Research Paper - Energy of The Future

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Founded 1905
THE NATIONAL UNIVERSITY of SINGAPORE

Department of Mechanical Engineering
Energy: Past Practices & Future Directions
Done By: Ang Chieh Sin Jaselin 995917N11

Chiang Hock Siong
Hon Chia Jeng
Kamarul Effendi
Kingshuk Ghosh
Lee Aik Ling
Lim Wei Meng
Loo Ming Yang
Madhavan
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1.0 Introduction
Since the existence of mankind, different fuels have been depended upon as our sources
of energy. Fossil fuels are instrumental in meeting the increasing energy demands of the
global population with the main advantage of their easy availability at an affordable cost.
Over the years, their relatively low prices have caused the problem of random usage. The
question is, how long can this continue? With increasing consumption, it is only a matter
of time before these resources are totally depleted.
That is not all. Pollution is another heavy price. Over the past few decades, the damage
caused to the ecological balance can be attributed to the use of fossil fuels. This will
present a grave picture for the future generations, unless their detrimental effects to the
environment are checked soon. The question of sustainability of the environment is now a
major concern. Environmentalists are concerned with the fact that Mother Nature can no
longer take what we have been giving. Thus, there arises the need to explore usage of
other sources of energy that will at the same time, satisfy our demands and inflict
minimal harm to the environment. This is where the role of renewable energy sources
becomes increasingly significant. Being the energy of the future, many countries had
made major investments in these new energy sources, hoping to move away from the
conventional dependence on fossil fuels.

1.1. Energy sources
The energy sources are divided into the renewable and non-renewable energy sources.
The following two sections will describe briefly each group of energy sources.
1.1.1. Non- renewable energy sources
These includes the fossil fuels namely coal, oil, natural gas as well as the non- fossil
nuclear energy. Coal is mainly used in the iron and steel industries and approximately
37% of the electricity generated worldwide is produced from coal. Today, there is an
estimate of total reserves of 984, 400 billion kilograms of coal, according to the BP
Statistical Review of World Energy 2001. For oil, from its initial state of crude oil to its
refined products like petroleum and diesel, are being widely used as a fuel in
transportation, industries and domestic homes. The world has produced about 650 billion
barrels of crude with another trillion barrels of proved reserves yet to be produced and an
additional 10 trillion barrels of oil resources await development. Both coal and oil
produce harmful pollutants upon usage unlike natural gas, which burns the cleanest.
With its uses in heating, cooling and producing electricity and its outstanding
environmental record, natural gas is a superior fuel in comparison with the other fossil
fuels for the near and distant future. Nuclear energy is used in radioisotope production,
nuclear medicine, and different types of advanced power reactor. Its benefits include its
independence on the weather and non-emission of pollutants, but these are often weighed
against the disadvantages of its high cost, waste disposal problem and nuclear weapon
proliferation. For the major contributors of the above energy sources, refer to Appendix
A.
1.1.2. Renewable energy sources
This will include biomass, geothermal, solar, wind and hydropower. Biomass resources
include wood, municipal solid waste, agricultural crops and other bio- products. It is used
to provide heating and cooking in the residential sector and electricity in the industrial
sector. It is the 4th largest energy source worldwide accounting for approximately 14% of
total energy consumed (Refer to Appendix A) and the only non- renewable source that
produce pollutants through burning. Geothermal energy is generated by the decay of
radioactive isotopes of underground rocks and is stored in the Earth's interior. Its uses
include agriculture, aquaculture, space heating and pasteurization of milk. One
disadvantage is that its usage is only limited to places with strong tectonic activity (Refer
to Appendix A for the main users of geothermal energy). Solar energy provides
electricity through photovoltaic (PV) panels and might be the most promising renewable
since they are found to be highly reliable, clean and silent, though its initial high capital
cost may be too prohibitive. Wind energy, like solar, can provide a clean, abundant
source of electricity. It has been the fastest growing energy technology for the past
decade though there are disadvantages in instances where intermittency is a constraining
factor and the chief expense of setting a turbine farm is too high. Hydopower makes use
of the energy in flowing water to harness electricity. Refer to Appendix A for a detailed
description of the generation of electricity. It also provides an option to store energy as
well as to optimize electricity generation.

1.2. Trends in Production, Usage Pattern and Prices
In this chapter, the trends in the production, usage pattern and prices of the various fuels
over the past years will be discussed along with its implications.
1.2.1. Trends in Production
160
140
120
100
80
60
40
20
0
1970 1975 1980 1985 1990 1995 2000
Year
Coal Natural Gas Crude Oil Nuclear Electric Power Renewables
Figure 1.1: World energy production of the various non-renewable and renewable
energy sources (1970-2000)
Source: EIA, http://www.eia.doe.gov/emeu/aer/txt/tab1102.htm
From Figure 1.1, it can be seen that non-renewable energy sources dominate the scene, as
compared to renewable ones. This is expected because non-renewables such as coal and
oil has long been established as key sources of energy. Moreover, due to the nature of
renewable energy sources that are usually capital intensive, a lot of countries are
unwilling to turn to such alternatives. In addition, some of the drawbacks of these
renewables also prevent their widespread usage. Crude oil is seen as the main component
for the production of energy. Its trend is also the one with the most fluctuations due to its
volatile nature as well as its sensitivity to issues in the political scene.
1.2.2. Trends in Consumption
45
40
35
30
25
20
15
10
Year
Coal Natural Gas Crude Oil Nuclear Power Renewables
Figure 1.2: World energy consumption of the various non-renewable energy and
renewable sources (1949-2000)
Source: EIA, http://www.eia.doe.gov/emeu/aer/txt/tab1001.htm
Referring to Figure 1.2, crude oil is once again the leading component, followed by
natural gas, then coal. Nuclear power and renewable energy sources are relatively
insignificant when compared to the others. Coal was the leading source of energy in the
middle of the 20th century. However, its position has gradually been taken over by the
more popular crude oil that has a general rising trend from 1949 to 2000. Crude oil’s
various fluctuations are caused by the political events like the sudden oil embargo
imposed by OPEC in 1973 and the Iranian Revolution in 1978. Natural gas shares a
similar trend with crude oil since these hydrocarbons are usually produced
simultaneously. The small rate of increase of usage of nuclear energy is attributed to its
many drawbacks, among them the potential damage to environment and the society and
the problems posed by the disposal of its toxic wastes.
1.2.3. Trends in Population Growth
The production and consumption patterns are very much affected by trends in population
growth. Population growth is one of the main factors leading to increased demand for
energy. Population of the world continues to increase as time progresses. A major
component of this population growth arise from the developing countries like China,
India and the rest of Asia, as can be seen from Figure 1.3 below.
G l o b al p o p u la t i o n c o n t i n u e s t o ri s e
10
8
6
4
2
0
1950 1960 1970 1980 1990 2000 2 0 10 2020 2030 2040 2050
A f ric a A sia a n d O c e a n ia
E ur o pe L ati n A m e ric a a n d C a ri b b e a n
N o rt h A m e ric a
Figure 1.3: Global Population Trend

Source: http://www.wri.org/powerpoints/trends/sld002.htm
For more details on how population growth affects energy usage, refer to Appendix A.
1.2.4. Prices of fossil fuels and comparison of costs with other commodities
The price trends of the fossil fuels over the past 30 years from 1970 to 2000 with 1996 as
the base year for price comparison will be discussed. These trends will also be compared
with those of some of our everyday commodities. The implications of such trends are
also being discussed.
16
Coal
14
Natural
12
Gas
10 Crude Oil
8
6
4
2
0
1970 1975 1980 1985 1990 1995 2000
Year
Figure 1.4: Fossil fuels price trend from 1970- 2000

Source: Energy Information Administration
It is observed that crude oil has been the most expensive fuel, followed by natural gas,
then coal. This is not unusual since oil has been the most dependable fuel in most
industries with the widest applications and uses compared to natural gas and coal. As
discussed earlier, the turbulent nature of the fluctuations in crude oil price at various
peaks are caused by shortages due to the sudden oil embargo by OPEC, Iranian
Revolution and Gulf War respectively in 1973, 1979 and 1990.

