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Multivariate analysis of solar city economics: impact of energy prices, policy, finance, and cost on urban photovoltaic power plant implementation

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  • John Byrne
  • Job Taminiau
  • Kyung Nam Kim
  • Joohee Lee
  • Jeongseok Seo

Abstract

Previous research suggests that the potential for city‐scale photovoltaic (PV) applications is substantial across the globe. Successful implementation of ‘solar city’ options will depend on the strategic application of finance mechanisms, solar energy soft cost policies, and other policy tools, as well as the grid price of electricity. Capital markets recently have embraced the roll‐out of new financial instruments, including ‘green bonds,’ which could be incorporated into solar city project design to attract large investments at a low cost. A multivariate analysis method is employed to consider solar city possibilities for six cities: Amsterdam, London, Munich, New York, Seoul, and Tokyo. A Monte Carlo simulation is conducted to capture the probabilistic nature of uncertainties in the parameters and their relative importance to the financial viability of a solar city project. The analysis finds that solar city implementation strategies can be practical under a broad range of circumstances. WIREs Energy Environ 2017, 6:e241. doi: 10.1002/wene.241 This article is categorized under: Photovoltaics > Systems and Infrastructure Solar Heating and Cooling > Economics and Policy Energy Policy and Planning > Economics and Policy

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  • John Byrne & Job Taminiau & Kyung Nam Kim & Joohee Lee & Jeongseok Seo, 2017. "Multivariate analysis of solar city economics: impact of energy prices, policy, finance, and cost on urban photovoltaic power plant implementation," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 6(4), July.
    • Handle: RePEc:bla:wireae:v:6:y:2017:i:4:n:e241
    DOI: 10.1002/wene.241
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    2. Yoon‐Hee Ha & John Byrne, 2019. "The rise and fall of green growth: Korea's energy sector experiment and its lessons for sustainable energy policy," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(4), July.
    3. Agbemabiese, Lawrence & Nyangon, Joseph & Lee, Jae-Seung & Byrne, John, 2018. "Enhancing Climate Finance Readiness: A Review of Selected Investment Frameworks as Tools of Multilevel Governance," MPRA Paper 91488, University Library of Munich, Germany.
    4. Fernández, María Eugenia & Gentili, Jorge Osvaldo & Campo, Alicia María, 2022. "Solar access: Review of the effective legal framework for an average argentine city," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
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    6. Harajli, H. & Kabakian, V. & El-Baba, J. & Diab, A. & Nassab, C., 2020. "Commercial-scale hybrid solar photovoltaic - diesel systems in select Arab countries with weak grids: An integrated appraisal," Energy Policy, Elsevier, vol. 137(C).
    7. Yan Li & Ge Wang & Bo Shen & Qi Zhang & Boyu Liu & Ruoxi Xu, 2021. "Conception and policy implications of photovoltaic modules end‐of‐life management in China," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 10(1), January.
    8. Heidari, Mohammad Reza & Heravi, Gholamreza, 2024. "Development of flexible supportive policy with real options for renewable energy projects: Case of photovoltaic systems," Renewable Energy, Elsevier, vol. 225(C).
    9. You, Siming & Lim, Yu Jie & Dai, Yanjun & Wang, Chi-Hwa, 2018. "On the temporal modelling of solar photovoltaic soiling: Energy and economic impacts in seven cities," Applied Energy, Elsevier, vol. 228(C), pages 1136-1146.

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