Feasibility analysis of wind and solar powered desalination plants: An application to islands

Economic surveillance for securing water projects driven by non-conventional energy sources is a challenge. The carrying out of these initiatives in economies based on liberalized markets faces governments against the need for guaranteed profits. As water availability has become a relevant global problem, and desalination an energy-intensive demand solution, it is common to combine both kinds of technologies, renewable energy systems and desalination plants. This research investigates the influence of grants, investment rates, and energy and water sales on the commercialization of two desalination technologies. A performance analysis has been carried out taking into account different scenarios. Following this approach, a simulated reverse osmosis desalination plant has been compared with respect to an already granted novel pilot plant. Results show a better fulfilment of the non-economic objectives, and economically profitable not only under certain conditions of conceded grants, and investor's expected benefits but also of sales of water-energy, that highlighted as a limiting factor. The Levelized Cost of Energy might be similar than the Spanish generation means, depending on the cost escalation rate of the loans, and conceded grants. It was found a reduction of 11 euro cents under the average price that could be achieved, for the standard scenario. (C) 2020 Elsevier B.V. All rights reserved.

Automated summary

The challenge of economic surveillance for water projects driven by non-conventional energy sources lies in balancing the need for guaranteed profits in liberalized markets. Combining renewable energy systems with desalination plants is a common solution to the global water scarcity issue. Grants, investment rates, and energy and water sales play key roles in the commercialization of desalination technologies, with factors such as concessional grants, investor expectations, and water-energy sales influencing the economic viability of such projects.