Prices of natural gas have been relatively constant over the past 3 decades due to its low
usage. However, with increasing emphasis placed on natural gas to replace oil as the
dominant fossil fuel in part due to its cleanliness and relative abundance, there is a sharp
increase in the prices of natural gas towards the end of the 20th century.
Coal is the most abundant resource among the three fossil fuels which half- explains for
its lowest price. The reduced level of economic growth below expectations has affected
demand for coal and the declining oil prices create keen competition, thus causing coal to
maintain a relatively low price up till today.
On the whole, fossil fuel prices have been relatively low and more or less constant, as
compared to other commodities in the market. Refer to Figure 1.5 below.
1.3
1.2
Sugar
1.1 Milk
1.0
0.9
0.8
0.7
0.6
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Year
Figure 1.5: Commodities (Sugar and Milk) price trend from 1986- 1997
Source: U.S Department of Labor/ Bureau of Labour Statistics
It was observed that over the past few years, prices of other commodities like sugar and
milk have been on a general increasing trend whereas the prices of the fossil fuels
remained low when comparison is done in the same period of time and area.
This forms a major incentive for fossil fuels usage, especially over the more expensive
energy obtained from renewable technologies. It is particularly evident in developing
nations where governments would be more concerned with economic progress by
utilizing these relatively cheaper sources of energy rather than invest heavily in capital-
intensive renewable technologies, even if all these are done at the expense of the
environment.
1.3. Impact of the energy fuels on the environment
Relatively cheap prices of the fossil fuels result in their excessive uses and ultimately
result in wastage. Environmentalists are extremely concerned with the increasing
concentration of greenhouse gases since the Industrial Revolution. Carbon emission is
one of the major problems arising from fossil fuel usage. From Figure 1.6 below, it is
shown that the global carbon dioxide emission levels have been increasing over the years.
This is not surprising since the production and consumption of the fuels have been on an
increasing trend as had been discussed earlier on. This effect is thus detrimental to our
environment and our future generations to come and must be checked as soon as possible.
8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
Year
Figure 1.6: Global carbon dioxide levels from fossil fuels burning (1786 – 2000)
Source: World Climate News, Issue 21, June 2001
1.4. Future developments of energy
1.4.1. Non- renewable energy sources
• Coal
At current production levels, known coal reserves are forecasted to last over 200 years,
which is significantly longer than the known reserves of oil or gas. Coal will continue to
be an important source of primary energy and with new technology at hand, would ensure
its importance well into the 2lst century. As a result of continually improving clean coal
technologies, coal will be used more and more efficiently to meet the increasingly
stringent environmental regulations in force worldwide.
• Oil
Oil is estimated to run out in 60 years time considering present consumption rates. With
its extensive usage, it is thought that no other resources could make oil redundant. Even if
a revolutionary, new energy alternatives were discovered tomorrow, it would take up to
30 years, if not longer, to phase out existing oil- burning technologies and massive capital
investments in oil supply systems. “Hubbert’s Peak” Theory states that the production of
oil would follow a bell curve, and this may turn out to be true. The Saudis can dominate
the whole oil market but they cannot offset a real shortage. It is also unlikely to see any
drastic breakthroughs in technology that could significantly change oil supply. However,
oppositions to this theory believed that with the recent additional discoveries, such as
deep- water oil extracted in South Atlantic, as well as untapped reserves in Caspian Sea,
Siberia and Africa, the outlook of oil could be changed considerably. Still, with global
warming, this situation could lead to urgent but tentative reasons to pursue alternatives to
oil.
• Natural gas
Concerns regarding acid rain and global warming will no doubt make natural gas look
promising. The two areas that could lead to expanded use of natural gas are fuel cells
used for generation of electricity (Refer to Appendix A for the advantages of fuel cells)
and transportation, since it burns far cleaner than gasoline and diesel fuel. For the past
decades, the price of natural gas has been rising more slowly and in a stable manner
compared to oil. Furthermore, the inventory of natural gas is predicted to be 5 times more
than crude oil. It is possible then that the use of natural gas might overwhelm the use of
crude oil.
• Nuclear energy
Despite the potential hazards imposed by nuclear energy, scientists have predicted that
nuclear energy will still be in continuous use due to the huge amount of energy it can
generate without pollution. Experts believed that many countries would be turning to
nuclear power to power their lands in the near future. In the long run, it has to be noted
that until more advanced and efficient disposal technologies were successfully
implemented, the current costs of disposal, coupled with the capital intensive power plant
set up and reactor maintenance costs, would be too high for the consumer or end-user to
bear. Another aspect would be the limited fissionable reserves of Uranium-235, which
would be costly to mine for in an exploration.

1.4.2. Renewable energy sources
• Biomass Energy
Even though biomass provides a clean renewable energy source, its future will depend
heavily on the efforts of both developed and developing nations to improve on the current
biomass energy conversion efficiency. Dedicated energy crops have to be grown to meet
the growing energy demand and the infrastructure of the developing nations needs to be
improved to efficiently transport the bio-fuels. It is only then that the cost of biomass
energy can be made competitive with the fossil fuels.
• Geothermal Energy
The entire world resource base of geothermal energy has been calculated to be larger than
the resource bases of coal, oil, gas and uranium combined. To fully exploit the potential
of this huge source of energy, more funding into exploration and technological research
has to take place. However, the geographical constraint that comes with the usage of
geothermal energy implies that countries not located in areas of tectonic activity would
be less likely to adopt this source as an alternative for the future.
• Solar Energy
Its application in photovoltaics seems to have lots of room for improvement. PV cells are
becoming gradually cheaper and highly mobile, allowing for electricity generation even
in remote places. Its future lies in the technological advances to improve its efficiency, as
well as the storage of the energy generated. Most experts believe that mass-marketed
solar-propelled cars will not be realizable in our foreseeable future. However, it is

possible that in 15 years, most cars will use some onboard solar-power generation
system. Solar assistance will be important to sustaining long battery lives owing to the
heavy drain of electrical energy by computer and security systems of the automobiles of
the future.
• Wind Energy
Wind energy can be the most cost effective and clean source of electrical power. The
major technological developments enabling wind power commercialization have already
been made although there need to be infinite refinements and improvements. However,
its main limitation is its intermittency that will result in a high level of uncertainty for all
industrial and commercial applications. Still, the technology itself has leapt in recent
years and special efforts must be in place to ensure that renewable energy technologies
become a significant part of our energy picture in the next century.
• Hydropower
Hydropower has environmental impacts that are very different from those of fossil fuel
power plants. The actual effects of dams and reservoirs on various ecosystems are only
now being understood better. The future of hydro-electric power will depend on future
demand for electricity, as well as how societies value the environmental impacts of
hydro-electric power compared to the impacts of other sources of electricity.

1.5. Looking towards the future
The demand for energy will continue to grow. Economies are expanding, populations are
growing and energy-intensive technologies are spreading. There is also an increasing
global recognition of the environmental impacts of using non-renewable sources for
energy production. Over time, we will have to continually reduce our dependence on
fossil fuels and turn increasingly to the energy efficient, sustainable renewables.
One main disincentive of renewable energy sources is that such technologies are typically
capital intensive. The setting up of the required infrastructure and the investment in
technological research add up to a higher cost that will eventually be passed on to the
end-user. However, some renewables are actually quite well-developed, owing to the low
operating costs since the basic fuel is normally free or of low cost. Thus, the overall costs
in the long run would somehow be justified. As such, renewable energy sources are still
very much in the running as energy of the future.
The reliance on renewable energy sources, which arises from the realization of the
environmental impacts of fossil fuels, also resulted from the sustainability of such
sources. It is inevitable that fossil fuels will eventually run out with costs escalating
exponentially. On the other hand, renewable energy is harnessed from the basic elements
of the environment, such as water, sun, wind and earth energy. Thus, it would always be
readily available provided the required infrastructure is up and running. However, the
role of the government in establishing these infrastructures has to be an active one if
renewable energy is to be part of our children’s future.

