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

Bruno U. Schyska and Alexander Kies

Applied Energy, 2020, vol. 262, issue C, No S0306261920300350

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.

Keywords: Power system analysis; Locational marginal price; WACC; Investment; Renewables; Climate change mitigation (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (9)

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DOI: 10.1016/j.apenergy.2020.114523

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