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
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