气候变化领域集成服务门户(CCPortal): A bigger bang for the buck: The impact of risk reduction on renewable energy support payments in Europe

CCPortal

DOI	10.1016/j.enpol.2022.113395
	A bigger bang for the buck: The impact of risk reduction on renewable energy support payments in Europe
	Dukan, Mak; Kitzing, Lena
发表日期	2023
ISSN	0301-4215
EISSN	1873-6777
卷号	173 页码:21
英文摘要	Decarbonizing Europe by 2050 requires significant capital investments in renewable energy (RE). The weighted average costs of capital (WACC) greatly impact RE production costs and influence the government support payments needed for the financial viability of RE projects. Reducing the risks for RE investors can decrease WACC and ensure that the EU meets its climate targets at the least cost. We investigate the potential for lowering support payments to RE projects by de-risking financing conditions through measures including revenue stabi-lization and low-risk auction designs for solar PV and onshore wind across 21 countries in Europe. We find that de-risking debt is almost twice as effective as de-risking equity. On average, support payments can be reduced by 3.3 EUR/MWh and 1.9 EUR/MWh, respectively, and in some cases, fall to zero. The effects differ across coun-tries, higher-risk countries like Greece would experience more significant benefits from de-risking than lower-risk countries like Denmark and Germany, where support costs depend more on investment variables such as capacity factors. Overall, we show that WACC depends largely on country risk. Nonetheless, de-risking policies like revenue stabilization can improve the investment climate for RE, reduce the need for government support, and contribute to achieving decarbonization targets.
英文关键词	Cost of capital; Project financing; Renewable energy auctions; Remuneration schemes; Onshore wind; Solar PV
学科领域	Economics; Energy & Fuels; Environmental Sciences; Environmental Studies
语种	英语
WOS研究方向	Business & Economics ; Energy & Fuels ; Environmental Sciences & Ecology
WOS记录号	WOS:000921186300001
来源期刊	ENERGY POLICY
文献类型	期刊论文
条目标识符	http://gcip.llas.ac.cn/handle/2XKMVOVA/272177
作者单位	Technical University of Denmark
推荐引用方式 GB/T 7714	Dukan, Mak,Kitzing, Lena. A bigger bang for the buck: The impact of risk reduction on renewable energy support payments in Europe[J],2023,173:21.
APA	Dukan, Mak,&Kitzing, Lena.(2023).A bigger bang for the buck: The impact of risk reduction on renewable energy support payments in Europe.ENERGY POLICY,173,21.
MLA	Dukan, Mak,et al."A bigger bang for the buck: The impact of risk reduction on renewable energy support payments in Europe".ENERGY POLICY 173(2023):21.