2.0 Applications of Renewable Energy

After identifying the different sources of energy, which are used to meet the ever-
increasing demands of the growing population, there are certain conclusions that we can
come to. Firstly it is quite obvious that the energy needs are increasing very fast and it
will be naive to expect any decline in this trend. Secondly we have seen that over the
years this growing need has been met by fossil fuels like oil, coal and natural gas. Over
the past few decades, the world has slowly realized the hazards that these energy sources
pose to the environment, and are awakening to the calls of environmental activists.
Nations have realized that the answer lies not in the cut down of usage, as that is
practically impossible, but in the effective conservation of fossil fuels and increases
reliance on renewable energy sources like solar energy, wind energy, hydropower etc.
These energy sources, if harnessed properly are capable of meeting the energy needs,
with little or no detrimental effect to the environment. Thus the future of the world
energy demands lies in the proper utilization of renewable energy sources.
In this section of the report, the main objective is to design a solar heating and electricity
system for a remote resort. In the following pages, two systems will be introduced, first, a
solar water heating system for the resort followed by the solar photovoltaic system to
meet the electricity needs of the resort.
Before introducing the two designs and their detailed specifications, it is important to
introduce the design of the resort. Factors like location, size, accommodation etc have to
be specified for a proper understanding of the energy needs, and their subsequent
fulfillment.
2.1. Description of Resort
As mentioned earlier the resort is situated in a remote location. The immediate
implication of this is that it is inaccessible to conventional energy sources like oil, natural
gas and coal owing to transportation problems.
The resort is located on an island off the coast of Singapore. This means that the weather
is similar to that of Singapore, which enjoys tropical climate.
The resort has an area of 40 00 square meters and can house up to 48 guests at any one
time. The number of staff in the resort has been fixed at 12, thus giving a total figure of
60 residents in the resort. The layout of the resort is shown in Figure 2.1.
BLK
BLK 1
2 BARBECUE
AREA
BLK
3 COMMON
FACILITIES
BLK AREA
4
POO
CHILDRENS
BLK PARK
5 BLK
6
Figure 2.1. Resort Layout
The guests are accommodated in six blocks situated around the central facilities area.
Each block has four chalets each on a twin-sharing basis. Each chalet is allocated with a
washroom. Apart from the four chalets in each block, there is a maintenance room, which
takes care of the storage of PV batteries and maintenance equipment.
The chalets each have an area of 50 square meters and the maintenance room of 10
square meters, thus totaling an area of 210 square meters per block.
The common facilities area houses the reception, main office and staff quarters. Apart
from that it has dining facilities for the guests and multi purpose halls.
There are also outdoor activity centers comprising of a swimming pool, golf driving
range, children’s park, playgrounds, walkways and barbecue pits. All in all the resort is
meant to provide the guests with a relaxing stay and an unforgettable enjoyable
experience.
2.2. Background Information
After getting an idea of the location and the design of the resort, the next important
information is some of the technical specifications, which have been used in the
calculation of the energy needs and in meeting them.
First of all it is important to know how much solar irradiation the resort receives daily.
This figure was found out to be 13.5 MJ / m 2. (Source: “Energy and Environment in the 21st
Century”, M.N.A Hawlader 2001 Dec 26 – 28 ).
Next, assumptions were made on the temperature of the hot water that is to be supplied to
the guests as well as the cold water from the main supply lines. The hot water
temperature for the resort has been fixed at 60o Celsius and that of the cold water at 28o
Celsius.
These values are critical in calculating the energy requirements of the resort for the hot
water supply, following which the daily requirements of hot water for each person is
determined, and later found to be 40 liters of hot water per day (Source: “Solar Energy
Systems Desig n” /1985, Norman C. Harris, Cydney E. Miller Irving E.Thomas).
The resort needs two systems to meet its energy requirements. The hot water needs are
met by a direct solar thermal heating system. The second system is a Photovoltaic system,
which supplies the remaining electricity needs and provides for water heating at night.
The next section covers the solar thermal water heating system in greater detail.
3.0 The Solar Thermal Water Heating System
3.1 Introduction
The solar thermal water heating system takes care of the hot water needs of the resort.
The basic idea of the system is to utilize solar radiation from the sun to heat up the water.
Solar collectors absorb the radiation, which utilizes the energy to heat up the water. This
hot water is stored in thermal storage tanks, and is supplied to the residents as required.
For this purpose, initially two systems were designed. The first design configuration is
known as the semi-decentralized system in which solar collectors were mounted on the
roof of each residential block and the common facilities area. The solar collectors on each
residential block supply hot water to the chalets, while those on the common facilities
area supplies hot water to the staff quarters.

The second design configuration consists of a centralized system with just one set of solar
collectors on top of the common facilities area. This would meet the hot water needs of
the entire resort. Thus it is necessary for the hot water to be pumped to the different
blocks for guest use.
After considering the pros and cons of both the systems, the semi-decentralized type was
selected for the final design. There were certain disadvantages with the centralized
system, among them is that:
(i) The centralized system required pumps to supply hot water to the guests in the
residential blocks. This incurs additional costs.
(ii) In the event of a breakdown of the system, the entire resort would be affected,
since no backup is available. This is not the case for a semi-decentralized
system, as only a certain part of the resort would be affected.
(iii) Maintenance costs are much higher for a centralized system.
Keeping these reasons in mind, the semi-decentralized system was selected to meet the
hot water needs of the resort.

3.1.1. The Semi-Decentralized System
In this section the semi- decentralized system solar thermal heating system will be
explained. Emphasis will be made on the working principles of the system, which is
assisted by a schematic diagram. Next the various components of the system will be
introduced together with their respective functions.
3.2. Working Principle of Solar Thermal Water Heating System
As explained earlier, the semi-decentralized system is more practical in its usage
particularly for a large resort as the one under consideration. A schematic of the system is
shown in Figure 3.1.
In the diagram the blue lines trace denotes the flow of cold water from the main supply
lines, while the red lines denote the flow of the water after it is heated up to the required
temperature of 60o Celsius.
As can be seen from the diagram the cold water enters to the storage tank through the
supply lines. From the tank the cold water flows to the solar collector. As can be seen
from the schematic diagram there is a differential controller, a check valve and an air vent
in this section of the flow. The differential controller acts as an activation/deactivation
device controlling flow of cold water into the solar collector. It is aided by the two
temperature sensors. In the event that these sensors detect a temperature difference, the
differential controller is activated, enabling flow of water into the solar collector for
reheating. The two temperature sensors are ideally located at the point of exit of the hot
water from the tank, and at the point where the water leaves the tank and flows into the
solar collector.
The check valve is added to the flow network, to prevent backflow of water into the
storage tank. The air vent is a very important attachment, as it prevents any air bubbles
from entering the solar collector. In the absence of an air vent, these bubbles will enter
the collector and vaporize. Consequently, this affects the flow, as the water vapor exerts
its own pressure, affecting the flow of water. Once the cold water enters the solar
collector, it is heated up by the solar radiation that is absorbed by the collector. The area
of the collector determines the temperature to which the water is heated, and the area in
turn is determined through calculations, taking into account the irradiation form the sun.
Once the water is heated up to the required temperature it flows back into the thermal
storage tank. Along the way, it passes through a check valve and a shutoff valve. The
check valve performs the same function, except that in this case, it now prevents
backflow of the hot water into the collector. The shutoff valve is added to the system
simply for maintenance purposes. In case of any fault to the system, the shutoff valve is
activated, thus stopping flow from the collector to the tank.
Thus, in this way, the heated water will find its way into the thermal storage tank. In the
tank, the thermo-siphon process is utilized in which the cold water in the tank, being
heavier, moves to the bottom of the tank. This in turn automatically forces the hot water
to rise to the top of the tank. In this respect, the thermo-siphoning method is very useful,
as it does not require pumps to maintain the flow of water.
From the top of the tank the hot water exits into the piping network. Once the water
leaves the tank it flows through an auxiliary heater. The function of the auxiliary heater is
very important, particularly on days of insufficient sunlight, where the water might not be
at the desired temperature of 60o Celsius, owing to the insufficient amount of solar
irradiation. Thus the need to heat up this water to the desired temperature arises, and
indeed this is the function of the auxiliary heater. Essentially, it is a normal water heater
that is powered by photovoltaic cells. Thus even on days of insufficient sunlight, the
guests are guaranteed hot water supply at 60o Celsius. The location of this auxiliary
heater can also be changed to a point closer to the individual supplies to each of the
chalets inside the block. This would be necessary in case there is a significant time
difference between the supply of the hot water reaching the guests.
After passing through the auxiliary heater, the water passes through an air vent and a
pressure relief valve. The air vent as explained earlier, eliminates air bubbles trapped in
the water.
The pressure relief valve is a safety feature incorporated into the system. In such hot
water systems, there is a chance of an excessive build-up of pressure in the piping
network, which can be hazardous. Hence, there is a need to install a pressure relief valve
in the system. In the case of excessive pressure build-up, the pressure relief valve is
automatically activated, releasing the excessive pressure thus preventing any accidents.
The next component in the system is the drain valve, which is used for maintenance
purposes. Upon activation, this valve drains all the water from the piping network,
enabling maintenance to be carried out on the system.
The next task is to channel the hot water into four separate networks to supply it to each
of the four chalets in each block. A manifold takes care of this, and channels the water
into the internal piping lines of the chalets. The water then finds its way into the taps in
the washrooms in the chalets. Mixing valves are incorporated into these taps, which are
used to mix the hot water (at 60o Celsius) and the cold-water form the supply line to get
the water at the desired temperature.
As can be seen, the thermal water heating system design is an extensive one. Therefore,
sufficient care has to be taken in incorporating components into the design, which will
ensure safety and the need of maintenance of the system.
At night, the water is stored in the thermal storage tank and if required is also heated by
the auxiliary heater. As mentioned earlier, in case the hot water takes a long time to reach
the guests, the auxiliary heater can be shifted closer to the channeling point. Another
option is to introduce a small loop in which the water in the pipes can flow back to the
point of entry to the auxiliary heater, enabling the temperature of 60o Celsius to be
reached quickly without much delay.

