq. (2.1) System Average Interruption Duration Index Equation 27 Eq. (2.2) System Average Interruption Frequency Index Equation 27 Eq. (2.3) Customer Average Interruption Duration Index Equation 28 Eq. (3.1) PV System Rated Power Equation 36 Eq. (3.2) Battery Capacity Equation 37 Eq. (3.3) Phase Current Equation 38 Eq. (4.1) Price Equation of British Generators 39 Eq. (4.2) Price Equation of British Generators have Turkish agencies 46 Eq. (4.3) Price Equation of Turkish Generators 48 Eq. (4.4) Diesel Generators Net Fixed Cost Equation 49 Eq. (4.5) Fuel Consumption Equation 51 Eq. (4.6) Total Fuel Consumption Cost Equation 51 Eq. (4.7) Oil Consumption Equation 53 Eq. (4.8) Total Oil Consumption Cost Equation 53 Eq. (4.9) Net Generators Electricity Consumption Equation 54 Eq. (4.10) Capitalized Cost of Generators Equation 55 Eq. (4.11) Fixed PV Systems O&M Costs Equation 69 Eq. (4.12) Hybrid Inverter Costs Equation 71 Eq. (4.13) On-grid Inverter Price Equation 72 Eq. (4.14) Standard Installed Battery Price Equation 74 Eq. (4.15) Long Life Installed Battery Price Equation 74 Eq. (4.16) Capitalized Cost of PV Systems Equation 75 Eq. (6.1) Average Load Equation 90 Eq. (6.2) Demand Factor Equation 91 Eq. (6.3) Third Load Factor Equation 92 Eq. (6.4) Diversity Factor Equation 93 Eq. (6.5) LCOE Equation 94 Eq. (6.6) Average COE Equation 99 XIV List of Appendix No. Appendix Page (1) Approximate Fuel Consumption Chart 123 (2) Electrical Charger Datasheet 124 (3) Hybrid Inverters Datasheet 126 (4) On-grid Inverters Datasheet 127 (5) Home Inverters Datasheet 128 (6) Cash Flow of Feeding Loads under Flat Rate Tariff by Alternative Sources 129 (7) Cash Flow of Feeding Loads under TOU Tariff by Alternative Sources 135 (8) Load Feeding by Off-grid Solar Power System 143 XV Abbreviations PV Photovoltaic Wp Watt Peak kWp Kilo Watt Peak DSM Demand Side Management kWh Kilo Watt Hour GHG Green House Gases L.F Load Factor P.f Power Factor EE Energy Efficiency DR Demand Response DG Diesel Gensets GW Giga Watt kW Kilo Watt PNA Palestinian National Authority JDECO Jerusalem District Electricity Company NEDCO Northern Electricity Distribution Company HEPCO Hebron Electricity Distribution Company SELCO Southern Electric Company TDECO Tubas District Electricity Company IEC Israel Electric Corporation kV Kilo Volt $ U.S Dollar WB West Bank Div.F Diversity Factor KPI Key Performance Indicators SAIDI System Average Interruption Duration Index SAIFI System Average Interruption Frequency Index LPG Liquefied Petroleum Gas XVI CAIDI Customer Average Interruption Duration Index ASAI Average Service Availability Index ETCO Engineering for Trading and Contracting Company ATS Automatic Transfer Switch AMF Automatic Mains Failure kVA Kilo Volt Ampere A Ampere cm Centimeter L Liter h Hour NIS New Israeli Shekel DC Direct Current AC Alternative Current V Volt Ah Ampere Hour CC Capitalized Cost CCG Generators Capitalized Cost Q Quarter BOS Balance of System c-Si Crystalline Silicon O&M Operation and Maintenance PII Permit, Inspection and Interconnection Wdc Watts direct current Wac Watts alternating current G&A General and Administrative Vdc Volts direct current EPC Engineering, Procurement and Construction MW Mega Watt R&R Repair and Replacement yr. Year UPS Uninterruptable Power Supply XVII PERC Palestinian Electricity Regulatory Council ENS Energy Not Supplied ABM Advanced Battery Management CCPV PV Systems Capitalized Cost m 2 Meter square VAT Value Added Tax L.V Low Voltage M.V Medium Voltage COE Cost of Energy LCOE Levelized Cost of Energy HOMER Hybrid Optimization Model for Electric Renewables NPC Net Present Cost SB Storage Battery TOU Time Of Use COEW Average Cost Of Energy of Winter season COES Average Cost Of Energy of Summer season COESp/A Average COE of Autumn and Spring seasons XVIII Management of Electrical Network with PV System and Genset, case study "An-Najah Hospital". By Eng. Ahmad Nabhan Abdel-Razaq Jallad Supervisor Dr. Imad Ibrik Abstract This thesis is based on searching for solutions and alternatives, which in turn may help overcome, solve and reduce the impact of all the obstacles and challenges that face, or may face the electricity networks in Palestine, including challenges such as supply constraints and lack of energy constraints, especially the problem of increasing demand during times of peak demand, and having the electrical current cut off because of that. It is also based on thinking carefully about how to minimize the impact and consequences of these challenges in different ways, whether economic, or non-economic, depending on the available conditions to achieve results that reduce the lack of capacity and help in solving the problems of high demand in the period of the load peak, through analyzing each of the challenges which encounter the electricity networks in Palestine, specifying all the methods of energy management and development, also through using and showing all the methodologies which may help in reducing the electrical capacity and the electrical consumption; by taking samples and places as case studies to help in analyzing, and reaching results. As in the case of An-Najah National University Hospital in Nablus, whose daily load XIX was studied, and it was thought about applying all possible and available conservation methods, all possible energy management methodologies and the application of different tariff systems, such as the TOU tariff . That would happen just if applying the peak management steps, which are suggested in this thesis, and try to cover the load peak period by using generators and solar cells connected to the grid or unconnected, to get the best option and the lowest cost of energy production, which was estimated with 75% of the solar cells in the presence of the network, without the need to use energy storing batteries, and so the same result through 25% load feeding by using electric diesel generators and 75% of solar cell systems for independent systems not connected to the network. 1 Introduction Most of countries nowadays seek to find an optimal solution to conserve the electrical consumption according to each case and its nature. Some studies were held in foreign countries on both off-grid and on-grid systems as a way to utilize the renewable energy systems in solving their problems and to make electrical conservation as much as possible, as a study from multiple aspects including economic, environmental and technical. Firstly, for most of off-grid systems as it is in some rural and/or undeveloped regions where there is no grid power and more water is needed, the residents of these areas are looking for another way to get electricity, the choices for powering are usually solar systems or a fuel driven engine, usually diesel generators. Diesel generators are typically characterized by a lower initial cost but a very high operation and maintenance costs while the solar system is the opposite, with a higher initial cost but very low on-going operation and maintenance costs, also the initial cost of solar system is often daunting to donors and project implementers who are tempted to stretch their budgets as far as possible to reach the greatest number of beneficiaries by using a low first-cost option without looking at the environmental and economic aspects of the future. Various studies were conducted by many competent authorities tried to solve such problems. At first, the outcome showed that PV system is better than fuel driven engines. For instance, in Mexico; a Sandia National Lab study of 3 different sized solar pumping systems (106 Wp, 848 Wp, 1530 2 Wp) showed that all had lower life-cycle costs than diesel-powered pumps. The PV systems vs. diesel had paybacks of 2, 2.5 and 15 years respectively when replacing fuelled pumps (gas or diesel). [1] In. comparison between fuelled pumps vs. PV, a German study showed PV- powered pumps has the lowest life-cycle costs for PV array sizes of 1kWp and 2kWp and the same cost as fuel pumps for power ratings of 4kWp. (The largest PV pump SELF has installed to date for village water supply is 1.9kWp). [2] Secondly; they showed that PV/Diesel/battery hybrid power system is feasible in terms of economics as well as technically. It has also less greenhouse gas emission, such as in technical and Economic Assessment of solar PV/diesel Hybrid Power System for Rural School Electrification in Ethiopia. [3] Secondly, for on-grid systems; Most of the electrical generation and distribution companies in Palestine would benefit from having no electrical overload especially at peak demand during the day, so the electrical companies in Palestine impose different tariffs during the day to maintain the system stable and to reduce the peak demand all times as much as possible, so we can notice some changes in tariff value also the electrical bills during the day. Jerusalem District Electricity Company (JDECO) is one of the companies that tracking time of use tariff system, it changes the tariff during the day and always the highest tariffs are in the maximum demand period of the city or the company's customers, so that will lead the consumers to try to 3 conserve their electrical consumption, as well as the distribution of their use of electricity to reduce the peak demand during the day, helping them to reduce their electricity bills. As a result; the company doesn't need to purchase large ratings of power to meet the consumers need and the outages of power because of the maximum demand and the occurrence of other problems. The lack of knowledge and experiences in the methods of energy conservation cause a problems in the high value bills and multiple problems. Some studies have resolved these problems through the use of a hybrid system at the peak time or at all times, such as the article studied in Malaysia for optimal sizing of building integrated hybrid PV/diesel generator system for zero load rejection in 2011[4,5] shown that the optimized system exhibits a minimum system cost. In our research we will study the Optimum configuration between Network (grid), PV system and Gensets (generators) at different tariff structure for An-Najah National University Hospital – Nablus, from multiple aspects, whether economic, environmental or technical to identify any of these systems can be the best system at peak time, or at other times, whether individually or in a hybrid. Objectives The main objective of this thesis is to analyse the loads - special case An-Najah Hospital; to make a peak demand management and demand side management (DSM), from technical and financial point of view. The specific objectives: 4 1. Improving the network efficiency through the optimal use of energy in the hospital, especially during the peak time and choosing the perfect choice as between each of the three network systems, solar cells and diesel generator. 