Financing renewables in the age of falling technology costs

IF 2.6 3区 经济学 Q1 ECONOMICS
Karsten Neuhoff , Nils May , Jörn C. Richstein
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引用次数: 9

Abstract

Cost of renewable energies have dropped, approaching wholesale power price levels. As a result, the role of renewable energy policy design is shifting – from covering incremental costs towards facilitating risk-hedging. An analytical model of the financing structure of renewable investment projects is developed to assess this effect und used to compare different policy design choices: contracts for differences, sliding premia, fixed premia and a setting without dedicated remuneration mechanism. The expected benefit for electricity consumers from reduced risk and financing costs is approximated at the example of a 2030 scenario for Germany. Policies like sliding premia, previously evaluated as providing low-risk investment environments, provide for less risks hedging, when technology costs approach wholesale power prices. Contracts for differences provide in all scenarios the most effective hedge for investors against power prices uncertainty, enabling low-cost financing and reducing costs for consumers, while also hedging electricity consumers against high power prices.

在技术成本下降的时代为可再生能源融资
可再生能源的成本已经下降,接近批发电价水平。因此,可再生能源政策设计的作用正在发生转变——从覆盖增量成本转向促进风险对冲。开发了可再生能源投资项目融资结构的分析模型来评估这种影响,并用于比较不同的政策设计选择:差价合约、滑动溢价、固定溢价和没有专门薪酬机制的设置。电力消费者从降低风险和融资成本中获得的预期收益以德国2030年的情景为例进行估算。以前被评估为提供低风险投资环境的滑动溢价等政策,在技术成本接近批发电价时,提供了较少的风险对冲。差价合约在所有情况下都为投资者提供了对电价不确定性的最有效对冲,实现了低成本融资,降低了消费者的成本,同时也为电力消费者提供了对高电价的对冲。
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来源期刊
CiteScore
5.40
自引率
0.00%
发文量
41
期刊介绍: Resource and Energy Economics provides a forum for high level economic analysis of utilization and development of the earth natural resources. The subject matter encompasses questions of optimal production and consumption affecting energy, minerals, land, air and water, and includes analysis of firm and industry behavior, environmental issues and public policies. Implications for both developed and developing countries are of concern. The journal publishes high quality papers for an international audience. Innovative energy, resource and environmental analyses, including theoretical models and empirical studies are appropriate for publication in Resource and Energy Economics.
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