A method for the reliability evaluation of an electric power generation system with a photovoltaic system is presented in this paper. An economic analysis of the system in terms of conventional fuel savings due to use of the photovoltaic system is also done. The fluctuating nature of the energy produced by the photovoltaic generation system has a different effect on the overall system reliability than the energy produced by conventional units. Here, onventional and photovoltaic units are combined into
separate groups. First, the generation system reliability model for each group is created. Then, the model of the photovoltaic units is modified hourly to account for the limitations of this system. Then, both models are combined hourly to find the loss of load expectation for the hour in question. This is done by a discrete state algorithm. A method for assessing the fuel savings with use of a photovoltaic system
is also described.