The Value of Solar Photovoltaics in an Isolated Competitive Electricity Market: a Case Study of Singapore
DOI:
https://doi.org/10.18034/apjee.v7i2.274Keywords:
Solar photovoltaics, Singapore, merit order, frequency control servicesAbstract
With a view of achieving its obligations under the global climate change regime, and low technical potential for other renewable energy technologies, solar photovoltaics (PV) is the main focus for Singapore to generate low carbon electricity. However, a high penetration of PV in Singapore’s electricity market would result in a number of costs and benefits that need to be quantified in order to ensure prudent government policies for “supporting” the widespread adoption of PV in Singapore. The quantification of these costs and benefits would allow policymakers to realize the true “value” of solar PV for Singapore and would address the limitations of relying on the levelised cost of electricity metric. This paper provides an assessment of the societal value that PV would bring to Singapore, essentially an isolated power system with a liberalized electricity market. For the purpose of this study, the determination of the value of solar involves quantifying the savings due to the merit order effect, costs due to additional frequency control services, and net avoidance of CO2 emissions.
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