2. Reducing the electricity bill for the hospital as much as possible through the optimal use of electricity during the day and especially at the peak time by studying of the three cases available. 3. A comprehensive study of the hospital to get the best results from the economic, environmental and technical aspects. Thesis Structure The thesis work has been summarized in seven chapters. Chapter One: Management of Electrical Network, Literature Review. This chapter illustrates the management of peak demands for the loads also it shows the demand side management and the managements by using other sources. Chapter Two: Demand Problems in the Palestinian Electrical Networks. This chapter illustrates and describes the energy management problems in Palestine such as supply constraints and the lack of electricity also the suggested solutions for solving the peak demand problems. 5 Chapter Three: Using Renewable Energy and Genset for Covering the Peak Demand. This chapter illustrates and describes the effects of using solar PV and diesel generators for the peak demand management also describes how to select the elements of these systems and comparison between these two sources for solving the peak problems. Chapter Four: Economical Evaluation of using PV and Diesel Genset for Solving Peak Problems. This chapter illustrates the modeling of the Genset, the modeling of the PV, the modeling of the hybrid (PV and Genset) and their fixed and running costs. Chapter Five: Peak Demand Management by Using Different Tariff Structures. This chapter illustrates the managements of the network under the flat rate tariffs and the time of use tariffs and describes several alternatives and options to implement the managements. Chapter Six: An-Najah Hospital (Case Study), for Solving Peak Demand by using PV and Genset. This chapter illustrates the managements of the load with PV, diesel genset or hybrid systems with the electrical network under the flat rate tariffs and 6 the time of use tariffs and without it and describes several alternatives and options to implement the managements. Chapter Seven: Conclusion and Recommendation This chapter describes the research conclusion, recommendations and the future scope of the work. 7 Chapter One Management of Electrical Network, Literature Review 8 1.1 Peak Demand Management Electrical energy management mainly aims at efficient use of electricity in any electrical system, so increasing the efficiency means increasing the production for the safe consumption of the electrical energy or reducing the energy consumption for the same output. And also, energy management is an important issue especially for energy generation, transmission and distribution companies. Demand management has several activities in order to maintain the network reliability in the short term and defer or avoid the need for network augmentation over the longer term, so peak demand management is employed and imposed by energy supply companies in order to reduce the need for infrastructure upgrades by encouraging consumers to use less energy as much as possible during peak hours, to move energy use to off- peak or to decrease the overall energy consumed, Thus increasing the reliability of the system and the continuity of electrical energy, which reflects positively on the electrical tariffs and on the consumers by reducing the electrical tariffs, which the high cost of electrical tariff is derived from and depend on several factors: [6] 1. Types of load i.e., domestic, commercial, or industrial. 2. Maximum demand. 3. The time at which load is required. 4. The low power factor and increasing the losses in the systems. 9 5. The amount of energy used. As mentioned; electricity bill contains a charge based on maximum demand which provides the consumer with the incentive to reduce the level of maximum demand or eliminate it completely outside the peak period where possible. Most of the electrical generation and distribution companies in Palestine would benefit from having no electrical overload especially at peak demand during the day , so the electrical companies in Palestine applying an imposed systems of different tariffs during the day and different tariffs for each type of load to maintain the system stable and to reduce the peak demand all times as much as possible , so we can notice some changes in tariff values also the electrical bills during the day varies from one company to another as well as from load to load so the reduction of maximum demand during peak periods can be achieved in three ways: 1- Turning loads on and off at specific times. 2- Disconnecting loads automatically. 3- Operating other electrical sources to supply the electrical load at peak hours. As mentioned in the last factors; electricity consumption is expressed in (kWh), so the cost of buying every kWh or the electrical tariff, even if fixed, changes according to the circumstances mentioned in the previous five points, which The tariff of the electric energy varies according to their requirement, so the increased in maximum capacity means increased in the 10 installed capacity of the generating station. If that coincides at peak periods ; then additional plant is required, and if occurs during off-peak hours; the load factor is improved, and no extra plant capacity is needed and costs. The details of all charges currently used in Palestine for billing purposes are available to consumers, for example: 1. Flat Rate tariff. 2. Time of use tariff. 3. Power factor penalty. 1.1.1 Benefits of Peak Demand Management Peak demands management supplies wide ranges of benefits to the energy supply companies or the electricity sector, such as [6]: 1. Reduces the need for costly infrastructure upgrades. 2. Provides better insight into customer requirements and practices. 3. Improves customer satisfaction by decreasing electricity bills. As mentioned; Peak demand management also provides a wide range of benefits to the customers and community value, such as [6]: 1. Reduces GHG emissions. 2. Improves network utilisation and reliability. 3. Reduces energy costs for customers. 11 4. Increases ‗value adds‘ for customers through incentives, rebates and in- home consultation. 5. Increases community awareness of benefits of energy conservation. 1.1.2 Load Factor and Power Factor Improvement and Management Load management basically aims at improving system load factor (L .F) in which it is the ratio of the average load over a designated period to peak demand load occurring in the period , say a day, a month , or a year. [7] (1.1) (1.2) Load Factor (LF) describes how erratically electricity is used by measuring the average use of electricity over a time period and then comparing that average load to the peak load during the same time period as well as an important indicator used in the evaluation of the electric network and energy management. Notice table (1.1). [7] 12 Table (1.1): Load factor ranges for several loads [8]. Industrial Commercial Agricultural Domestic 60-65% 25-30% 15-25% 10-15% Load Factor Range Most of electrical companies and municipalities in Palestine impose a penalty on the low power factor less than 0.92 as a method of making a demand management; that will let the customer pays an additional cost over the tariff on his bill. The penalty as shown in table (1.2). Table (1.2): Low P.f penalties in Palestine [9] Customer P.f Penalty add to electric bill Above 0.92 No penalty 0.7-0.92 0.77% * electric bill for each 0.01 of the P.f less than 0.92 0.6-0.7 0.95% * electric bill for each 0.01 of the P.f less than 0.92 0.5-0.6 1.20% * electric bill for each 0.01 of the P.f less than 0.92 Below0.5 1.50% * electric bill for each 0.01 of the P.f less than 0.92 1.2 Demand Side Management Energy supply or distribution companies are trying to orient their users or customers to change their demand profile, in which it is generally can be done by the optimum tariff incentives to let the consumer to schedule their peak or demand activities in order to reduce the energy costs or to save money. Demand side management (DSM) has been traditionally seen as a methodology used for the reduction of peak electricity demand. In fact that can be done by reducing the overall load on the electricity network. 13 1.2.1 Benefits of Demand Side Management DSM has several positive beneficial effects including the following [10]: 1. Mitigating electrical system emergencies. 2. Reducing the number of blackouts. 3. Increasing system reliability. 4. Reducing dependency on expensive imports of fuel. 5. Reducing energy prices. 6. Reducing harmful emissions to the environment. 7. Deferring high investments in generation, transmission and distribution networks. As mentioned; when DSM applied to the electricity systems provides significant economic, reliability and environmental benefits, so it is very important method to enhance the quality of power supply in spite of lack in supply situation, so this may reduce the shortage cases at peak demand periods especially in some areas in Palestine. Nowadays; customer may have several reasons and necessities for selecting and using a certain DSM activities. In general these activities would be economic, environmental, marketing or regulatory. The above points are expressed in a slightly different way, where it is argued that the 14 benefits of DSM to consumers, enterprises, utilities and society can be realized through the following [10]: 1. Reductions in customer energy bills. 2. Reductions in the need for new power plant, transmission and distribution networks. 3. Stimulation of economic development. 4. Creation of long-term jobs due to new innovations and technologies. 5. Increases in the competitiveness of local enterprises. 6. Reduction in air pollution; reduced dependency on foreign energy sources. 