# Economic Energy Allocation of Conventional and Large-Scale PV Power Plants
###### Abstract  
During the past few decades, rapid progress in reducing the cost of photovoltaic (PV) energy has been achieved. At the megawatt (MW) to gigawatt (GW) scale, large PV systems are connected to the electricity grid to provide power during the daytime. Many PVs can be installed on sites with optimal solar radiation and other logistical considerations. However, the electricity produced by the PV power plant has to be transmitted and distributed by the grid, which leads to more power losses. With the widespread commissioning of the large-scale solar PV power plants connected to the grid, it is crucial to have an optimal energy allocation between the conventional and the PV power plants. The electricity cost represents the most significant part of the budget in the power distribution companies, which can reach in many countries billions of dollars. This optimal energy allocation is used to minimize the electricity cost from buyers' (distribution companies) point of view rather than sellers' (owners of power plants, i.e., investors) point of view. However, some constraints have to be considered and met, such as water demand, network limitations, and contractual issues such as minimum-take energy. This paper develops a model for the economic energy allocation of conventional and large-scale PV power plants, which considers both the operational aspects and the contractual provisions. The model can be used either in the design or operation phases to minimize the operating cost. Moreover, the proposed model can be used for budgeting tasks. The developed model is entirely generic and can be used for any country or electricity system regardless of the PV energy contribution. Furthermore, the Al-Karsaah power  
investigated in the literature, particularly considering the Middle East and North Africa (MENA) region. From technical and economic perspectives, [PERSON] et al. discussed the optimal configuration of 1 MW PV connected to the grid in [5] in Adam city in Oman. The authors collected data hourly for global horizontal irradiance, temperature, relative humidity, and wind speed. The PV system has a payback period of 10 years. Moreover, [PERSON] [6] compared electricity costs using PV panels and diesel generators in rural areas in Egypt. It was concluded that PV systems could provide a cost-effective alternative to the high-cost grid -connections in the rural areas in Egypt. Furthermore, [PERSON] et al. [7] proposed a solar PV system model to optimize the PV generator and pumped storage system's capacity and minimize the cost for power supply in remote areas. They considered the following variables in the optimization process: PV module number, upper reservoir size, and water pump size. Then, they applied the proposed model to a case study on an island's renewable energy power generation system. [PERSON] et al. [8] developed an optimization algorithm for micro-grids sizing and energy management problems. The objective is to meet the electricity demand with the lowest cost and maximize renewable energy penetration. Since it is a micro-grid case, they considered the storage facility. For more extensive penetration of renewable energy sources, [PERSON] et al. [9] developed an optimization methodology for the Shagaya renewable energy park in Kuwait with a mix of power (wind, PV, and CSP) of 2 GW on 100 km\({}^{2}\) of land. The authors used the GenOpt software for the optimization, built on a social-techno-economic evaluation. They determined eight criteria for the optimization method: yield per area, full load hours, peak load shaving capability, levelized cost of electricity, O&M jobs, construction jobs, water consumption, and plant availability. The first phase of this mega-project is completed with a mix of 70 MW power connected to the Kuwait grid, where the expected completion time for the project is 2022. Moreover, [PERSON] et al. [10] discussed the current status of the electricity sector and the future role of renewable energy sources (PV and wind) in Jordan.