Ingenieur Vol. 75 ingenieur July 2018-FA - Page 47

Figure 2: Forecast of Capital Cost for Large-Scale Solar PV System [2016-2027] Source: Malaysia Solar PV Roadmap 2016-2030, MPIA Industry Engagement, June 2018, [Ref.3] billion annually by 2025. Of this, US$145 billion to US$155 billion could be the direct value-added to the world economy from this power, less the cost of subsidies. For Malaysia, solar power could generate enormous benefits for businesses that provide or consume energy, as well as consumers and society, but this could still require strong Government support, including green tax rebates, etc. Greater demand for variable solar photovoltaic generation (VG) could provide opportunities for technology providers and suppliers of ancillary equipment to manage the variability issue by providing that much-needed flexibility on the power system grid operation. Electricity utility companies could play a major role in the adoption of Large-Scale Solar power plant s by making some investments in battery energy storage systems (BESS) to accommodate intermittent flows of solar power into their grids. Also, distributed solar photovoltaic renewable energy generation – power/energy bought from local, small-scale operations or from commercial and residential users – could help defer investment in transmission and distribution infrastructure. While the cost of solar PV cells and the overall cost of solar power generation have dropped dramatically in the past decade, solar power is still not cost competitive with fossil fuels on a global basis, although in some regions it has achieved grid parity, or soon will. The typical levelised cost of electricity (LCOE) of conventional electric power plants (coal and combined cycle gas) is around RM360 per MWh [36 sen per kWh], compared with nearly RM400 per MWh [40 sen per kWh] for solar. However, there is potential for the rate of improvement in PV cell costs to continue through 2025. For example, at present the PV cell module and inverter, are typically 45