7. Reductions in peak power prices for electricity.[10] 1.2.2 Demand Side Management Categories DSM has different types of measures and activities that can be used to reduce the energy demand for the end-user, that can be used to manage and to control the loads from the utility side, and that can be used to convert unsustainable energy sources and practices into more efficient and sustainable energy use. [10] The main types of DSM activities classified into two main categories: [11] A. Energy Efficiency. B. Demand Response. 15 The EE category is designed and used to reduce electricity consumption throughout the year by focusing on reduction of electrical energy consumption and overall demand for energy, also DR category is an automatic method with a processing unit having the right to moderate or turn-off certain appliances (e.g. air-conditioners, pool pumps, washing machines, etc.) for a short period of time at customer sites. 1.2.3 Load Shaping Methodologies DSM is used to reduce the consumption of the electrical domestic, commercial and residential loads such as homes, offices, hospitals and factories especially the peak demand by using the pervious mentioned methods and categories through a continuous monitoring and actively managing how appliances consume energy. [11] The most common techniques used for load shaping classified in figure (1.1). 16 Figure (1.1): Load shaping techniques.[11] Each of these techniques uses a certain principle explained as following: [11] A. Peak clipping; clipping the peak demand and then the load reduced mainly during peak demand periods. B. Valley filling; a form of load management that involves building off- peak loads. This may be desirable where the long-run incremental cost is less than the average price of electricity, since adding off peak load decreases the average price. 17 C. Load shifting; reduction of grid load during peak demand and simultaneously the load shifted to the valley or off-peak periods by using clipping and filling. D. Conservation; using high efficient loads instead of the low efficient and old loads by reducing the load throughout the day by utilizing more energy efficient appliances or by reducing overall consumption. E. Load building; increasing the load throughout the day by increasing the overall consumption. F. Flexible load shape; specific contracts and tariffs with the possibility of flexibly aims for controlling consumers load time and periods. 1.2.4 Demand Side Management Disadvantages Despite all the advantages of DSM implementation, several disadvantages can be noticed through the process of implementing the DSM. These disadvantages can be summarized in two points: [12] 1. Large investments for installing and using the DSM equipment and controls may minimize the chance of expanding the fixed assets of the utility itself and slow or no repayment for their investments. 2. May gain less marketing power income or profits because of carrying out DSM so as to affect their profits. 18 1.3 Load Managements by using other sources. Many times; DSM enhances the use of several alternative sources especially at peak demand periods to be a solution to reduce the peak demand costs which also enhance the use of the on-grid PV systems or other on-grid hybrid systems, in which these methodologies came depending on the increasing of the demand and electricity tariff at peak period. These alternatives in our study focused on the use of alternatives available in our country, such as PV and Genset Systems with the following methodology: 1. Studying the load and make a determination of the peak demand period. 2. A qualitative study of the loads as much as possible and look at how to make energy conservation. 3. Finding the possibility of the application and the preference of other hybrid and standalone alternatives as following: A. Standalone PV systems. B. Standalone Diesel Gensets (DG). C. On- grid system and provides the load by the amount of 75%, 50% or 25% from PV system with or without storage batteries. D. On- grid system and provides the load by the amount of 75%, 50% or 25% from DG system. 19 E. On- grid system and provides the load by the amount of 20% from PV system and 60% from DG system,40% from PV system and 40% from DG system, 60% from PV system and 20% from DG system with or without storage batteries. F. Off- grid system and provides the load by the amount of 25% from PV system and 75% from DG system, 50% from PV system and 50% from DG system, 75% from PV system and 25% from DG system with or without storage batteries. 4. Considering alternatives results especially the cost of energy COE 5. Considering the possibility of implementing these applications. 1.4 Summary It is clear that there are many ways and methodologies to improve the efficiency and the reliability of any electrical network as can be seen from the previous sections in this chapter. This leads to make a peak demand management and demand side management due to the demand problems in the Palestinian electrical networks which discussed in chapter 2. 20 Chapter Two Demand Problems in the Palestinian Electrical Networks 21 2.1 Overview of the Palestinian Electrical Networks The Palestinian electrical networks faced and are facing nowadays a lot of challenges. This section discusses the challenges that encounters the Palestinian energy sector and evaluates the renewable energy potential in meeting part of the energy demand. Firstly, the energy sector depends on several external sources for supplying and feeding these electrical networks; in which 86% of the consumed electricity comes from Israel energy sector because of the political situations and the occupation. Secondly, the costs of importing these energies are too much, in which the yearly electricity import bill is evaluated and estimated at about 400-500 million dollars. Finally, several environmental hazards arise due to the usage of the traditional resources of energy such as fossil fuels. These facts are very serious and important challenges to the Palestinian decision maker in terms of advancing, crafting and utilizing a strategy for finding reliable, usable energy alternatives. [13] The power consumption in the Palestinian Territory in the year of 2009 was at about 4.413 GW/hour. The needed power covered and imported from three supplier sources: Israel (86%), Egypt and Jordan (4.5%) and Palestine Electric Company in Gaza (10%) as shown in figure (2.1). [13] 22 Figure (2.1): Primary energy sources in Palestine.[13] The main characteristics of Power sector in Palestine are as the following: [13] 1. Household and services consume about 75% of total consumption, while 25 percent is consumed by economic and productivity activities. 2. In 2020 the expected annual consumption may reach 8.400 GW / hour- assuming an annual growth rate of 6%. 3. The wastage of electricity is about 26% of imported energy, while the electricity prices are relatively high as a result of importing most of the needs from Israel. 4. The average per capita consumption of electricity (after deducting wastage) is around 830 kWh per year. This average is low compared with neighboring countries (2093 in Jordan, 1549 in Egypt and 6600 In Israel). 23 Electricity sector services including both the distribution and the maintenance; are the responsibility of the Palestinian providers. It should be noted that there is no purchase agreements between the PNA and Israel, but the purchase is really done through bilateral contracts between the Israeli Electricity Company and Palestinian providers.[13]These Palestinian providers are JDECO, NEDCO, HEPCO, SELCO and TDECO with several municipalities such as Tulkarm, Qalqeliyah and many other municipalities, where all these providers organized by thoughtful laws come after an approval by the Council of Palestinian Ministers from the Palestinian Power and Natural Recourses Authority and the Palestinian Electricity Regulatory Council. According to the Palestinian Electricity Regulatory Council (PERC) in Ramallah; the maximum load in 2015 for the last mentioned distribution companies (Discos) was as shown in table (2.1) Table (2.1): Maximum demand of Discos in different months Unit JDECO NEDCO HEPCO TEDCO Monitored Companies Maximum Load MVA 441 109 97 24 671 24 2.2 Problems of Energy in Palestine The Palestinian energy sector is suffering from several effects in which the main factor is the Israeli occupation that inhibited the investors from making large scale energy or industrial investments, as well as the lack of energy or peak demand problems which is one of the most important current problems of the energy sector in Palestine. Moreover, the lack of the Palestinian infrastructure for several decades has obstructed any factual progress on the energy sector; also the lack of conventional energy resources and the limited renewable resources has created unrealistic price control, energy shortage and future energy crisis. Under the continuous Israeli occupation; the national and comprehensive energy policy is still not clear, besides the weak and the fragmented institutional framework and the incomplete framework of the Palestinian State. The markets of renewable energy are affected with several factors such as the political stability in the region, economic situation of the people, increasing on the energy demand and availability of resources. [14]Some of these problems summarized by the following: 25 2.2.1 Supply Constraints 1. Political constraints The Permanent frustration by the Israeli occupation to generate electricity by using the solar energy or other alternatives, especially in the area "C" which constitutes 62% of the Palestinian territory.