Assessment of Colombian renewable energy auctions policy: Enabler or barrier for concentrating solar power plants

IF 9.3 2区经济学 Q1 ECONOMICS

Energy Policy Pub Date : 2024-08-27 DOI:10.1016/j.enpol.2024.114300

Richard Rangel , Adriana Arango-Manrique , Lesme Corredor , Marco Sanjuan

{"title":"Assessment of Colombian renewable energy auctions policy: Enabler or barrier for concentrating solar power plants","authors":"Richard Rangel , Adriana Arango-Manrique , Lesme Corredor , Marco Sanjuan","doi":"10.1016/j.enpol.2024.114300","DOIUrl":null,"url":null,"abstract":"<div><p>Auctions are an alternative for introducing renewable energy (RE) projects into electricity markets at competitive prices. Colombia added 2.2 GW capacity of RE through this mechanism. Nevertheless, 94% of the awarded generation is allocated between 12 a.m. and 5 p.m. because of a lack of low-cost storage. Integrating concentrating solar power plants (CSP) could be relevant in tackling this issue. Therefore, a preliminary step is to determine if Colombian instruments benefit the deployment of CSP and trigger the discussion about its future in the country. In this work, we evaluate how auction mechanisms and fiscal incentives (FI) influence the Levelized Cost of Electricity (LCOE) and Internal Rate of Return (IRR) for two CSP configurations. The results indicate that FIs reduce capital expenditures between 17.11% and 19.45%, reaching similar LCOEs to those reported internationally. However, energy prices higher than USD 150/MWh are required to achieve an adequate IRR. Regarding the auction design, it is observed that a “security criterion” leads to a significant loss of competitiveness for CSP as it neglects its possibility to support demand at night. Policy suggestions are provided for a level playing field where low-cost solutions can coexist with dispatchable renewable power generation.</p></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"193 ","pages":"Article 114300"},"PeriodicalIF":9.3000,"publicationDate":"2024-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Energy Policy","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0301421524003203","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}

引用次数: 0

Abstract

Auctions are an alternative for introducing renewable energy (RE) projects into electricity markets at competitive prices. Colombia added 2.2 GW capacity of RE through this mechanism. Nevertheless, 94% of the awarded generation is allocated between 12 a.m. and 5 p.m. because of a lack of low-cost storage. Integrating concentrating solar power plants (CSP) could be relevant in tackling this issue. Therefore, a preliminary step is to determine if Colombian instruments benefit the deployment of CSP and trigger the discussion about its future in the country. In this work, we evaluate how auction mechanisms and fiscal incentives (FI) influence the Levelized Cost of Electricity (LCOE) and Internal Rate of Return (IRR) for two CSP configurations. The results indicate that FIs reduce capital expenditures between 17.11% and 19.45%, reaching similar LCOEs to those reported internationally. However, energy prices higher than USD 150/MWh are required to achieve an adequate IRR. Regarding the auction design, it is observed that a “security criterion” leads to a significant loss of competitiveness for CSP as it neglects its possibility to support demand at night. Policy suggestions are provided for a level playing field where low-cost solutions can coexist with dispatchable renewable power generation.

查看原文本刊更多论文

哥伦比亚可再生能源拍卖政策评估：聚光太阳能发电厂的促进因素还是障碍

拍卖是将可再生能源（RE）项目以具有竞争力的价格引入电力市场的一种替代方式。哥伦比亚通过这一机制增加了 2.2 千兆瓦的可再生能源发电能力。然而，由于缺乏低成本的存储设备，94% 的中标发电量被分配在上午 12 点到下午 5 点之间。整合聚光太阳能发电站（CSP）可以解决这一问题。因此，第一步是确定哥伦比亚的工具是否有利于聚光太阳能发电站的部署，并引发对其在该国未来发展的讨论。在这项工作中，我们评估了拍卖机制和财政激励（FI）如何影响两种 CSP 配置的平准化电力成本（LCOE）和内部收益率（IRR）。结果表明，财政激励措施降低了 17.11% 到 19.45% 的资本支出，达到了与国际报道相似的 LCOE。然而，要获得足够的内部收益率，能源价格必须高于 150 美元/兆瓦时。关于拍卖设计，我们注意到 "安全标准 "会导致 CSP 的竞争力大大降低，因为它忽视了 CSP 在夜间支持需求的可能性。为创造一个公平的竞争环境，让低成本解决方案与可调度的可再生能源发电共存，提出了一些政策建议。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Energy Policy 管理科学-环境科学

CiteScore

17.30

自引率

5.60%

发文量

540

审稿时长

7.9 months

期刊介绍： Energy policy is the manner in which a given entity (often governmental) has decided to address issues of energy development including energy conversion, distribution and use as well as reduction of greenhouse gas emissions in order to contribute to climate change mitigation. The attributes of energy policy may include legislation, international treaties, incentives to investment, guidelines for energy conservation, taxation and other public policy techniques. Energy policy is closely related to climate change policy because totalled worldwide the energy sector emits more greenhouse gas than other sectors.