3.3. Determination of system requirements
The next step is to determine the requirements of the system.
First of all, it is necessary to calculate the figures for hot water consumption of each
block and the common facilities area. This figure is based on the fact that the daily hot
water requirement in the resort is 40 liters per person.
Once the volume of hot water required is determined, the next step involves the
determination of the energy needs of the resort with regard to heating up the required
amount of water to 60o Celsius. This value is obtained by applying the equations in
Appendix B.
Based on the calculations, the following quantities for the blocks and the common
facilities area are obtained.
Each Block Common Facilities Area
Daily load (m3) 0.448 0.672

Daily energy consumption (MJ) 60.21 90.32
Area of collector required (m2) 7.81 11.72
Number of collectors required 3 5
Table 3.1: Results after Calculations

3.4. Individual Components
Having gone through the working principles of the solar thermal water heating system
and the determination of the energy requirements, the next task is to select the various
components. Of paramount importance are the solar collectors and the thermal storage
tank, which will be discussed in greater detail.
3.4.1. The Solar Collector
The solar collector is an integral part of the system as it traps the irradiation from the sun
and transforms the solar energy into heat using an absorber. Insulated to prevent heat loss
to the environment, its heat-transferring medium is generally a liquid; in this case, water
is used.
There are two main types of solar collectors available in the market:
(i) the flat plate type.
(ii) the evacuated tube type.
For our design the flat plate type collector was selected. This is due to its higher
performance to price ratio compared to evacuated tube types. Secondly flat plate type
collectors provide a wider variety of mounting possibilities to the user.
The next aspect of using the solar collectors is the mounting of the collector, with regards
to its angle of inclination.
As a rule of thumb, collectors in the Northern hemisphere face the South and vice versa.
Another guide with regards to the inclination angle states that for optimum performance,
the angle of inclination should be determined by adding 10 o to the latitude of the location
concerned.
(Source: “Solar Design Components, Systems, Economics” / 1989, Jan F. Kreider, Charles J.
Hoogendoorn, Frank Kreith)
Here it should be noted that, the inclination angle could be varied from 10 o to 15o,
without affecting the performance of the solar collector.
Taking these rules into consideration, the angle of inclination of the solar collectors was
determined. As Singapore has a longitude of 103 º 50’ E and a latitude: 1º 18’ N, the
inclination of the collector was fixed at an angle of 10 º facing South.
The next important aspect regarding the solar collectors concerns the arrangement of the
collectors itself. It is very essential to look into this whenever the system requires the
functioning of more than one collector.
For our design, the Parallel Flow (with Reverse Return Header) type of collector the
arrangement chosen is as shown in Figure 3.2.

Reverse-return
Return header
Collectors
Supply header
Figure 3.2: Collector Array Arrangement
As can be seen from Figure 3.2, the total length of supply piping and return piping to
each collector is the same with this arrangement, and the pressure drop through each
collector is theoretically equal, since the pressure drop through each collector is the same
and the path length of the manifold piping for each collector is the same.
This design thus ensures the same flow of water to all the collectors, without the need of
any balancing valves or orifices.
Finally, the mounting of the solar collectors is decided. In this case, mounting kits are
readily available in the market, certain factors must be considered while selecting a
particular brand of mounting kit. Firstly, the mounting kit should provide flexibility in
terms of the required angle of inclination. This would mean that the length of the tilt leg
of the mounting structure had to be adjustable. Secondly, the mounting kit should also be
properly insulated and should not be easily corroded or worn out.
3.4.2. The Thermal Storage Tank
The thermal storage tank stores the hot water in the system until it is used. It serves as a
medium to overcome the time difference between absorbing solar radiation and hot water
consumption.
As a rule of thumb, the capacity of the tank should be such that it can store from 1.25 –
1.6 times the hot water requirements (Source: “Solar Energy Systems Desig n” /1985, Norman C.
Harris, Cydney E. Miller Irving E.Thomas). For our case, this factor was fixed at 1.4 times the
requirement.
3.5. Selection of Components
3.5.1. Selection of Solar Collector
Once the requirements of the system are known, a particular brand of solar collector is
selected based on the efficiency, performance, price, area and resistance to atmospheric
corrosion. An extensive survey was conducted of the various brands available in the
market, and the choice was narrowed down to a few (Refer to Table 3.2).
Model of Collector Area (m2) Unit Efficiency MJ/m2 $

Cost(US$)
SolarStar SSC-32 2.724 754 0.612 0.01095

SolarStar SSP-32 2.724 690 0.571 0.01117
Imperial IP-32 2.750 627 0.571 0.01229
Imperial IC-32 2.750 700 0.612 0.01180
Empire EP-32 2.750 541 0.571 0.01425
Empire EC-32 2.750 627 0.612 0.01317
Radco 408C-HP 2.806 750 0.661 0.01190
Radco 408P-HP 2.806 608 0.588 0.01306
Table 3.2: Selection of Solar Collector
These choices were based on the parameters stated earlier. For each collector, the
efficiency was determined through calculations, and then compared along with their
respective prices as the basis of selection. Refer to Appendix B for the relevant
calculations.
The final selection was made from the narrowed down list (the highlighted brand in Table
3.2). The main reason for choosing the SolarStar SSP-32 model of collector was its
excellent anti corrosion feature. This model is specially designed for coastal waterfront
locations where there is constant exposure to salt spray. Though other models possessed
comparatively higher efficiency and performance values, the anti corrosion feature of
SolarStar SSP-32 gave it an edge over the others. With such features, it will definitely
have a longer life, thus saving a lot on replacements costs in the future.
3.5.2. Selection of Thermal Water Storage Tanks
The first step in the selection of the thermal storage tank is the capacity of the tank. From
calculations (refer to Appendix B), based on a daily requirement of 40 liters of hot water
per person, the required capacity of the tanks was determined. A factor of 1.4 was
multiplied to this value.
For the final required capacities of the thermal storage tanks, please refer to Table 3.3
below.
Each Block Common Area

Capacity of Storage Tank 0.454 m 3 0.795 m3
required (120 gallons) (210 gallons)
Cost of SRS Storage Tanks US$ 1275 US$ 1490
(per tank)
Table 3.3: Selection of Thermal Storage Tank
After determining the required capacity of the tanks, a particular brand was selected. As
in the normal practice, a few parameters were considered, which were price, insulation
properties and lifetime. After conducting extensive research on the main brands available
in the market, the choice was narrowed down to the SRS brand of storage tanks. The
main features of the SRS storage tanks are listed below:
• The tank walls are 0.076m (3inch) EPS (Expanded Poly Styrene) sandwiched
between embossed aluminum with baked enamel finish.

• The frame is thermally insulated aluminum extrusions with baked enamel finish.
• The tank has stainless steel fasteners, which adds to the life of the tank.
• The tank comes with a partitioned lid, which gives easy access to all components
during maintenance.
• All products come with a 20-year warranty.
3.6. Cost Analysis of Solar Thermal Water Heating System

Below is a list of the various components of the system with their unit prices.
Solar Collector - Suitable for coastal US $ 690.00
waterfront locations
Thermal - Excellent insulation US $ 1275.00

Storage Tank
- 20 year warranty US $ 1490.00
Differential - Maintains uniform US $ 117.00

Controller temperature of water in
tank
Drain Valve - For maintenance US $ 3.95

purposes
Check Valve - Prevents backflow of US $ 10.29

water
Pressure Relief - Safety feature US $ 11.00

Valve
- Releases excess
pressure
Mixing Valve - Regulates hot and cold US $ 82.00

water automatically using
bimetallic spring.
Mounting Kit - Model used: US $ 48.00

MTG-E-000 SolarStrut
- Tilt leg length
0.48m – 1.52m
Auxiliary - Activated by US $ 118.00

Heater temperature sensors
- Runs on PV batteries
Table 3.4: List of various components in system
The cost of the system for each block is calculated taking the quantities of the various
components into consideration, as shown in Table 3.5.
Each block
Units Unit Cost(US Dollar) Total cost(US$)
Solar Collector 3 690.00 2070.00

SRS Storage Tanks 1 1275.00 1275.00
Differential Controller 1 117.00 117.00
Isolation (Drain) Valve 1 3.95 3.95
Check Valve 2 10.29 20.58
Pressure Relief Valve 1 11.00 11.00
Mixing Valve 4 82.00 328.00
Mounting Panel 3 48.00 144.00
Auxiliary Heater 1 118.00 118.00
Piping Cost - 168.00 168.00
Total US$ 4255.53
Table 3.5: Price for each Block
In a similar way, the cost of the solar thermal water heating system for the common
facilities area is also calculated, as shown in Table 3.6.

