The Risk Adjusted Financial Costs of PV

Recent analyses show significant differences in the levelised PV electricity cost calculations. The present paper points out that no unique or absolute cost figure can be justified, the correct solution is to use a sequence of cost figures that is determined in a dynamic power portfolio interaction within the financial scheme, support mechanism and industry cost reduction. Financial investors take account of risks of all options in power generation portfolio, they translate them into the return expectation in the financial appraisal and make investment decisions on this basis. The paper shows the resulting electricity market trend, the associated risk perception and classification. Using these finding, a former version of a financing model was adapted to project the energy mix changes due to investors behaviour with different risk tolerance/aversion. From the realisation of its importance we try to ascertain the possible risk mitigation tasks for all stakeholders in the PV market.

SZABO Sandor;  JAEGER-WALDAU Arnulf;  SZABO Laszlo; 

2010-05-25

WIP Germany

JRC54199

http://www.eupvsec-proceedings.com/proceedings?paper=4564,    https://publications.jrc.ec.europa.eu/repository/handle/JRC54199,   

10.4229/24thEUPVSEC2009-6DO.10.2,