How to improve your PV O&M cost models to lower project LCOE

With the life of PV plants predicted to continuously increase, it is crucial to have accurate levels of O&M costs. O&M cost levels can have a significant impact on levelized cost of energy (LCOE) over the lifespan of a plant. Decreasing capital costs mean ongoing O&M is an increasingly important factor in the LCOE for solar.

New Energy Update covers this and much more in our latest complimentary white paper for the U.S. PV community.

Download your FREE copy of the white paper here

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Key features of the white paper include:

• Major sources of O&M cost
• Improving current models
• Reducing manpower costs
• The impact of new technologies

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Whitepaper Preview:

Executive summary

The cost of PV modules has fallen by an astounding 99% since 1980, according to a December 2018 study by the Massachusetts Institute of Technology. This remarkable drop in price has led to such wide adoption of solar that the International Energy Agency believes PV could be the largest source of electricity worldwide by 2050. 

But even though Wood Mackenzie forecasts module prices could fall a further 40% in the next five years, the limited contribution that modules now make to the overall solar bill of materials means project owners are having to look elsewhere for continued cost reduction. One obvious area to focus on is operations and maintenance (O&M). Decreasing capital costs mean ongoing O&M is an increasingly important factor in the levelized cost of energy (LCOE) for solar.  

As a precursor to debate on this topic at PV Operations Dallas, on April 16 and 17, 2019, this white paper looks at how asset managers are adapting their O&M cost models to cut solar LCOE, based on speaker presentations at Solar PV Operations USA 2018. The conclusion is that there is still plenty of scope to cut costs, particularly in areas such as manpower and new technology deployment. 

Major sources of O&M cost

The importance of having accurate cost models for O&M is growing along with an expectation that today’s PV plants will last longer. Whereas most PV plants were originally built with a 20-year lifespan in mind, even

“25 years is a thing of the past,”

comments Jenya Meydbray, vice president of solar technology at Cypress Creek Renewables. Now “we are looking at 35-year or higher lifetimes,” says Patty Liao, manager for operations and strategic sourcing at Recurrent Energy.

This means errors in estimating the level of O&M costs can have a significant impact on LCOE over the lifespan of a plant. Fortunately, the biggest sources of O&M cost are well understood. At Recurrent, for example, “some of the biggest items that we have in our O&M models are module washing and vegetation management,” says Liao.

Similarly, at Cypress Creek Renewables, “the largest item is vegetation management,” says Meydbray. “Most of our projects are in North Carolina which has a lot of vegetation and a lot of rain.” (...)

Keep reading by downloading the full whitepaper for free here

O&M cost reduction strategies and much more will be discussed at PV Operations Dallas (co-located with Wind O&M Dallas) April 16-17, Texas. Join us for the best learning opportunities, globally. Industry Leading Companies Speaking Confirmed for 2019 include: Liberty Power, Cypress Creek Renewables, ENGIE, Sonnedix, Shell, Southern Power, Invenergy LLC, Duke Energy Corporation, Vivint Solar, Nautilus Solar Energy, LLC and E.ON.

FLASH SALE! Register before Friday March 8 using code FLASH to save $100!

Visit the event website today to learn more and to book your pass.

Let me know if you have any questions or feedback and hope you find this helpful!

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