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How regional differences in cost of capital influence the optimal design of power systems

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  • Schyska, Bruno U.
  • Kies, Alexander

Abstract

In order to reduce greenhouse gas emissions of the power sector, high shares of renewable power sources need to be integrated into existing systems. This will require vast amounts of investments. Cost of the capital needed for these investments are unevenly distributed among European regions. They show a clear North-South and West-East divide, which has not exhibited significant signs of narrowing in recent years. Power system studies investigating a continent-wide European power system, however, usually assume homogeneous cost of capital.

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  • Schyska, Bruno U. & Kies, Alexander, 2020. "How regional differences in cost of capital influence the optimal design of power systems," Applied Energy, Elsevier, vol. 262(C).
    • Handle: RePEc:eee:appene:v:262:y:2020:i:c:s0306261920300350
    DOI: 10.1016/j.apenergy.2020.114523
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    2. M. Calcaterra & L. Aleluia Reis & P. Fragkos & T. Briera & H. S. Boer & F. Egli & J. Emmerling & G. Iyer & S. Mittal & F. H. J. Polzin & M. W. J. L. Sanders & T. S. Schmidt & A. Serebriakova & B. Stef, 2024. "Reducing the cost of capital to finance the energy transition in developing countries," Nature Energy, Nature, vol. 9(10), pages 1241-1251, October.
    3. Victor-Gallardo, Luis & Quirós-Tortós, Jairo, 2023. "Techno-economic comparison of centralized and distributed power generation to support large-scale transport electrification in Costa Rica," Transport Policy, Elsevier, vol. 131(C), pages 120-138.
    4. Jurasz, Jakub & Piasecki, Adam & Hunt, Julian & Zheng, Wandong & Ma, Tao & Kies, Alexander, 2022. "Building integrated pumped-storage potential on a city scale: An analysis based on geographic information systems," Energy, Elsevier, vol. 242(C).
    5. Markus Schlott & Omar El Sayed & Mariia Bilousova & Fabian Hofmann & Alexander Kies & Horst Stocker, 2021. "Carbon Leakage in a European Power System with Inhomogeneous Carbon Prices," Papers 2105.05669, arXiv.org.
    6. Ting Zhang & Shuaishuai Cao & Lingying Pan & Chenyu Zhou, 2020. "A Policy Effect Analysis of China’s Energy Storage Development Based on a Multi-Agent Evolutionary Game Model," Energies, MDPI, vol. 13(23), pages 1-35, November.
    7. Anke, Carl-Philipp & Möst, Dominik, 2021. "The expansion of RES and the EU ETS – valuable addition or conflicting instruments?," Energy Policy, Elsevier, vol. 150(C).
    8. Kies, Alexander & Schyska, Bruno U. & Bilousova, Mariia & El Sayed, Omar & Jurasz, Jakub & Stoecker, Horst, 2021. "Critical review of renewable generation datasets and their implications for European power system models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).

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