Common facilities area

Units Unit Cost (US Dollar) Total Cost(US$)
Needed
Solar Collector 5 690.00 3450.00
SRS Storage Tanks 1 1490.00 1490.00
Differential Controller 1 117.00 117.00
Isolation (Drain) Valve 1 3.95 3.95
Check Valve 2 10.29 20.58
Pressure Relief Valve 1 11.00 11.00
Mixing Valve 6 82.00 492.00
Mounting Panel 5 48.00 240.00
Auxiliary Heater 1 122.00 122.00
Piping Cost - 252.00 252.00
Total US$ 6198.53
Table 3.6: Price for Common Facilities Area
For piping costs please refer to Appendix B.
The cost per block is then multiplied by a factor of six, to give the cost of all the blocks.
Thus the cost for the 6 blocks is:
6 x US $ 4,255.53 = US $ 25,533.18
The overall cost of the entire solar thermal water heating system is:
US $ 25,533.18 + US $ 6,198.53
= US $ 31,731.71
= S $ 55,530.00
As can be seen, the solar thermal water heating system costs around S $ 55,000. As with
all other renewable energy sources, there is a need of a higher initial capital investment.
However, when viewed on a long-term basis, this would not be so if it were compared to
a conventional fossil fuel system.
The main reasons for this are that this solar thermal water heating system does not
involve any fuel costs, as solar energy is free and abundant. The operating costs for this
system is also comparatively lower than a fossil fuel system.

Additionally, this system is also environmentally friendly. With practically no pollution
to the environment, it is indeed an excellent choice for this particular application.
It is hoped that with the help of government subsidies in the form of incentives such as
tax exemptions, such systems would be more feasible and consequently return high
benefits in the long run.

4.0 Solar Photovoltaic Electricity Generation System
4.1. Introduction
Solar radiation can be converted directly into electricity by using solar photovoltaic cells,
which are commonly known as PV cells. Photovoltaic technology involves the interaction
of the electrons freed by the sunlight with certain semi-conductor materials, such as
Silicon, in the PV cells. Energy from the sun is radiated in the form of discrete packets of
electromagnetic radiation known as photons. Each photon possesses energy according to
hc
the formula E = where h is the Planck constant (6.626 x 10-34 Js); c is the speed of
λ
light (3 x 108 m/s) and λ is the wavelength of sunlight. Sunlight composed of photons
with wavelengths in the range of 0.3 to 3 µm. When a photon delivers its energy to the
PV cells, electrons flow towards one terminal of the semiconductor, creating a negative
charge, while the terminal that emits the electrons is positively charged. If a circuit is
connected across both terminals, a direct current (DC) forms and electrical energy can be
delivered to an external load.
There are numerous benefits for a solar photovoltaic system. A solar PV system can last
for about 30 years since the PV cells are reliable and durable. Little maintenance is
required since there are no moving components like turbines, pumps and this keeps the
cost of maintenance low. One of the most significant advantages is that a solar PV system
utilizes energy from the sun, which is totally free and environmental friendly. Moreover
the PV cells can be used in remote locations for generation of electricity and this serves
our objectives of this design project. A PV system is versatile and can combine with other
types of electric generators to charge batteries and provide power on demand.
4.2. Working Principle of Solar Photovoltaic System
In this application, the solar photovoltaic (PV) system is used for generation of electricity
for the entire remote resort. Refer to Appendix C for details on calculations for electricity
consumption values for the entire resort. A semi-decentralized system comprising of a set
of solar photovoltaic arrays for each block and the central facilities area has been
adopted. This arrangement is similar to the configuration of the solar thermal water
heating system. Industrial-grade cables link electrically from the power distribution
outlets of the central main facilities area to the 6 residential blocks. Thus, in any
unforeseen event that the batteries or direct solar irradiation are insufficient to meet the
demands of any residential block, the affected block will be able to draw electricity
directly from the power generated or stored in the central facilities area.
A basic PV system consists of solar PV arrays and “Balance of System” (B.O.S)
components: deep-cycle batteries and chargers, inverters, charge controllers, AC
distribution panels. Figure 4.1 shows a schematic circuit diagram of the solar PV system.
Figure 4.1: Schematic Diagram of PV System
During daytime, two processes are taking place concurrently as shown by the red lines in
Figure 4.1 above. As solar radiation strikes the PV arrays, a potential difference will be
generated between the electrical terminals of each array. Due to photoelectric effect,
current will start to flow from the arrays to charge up the deep-cycle batteries, with
regulation by the charge controllers to prevent overcharging of the batteries. At the same
time, the charge controllers will also be transmitting the direct current (DC) generated by
the PV arrays to the inverters for conversion to alternating current (AC) before
distribution to the load. The power quality in Singapore is 240V and 50Hz. Therefore,
electricity generated during daytime is both stored in the batteries and transmitted to the
AC distribution panels for ready use.
At night, the batteries will start to discharge electricity as shown by the blue lines in
Figure 4.1 above. The charge controllers monitor the discharge process to prevent the
batteries damaging from excessively rapid discharge. The DC from the batteries will then
flow to the inverters to be converted to AC. In addition, the charge controllers, fused
disconnected switch and surge protector will prevent the back flow of current towards the
PV arrays, avoiding any damage to the PV arrays. The discharging process also takes
place during prolonged periods of cloudy weather or erratic changes in meteorological
conditions, defined as days of autonomy, which has been pegged at 3 days. This is quite a
good approximation considering that the resort is located in Singapore, a sunny and
tropical climatic region.
Based on this design of the PV system, PV arrays and the other components must be
selected carefully and thoroughly such that the PV system will be cost-effective.
Selection criteria for all the components of the PV system will be presented in the next
section.
4.3. Individual Components
A solar photovoltaic (PV) system requires the following components: solar PV arrays,
deep-cycle batteries and chargers, inverters and charge controllers to generate electricity
efficiently. Each of these components has specific vital functions to ensure that the PV
system operates effectively.

4.3.1 Solar PV Modules
The basic building block of PV technology is the single PV cells. Many PV cells are
wired together and connected electrically to form a PV module, which in turn,
collectively form a single PV array. The module is the smallest PV unit that can be used
to generate substantial amounts of PV power, and are manufactured with varying
electrical outputs ranging from about 10 watts to 300 watts of direct current (DC)
electricity. The modules can then be connected into PV arrays for powering a wide
variety of electrical equipment .
There are 2 primary types of PV modules available commercially, the crystalline Silicon
type, which can classified as either a single crystal (monocrystalline), polycrystalline or
thin film. The single crystal PV module has the highest efficiency in terms of electrical
output. It has a sunlight- to- electricity conversion rate of 12% to 15%, followed by the
polycrystalline type and finally the thin film type being the lowest. Due to its high
efficiency comparative to the other types of PV modules, single crystal PV module is
therefore the most expensive to manufacture. Their cost per watt is S$12 comparing to
$11 and $9 for polycrystalline and thin film respectively.
In addition to the PV modules, the components needed to complete a PV system include
the Balance-of-System (BOS) equipments such as charge controllers, batteries, inverters,
AC distribution panels, safety disconnects, mounting structure and cables.
4.3.2 Mounting Structure

