Alberta Micro-generation Solar Energy Project

Karen Lau, MEL CEEN Candidate | December 18, 2020

APPP 506 – Master of Engineering Leadership Capstone Project, University of British Columbia

Introduction

Alberta’s current electricity generation landscape
*Source: Municipal Climate Change Action Centre, 2020*

As Canada refines its policies to meet their commitments from the Paris Agreement, clean energy projects should be the focus for implementation to help meet the new GHG emissions goals. Within Canada, Alberta is a province that is still heavily reliant on conventional power generation. This Capstone explores how we can support communities in Alberta who are looking to install clean energy generation through a non-profit organization such as Emerging Leaders for Clean Energy (ELCE). More specifically, this project will focus on investigating solar energy generation in Alberta, and determining the economic feasibility of implementing solar energy projects in Alberta under the micro-generation regulation within the Electric Utilities Act. In particular, small micro-generators, less than 150kW, will be investigated to stay in line with the size of project that ELCE has previously undertaken at the community level. The goal of this project is to provide streamlined information and a high level economic analysis for micro-generation so that individuals and communities can understand if a solar generation system is a viable option for them to pursue.

Acknowledgments

I would like to acknowledge Brodie Yyelland, my project sponsor, for his support and assistance in this Capstone project. He provided guidance in his capacity as an Executive Director at ELCE, and as a sessional instructor at the University of Calgary teaching courses in Physics and Solar Energy.

Objectives

The following objectives were considered:

Effect of policy and the market on the transition from fossil-fuel generating sources to renewables
Feasibility of micro-generation clean energy projects with and without government subsidy/incentives
Design analysis for roof mount and ground mount solar systems
Economic analysis for roof mount and ground mount solar systems located in northern Alberta (non-optimal photovoltaic location) and southern Alberta (optimal photovoltaic location)

Methodology

In maintaining consistency with the scale of projects previously undertaken by ELCE, solar systems falling under the small micro-generator definition (less than 150kW) was investigated. There are various options for installing solar power for community use, including:

Roof mount system to support one household
Roof mount system to support a community building or facility
Ground mount system to support a community building or facility

A typical size for each type of system was chosen for analysis as summarized in the following table.

Table 1 – System Design Capacities

Options	Capacity	Mount
Residential System	5 kW	Roof
Commercial System	50 kW	Ground
Community System	25 kW	Roof and Ground

Table 2 – Locations

Brooks, AB	50.6435° N, 111.9241° W	Optimal Photovoltaic Location
Little Buffalo, AB	56.4427° N, 116.1046° W	Sub-optimal Photovoltaic Location

Map of Alberta
*Source: Google Maps 2020*

Other design parameters that were considered in the analysis were the tilt angle and azimuth. The factors that were considered in the PV economic analysis include system installation cost, energy price, distribution tariffs, annual PV degradation, and annual escalation. The levelized cost of energy (LCoE) and breakeven year was found for each case analysed.

Analysis

The economies of scale was investigated by comparing a typical residential 5 kW roof mount system with a 50 kW commercial scale ground mount system.

Table 3 – 5kW and 50 kW Systems Economic Analysis Results

Location		Brooks	Brooks	Little Buffalo	Little Buffalo
System Size	kW	5	50	5	50
System Capital Cost	$	$14,800	$101,900	$14,800	$101,900
Lifetime Total Energy	kWh	148135	1470610	135481	1342014
LCoE	$/kWh	$0.0999	$0.0693	$0.1092	$0.0759
Breakeven Year	years	22	14	23	13

Figure 1 – Cumulative Cash Flow for a 5 kW System

Figure 2 – Cumulative Cash Flow for a 50 kW System

A 25 kW system was investigated to compare factors other than system capital cost to see how they impact the economics.

Table 4 – Brooks, AB 25 kW System Economic Analysis Results

Case		1	2	3	4	5
Tilt Angle	degrees	18.5	18.5	45	45	50
Azimuth (from south)	degrees	90	0	90	0	0
Dist/Trans price	$/kWh	$0.062758	$0.062758	$0.062758	$0.062758	$0.062758
Lifetime Total Energy	kWh	577061	694188	532316	740674	735305
LCoE	$/kWh	$0.1087	$0.0904	$0.1179	$0.0847	$0.0853
Breakeven Year	years	19	17	20	16	16

Table 5 – Little Buffalo, AB 25 kW System Economic Analysis Results

Case		6	7	8	9	10
Tilt Angle	degrees	18.5	18.5	45	45	50
Azimuth (from south)	degrees	90	0	90	0	0
Dist/Trans price	$/kWh	$0.1077	$0.1077	$0.1077	$0.1077	$0.1077
Lifetime Total Energy	kWh	493293	615541	461297	677403	671007
LCoE	$/kWh	$0.1272	$0.1019	$0.1360	$0.0926	$0.0935
Breakeven Year	years	18	15	19	14	15