[13] 2. Technical and Skill Constraints Solar cells technology is a recent applied technology in Palestine as a method or alternative way for generating electricity. Despite the initiatives in this connection are considerable, the expansion of applications to broader levels needs technical and human capabilities that is not adequately available in the local market. [13] 3. Financial Constraints The costs of investments in the alternative electrical sources such as solar energy projects are relatively high, so these projects unaffordable for the majority of people. Moreover, the PNA does not have the financial resources to provide a catalyst fund for these projects. [13] 4. High Costs of Energy Constraints As mentioned; West Bank depend almost completely on the IEC to supply the electricity in which it imposes a high prices, so the municipalities and distribution companies collect the electricity bills from the final consumers. The final prices or tariffs based on the IEC prices plus a profit depend on 26 the Cost Plus Methodology that necessary to find out the required revenue for the distributers such as O&M cost, developing costs, depreciation and the regulated asset base multiply by the rate of return, so the total approx. About 10%, which this leads to increase the tariffs of electricity in WB to high levels (0.13-0.5 $/kWh) that including 16% as VAT, so this is three times higher than the average price in Israel (0.07$/kWh). [15, 16] 2.2.2 Lack of Electricity Constraints 1. Lack of Electricity Constrains at Peak Periods The West bank depends completely on the IEC. It is mainly supplied the electricity by three 161/ 33 kV substations: one in the south in area C close to Hebron, a second in the north in the Ariel settlement (area C) close to Nablus, and a third in Atarot industrial area (area C) near Jerusalem. According to the Palestinian Electricity Regulatory Council in Ramallah (PERC); the indicators about the continuity and the interruptions of supply for distribution sector in 2015 was as mentioned in table (2.2). 27 Table (2.2): Indicators about the continuity and the interruptions of supply for distribution sector in 2015 KPI Unit JDECO NEDCO HEPCO TEDCO Monitored SAIDI Minute 425 832 391 3,048 616 SAIFI No. 7 10 7 66 10 CAIDI Minute 58 83 55 46 60 ASAI % 99.92% 99.84% 99.93% 99.42% 99.88% IEC Interruptions Minute 3,154 5,853 848 4,853 14,708 The Previous table shows two types of interruptions, the first four rows related to Discos. which SAIDI describes the amount of electrical interruption periods in 2015 in minutes also SAIFI describes how many times that happened for each of these mentioned distribution companies (2.1) during the year, furthermore, CAIDI describes approximately the amount of minutes for each interruption process, moreover ASAI gives an indication about the load covering percentages by Discos during the year of 2015, while the last raw related to the interruptions come from the Israeli regulators. (2.2) 28 (2.3) The last numbers trend our thinking to an important term called the Energy not Supplied (ENS). IEC always trend to supply to the normal or stable loads not the over demand loads by upgrading the system capacity so this will always leads to main problems called the peak demand problems. Notice figure (2.2). Figure (2.2): Energy not supplied. These interruptions have several causes such as tree contacts, lightning, adverse weather, defective equipments, etc., but the main important cause is the over demand problem because of the technical and economical impacts. According to PERC; JDECO it has been taken as an example in 2015; which its interruptions due to over demand = 1,595.2 MWh as ENS also IEC; interruptions due to over demand = 254.723 MWh as ENS So the first total = 1, 8498.92 MWh as ENS by regarding 24% losses or others the rest = 1,405.94 MWh as ENS 29 So If this value multiplied by the average value of tariff (0.54$/kWh); the financial loss will be about 759,208 NIS, so what about consumers?! 2. Distribution Losses Constraints Because of the lack of financing due to the deteriorating situation in the collection of the electricity bills in utilities, municipalities, and villages has affected the maintenance of the networks, which in turn has increased losses, outages and overloading of feeders in which the average losses are about 20%-30%, this leads the IEC and Israeli government to neglect the growing need of energy, so that affects the quality of supply in the form of electrical shortages especially at peak demand periods. [15, 17] 2.3 Suggested Solutions for Solving Peak Demand Problems In spite of all these challenges, Palestine has gone forward to utilize its natural resources for rehabilitation and construction.The main objective of this thesis is to discuss the important and optimum way for feeding loads from alternative traditional sources such as the diesel generators or from renewable resources or hybrid systems, especially at peak demand period regardless of economical or financial aspects sometimes in order to keep the continuity of the system and to ensure that no power cuts for long . periods even though the cost was higher than the purchase price of the distribution companies, or by using the least cost planning methodology(LCP) which it is a process of selecting the mix of generation options, demand side management measures, purchases, and sales that 30 enable a utility to meet society‘s energy needs at the lowest overall cost subject to variety of constraints, such as minimizing economic and environmental risks also attempt to evaluate the potential available through efficiency improvements, load management and nonutility energy sources on an equal footing with power plants. [18] As mentioned, using of these types of energy sources may significantly reduce the energy reliance on neighboring countries and improve the Palestinian population‘s access to energy. As well as, it is estimated that the wind and the solar energy sources have the potential to account for around 36% of electricity demand; the conversion of agricultural wastes into biodiesel fuels which in turn can reduce the diesel imports by 5%; also the conversion of animal waste into biogas has the potential to replace 1.7% of the imported LPG and the use of geothermal energy for heating and cooling can reduce the costs as much as possible. [19] 2.4 Summary It is clear that there are many constraints facing our Palestinian electrical networks which mentioned in these sections of this chapter such as supply and lack of energy constraints. The available ways to skip these constraints by start thinking about alternative sources as described in chapter 3. 31 Chapter Three Using Renewable Energy and Genset for Covering the Peak Demand 32 3.1 Using Solar PV for Peak Demand Management Demand for power is increasing daily; especially peak load demand management is becoming crucial, which in developing countries the power is often unable to meet peak load demands, so that may causes a load shedding, voltage drops, power cuts and frequency variations. According to the Discos the term of energy not supplied is a main constraint because of its economic impact as discussed in chapter 2, while according to the consumers; the frequency in a regional grid might vary from a level below the normal level to a level above the normal, that is harmful for the heavy rotating equipment and particular considerable difficulties as well as damage to the end user equipment, moreover, that may stop the production process. Most of solutions must be considered in order to deal with the gap between peak load demand and the availability of power at the regional level, moreover thinking about the solar PV options as renewable source to fill this gap. Solar PV systems can be classified into two major groups: [20] 1. Standalone systems: These systems separated or isolated from the electrical network, which these systems are the most complex; and includes all the elements necessary to serve the AC appliance in a common household or commercial application. Notice figure (3.1). Standalone PV systems provide power for the critical loads when the power grid is down or to provide power at peak demand times in order to avoid the outage of energy especially for long times, while the downside of these 33 systems that cannot be expected to provide power for all loads since the cost and volume of batteries would be prohibitive. Figure (3.1): Standalone photovoltaic system. 2. Grid – Tied Systems: These systems are directly connected to the electrical network and don‘t require a storage battery, so the electrical energy can be sold or bought from the local electric utility depending on the local energy load types and the solar resource variation during the day. Figure (3.2) illustrates the basic system configuration. Many benefits could be obtained from using these systems instead of the standalone systems. These benefits summarized as following: A. Smaller PV array can supply the same load reliability. B. Less balance of system components are needed that will allow you to save more money with solar panels through better efficiency rates, net metering, plus lower equipment and installation costs. 34 C. Eliminates the need for the storage batteries and their costs. These storage batteries can be used if desired to enhance reliability for the client. While the downside of these systems that don‘t provide power to loads during the grid outage. Figure (3.2): Grid-Tied photovoltaic systems. 3.2 Selecting of PV Elements and Technical Impacts [21] Solar photovoltaic system or solar power system is one of renewable energy system that uses PV modules to convert sunlight into electricity, so the electricity generated can be used directly or stored, fed back into grid line or combined with one or more other electricity generators or more renewable energy source. Solar PV system is very reliable and clean source of electricity that can suit a wide range of applications such as residence, industry, agriculture, livestock, etc. The major components for solar PV system are the PV module, solar charge controller, inverter, battery bank, auxiliary energy sources and loads (appliances). 35 1. PV module : converts sunlight into DC electricity. 2. Solar charge controller : regulates the voltage and current coming from the PV panels going to battery and prevents battery overcharging and prolongs the battery life. 3. Inverter : converts DC output of PV panels or wind turbine into a clean AC current for AC appliances or fed back into grid line. 4. Battery: stores energy for supplying to electrical appliances when there is a demand. 