A mounting structure is required to support the solar PV arrays so that the modules are
able to capture the maximum amount of sunlight. Thus, a mounting structure must be
made of metal to provide the strength, rigidity and durability needed for support. It must
also be light since the structure will be placed on top of the roof. With an adjustable tilt
angle facility, the angle of the structure can be adjusted easily to suit the inclination of
sunlight with respect to the roof.
4.3.3 Charge Controllers
Charge controllers act as a voltage regulator to regulate the flow of electricity from the
PV modules to the batteries and the load. The controllers keep the batteries fully charged
without overcharging it. When the load is drawing power, the controllers allow charge to
flow from the modules into the batteries, the load, or both. Upon detecting that the
batteries are fully charged, the controllers stop the flow of charge from the modules. If
the controllers detect that the loads have taken too much electricity from the batteries, it
will disconnect the current flow until sufficient charge is restored to the batteries. This
can greatly extend the battery's lifetime.
Another important feature of charge controllers is that they block reverse current. PV
modules work by pumping current through the batteries in one direction. At night, the
modules may pass a bit of current in the reverse direction, causing a slight discharge from
the batteries. In most charge controllers, charge current passes through a transistor, which
acts like a valve to control the current. The transistor allows current to pass in only one
direction and prevents reverse current without any extra effort or cost. In some charge
controllers, an electromagnetic coil acts as a relay that opens and closes a mechanical
switch. In this case, the switches open at night in order to block reverse current.
4.3.4 Batteries
The batteries store electricity for use at night or for meeting loads during the day when
the PV modules are not generating sufficient power to meet load requirements. A solar
PV system requires lead-acid, deep- cycle batteries to provide electricity over long
periods as they are designed to gradually discharge and recharge 80% of their capacity
hundreds of times, as opposed to the ones used in automobiles.
4.3.5 Inverters
Alternating current (AC) systems require inverters to convert the direct current (DC)
electricity produced by PV modules and stored in batteries into AC electricity. Different
types of inverters produce a different quality of electricity. Power quality required by the
loads must be matched with the power quality produced by the inverter.
4.4. Selection of Components
Selection of the individual components depends on a few common criteria, namely the
efficiency, power output, price of the components, size and their suitability for usage in
Singapore.
4.4.1 Selection of Solar PV Arrays
Solar photovoltaic (PV) arrays are selected based on the power generated by the modules.
As can be seen from Table 4.1, BP5170S has the highest rated maximum power output of
170W as well as a competitive efficiency compared to other brands but at a lower price.
Thus, it is particularly suited for applications that need maximum power energy
generation from a fixed array area. Its large 72-cell design and electrical output via quick-
connect polarized DC connectors require fewer mounting structures and enable speedy
installation. Figure 4.2 shows a diagram of BP5170S PV array.
Brand Tech P L W ç Price Price/Watt Panel

(W) (mm) (mm) (S$) (S$) Area
(m2)
Airtherm Single 100 565 1250 14.15% 953.80 0.7063
AT 100 Crystal
Alfasolar 120 660 1315 13.82% 1302.2 10.846 0.8679

120 M
Kyocera Poly- 125 652 1425 13.45% 1203.1 9.622
KC125 crystalline
G-2
Axitec Poly- 165 795 1576 13.16% 1559.25 9.435 1.2529
AC165P crystalline
Thin Film 58 920 920 6.85% 386.512 6.664 0.8464
BP Single 170 790 1595 13.49% 1560.5 9.163 1.26005

BP5170S Crystal
Table 4.1: Brands of PV arrays

Figure 4.2: Diagram of BP5170S Solar PV Array
4.4.2 Selection of Mounting Structure
Unirac roof racks U-GR/64 from “FORDS MTM” are selected as the mounting structure
for the PV arrays as it has universal applications and fit all PV modules in the market and
most importantly it is compatible with our choice of solar PV arrays. One important
feature which makes Unirac roof racks stand out among the other commercial mounting
structures is the adjustable legs to optimize the position of the PV arrays for absorption of
sunlight throughout the year. Since the roof racks are manufactured of aluminium and
galvanized materials, they are able to withstand corrosion under adverse conditions. As
can be seen from Table 4.2, Unirac offers the cheapest price with the same housing
capacity of PV arrays compared to other brands. Unirac roof racks are also used for
mounting solar collectors for the solar thermal system. Figure 4.3 shows a diagram of a
Unirac roof rack.
Housing Price per

Brand Model
Capacity unit (S$)
Unirac U-GR/64 2 280.5
2 Seas UNI-GR/03 2 312.8
Zomeworks UTR085 2 613.7

Table 4.2: Brands of Mounting Structure
Figure 4.3: Diagram of Unirac Roof Rack
4.4.3 Selection of Charge Controllers
PSC804 series charge controller from “DIRECTPOWER & WATER” is selected among
all series because it gives the highest ampere capacity, as can be seen from Table 4.3
PSC804 is also cheapest among all other series after taking into account the quantity of
charge controllers required for the PV system. PSC800 series is chosen because it is ideal
for large residential photovoltaic system, has remote battery voltage sensing system
incorporated into it as well as built-in surge protection. Figure 4.4 shows the diagram of
the 800 series charge controller.
Price per Qty Total Price

Model Voltage V Capacity A
unit (S$) required (S$)
PSC 120 12 120 1128.75 156 176085
PSC 500 12 180 2441.25 104 253890
PSC804 12 360 2791.25 58 161893
PSC844 12 360 3316.25 58 192343
Table 4.3: Charge Controller Series

Figure 4.4: DirectPower’s 800 Series Charge Controller
4.4.4 Selection of Batteries
Correct battery selection is critical in the reliability of the solar PV system. One of the
most important considerations in the selection of a suitable battery is the ampere-hour
capacity and its relationship to daily depth of discharge (D.O.D). A solar PV system has
to be sized to store a sufficient amount of power in the batteries to meet power demand
during several days of cloudy weather, defined earlier as “days of autonomy”. All the
batteries from “ENERGYSTORE” are flooded lead acid batteries designed for remote
areas with high charging efficiency of 80%. They have a long life of 2500 cycle life to
50% D.O.D and require little maintenance. Referring to Table 4.4, the 12RP830 model is
selected due to its relatively high-energy output, coupled with the lowest total cost taking
into account the quantity of batteries required for the PV system. 12RP830 series
batteries have a size of 0.501m x 0.233m x 0.570m and weigh 210kg that allows easy
transportation and assembly. Figure 4.5 shows a picture of a battery from
ENERGYSTORE.
Price per unit

Model Capacity Ahr Voltage V Energy KJ Qty required Total Price (S$)
(S$)
24RP910 910 24 21.84 1400 116 162400
12RP830 830 12 9.96 481.25 258 124163
8RP1080 1080 8 8.64 463.75 292 135415
12RP670 670 12 8.04 462 314 145068
12RP570 570 12 6.84 427.5 369 157748
6RP1080 1080 6 6.48 437.5 389 170188
6RP910 910 6 5.46 341.25 461 157317
Table 4.4: Batteries Series
Figure 4.5: The Selected Battery
4.4.5 Selection of Inverters
The selection for inverters is based most importantly on the Singapore power quality. The
power quality of the inverters must be matched by the power quality of the load. The
inverters also must match incoming DC voltage from the batteries. In our solar PV
system, 12V batteries are being used; therefore the inverter must also read in an input
voltage of 12V. Thus the Cherokee Titanium Series inverter from “MAYASOLAR” is
ideal as it fulfils these two criteria, and has an optimum operating efficiency of 90%.
However, from Table 4.5, the TS1000 series is selected because it has a relatively high
output power of 1000W at the cheapest rate of all series considering the quantity of the
inverters needed. A photograph of Cherokee Titanium Series inverter is shown in Figure
4.6.
Table 4.5: Cherokee Titanium Series Inverter
Total Price
MODEL Output Power Qty required Price per unit (S$)
(S$)
TS150 150 1495 198.60 296910
TS300 300 748 291.45 218000
TS500 500 453 475.00 215175
TS1000 1000 227 945.00 214515
TS1500 1500 150 1,501.70 225260
Figure 4.6: The Cherokee Titanium Series Inverter

4.5. Cost Analysis of Photovoltaic System
Component Unit Price (S$) Qty Total Price (S$)
PV arrays 1,560.50 1,319 2,058,299.50
Batteries 481.25 258 124,162.50
Inverters 945.00 227 214,515.00
Charge controllers 2,791.25 58 161,892.50
Mounting 280.50 660 185,130.00
Total cabling 46 per metre 400 184,00.00
TOTAL COST (Initial investment cost) 2,762,400.00
Cabling
1%
Mounting
7% PV arrays
Charge controllers
6%
Batteries
Inverters
Inverters
8%
Batteries Charge controllers

4%
Mounting
Cabling
PV arrays
74%
Figure 4.7: Contribution of Individual Components to total cost

It can be observed from Figure 4.7 that solar PV arrays attributed to majority of the initial
investment cost of the PV system (75%). The current efficiency of a solar PV module is
around 14%, which is rather low, and improvements are ongoing to increase its efficiency
rate. Despite the high initial investment cost of the PV system, a PV system has low
maintenance cost and is pollution free. It is hope that in the long run, advanced
technology could improve efficiency of the PV arrays, thus reducing cost. In the mean
time, it is still very much capital-intensive without government subsidy.
4.6. Conclusion
It is clear as can be observed from the total cost analysis, owing to the costly initial
investment of the entire purely photovoltaic system, it is extremely crucial for the
government to play a more active role in introducing attractive incentives for projects
involving the implementation of solar and renewable energy systems. Based on the
energy consumption that has been determined for this resort, an alternative to consider is
to use a hybrid system where fossil fuels would be used in diesel generators to
complement the photovoltaic part of the electricity generation system. Implementing such
hybrid systems would definitely lower the initial capital investment as compared to a
purely photovoltaic system. However, it has to be emphasized here that pollution arising
from the process of burning diesel oil may not be acceptable in places where people
intend to escape from the hustle and bustle of urban life and to enjoy the splendors of
nature without any pollution or disturbing noise. This is where the various economic
factors would be taken into consideration in a detailed discussion in Chapter 5.

