Internalization of Externalities of Utility Scale Solar Energy Using the Ecos Model

Abstract

Globally attention has always been focused on the pollution and depletion emanating from fossil fuels. The nonconventional energy/renewable energy sources have always been termed as clean and environmentally benign. Utility Scale Solar Energy (USSE) has great potential in providing energy with sustainability to the wide populations especially in African countries with good solar irradiation levels but lack grid connectivity due to the sparse population and the existence of uneven terrain. The penetration level of USSE across the world lies at 15-20%. This slow deployment is attributed to the fact that these technologies requires large tracts of land, which if deployed would in turn lead to habitat fragmentation, emissions (such at particulate matter, carbon dioxide, nitrogen oxide etc), water pollution among others. The primary contribution of this paper is the development and application of a mathematical based decision-making tool (ECOS model) which permits for quantification of environmental, social and health (externalities) impacts of USSE in order to evaluate the indirect cost while generating energy from them. The model is advantageous than the traditional techno economic modelling tools such as HOMER, HOGA, INSEl, SOMES etc, as it utilizes the probabilistic approach other than the deterministic approach. The levelised externality cost of energy (LECOE) is a discounted summation of all the indirect costs incurred during the lifespan (25 years) of USSE. The levelized cost of Electricity (LCOE) will be used as an economic measuring metric to foretell the economic worthwhile of USSE projects in Kenya. The model used for simulation of a Solar photo-voltaic system in Kakuma-kenya.