The ambition of the Swedish government is rapidly concentrating on the development of the
renewable energy systems especially on wind energy, bio energy and solar energy. It has been
observed on the growth of the production of electricity and heat from these three mentioned renewable
energy systems. But, relatively in Sweden the share of production of electricity obtained from PV is
quite smaller than the other two. The PV electricity production in Sweden comprises in a large scale
of mainly the grid connected distributed PV systems and with a small number of installed solar parks.
The aim of this paper is to analyze the viability of installing mid -size PV solar parks in Sweden and
to simulate the effect of the proposed project in the village’s (Åled is the village where the proposed
site is located) and the country’s electricity production. This study includes designing, simulation and
financial analysis of different grid connected centralized mid -size capacities of PV solar parks of 250
kWp,500 kWp,1MWp and 2MWp. They are all fixed ground mounted systems. Moreover, it also
discusses the main reasons that hinders decision makers, the PV complications that are connected to
the grid, Sweden’s energy regulations particularly the emission regulation and the financial policies
of PV. Also, study visit, telephone and email contacts have supplemented it.
This study was done with the collaboration of Nyedal Solenergi, in which the proposed site was
owned by the company and this paper will be a future guide for the investment of the mid-size PV
solar park. According to the study a discussion has been made with the grid supplier (EON) in that
area on the investment on one of the designed projects which are presented in this paper.
The results of the study show that the effect of the proposed systems on the production of electricity
in the village of Åled was between 2.68 – 21.4 % and the impact on the country’s PV electricity
production was 0.2 – 1.58 %. And, the possibility of installing mid-size PV solar parks generally in
Sweden particularly in the proposed site is possible and economically it is viable but not profitable
for system capacities less than 1 MW. As the IRR found for all capacities is greater than the estimated
WACC, hence each proposed capacity has the possibility of paying back all its investment costs in
about 23 years. So, the profitability is very low in case of the 250 kWp and 500 kWp but for the others
they have about 7-8 years of profitability. A sensitivity analysis also has shown the impact of initial
investment costs, O & M costs and electricity export rate on the IRR, NPV and equity payback. The
initial investment cost and electricity export rate were seen with high effect on the IRR, NPV and
equity payback. The LCOE calculated was higher than the average electricity spot price (300
SEK/MWh) for 250 kWp and 500 kWp but lower for the other two capacities. The overall impact for
the financial analysis was due to the decreasing of module prices, the rules that changes every year
on electricity subsidies for renewables, tax reductions and rapid decreasing of electricity spot prices.
In the future if the price of modules continues decreasing, spot price increases, more modification of
the subsidy and introduction of new PV technologies integrated with other sources of energy is done
then such projects could be more profitable.