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Applied Energy
journal homepage: www.elsevier.com/locate/apenergy
Sustainable silicon photovoltaics manufacturing in a global market: A
techno-economic, tariff and transportation framework
Sergio Castellanos
a,b,c,d,
⁎
, José E. Santibañez-Aguilar
e,
⁎
, Benjamin B. Shapiro
f
,
Douglas M. Powell
g
, Ian M. Peters
h
, Tonio Buonassisi
h
, Daniel M. Kammen
b,c,f
,
Antonio Flores-Tlacuahuac
e
a
Berkeley Energy & Climate Institute, University of California, Berkeley, CA 94720, USA
b
Renewable and Appropriate Energy Laboratory, University of California, Berkeley, CA 94720, USA
c
Energy and Resources Group, University of California, Berkeley, CA 94720, USA
d
Escuela de Gobierno y Transformación Pública, Tecnológico de Monterrey, Campus Ciudad de México, CDMX, Mexico
e
Escuela de Ingeniería y Ciencias, Tecnológico de Monterrey, Av. Eugenio Garza Sada 2501, Monterrey 64849, Mexico
f
Goldman School of Public Policy, University of California, Berkeley, CA 94720, USA
g
Boston Consulting Group, Detroit, MI, USA
h
Massachusetts Institute of Technology, 77 Massachusetts Avenue, Cambridge, MA 02139, USA
HIGHLIGHTS
•
A framework to optimize photovoltaics manufacturing supply chains is proposed.
•
Techno-economic, transportation, and tariff variables impact supply chain results.
•
Multiple objectives can be optimized while achieving low PV manufacturing costs.
•
Minimum sustainable price is substantially increased upon tariffs introduction.
ARTICLE INFO
Keywords:
Solar photovoltaics
Photovoltaics manufacturing
Mathematical programming
Minimum sustainable price
Multi-objective approach
ABSTRACT
Solar photovoltaics (PV) manufacturing has experienced dramatic worldwide growth in recent years, enabling a
reduction in module costs, and a higher adoption of these technologies. Continued sustainable price reductions,
however, require strategies focused in further technological innovation, minimization of capital expenditures,
and optimization of supply chain flows. We present a framework: Techno-economic Integrated Tool For Tariff
And Transportation (TIT-4-TAT), that enables the study of these different strategies by coupling a techno-eco-
nomic model with a tariff and transportation algorithm to optimize supply chain layouts for PV manufacturing
under equally-weighted objectives.
We demonstrate the use of this framework in a set of interacting countries (Mexico, China, USA, and Brazil)
and two extreme tariff scenarios: no tariffs, and high tariff levels imposed. Results indicate that introducing
tariffs between countries significantly increase the minimum sustainable price for solar PV manufacturing, alter
the optimal manufacturing locations, and render a more expensive final solar PV module price which can hinder
the adoption rates required to mitigate climate change. Recommendations for stakeholders on the optimization
process, and techno-economic drivers are presented based on our results. This framework may be utilized by
policymakers for the spatially-resolved planning of incentives, labor and manufacturing programs, and proper
import tariff designs in the solar PV market.
1. Introduction
In an effort to mitigate climate change, an increased number of
countries are aligning their investment strategies and incentives
towards decarbonizing different sectors of their economies [1–6]. This
ongoing transition has led to a global surge in the commissioning of
renewable energy projects with solar photovoltaic (PV) technologies
representing a significant percentage of the total [7].
https://doi.org/10.1016/j.apenergy.2017.12.047
Received 10 October 2017; Received in revised form 27 November 2017; Accepted 8 December 2017
⁎
Corresponding authors.
E-mail addresses: sergioc@berkeley.edu (S. Castellanos), santibanez.ezequiel@itesm.mx (J.E. Santibañez-Aguilar).
Applied Energy 212 (2018) 704–719
0306-2619/ © 2017 Elsevier Ltd. All rights reserved.
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