Break-Even Cost for Incorporating Photovoltaic Generation into the TVA Power System

The conditions and timetable under which TVA would consider installing and/or integrating photovoltaic systems into its generation mix were examined. It was found that a central station PV plant could be justified in a given year if its initial installed system cost was equal to or less than the "breakeven" values given in Tables I and II. These values were based on given amortization, O&M cost, and power planning assumptions. As an example, with a 10-percent cost of money, 30-year plant life and amortization period, annual O&M costs equal to 0.5 percent of the initial installed system price, and using current TVA power planning medium load forecast data, in the year 2000 the PV "breakeven" prices (in current dollars) were $1.12 per installed peak watt for fixed flat plate systems; and $1.52 per installed peak watt for tracking flat plate systems. Optimal geographic location in the TVA region of such a plant could increase the breakeven prices about 10 percent.