5. Loads: Are electrical appliances that connected to solar PV system such as lights, radio, TV, computer, refrigerator, etc. 6. Auxiliary energy sources: is diesel generator or other renewable energy sources. The most important steps should be considered to make a PV designing for the Hospital are as following: Firstly, is to find out the total power and energy consumption of all loads in the Hospital that need to be supplied by the solar PV system by calculating the total Watt-hours per day for each appliance used, and calculating total Watt-hours per day needed from the PV modules. Secondly, is to size the PV module, in which different size of PV modules will produce different amount of power, so the peak watt (Wp) produced depends on the size of the PV module, facility orientation and climate of site location, then Calculating the number of PV panels for the system http://www.leonics.com/product/renewable/pv_module/pv_module_en.php http://www.leonics.com/product/renewable/solar_charge_controller/solar_charge_en.php http://www.leonics.com/product/renewable/solar_charge_controller/solar_charge_en.php http://www.leonics.com/product/renewable/inverter/inverter_en.php 36 by dividing the answer obtained in equation (2.6) by the rated output Watt- peak of the available PV modules. (3.1) The number 5.45 kWh /m 2 / day, is the scaled annual average of the daily radiation for the hospital in Nablus city with a latitude equal to 32 o and longitude equal to 35 o .HOMER program can give us the daily radiation curve for these specified orientations as shown in figure (3.3). Figure (3.3): Daily radiation curve by HOMER program. 37 Thirdly, an inverter is used in the system where AC power output is needed. The input rating of the inverter should never be lower than the total watt of loads. The inverter must have the same nominal voltage as your battery. For stand-alone systems, the inverter must be large enough to handle the total amount of Watts you will be using at one time. The inverter size should be 25-30% bigger than total Watts of appliances. Finally, is to size the Batteries needed for the system, in which batteries used are specifically designed to be discharged to low energy level and rapid recharged or cycle charged and discharged day after day for years. The batteries size should be large enough to store sufficient energy to operate the Loads at night and cloudy days. The size of battery can be calculated as following: (3.2) Where, 0.85 for the battery loss and 0.6 for the depth of discharge. According to JDECO and as mentioned in Chapter 2; the amount of energy not supplied because of the grid down in 2015 was 1,405.9 MWh as annual shortage, so the installed PV system needed for this distribution company to cover this gap may equal to 800 kWp by using equation (3.1). 38 3.3 Using Diesel Generators for Peak Demand Management [22] Peak demand or over demand problems, electrical power failures, interruptions, and their duration that covers a range in time from micro seconds to days, a reliable alternate power supply must be provided for facilities and systems that cannot go without power. As a solution for this matter, a wide range of electric energy sources have been developed. This section focuses on the diesel generators as a source of reliable alternate electrical energy. So it can be organized to make a demand reduction (peak shaving) to operate at certain times for short periods as a solution to the problem of over demand or peak demand instead of working for long periods of time due to interruptions as a result of the electrical overload. The main components of these systems can be symmetrized in figure (3.4) as following: 1. Engine – generator set. 2. Automatic Transfer Switch (ATS). 3. Battery System. 4. Controller. 5. Fuel System – Storage. 39 6. Exhaust and Inlet/ Outlet Air Figure (3.4): Diesel generators components. The most available electrical sources used in Palestine are the diesel generators, whereas it is easy to design a diesel generator for any load by fast calculation as following: (3.3) 40 3.4 Comparison between Solar and Genset for Solving Peak Problems [4] Diesel generators as mentioned are typically characterized by a lower initial cost but a very high operation and maintenance costs while the solar system is the opposite, with a higher initial costs but a very low on-going operation and maintenance costs, where the initial costs of solar systems are often daunting to donors so the donors trend to use generators in order to reach the greatest number of beneficiaries by using a low first cost option without looking at environmental and economic aspects of the future especially if these generators used to solve the peak demand problems. These costs can be summarized into fixed and running costs that characterized in chapter 4. 3.5 Summary It is clear that there are many available alternative solutions and sources to solve the problems of electricity demand especially at peak demand periods as discussed in this chapter such as using the solar PV systems or DG to be able for making a peak demand management . After thinking with technical aspects we should really think about the economical aspects of using these alternative sources as discussed in chapter 4. 41 Chapter Four Economical Evaluation of using PV and Diesel Genset for Solving Peak Problems 42 4.1 Introduction In the last period; the diesel generators were widely used as standby electrical source and sometimes used as a prime electrical source in the remote areas; because of the wide availability of these generators in the markets and the lowest initial costs. Nowadays; the developers and investors are more interested in using the clear or renewable resources as an electrical alternative source, whether it was alone or hybrid to be a solution for several cases such as peak demand cases. This chapter discusses the initial costs and the operational and maintenance costs of these two types of electrical sources. 4.2 Diesel Generators Fixed Costs According to the sales department at Engineering for Trading and Contracting Company (ETCO) in Ramallah; several kinds of generators have agencies in the Palestinian market and the mainly used types were studied in this section such as: 1. British generators (Engine + Canopy), such as Powerlink brand name. 2. British generators have Turkish agencies (Engine (UK), Canopy (Turkish)), such as Cukurova brand name. 3. Turkish generators (Engine + Canopy), such as EMSA brand name. 4. Small Chinese and Japanese generators, such as Kipor brand name. 43 The fixed costs of diesel generators include the initial cost, Automatic Transfer Switch (ATS), Automatic Mains Failure (AMF), Battery Charger, Web Interface, Storage Diesel Tank, cables, concrete blocks and rubber bases. 4.2.1 Fixed Initial Costs These costs mean the initial or purchasing costs of the diesel generators without any other installation or construction costs. Tables (4.1), (4.2) and (4.3) show the initial costs of the first three mentioned generators in section 4.2 with formulas for each type that represents the variation of the cost for each kVA, whereas these costs include the connection of the generators. Firstly, British generators (Engine + Canopy), while these types of generators have the higher costs in the Palestinian markets. Table (4.1) represents the cost for each available standard sizes of these generators. Table (4.1): British generators initial prices. Standby kVA Max. Current (A) End user price ($) 14 20.2 11,800 14 20.2 12,100 22 31.7 14,200 23 33.1 14,400 33 47.5 15,100 33 47.5 15,400 50 72 16,800 50 72 17,000 66 95 18,400 66 95 18,800 88 126.7 21,400 110 158.4 24,200 151 217.4 28,300 165 237.6 30,600 198 285.1 33,000 44 0 20,000 40,000 60,000 80,000 100,000 120,000 0 100 200 300 400 500 600 700 800 ا P ri ce ( $ ) kVA 198 285.1 40,000 220 316.8 35,000 220 316.8 41,000 248 357.1 42,100 275 396 44,200 303 436.3 58,300 330 475.2 60,000 385 554.4 61,000 440 633.6 62,800 495 712.8 76,800 550 792 80,000 660 950 108,000 688 950 110,000 According to table (4.1) the variation in the cost for each kVA is not constant. Figure (4.1) shows the formula of the variation for this type of generators. Figure (4.1): British generators prices. As a result of the price curve for the British generators the price equation: Y = 139.54x+9293.6 (4.1) Where; Y = Generator initial Price ($). X = Generator Size (kVA). 45 Secondly, another type of British generators have Turkish agencies. These types are British generators that aggregate in Turkey in addition of Canopy or the Silencer. Table (4.2) illustrates the prices of these standard types of generators. Table (4.2): Prices of British generators have Turkish agencies. Standby kVA Max. Current (A) End user price ($) 13.5 19.4 11,600 17 23.8 11,800 22 31.7 12,800 22 31.7 13,000 32 46.1 14,700 51 73.4 16,500 73 105.1 18,800 90 129.6 20,000 115 165.6 23,000 156 224.6 28,000 164 236.2 31,000 196 282.2 39,000 250 360 41,000 275 396 43,000 300 432 58,000 330 475.2 60,000 400 576 61,000 495 712.8 72,300 550 792 80,000 660 950 108,000 670 964.8 108,000 720 1,036.8 110,000 A table (4.2) show the cost of each type of these generators and as previously; the variation in the initial price for each kVA also is not constant; figure (4.2) illustrates the relation between the price and the capacity of each generators. 46 Figure (4.2): The prices of British generators have Turkish agencies. As a result of the price curve in figure (4.2); the price equation for the British generators that has its agency in Turkey as the following: Y = 141.39x+8614.2 (4.2) Where; Y = Generator initial Price ($). X = Generator Size (kVA). Finally, Turkish generators are another type of generators that are sold in our Palestinian markets. These generators characterized by cheap price somewhat compared to the previous generators. Table (4.3) shows the prices of these generators for each capacity. 0 20,000 40,000 60,000 80,000 100,000 120,000 0 100 200 300 400 500 600 700 800 P ri ce s ($ ) kVA 47 Table (4.3): Turkish generators initial prices Standby kVA Max. Current (A) End user price ($) 13 18.7 9,000 17 24.5 9,500 22 31.7 9,500 30 43.2 10,000 50 72 12,000 70 100.8 13,500 82 118.1 15,000 110 158.4 17,000 125 180 18,000 150 216 20,000 165 237.6 22,000 As mentioned above; these generators have lowest initial costs than the previous types, while the variation in the price per kVA illustrated in figure (4.3). Figure (4.3): Turkish generators prices. 