Solar PV and Gas Displacement in Qatar

GasDisplacementA critical component of the economics of solar PV in Qatar is the ability to translate solar power production into local gas  market efficiencies and displacement of natural gas demand.  More important: the ability to extend gas displacement into higher LNG exports AND to link the export cash flows to the income statement of the solar power systems.  The result can be solar PV projects that are economically feasibility in the absence of government grants, production subsidies or tax incentives.  Meanwhile, project cash flows tied to natural gas exports can be 20% to 400% greater than cash flows from power sales, depending on the domestic power tariff in force and the gas marketing strategy used.  

The function code below estimate the potential for natural gas revenues generated by solar production in Qatar.  The R code uses basic inputs to define solar production by year, gas displacement by year, and the present value of annual cash flows from natural gas exports.  Qatar specific irradiance, temperature, wind speed and aerosol data is important to any PV produciton estimate, but these variables are not used here.  Instead, solar production potential is scaled through array designs to achieve a user defined production target for total power dispatch by year.

 

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