An official website of the European Union How do you know?      
European Commission logo
JRC Publications Repository Menu

The Risk Adjusted Financial Costs of Photovoltaics

cover
Recent analyses show significant differences in the levelised photovoltaics (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 range of cost figures that is determined in a dynamic power portfolio interaction within the financial scheme, support mechanism and industry cost reduction. The paper draws attention to the increasing role of financial investors in the PV segment of the renewable energy market and the importance they attribute to the risks of all options in power generation portfolio. Based on these trends, a former version of a financing model is adapted to project the energy mix changes in the EU electricity market due to investors behaviour with different risk tolerance/aversion. The dynamic process of translating these risks into the return expectation in the financial appraisal and investment decision making is also introduced. By doing this the paper presents a potential electricity market trend, the associated risk perception and classification. The possible risk mitigation tasks for all stakeholders in the PV market are summarised which aims to avoid the burden of excessive risk premiums in this market segment.
2010-12-09
ELSEVIER SCI LTD
JRC56177
0301-4215,   
www.elsevier.com/locate/enpol,    https://publications.jrc.ec.europa.eu/repository/handle/JRC56177,   
10.1016/j.enpol.2010.03.001,   
Language Citation
NameCountryCityType
Datasets
IDTitlePublic URL
Dataset collections
IDAcronymTitlePublic URL
Scripts / source codes
DescriptionPublic URL
Additional supporting files
File nameDescriptionFile type 
Show metadata record  Copy citation url to clipboard  Download BibTeX
Items published in the JRC Publications Repository are protected by copyright, with all rights reserved, unless otherwise indicated. Additional information: https://ec.europa.eu/info/legal-notice_en#copyright-notice