A “New-Deal” for the Development of Photovoltaic Investments in Greece? A Parametric Techno-Economic Assessment

Panagiotis Anagnostopoulos, Niki-Artemis Spyridaki and Alexandros Flamos
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Panagiotis Anagnostopoulos: School of Electrical and Computer Engineering, National Technical University of Athens (NTUA), 9, Iroon Polytechniou Str., 15780 Athens, Greece
Niki-Artemis Spyridaki: Department of Industrial Management & Technology, University of Piraeus (UNIPI), 80, Karaoli & Dimitriou Str., 18534 Piraeus, Greece
Alexandros Flamos: Department of Industrial Management & Technology, University of Piraeus (UNIPI), 80, Karaoli & Dimitriou Str., 18534 Piraeus, Greece

Energies, 2017, vol. 10, issue 8, 1-25

Abstract: The aim of this paper is to identify the financial impact imposed by cost containment measures and especially by the feed in tariff (FiT) reduction upon the profitability of different photovoltaic (PV) investments and the electricity charge faced by consumers. A fully parametric analysis is carried out by varying the following parameters: total installation costs based on their activation date, interest rate for a bank loan, use of a construction subsidy, tax imposition levels, the solidarity surcharge differentiated by the activation and the purchase agreement date and the issuance of credit invoice. During the simulations the simple payback period, the internal rate of return and the profitability index were calculated for the most common investment cases. These were identified through empirical observations on the deployment of PV stations. The profitability of PV stations connected to the medium voltage network were by far affected the most by the cutback while farmers’ PV stations and PV rooftop systems were comparatively less affected. Parameters such as the size of the station and the PV activation date were crucial for the assessment of the viability of PV stations. From a social perspective, the FiT cutback prevented an additional 40% increase in the electricity charge paid by electricity consumers.

Keywords: parametric techno-economic assessment; financial impact; photovoltaic investments; simple payback period; internal rate of return; profitability index (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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