Given the interest in these types of projects, it is important to understand the challenges and ultimate cost of transporting renewable energy over long distances. The ability to do this economically has important ramifications from the Sahara Desert to the American Midwest to the Arctic.<\/p>\n\n\n\n

To estimate the cost of the solar power produced by this system, we must make a few assumptions. The first is on the lifetime of the system. A general rule of thumb is that solar PV systems will last about 25 years. These systems can still produce power beyond that time frame, but significant degradation in the power output will occur by then.<\/p>\n\n\n\n

Second, the amount of power produced over that time must be estimated. The capacity factor represents the percentage of energy generated over a period (normally a year) divided by the installed capacity. Because the sun\u2019s output varies throughout the day and year \u2013 and according to location \u2013 the capacity factor for solar PV can vary from about 10% to 25%.<\/p>\n\n\n\n

For example, if the 10 GW system could run at full output 24 hours a day, it could generate 24 x 365 x 10 = 87,600 GWh per year. Across Australia the average capacity factor for large-scale PV systems is estimated at 21%. Given the scale and location of the Sun Cable project, it\u2019s not unreasonable to assume they could reach the upper range of 25% capacity factor.<\/p>\n\n\n\n

In that case, over the lifetime of the system, it would produce 87,600 GWh * 25 years * 25% capacity factor = 547,500 GWh of power, or 547.5 terawatt hours (TWh).<\/p>\n\n\n\n

There are also line losses to consider. Although direct current is a more efficient means of transmitting power over long distances than alternating current, some of the power transmitted is lost as heat. For DC, those line losses are dependent on the voltage of the line and the distance over which the power is transmitted. Most HVDC lines use voltages between 100 kilovolts (kV) and 800 kV. Given the power and distance traveled, the Australia-ASEAN Power Link will probably be on the upper end of that scale.<\/p>\n\n\n\n