POSSIBILITY OF INTRODUCING A RENEWABLE ENERGY POWER UTILIZATION MODEL CENTERED ON PHOTOVOLTAIC POWER GENERATION IN GREENHOUSE HORTICULTURE - A CASE OF HIDAKA AREA WAKAYAMA PREFECTURE -

Abstract

 In this study, in order to clarify the feasibility of introducing a renewable energy electricity utilization model centering on solar power in horticulture, two business models with different orientations (fully independent power generation and power independence-oriented) were assumed and their feasibility was evaluated. In the feasibility assessment, multiple cases were set up for estimating PV procurement price changes associated with economies of scale and future cost reductions, policy inducements including the use of regional power source programs and the J-credit system, PV installed capacity, EHP price, and fuel oil price parameters. As a result, it was confirmed that the fully independent electricity generation model has a negative IRR and is not a feasible business model, while the electricity independence-oriented model can achieve an IRR of 13.5% or more if several conditions are met, making it an effective business model. It is also clear that the price of fuel oil has a significant impact on business feasibility in all assumed business models, and that the procurement price of ESS equipment accounts for a large proportion of the total cost.