0 5,000 10,000 15,000 20,000 25,000 0 20 40 60 80 100 120 140 160 180 P ri ce s ($ ) kVA 48 As a result of the price curve for the purely Turkey generators the price equation: Y = 83.581x+7799.4 (4.3) Where; Y = Generator initial Price ($). X = Generator Size (kVA). The difference in the initial costs between these mentioned types of generators depends on several things such as the shape and the durability of the canopy, controller type, internal wiring type … etc. that plays a crucial role in the difference of prices. 4.2.2 Fixed Construction Costs Installation of generators depends on establishing and equipping the appropriate location for these generators, sometimes the necessity of private rooms and sometimes not, also sometimes although these generators have a built in fuel tank, but may have an external tanks with a larger size than the built in ones in order to let these generators serve for a longer period without interruption or disruption and to provide the continuous re-packing costs, as well as, most of these are provided with rubber bases to play in important role by the absorption of the vibration caused by the operating process, especially start-up and shutdown period. Table (4.4) shows the most important things that play a main role in the construction costs. 49 Table (4.4): Generators fixed construction costs Type Cost ($) ATS + AMF + Battery Charger 900 Web Interface 1000 1000-2000 liters diesel tank with connections 700-1200 Concrete Blocks 30 x 30 x 15 cm 30 Rubber Bases 100 The net construction costs according to table (4.4) equal to 3230$ if the 2000 liters tank was considered in the designing , So the net fixed cost of diesel generators will be as following : Net Fixed Cost =Fixed Initial Cost + Fixed Construction cost (4.4) 4.3 Diesel Generators Operational and Maintenance Costs Diesel generators characterized by lower initial cost and higher operational and maintenance costs comparing to the other sources, these costs could be fuel, oil, batteries, filters and coolant consumption in which it varies depending on the capacity of generation, and based on the load of which the generator is operating at. 4.3.1 Fuel Consumption It is well-known that the generators which consume the fuel, most of them use Diesel, while the least uses gasoline. Since the majority of diesel generators have capacities of a range 5-1250 kVA. According to the practical experiments and the catalogues form manufacturer companies, it was found out that a chart in figure (4.4) approximates the fuel consumption of a diesel generator based on the size of the generator and the 50 load at which the generator is operating at. Please note that this chart is intended to be used as an estimate of how much fuel a generator uses during operation and is not an exact representation due to various factors that can increase or decrease the amount of fuel consumed. Figure (4.4) illustrates the fuel consumption in litre per hour for each kVA which the full data attached in the appendix (1). Figure (4.4): Approximate fuel consumption and the cost of it for each kVA. If we considered the equation (4.5) for the smallest diesel generator 5 kVA, it consumes near 2.68 litres per hour, and when considering a bigger size, 1250kVA, it consumes approximately about 270 litres per hour. Consequently, we relies that it consumes a large amount of fuel within a short period of time, while we are extremely in need for it nowadays, and looking for alternatives to reduce the consumption of the fuel supplies. It is remarkable that the cost of one litre of diesel is approximately 6 NIS, and 0 100 200 300 400 500 600 700 0 500 1000 1500 2000 2500 3000 L/ h kVA 51 then we remark that the operating consumption cost of these generators from 5-1250 kVA is between 16-1600 NIS per hour. As a result of fuel consumption curve in figure (4.4); there is a formula got from this curve at 100 % load as following: Y= 0.2144X + 1.6047 (4.5) Where Y = Fuel Consumption (L/h). X = Generator Capacity (kVA). Equation (4.6) represents the consumption of fuel in liter per hour, so the total fuel consumption cost for any period can be calculated by the following formula: Total fuel consumption cost = Fuel consumption rate (L/h) x Rrunning hours x Fuel price (1.42 $/L) (4.6) 4.3.2 Lubrication Oil Consumption It is well known that the generators need oil for the lubrication process; depending on the experiences and the catalogues of the diesel generators; the oil must be changed after every 500 operating hours, where the amount of oil needed depends on the capacity of the generators and the size of the oil sump of each one. As mentioned previously the major capacities of the diesel generators between the range 5-1250KVA; so the oil needed between the range 3-180 litres [23] , also we should change the filters of oil and fuel in each changing process of the oil so this will cause an increasing 52 in the maintenance costs. According to the distribution companies in Palestine such as ETCO, the maintenance contracts for the generators depend also on the size of the diesel generators and on the sump capacity, so the maintenance cost will be within the range of 500-1200 Dollars. The amount of lubrication oil needed for every generator varies from one to another depending on the capacity of the generator kVA and the size of the sump. Table (4.5) shows the amount of lubrication oil needed. Table (4.5): Lubrication oil for each kVA [23] Generator Capacity (kVA) Lubrication Oil (liter) Oil Consumption (L/h) 15 5 0.01 20 5.5 0.011 25 8 0.016 30 8 0.016 40 8.3 0.0166 45 8 0.016 62.5 11 0.022 82.5 10 0.02 100 18 0.036 125 18 0.036 160 18 0.036 180 27 0.054 200 27 0.054 250 27 0.054 320 41 0.082 380 41 0.082 500 45 0.09 600 50 0.1 625 50 0.1 As shown in table (4.5); the amount of lubrication oil needed for each generator‘s capacity is not constant in which figure (4.5) describes the curve of oil needed for each capacity in kVA. 53 Figure (4.5): Generator Oil Consumption in liter per hour. Therefore the oil consumption curve varies from size to size with the formula got from this curve at 100 % load as following: Y= 0.0002X + 0.014 (4.7) Where Y = Oil Consumption (L/h). X = Generator Capacity (kVA). The Total oil consumption can be represented as following: Total lube oil cosumption costs = Lube oil consumption rate * Running hours *Oil price (2.61 $/L) (4.8) Regular maintenance needs not only oil change , but it needs oil filters,fuel filters and air filters replacement .This will add aditional costs : The price of oil filter approx. 9-26$ . The price of fuel filter is approx.13- 40$ and the price of air filter is approx.80-260$ in which these values vary based on the capacity of generators. 0 0.02 0.04 0.06 0.08 0.1 0.12 0 100 200 300 400 500 600 700 O il C o n su m p ti o n L /h kVA 54 4.3.3 Electrical Consumptions All fuel generators need DC batteries to start up; these batteries must be always charged , so we need AC to DC chargers to keep charging the batteries all the time .Most of chargers that used in the Gensets between range 45-145watt with output voltage 12v or 24v with output current between 3-5A . The chargers operating 24 hours, so if we suppose that the charger input current is 0.5A and operating all the time for one year (8760 hours) with tariff about 0.172 $ for each kWh; the net electrical cost will be 675 NIS or 175$ each year just from the charger. This means the costs will be about 0.02$/h. The full data attached in the appendix (2). Diesel generators could hardly work in cold weather, so always you can see a water jacket heater for heating the engine's water to a suitable temperature about 45 degree. These heaters usually a 230v/15A, so if we calculate the cost for the operating in each year will be approx. about 10000 NIS or 2585$; so it is a high value. If you want to operate it just in the cold weather just about 6 months also it will be a high value. This means the costs will be about 0.6$/h. Therefor the net electrical consumption cost: Net Electricity Consumption cost = 0.62 $/h (4.9) 55 4.3.4 Batteries consumption Most of the batteries used today are commercial batteries , so the maximum life with good charging and dischar`ging will reach between 3-4 years , where the costs of replacing the batteries according to the distributers in Palestine will be between 160-360 dollars , also this will increase the operating costs of the generators . Table (4.6) illustrates the size of battery needed for each kVA with their costs. Table (4.6): Batteries size and costs Generator Capacity (kVA) Battery Capacity (Ah) No. of batt. Installed Batt. Cost ($) < 80 65 1 187 80-160 100 1 273 160-300 100 2 395*2 = 790 >300 150 2 395*2 = 790 4.4 Generators Capitalized Cost (CCG) The capitalized cost (CC) can be defined as the sum of the total fixed costs and the operational and maintenance costs of the proposed diesel generator at specified period and running hours as a cash flow, so the operational costs can be classified as the fuel consumption for every running hour, oil consumption for every running hour and electrical consumption for every hour, while the maintenance costs can be classified as filters replacement and batteries replacement. CCG = Net Fixed Cost + O&M Costs (4.10) 56 4.5 Photovoltaic Prices and Cost Breakdowns [24] Solar photovoltaic (PV) prices actually depend on the installed systems. This section covers the fixed and running costs of the residential, commercial, and utility-scale solar photovoltaic (PV) systems built in the first quarter of 2015 (Q1 2015). The methodology used includes bottom to up accounting for all system. The residential and commercial benchmarks represent the rooftop systems, with residential systems modeled as pitched – roof installations and commercial systems modeled as ballasted flat – roof installations, as well as the utility benchmarks represent ground- mounted, fixed-tilt and single –axis tracking systems. The benchmarked prices and price breakdowns include hardware costs (module, inverter, rack, balance of system (BOS)), soft costs- installation labour and soft costs- other. Figure (4.6) represents the Benchmarked system prices and price breakdowns. Figure (4.6): Benchmark price summery. 57 As a result of figure (4.6); figure (4.7) shows the amount or the percentage of contribution of the hardware, soft costs and installation labour from the final value. Figure (4.7): Hardware, soft cost and installation contribution percentage. This section also estimates the cash purchase prices of hardware equipment as well as the cost of the labour associated with typical installation methods, regulatory costs, system size constrains, and all related direct and indirect costs by using crystalline silicon (c-Si) modules. 