Newsletter no. 4 presenting report „PV Market in Poland ‘2019”
Two years ago banks were incredulous at the financing of photovoltaic farms, because of bad experiences with financing wind farms, which were in green certificate support system. Currently banks are slowly entering the financing of photovoltaic farms, which have won RES auction. In the opinion of banks ‘’national support system’’ can be trusted one more time but banks require high technical and quality demands proved by ‘’productivity assessments’’ for at least 15 years. Moreover banks require guaranteed purchase of produced electricity for at least 15 years. It isn’t a problem in auction support system but in case of using PPA it can be a challenge, because PPA are signed for at most 2 years. Therefore banks are still careful about financing ‘’commercial’’ investments, which are in new model of operating i.e. PPA - power purchase agreement. The reason is fact that this market is yet unrecognized and there wasn’t proper financial analysis. Institute for Renewable Energy with experience from productivity prognosis, feasibility studies, due diligence and forecasts of wholesale energy prices and tariffs developed statistical data from real projects. Institute pointed out differences in projects in terms of investment attractiveness.
Banks’ important requirement is reliable photovoltaic farm productivity prognosis because electricity production is a base parameter in bank’s project assessment. Productivity prognosis allows to assess financial results of investment, hence reliable productivity prognosis is one of the conditions for receiving financing. Electricity production form photovoltaic farm depends on many conditions such as used devices or their arrangement. Institute for Renewable Energy is recommended provider of productivity prognosis. Institute has experience from photovoltaic farms productivity analysis for banks. Analysis have shown that proper farm design, devices and surroundings can increase productivity.
For instance there are two factors which affect photovoltaic farms productivity:
- The distance between rows of modules (it mostly affects self-shading)
- Used device – productivity analysis was made for 10 different modules chosen among most popular modules on polish market. (different capacity and technology)
Analysis was made for 992 kW capacity installation without changing localization (the same high insolation) but with changing devices and distance between rows of modules.
The distance between rows of modules has significant impact on productivity – the bigger the distance the higher the productivity, because of decrease in modules self-shading. It should be pointed out that the bigger the distance the bigger the installation area, hence the distance between rows should be chosen optimally.
Figure below shows impact of chosen device on productivity. Installation (992 kW) productivity in terms of different modules is from 1050 kWh/kW to 1120 kWh/kW. Analysis was made for monocristalline and polycristalline modules with capacity from 275 W to 400 W. Depending on module capacity installation area changes from 1,1 ha to 1,6 ha. (Installation area includes modules area and space between rows of modules, area of other devices aren’t included)
Analysis shows that productivity and financial results can be increased by optimizing area installation and choosing proper devices.
In the new edition of report ‘’PV Market in Poland '2019’’ Institute is going to present information about banks’ new requirement which is photovoltaic farm productivity report. This report became basic analysis which allows estimate future PV investment financial results.