5.0 Analysis of Entire Solar System
5.1. A Quantitative Approach to the economics of Solar Energy
After designing both the solar thermal and the solar PV system, it is important to have a
method of calculation to evaluate the economic value of such a system against a
conventional fuel oil system that utilizes boilers, furnaces, generators and turbines.
Although restrictions are placed such that only solar energy is available for usage for this
remote resort, this comparison will help to establish a better understanding of how viable
a solar system is, compared to the conventional fuel oil system.
The various methods of economic analysis include annualized life-cycle costs, payback
period, internal rate of return and benefit-cost analysis. They essentially differ in the
manner in which they relate costs and savings. Annualized life-cycle cost analysis sums
the various costs incurred over the lifetime of a system, brought to present value,
eventually arriving at the life-cycle cost per year. The payback period method evaluates
the period of time that is expected to lapse for the cumulative savings to offset the
investment costs. The internal rate of return method, meanwhile, gives the interest rate at
a point in time when the savings are exactly equal to the costs. This interest rate reflects
on the rate of return for the investment and it would be compared to the investor’s
minimum acceptable rate of return to determine the feasibility of the investment. The
benefit-cost analysis expresses savings as a ratio of costs, where a higher ratio reflects a
more desirable situation where feasibility is greater.

For this analysis, the annualized life-cycle cost analysis method would be adopted. The
other methods are not being considered due to the following reasons. Firstly, some of the
other methods do not take into account the lifetime of the system nor any future costs that
will be incurred as time goes by, thus giving an incomprehensive evaluation. Secondly, it
is not always straightforward to express benefits gained and certain costs incurred in
monetary terms, leading to an inaccurate assessment.
5.1.1. Annualized Life-Cycle Cost Analysis
In this method, initial as well as all future costs for the entire operational life of both the
solar system and fuel oil system will be considered. The system with the lowest life-cycle
cost per year is therefore more economical. The period considered for our analysis is the
longest lifetime of a particular system, in this case, the 30-year solar system.
The initial cost consists of the investment and installation costs. Governmental incentives
in the form of subsidies, tax rebates and other concessions are taken into consideration to
give the net initial costs that would be incurred. Also included are the annual costs
required to keep the system operational as well as other variable overheads. Among these
are the maintenance, operating, transportation, and fuel costs. Another important
component included are the environmental penalties imposed for the emission of
greenhouses gases. Finally, there is still the lump-sum replacement cost that are incurred
after a specified number of years required to keep the system operational once the
expected lifetime is up. This is normally expressed as a percentage of the initial setup
costs, since a large part of the infrastructure would still remain and only the major
components of the system would require replacement.

In order to have a meaningful comparison, all the future costs and benefits have to be
discounted to their equivalent value in today’s economy. This is known as their Present
Worth (PW). This is to establish a more consistent and equitable basis for comparison.
The two main factors to be considered for the PW calculations are the excess inflation (i)
and the discount rate (d). Excess inflation is the rate of price increase of a component
above, or below general inflation. Discount rate is the rate (relative to general inflation) at
which money would increase in value if invested in a financial institution. Using i and d,
discount factors can be calculated using the formulas stated in Appendix D. There are
two types of discount factors, one for the calculation of single payment after a certain
number of years (Pr) and another for the calculation of a recurring cost (Pa).
The PW of all the future costs, obtained through multiplication by these discount factors,
will be summed up to arrive at the overall life-cycle cost of the system. However,
consideration must be given to the salvage value of any replacements made within the
period of analysis, normally at the end of this period. For any replacements, unless its
lifetime coincides with that of the period of analysis, there will be a residual value left at
the end of the period of time being considered. For convenience, we shall assume a linear
relationship for this salvage value with the number of years in use. As such, the total life-
cycle cost of the system will be obtained after subtracting away this salvage value.
To obtain the annualized life-cycle cost, this total cost has to be divided by the discount
factor (Pa) for the number of years of analysis, in order to take into consideration changes
in the value of money arising from inflation and changing interest rates. For this
particular case, this factor is now known as the annualisation factor.

For the calculations, the values of the initial capital investments are derived from the
previous two chapters. As for the operation, maintenance, transportation, fuel, pollution
penalties and replacement costs, as well as the governmental incentives, they are assumed
values obtained from reliable sources and case studies from around the world, such are
the values of i and d. Details of the calculations and these basic cost-and-benefit elements
of the solar and fuel oil systems are explained in Appendix D.
Annualised Life-Cycle Cost or Life-Cycle Cost per year (S$)

Solar Thermal
Solar PV (for all Combined Solar
Water System 14,600 183,109 197,709
electricity needs) System
(with PV backup)
Fuel Oil System Fuel Oil System Fuel Oil System
equivalent 26,363 equivalent 175,860 equivalent 202,223
Table 5.1: Annualised life-cycle costs of the various systems
According to Table 5.1, a solar thermal water system is significantly more economical
than the fuel oil system whereas for a PV system, the balance swings the other way. A
consequence of this is that when the two systems are combined for the whole resort’s hot
water and electricity needs, it is slightly more economical than an equivalent fuel oil
system. It should be emphasized here that these results arrived after a substantial
government subsidy of 40 % of the initial capital investments. There are also
uncertainties brought about by the dynamic nature of fuel prices and the magnitude of
pollution penalties imposed by the government. This forms the basis for a discussion on
the advantages of a solar system, which will be covered in the next section.
5.2. A Qualitative Analysis of the economics of Solar Energy
5.2.1. Introduction
Photovoltaic power generation is a versatile technology that can be used for many
applications. It is estimated that the Earth receives 6000 times more solar energy yearly
than Man had consumed. Moreover, because sunlight is available everywhere to
everyone, nations that build extensive PV infrastructures will be less vulnerable to
changes attributable to volatile fossil fuel markets and any fossil fuel shortages.
5.2.2. Advantages of Solar Photovoltaic
• Good for Economy
Any nation that builds a PV industry will boost employment rates, export energy
technology, keep energy dollars at home for further domestic investment, and finally reap
the ancillary economic benefits of controlling a technology whose impact will reach well
beyond energy. Presently, Singapore is not much of a player in the global PV market due
to its dependence on natural gas from Malaysia and Indonesia. The gradual change from
oil to natural gas for power generation is a positive move towards clean power
generation. However, this may not solve the problem of Singapore’s energy sustainability
in the long run. Natural gas, like other fossil fuels, is a finite resource. Prices will
fluctuate due to political climate and furthermore, its long-term supply is indeed
uncertain. As of 3rd Oct, 2002, crude oil prices soar to a peak of US$30.08 a barrel
briefly after a suspected terror attack on a French-flagged tanker off Yemen, which raised
tensions in the world market already fretting about the possibility of an assault by the
United States on Iraq. Thus we need to diversify our energy sources to prevent our
economy from being adversely affected by fossil fuels’ price fluctuations.
Singapore is blessed with plentiful sunlight throughout the year and our resort could be a
starting point where solar PV systems could be a serious alternative to fossil fuels. Even
today, governments of different countries have set aside substantial investment in
research and development of PV technologies as well as offer subsidies on capital
investments, some even up to 50% or more for solar PV system. Even if the subsidies are
not substantial, there can be other incentives like tax exemptions or tax subsidies.
The global PV market is growing. In the last five years, it has grown at an annual rate of
20%, and experts predicted that a sustained growth rate of 25% is achievable. At such a
growth rate, worldwide shipments would approach 18 billion watts per year by 2020,
representing a direct PV market of about $27 billion and an indirect market of double the
size. The earlier Singapore involves itself in the PV market and its technologies, the more
economic benefits it will reap in the future. As mentioned earlier, this venture into the PV
systems for the resort will also create jobs directly or indirectly for the people. This fact
could be used as a potential leverage to convince the government to embark on such
ventures.
• Good for Our Environment
PV produces no greenhouse gases, so its use will help offset carbon dioxide emissions.
Consequently, building a PV infrastructure will provide insurance against global
warming and climate change. Whenever each kilowatt-hour of PV electricity replaces a
kilowatt-hour of fossil fuel electricity, there is a reduction in CO2 emissions by as much