4.5.1 Residential-Scale System Fixed Costs [24] The studied system was a residential rooftop system with standard single phase inverters, standard flush-mount and pitched-roof racking system, where the system used 5.2 kW by using 60 cells. Multi-crystalline 250W modules. Figure (4.8) illustrates the residential benchmark cash purchase price which is modeled at 3.09$/W, with cost breakdown, that includes capacity- weighted averages between ―installer‖ and ―integrator‖ business structures in which the installer involves in lead generation , sales and installation, 58 also the integrators include all installer functions and further provides financing and system monitoring. Figure (4.9): Residential PV system model schematic. According to the schematic model in figure (4.8); there is a difference in the costs between the installer and the integrator, where these costs can be classified in figure (4.9), generally the higher costs that affect the total cost value are the module cost, inverter cost, installation labor and customer acquisition. 59 Figure (4.9): Residential roof top PV system prices. The difference in the cost between the installer and integrator about 0.22$, where the weighted value estimated in the cost breakdown as the average value between these two values to be about 3.09$/W. Table (4.7) explains the details of each value from the total value. Table (4.7): Key residential modeling assumption Category Model Value (Range) Description Module ($/Wdc) 0.7$ (0.64-0.74$) First buyer, average selling price, Tire 1 module. Inverter ($/Wdc) 0.29$ (0.23-0.34$) Single phase string inverter. Racking ($/Wdc) 0.12$ (0.09-0.14$) Factory price includes flashing for roof penetrations. 60 BOS materials ($/Wdc) 0.2$ Wholesale prices for conductors, switches , combiners and /or transition boxes , conduit, grounding equipment, monitoring system/ production meter, fuses and breakers. Sales tax (%) 0-6% depending on the state Weighted average. Supply chain costs (% of equipment costs) 10% (5-10%) Costs associated with warehousing and logistics. Direct installation labor ($/h) Electrician : (15.9-41.6$) Laborer : (9.3-22$) Assumes a 1-2 days installation, total of approximately 50 person – hours; modeled labor rate assumes non-union labor and depends on state; national benchmark uses weighted average of state rates; benchmark per-watt cost is $0.33/Wdc. Burden rates (% of direct labor) Total nationwide average: 31.7% Workers compensation (state- weighted average), federal and state unemployment insurance, builders risk, public Liability. PII ($/Wdc) $0.12 Building permitting fee of $400 and eight labor hours: three hours for building permit preparation, two hours for interconnection application preparation, one hour for building permit. Customer acquisition ($/Wdc) $0.31 (installer), $0.42 (integrator) ($0.20–$0.85) Total cost of sales and marketing activities over the last year— including marketing and advertising, sales calls, site visits, bid Preparation, and contract negotiation; adjusted based on state ―cost of doing business‖ index. Overhead ($/Wdc) $0.27 (installer), $0.38(integrator ) General and administrative (G&A) expenses. Profit (%) 17% (10%–20%) Applies a fixed percentage margin to all direct costs. 61 4.5.2 Commercial-Scale System Fixed Costs [24] The studied system used 200-kW, 1000Vdc commercial-scale flat roof system by using 72 cells. Multi-crystalline 310-W modules (16% efficient), standard three phase string inverters, and ballasted racking solution on a membrane roof. Figure (4.10) shows the schematic of commercial system model. Figure (4.10): Schematic of commercial system model. [24] There are differences between the commercial-scale system model structure and the residential-scale model by separating the commercial- scale system estimates into distinct engineering, procurement, and construction (EPC) and project-development functions. While some firms 62 engage in both activities in an integrated manner, so that the distinction helps highlight the specific cost trends and cost drivers associated with each function. According to the figure (4.10); the commercial benchmark cash purchase price is modeled at 2.16$/W, with cost breakdown,where these costs can be classified in figure (4.11), generally the higher costs that affect the total cost value are actually the module cost or generally the EPC costs and development costs. Table (4.8) explains the details of each value from the total value. Figure (4.11): Modeled commercial PV system price. [24] 63 Table (4.8): Key commercial modeling assumptions. Category Modeled Price (Price range) Description EPC-Module ($/Wdc) 0.68$ (0.65-0.7$) Ex-factory gate price. 310-W multicrystalline, 72- cell, 6-inch cell, at 16% efficiency. Inverter ($/W) 0.13$/Wdc (0.15-0.17$/Wac, 0.12-0.13$/Wdc) Ex-factory gate prices; three-phase string inverter; Per-Wdc pricing assumes a 1.3 inverter-loading ratio. EPC-Racking, ($/Wdc) 0.21$ (0.16–0.22$) Ex-factory gate prices; flat-roof ballasted racking system. EPC-BOS Materials, ($/Wdc) 0.18$ Conductors, conduit and fittings, transition boxes, switchgear, panel boards, etc. EPC-Sales Tax (0–6%) Percent mark-up on equipment only. EPC Installation Labor, ($/Wdc) 0.19$ All direct installation labor. EPC-Permitting and Commissioning, ($/Wdc) 0.09$ 0.03$/W construction permit fees and inspection costs; $0.06/W for interconnection, testing, and commissioning. EPC-Overhead and Profit 20% (5–20%) Markup on all direct costs; covers all overhead items such as back office staff, office space, etc. and profit; We use the upper range of markups because we benchmark a relatively small system size at 200 kW. Developer- interagency 4% Estimated as markup on EPC price. Developer- Overhead, ($/Wdc) 0.41$ fixed overhead expense such as payroll, facilities, travel, etc. across administrative, business development, finance, and other functions; assumes 10MW/year of system sales. 4.5.3 Utility-Scale System Fixed Costs [24] The studied system used100-MW, 600-Vdc utility system using 72-cell, multi-crystalline 310-W modules from a Tier 1 supplier, three-phase central inverters, and both fixed-tilt, as well as, single-axis tracking ground- 64 mounted racking systems using driven-pile foundations .Figure (4.12) shows the schematic of Utility-Scale System model. Figure (4.12): Schematic of utility-scale system model. [24] After analysing figure (4.12); the utility-scale benchmark cash purchase price is modeled at 1.77$/W for the fixed-tilt systems and at 1.9$/W for single-axis-tracking systems, with cost breakdown, where these costs can be classified in figure (4.13), generally the higher costs that affect the total cost value are actually the module cost or generally the EPC costs and development costs. Table (4.9) explains the details of each value from the total value. 65 Figure (4.13): Modeled utility- scale PV system prices. [24] The tracker systems actually cost more than the fixed tilt systems because of the additional cost of tracker machines and sensors, where the difference in the cost in figure (4.13) is about 0.14$/W. 66 Table (4.9): Key utility modeling assumptions. Category Modeled Price Description EPC-module ($/Wdc) 0.65$ Ex-factory gate prices. EPC-inverter ($/Wac and $/Wdc) 0.14$ (AC) 0.11$ (DC) Ex-factory gate prices; assumes 1.3 inverter loading ratio. EPC-racking ($/Wdc) 0.16$ (fixed) 0.22$ (tracker) Ex-factory gate prices EPC-BOS materials ($/Wdc) 0.16$ Ex-factory gate prices for switchgear, transformers, combiners, fuses, breakers, conductors, conduit, and all other ancillary equipment required to complete a system. EPC interconnection line costs <10 MW, 0 miles; >200 MW, 5 miles at 500,000$/mile; 10–200 MW, linear interpolation at 500,000$/mile All costs associated with construction of AC feeder lines from the main site to the substation at the point of Interconnection to existing transmission lines. EPC-installation Labor ($/Wdc) 0.19$ (fixed) 0.20$ (tracker) Uses national capacity-weighted average labor rates. EPC-G&A 8% Markup on EPC direct costs. Development land costs ($/Wdc) 0.03$ Costs associated with obtaining legal control of the site. Development entitlement And environmental permitting costs $500,000 in CA; $250,000 in other states Land entitlement costs, including activities related to obtaining conditional use permits, and any related environmental studies and permitting. Development overhead (%) 15% for systems <10 MW 10% for systems >100MW Linear interpolation for systems 10–100 MW Includes overhead expenses covering payroll, facilities, and other expenses across administrative, finance, legal, information technology, and other corporate functions 67 4.5.4 The Resent PV Prices Benchmark prices are down in comparison to (Q4 2013), in which these reductions came from the lower equipment prices and the compressed margins, therefore, the reductions in the commercial scale benchmark also reflect changes in our conceptual system design and a change in how we approach modeling profit, so that can now exclude development profit above the total cost coverage, reflecting a project price that results in a developer net income of zero.The cost reduction or the price changes shown in table (4.10). Table (4.10): Price Changes of Solar systems form (Q4 2013) [24]. Benchmark Q4 2013 ($/Wdc) Q1 2015 ($/Wdc) Change Residential-scale Benchmark Up to 5-kW 3.31 3.09 -7% Commercial-scale Benchmark 5-200-kW 2.41 2.16 -10% Utility-scale Benchmark 200kW-100MW 1.81 1.77 -2% The modules costs change generally toward the lowest costs, where the change in the costs in dollar per watt can be seen clearly for the U.S modules between the year 2013 and 2015. Today benchmark prices are also down in comparison to Q1 2015and also in comparison to other regions, in which the costs of commercial crystalline modules in the other regions mentioned in table (4.11). 68 Table (4.11): Commercial crystalline modules prices at Nov. 2016 [25] Module origin Module price at Nov. 2016 ($/Wp) U.S module price at Q1. 