Financial Analysis of Utility Scale Photovoltaic System with Battery Energy Storage System in Nepal

Abstract

Renewable energy technologies (RETs) are essential for mitigating greenhouse gas emissions and transitioning to clean energy sources. Among various RETs, solar photovoltaic (PV) systems have gained attention as efficient and effective solutions. However, PV generation is intermittent and variable due to the diurnal cycle of solar geometry and weather conditions. Battery energy storage systems (BESS) integrated into PV systems can address these challenges by storing energy for later use. Nepal’s energy sector mainly depends on hydropower, which can be affected by natural and seasonal variations. To improve energy security and diversify its energy sources, the government has set goals to increase the use of solar and other renewable energy technologies in power generation. Nepal's favourable geography and abundant solar radiation make it suitable for deploying solar PV systems. Nepal receives an average of 3.6 to 6.2 kWh/m2/day of solar radiation and around 300 days of sunshine annually.