as 90% (Markvart, 1994). Its use curtails air pollution, which produces acid rain, soil
damage, plant and animal damage, as well as human respiratory ailments.
• High Reliability
Originally developed for use in powering space satellites and equipments, PV cells were
found to be highly reliable, especially in instances where it is expensive, difficult, or in
some cases, virtually impossible to carry out necessary repairs to the power supply units.
To provide customers with an ambient environment free from the pollutions, we need to
have a reliable system that can provide the necessary electricity needs, without the
pollution.
• Low Operating Costs
PV cells harness the energy from sunlight to produce electricity; hence the fuel source is
free. The cells also require very little maintenance and do not produce any noise that may
be present in other systems in the process of generating electricity.
• Modularity
It is possible to construct a PV system tailored to any size based on energy requirements.
Furthermore, the owner of a PV system also has the option to customize the size, ability
to move the system whenever energy needs changes or arises. Most of these installations
operate in remote locations where other means of obtaining electricity supply would be
virtually unfeasible due to geographical or other constraints.
• Less Cabling
The PV systems of the resort are situated close to where the electricity is used, requiring
much shorter power lines compared to the case if power is to be transmitted from the
utility grids, which are typically located at considerable distances away from the end-
user. This results in reduced power losses due to inherent cabling resistance over long
distances in the power lines. In addition, the use of PV eliminates the need for a step-
down transformer from the utility line. Thus, less wiring and shorter power lines means
lower costs, shorter construction time, and reduced regulating paperwork.
5.2.3 Energy Return on Investment of Photovoltaic Systems
The degree to which a source can be considered sustainable can be conveniently termed
the energy return on investment, where ROI = E out / E in, which represents the ratio of the
energy produced by a source over its lifetime ( Eout ) to the energy required to obtain or
produce the source ( Ein ). In other words, we require a certain amount of energy to
harness energy. To illustrate this in a scenario, consider the following: in order to convert
petroleum to a usable form, it must be found, drilled, pumped, transported, refined, and
transported again. All these efforts require energy.
For PVs, the ROI is presently estimated to be in the range of 4:1. Hence, each kilowatt-
hour used to produce a PPV system will generate 4kWh. As efficiency improvements are
made in the manufacture and operation of silicon and other emerging technologies, such
as thin films, the energy ROI for PVs are expected to continue to increase in the future.
Improvements in module efficiencies of the PV modules could substantially lower cost,
as Table 5.2 illustrates. This increase in efficiency and lower module costs will definitely
reduce the initial capital cost of solar PV systems, hence making it more economically
viable.
Year Module Annual Price Sales (millions Module (dollars

Efficiency (%) Sales (MW) ($/W) of dollars ) per square meter)
1997 14 84 3.15 $265 $441
2000 16 174 2.55 $444 $408
2005 17 433 1.97 $853 $335
2010 18 1,078 1.51 $1,628 $272
2020 19 6,678 0.90 $6,010 $171
2030 20 4,1437 0.53 $2,1914 $105
Table 5.2: Projections of Crystalline-Silicon Sales and Price 1997, and Projected for
Selected Years, 2000-2030
Source: Alternative Energy Facts, Statistics, and Issues. Table 4.10 page 80
Author: Paula Berinstein, Oryx Press 2001
5.2.4 Public Sentiments
From the existence of “Environmental Voluntary Contracts between individuals and
Industry” (Environmental Contracts, Eric W. Orts and Kurt Deketelaere,2001) which is in
support of green electricity, it can be seen that public sentiments are encouraging and
most are willing to pay more for renewable energies. Riding on these growing sentiments
to do our part for our environment, as in the case for the resort that is using
environmentally friendly energy from PV systems could prove to be a selling point to
attract customers. The potential economic benefits of producing green products are
reflected in a publication of poll results in The Economist:
A poll shows that some people will pay for green products. Respondents were asked if
they have avoided or would consider avoiding a product for environmental reasons. Sixty
percent said “yes: in the United States and 56% answered affirmatively in Mexico. When
ask if they would pay a 10% premium for a greener cleaning product, two-thirds said
“yes’ in Venezuela and half of those on China agreed strongly. Of course, though
consumers may tell pollsters they will pay a premium, getting them to do so at shop may
be more difficult. Firms seeking global markets may be wise to include green benefits in
their products.
Source: “How Green is Your Market.” The Economist, Jan. 8 2000,p. 66.
5.2.5 International Funding and New Initiatives
Global Environment Facility (GEF) of World Bank grant funding to buy-down the costs
of the technology. In the period 1992-97, PV projects valued at a total of $793 million
were approved in India, Indonesia, Mauritius, the Philippines and Sri Lanka. The project
pipelines for 1998-99 included PV projects in Argentina, Bennin, Brazil, Cape, Verde,
China, Egypt and India totaling $466 million. The World Bank and regional development
banks (e.g. the Asian Development Bank) also provides loans for economically and
financially viable projects. There are also a number of market transformation or
enablement initiatives that aim greatly to increase the penetration of PV markets. These
illustrations highlight the point that investment in PV system is indeed promising and
funds are readily available.
5.3 Conclusion
Initial investments cost is high but the good it will do for the environment, economy and
support from the government and financial institutions, and the goodwill of potential
customers make this investment attractive. Besides the maintenance cost is low, system
reliability is high and PV system does not require any fuel that may face depletion and
price fluctuation.

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THE NATIONAL UNIVERSITY of SINGAPORE

Energy: Past Practices & Future Directions

Done By: Ang Chieh Sin Jaselin 995917N11

of time before these resources are totally depleted.

conventional dependence on fossil fuels.

1.1. Energy sources

1.1.1. Non- renewable energy sources

1.1.2. Renewable energy sources

produce pollutants through burning. Geothermal energy is generated by the decay of

include agriculture, aquaculture, space heating and pasteurization of milk. One

decade though there are disadvantages in instances where intermittency is a constraining

description of the generation of electricity. It also provides an option to store energy as

well as to optimize electricity generation.

1.2. Trends in Production, Usage Pattern and Prices

1.2.1. Trends in Production

unwilling to turn to such alternatives. In addition, some of the drawbacks of these

volatile nature as well as its sensitivity to issues in the political scene.

1.2.2. Trends in Consumption

the problems posed by the disposal of its toxic wastes.

1.2.3. Trends in Population Growth

energy. Population of the world continues to increase as time progresses. A major

Figure 1.3: Global Population Trend

also being discussed.

Figure 1.4: Fossil fuels price trend from 1970- 2000

Revolution and Gulf War respectively in 1973, 1979 and 1990.

maintain a relatively low price up till today.

compared to other commodities in the market. Refer to Figure 1.5 below.

energy obtained from renewable technologies. It is particularly evident in developing

nations where governments would be more concerned with economic progress by

1.3. Impact of the energy fuels on the environment

result in wastage. Environmentalists are extremely concerned with the increasing

concentration of greenhouse gases since the Industrial Revolution. Carbon emission is

1.4. Future developments of energy

1.4.1. Non- renewable energy sources

stringent environmental regulations in force worldwide.

a revolutionary, new energy alternatives were discovered tomorrow, it would take up to

would be costly to mine for in an exploration.

1.4.2. Renewable energy sources

energy can be made competitive with the fossil fuels.

be less likely to adopt this source as an alternative for the future.

solar-propelled cars will not be realizable in our foreseeable future. However, it is

major technological developments enabling wind power commercialization have already

become a significant part of our energy picture in the next century.

hydro-electric power compared to the impacts of other sources of electricity.

1.5. Looking towards the future

growing and energy-intensive technologies are spreading. There is also an increasing

global recognition of the environmental impacts of using non-renewable sources for

very much in the running as energy of the future.

role of the government in establishing these infrastructures has to be an active one if

renewable energy is to be part of our children’s future.

2.0 Applications of Renewable Energy

energy demands lies in the proper utilization of renewable energy sources.

meet the electricity needs of the resort.

2.1. Description of Resort

As mentioned earlier the resort is situated in a remote location. The immediate

gas and coal owing to transportation problems.

is similar to that of Singapore, which enjoys tropical climate.

Figure 2.1. Resort Layout

takes care of the storage of PV batteries and maintenance equipment.

2.2. Background Information

calculation of the energy needs and in meeting them.

Century”, M.N.A Hawlader 2001 Dec 26 – 28 ).