2015 ($/Wp) Germany, Europe 0.53 0.68 Japan, Korea 0.61 China 0.52 Southeast Asia, Taiwan 0.44 4.6 Solar Systems O&M Fixed and Variable Costs O&M generally represents a small fraction of a solar system project development and operational costs. The estimation of the total established costs and operation and maintenance costs of PV system with different capacities that cover the expected load needed; mentioned in table (4.12) which discusses the costs of the PV generating technology, since these costs include the Conduct or ensure on-going operations and maintenance (O&M), including repair and replacement (R&R) that can be classified as following: 1. O&M agreements. 2. Warranties. 3. Monitoring system. 4. System performance. 5. Production guarantees. 6. Buyout Options. 69 Table (4.12): Solar systems O&M fixed costs [26] PV System Capacity Fixed O&M ($/kW-yr.) Fixed O&M Std. Dev. (+/- $/kW-yr.) <10kW 21 20 10-100kW 19 18 100-1000kW 19 15 According to table (4.12); these operational and maintenance costs represented in figure (4.14) in order to get a formula for the other capacities. Figure (4.14): Fixed PV systems O&M costs curve. The fixed PV systems O&M costs curve represents the following formula: Y = - 0.00144X + 19.278 (4.11) Where; Y = Fixed PV systems O&M costs ($/kW-yr.). X = PV system capacity (kW). 0 5 10 15 20 25 30 35 40 0 200 400 600 800 1000 1200 $ /k W -y r PV kW 70 4.7 Inverters Fixed Costs According to the sales department at Engineering for Trading and Contracting Company (ETCO) in Ramallah; several kinds of inverters mentioned in this section since all of these are made in Turkey. 4.7.1 Hybrid Inverters These types of inverters characterized with the pure sine wave output, availability to use as solar inverter with connection to solar panels for Photovoltaic off-grid System applications, availability to use as line- interactive UPS with charger wherever utility supply is present, perfect indoor UPS: clean, noise-free and odourless, overload, short circuit and low battery protections. Table (4.13) represents the costs of these types of inverters. The full data attached in the appendix (3). Table (4.13): Hybrid inverter costs Hybrid Inverter Capacity (kVA) Price ($) 1.2 720 2.4 990 3.6 1,080 6.6 1,800 10 2,250 13 2,880 After analysing the data that mentioned in table (4.13) and representing these data with a curve of costs; we got the figure (4.15) that shows a formula to enable calculating the costs of any other inverter‘s capacity. 71 Figure (4.15): Hybrid inverters Prices. The formula got from figure (4.15) as following: Y= 180.65X + 512.01 (4.12) Where, Y = Hybrid inverter price ($). X = Hybrid inverter capacity (kVA). 4.7.2 On-grid Inverters These types of inverters characterized with the accurate power conversion from Solar panel to local grid, compact size, light weight, ease of installation to save time and money, increased efficiency (up to 98%) minimum power loss, maximum reliability and enclosure for both indoor and outdoor application. Table (4.14) represents the costs of these types of inverters. The full data attached in the appendix (4). 0 500 1000 1500 2000 2500 3000 3500 0 2 4 6 8 10 12 14 P ri ce s ($ ) kVA 72 Table (4.14): On-grid inverter costs On-grid Inverter Capacity (kW) Price ($) 2 2,000 3 2,500 5 3,250 10 6,250 These data are analysed to get the figure (4.16) and to get the formula of the costs from the cost curve of On-grid inverters. Figure (4.16): On-grid inverters Prices. The formula got from figure (4.16) as following: Y= 532.89X + 835.53 (4.13) Where, Y = On-grid inverter price ($). X = On-grid inverter capacity (kW). 0 1000 2000 3000 4000 5000 6000 7000 0 2 4 6 8 10 12 P ri ce ( $ ) kW 73 4.7.3 Home Inverters Costs These types of inverters characterized with the advanced battery management (ABM), Auto restart after mains recovery, charging during switched off mode, short circuit and overload protection. Table (4.15) represents the costs of these types of inverters. The full data attached in the appendix (5). Table (4.15): Home inverter costs Home Inverter Capacity (VA) Price ($) 600 250 800 270 1000 350 1500 400 4.8 Batteries fixed Costs According to the sales department at Engineering for Trading and Contracting Company (ETCO) in Ramallah; several kinds of batteries mentioned in this section in which all of these made in Turkey. Table (4.16) shows the costs of batteries per Ah. 74 Table (4.16): Batteries fixed costs Battery Capacity(Ah) Price ($) Installed Price ($) 12v/5Ah Standard 13 18 12v/5Ah Long Life 14 19 12v/7Ah Standard 18 27 12v/7Ah Long Life 20 29 12v/9Ah Standard 21 30 12v/9Ah Long Life 25 34 12v/12Ah Standard 28 37 12v/12Ah Long Life 33 40 12v/20Ah Standard 46 53 12v/20Ah Long Life 53 60 12v/26Ah Standard 63 72 12v/26Ah Long Life 66 76 12v/40Ah Standard 100 115 12v/40Ah Long Life 115 132 12v/65Ah GEL 163 187 12v/100Ah GEL 238 273 12v/150Ah GEL 344 395 12v/200Ah GEL 466 536 The batteries costs are analysed in order to get the following formula as shown in figure (4.17): Y = 2.6407X + 6.2528 (4.14) Where, Y =Standard installed battery Price ($). X = Standard Battery Capacity (Ah). As well as: Y = 2.6135X + 11.277 (4.15) Where, Y = Long life installed battery Price ($). X = Long life Battery Capacity (Ah). 75 Figure (4.17): Batteries fixed costs curve. 4.9 PV Systems Capitalized Cost (CCPV) The PV capitalized cost (CC) can be defined as the sum of the total fixed costs and the operational and maintenance costs of the proposed PV system at specified period and running hours. CCPV = Net Fixed Cost + O&M Costs + Land cost (4.16) The above equation represents approximately the capitalized cost of PV system, they supposed the useful life cycle of the PV system to be 25-40 yr. [26] and without discussing the cost of the land used. The approximate area which is needed for each system shown in table (4.17). Table (4.17): Costs of the PV system land used [26] PV System Capacities Size (m 2 /MW) Size Std. Dev. (m 2 /MW) PV<10 kW 12949.93 8903.03 PV 10-100kW 22257.7 2832.2 PV 100 – 1,000 kW 22257.7 2832.2 0 20 40 60 80 100 120 140 0 5 10 15 20 25 30 35 40 45 P ri ce ( $ ) Ah 76 According to table (4.17), the area mentioned for PV sizes was based on installed projects, but vary from project to project according to its elements, components and requirements. Therefore, the average area and the standard deviation of this average were taken into account, either by increasing or decreasing under the title Size Standard Deviation. 4.10 Summary It is clear that there are many types of alternative and available solutions such as diesel generators and PV systems which their costs vary due to the different types, different sizes and consumption of these systems, and also vary according to their differences in the fixed costs and O&M costs as mentioned in this chapter to be able to choose the most economical alternative solution with less cost of energy. To get the less cost of energy system from these alternative sources we should study the tariff systems in Palestine as discussed in chapter 5. 77 Chapter Five Peak Demand Management by Using Different Tariff Structures 78 5.1 Introduction Tariffs are the most common kind of barriers to trade; that can be defined as a tax imposed on an imported or exported things, so the electricity tariff is the amount or the costs that the consumer has to pay for making the power available for them at their homes. Electrical tariff value varies widely from one country to another, and may vary significantly from a locality to another within a particular country, as well as, there are many reasons that account for these differences in price. The price of power generation depends largely on the type and market price of the fuel used, government subsidies, government and industry regulation, distributers regulations and even local weather patterns.Tariffs used in Palestine are divided into two parts: Flat Rate Tariff and Time of Use Tariff. 5.2 Flat Rate Tariff in Palestine [9] This section highlights the flat rate tariffs, where these tariffs are fixed values per time during the day that the consumer must pay to the electricity distributers depending on the nature and the classification of the load, which can be categorized as following: 1. Residential Tariff This tariff is applied in all areas of WB except the areas of Jericho and the Jordan Valley, residential houses within the housing projects, places of worship and the elevators used by the consumers, for post-paid single 79 phase and three phases meters. Table (5.1) illustrates these categories excluding VAT. Table (5.1): Residential tariff categories. Category Tariff (NIS/kWh) 1-160kWh per month 0.4366 161-250 kWh per month 0.4707 251-400 kWh per month 0.5429 401-600 kWh per month 0.5805 More than 600kWh per month 0.6417 Other tariffs can be applied for the areas of Jericho and the Jordan Valley, residential houses within the housing projects, places of worship and the elevators used by the consumers, for post-paid single phase and three phases meters. Table (5.2) illustrates these categories excluding VAT. Table (5.2): Tariff categories for Jericho and the Jordan Valley. Category Tariff (NIS/kWh) 1-500kWh per month 0.4275 More than 600kWh per month 0.4655 For prepaid meters 0.4513 2. Commercial Tariff Applied to hotels, public buildings, hospitals, sport, social and cultural clubs, shops, private and public companies, banks, restaurants, nightclubs, amusement parks, cinemas, regular bakeries, shops for selling sweets, photography studios, doctors' offices, pharmacies, X-ray clinics, laboratory clinics, weavers, shops for selling shoes, elevators in commercial buildings, shops that are using the technology of water purification for 80 trading, Water pumps for the purpose of selling water, refrigerators used to save the plant and animal products, automobile laundries, stores for punctures , shops for upholstery and the power of cars, refrigerators repair shops, offices and engineering firms, educational facilities and the institutions of civil society and internationally, for post-paid single phase and three phases meters. Table (5.3) illustrates these categories excluding VAT. Table (5.3): Commercial tariff categories. Category Tariff (NIS/kWh) Post-paid meters 0.5956 Pre-paid meters 0.5684 3. Industrial Tariff Applied on the industrial loads supplied from the low voltage (L.V) networks and who have monthly consumption less than 60,000kWh. Table (5.4) illustrates this category exclu