Economic analysis of the contribution of photovoltaics to the decarbonization of the power sector

An analytical method has been developed for the calculation of the future (2013-2050) reduction of CO2 emissions by the deployment of photovoltaic (PV) systems according to three Scenarios from the International Energy Agency (2DS, Roadmap and New Policies). Next, we have also evaluated the financial extra-costs incurred in the implementation of the PV systems which would replace the current traditional power generation systems, taking as reference four geographical areas: European Union, United States, China, and the world's average. The established method also allows the comparison of the influence on the extra-costs of the actual electricity mix, as well as the current electricity prices, corresponding to the above regional areas. In these calculations, we have taken into account several frequently ignored factors like solar-cell degradation, emissions attributed to the PV systems life-cycle, and the repowering due to the substitution of the systems after their life-time is reached. Finally, the results of this work can be of interest in energy planning policies related to the contribution of PV technologies for the decarbonization of the power generation system. (C) 2014 Elsevier Ltd. All rights reserved.