An economic analysis for the design of ipp contracts for grid-connected renewable energy projects

Salci, Sener; Jenkins, Glenn P.

doi:10.1016/j.rser.2017.06.047

Cited by 12 publications

(3 citation statements)

References 32 publications

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“…The variable cost is replaced by the short run marginal cost of electricity. This representation of electricity cost is analogous to what might be expected in a power purchase agreement auction for long carbon sources [48,49].…”

Section: Power Dispatch Modelmentioning

confidence: 88%

The Techno-Economics of Small-Scale Residential Heating in Low Carbon Futures

Vijay

Giarola

2017

Energies

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Existing studies that consider the techno-economics of residential heating systems typically focus on their performance within present-day energy systems. However, the energy system within which these technologies operate will need to change radically if climate change mitigation is to be achieved. This article addresses this problem by modelling small-scale heating techno-economics in the context of significant electricity system decarbonisation. The current electricity market price regime based on short run marginal costs is seen to provide a very weak investment signal for electricity system investors, so an electricity price regime based on long run marginal energy costs is also considered, using a case study of the UK in 2035. The economic case for conventional boilers remains stronger in most dwelling types. The exception to this is for dwellings with high annual heat demand. Sensitivity studies demonstrate the impact of factors such as price of natural gas, carbon intensity of the central grid and thermodynamic performance. Fuel cell micro combined heat and power shows most potential under the long run electricity price regime, and heat pumps under the short run electricity price regime. This difference highlights the importance of future electricity market structure on consumer choice of heating systems in the future.

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Section: Power Dispatch Modelmentioning

confidence: 88%

The Techno-Economics of Small-Scale Residential Heating in Low Carbon Futures

Vijay

Giarola

2017

Energies

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“…It is a contractual figure between the state electricity companies and the private IPP, which is generally oriented toward a long-term relationship (Baylis, 2000;Lesser, 2008;Salci & Jenkins, 2018;Tobey & McGinnis, 2018;Weiss & Sarro, 2013;Weisser, 2004;Wiser, 1998).…”

Section: Ppa-power Purchase Agreementsmentioning

confidence: 99%

Unveiling the shades of partnerships for the energy transition and sustainable development: Connecting public–private partnerships and emerging hybrid schemes

Cruz

Rabetino

Kantola

2022

Sustainable Development

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The transition to cleaner energy technologies and sustainable development requires the commitment and collaboration of the public and private sectors. Among such collaborations, public–private partnership (PPP) refers to the convergence and complementarity between public and private actors and represents an organizational arrangement for addressing strategic sustainability challenges such as reducing carbon emissions and plays a relevant role in transforming the sector after energy reforms. The rigidity of PPP schemes introduces certain limitations in adapting to the energy transition and sustainability needs. As a result, several hybrid schemes have emerged from PPPs, which are focal points in this paper. This article aims to contrast PPPs with emerging hybrid PPPs to facilitate their understanding. It contributes to the academic dialog on recognizing the relevance of emerging forms of collaboration in tackling contemporary issues. The review's primary outcome is a framework of PPPs and hybrid PPPs and the critical challenges for advancing the energy transition and sustainable development. The contributions from this study may help policymakers to design suitable tools for incorporating hybrid PPPs in climate change policies and institutional frameworks. The findings suggest developing mechanisms through which PPPs and hybrid PPPs foster cleaner technologies, thus improving energy efficiency and access and strengthening energy security strategies. Further work is needed to address key research issues related to (i) mechanisms for the institutional alignment of hybrid PPPs, (ii) assuring reciprocity and commitment, (iii) knowledge management, and (iv) capacity‐building.

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“…Their findings suggested that the US economy gains from the deployment of the cost-competitive wind power. Salci and Jenkins (2018), using an integrated investment appraisal framework, examined an onshore wind project in Cape Verde. Their findings highlighted that in this case the negotiated PPA led to a negative outcome for the economy of Cape Verde, while producing a substantial guaranteed return for the wind farm's foreign owners.…”

Section: Introductionmentioning

confidence: 99%

A stakeholder analysis of investments in wind power electricity generation in Ontario

2021

Self Cite

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This study uses an ex-post evaluation of the grid-connected wind projects in Ontario, Canada, to quantify the stakeholder impacts of such renewable energy projects. Our study includes a financial, economic and stakeholder analysis of these wind farms. The analysis sheds light on the distributional impacts that arise when there is a significant gap between the incentives created by the financial price paid for electricity generation and the economic value of the electricity generated. The analysis shows that the negotiated power purchase agreements (PPAs) have resulted in a negative outcome for the economy in all circumstances. It is found that the present value of the economic costs is at least three times the present value of the economic benefits, including the global benefits from the reduced CO2 emissions. This loss is borne by all the stakeholders of the electricity system, except the private owners of the wind farms. The losers are primarily the electricity consumers followed by the governments. The Ontario Electricity Rebate (OER) programme, which is financed by increased government borrowing, has the effect of transferring a large share of the costs incurred to promote investments in wind power to future generations of taxpayers in Ontario.

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An economic analysis for the design of ipp contracts for grid-connected renewable energy projects

Cited by 12 publications

References 32 publications

The Techno-Economics of Small-Scale Residential Heating in Low Carbon Futures

The Techno-Economics of Small-Scale Residential Heating in Low Carbon Futures

Unveiling the shades of partnerships for the energy transition and sustainable development: Connecting public–private partnerships and emerging hybrid schemes

A stakeholder analysis of investments in wind power electricity generation in Ontario

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