The Photovoltaic Generation System Impact on the Energy Demand of a Small Island and Its Financial Analysis

Abstract This paper investigates a simulated stadium-scale photovoltaic generation system (PVGS) impact on energy demand and its financial analysis. By applying the limit of voltage variation ratio on the system, the PVGS with a maximum capacity of 690 kWp is supposed to be constructed in the National Main Stadium (NMS) in Kiribati. Meanwhile, the voltage variation and system loss of the power grid are analyzed by executing the load flow analysis with and without considering the impact of the PVGS. Also, the payback years (PBY) and the internal rate of return (IRR) of the PVGS are derived considering the cash flow of annual power generation, the operation cost, the maintenance cost and the capital investment costs of the PVGS. It is concluded that although the selling price of PV generation has to be designed according to the conditions of solar irradiation and temperature so that sufficient incentives can be provided.