 Quantifying the impact of R&D on PV project financing costsDavid Feldman, Rebecca Jones-Albertus and Robert Margolis Energy Policy, 2020, vol. 142, issue C Abstract: Energy technology research and development (R&D) typically focuses on advancing the performance and reducing equipment and installation costs. However, such R&D can also have significant indirect impacts on other factors. Incorporating the impact that R&D activities have on financing costs can provide a more complete picture of the consequences of these decisions, and may allow policymakers to make better decisions. In this paper we discuss some historical examples of R&D impacting financing costs in the solar energy sector, summarize the areas of R&D that can impact financing, and describe methodological approaches that can be used to quantify the impact of R&D on financing costs and, as a result, the levelized cost of energy (LCOE). We estimate that R&D-driven reductions in financing costs in the solar sector, from current levels to low-risk levels, could reduce LCOE approximately 25%. Alternatively, without the R&D advances needed to prevent future risks and complications, financing costs in the solar sector could increase by as much as 115%. Keywords: R&D; Financial risk; Uncertainty assessment; Solar photovoltaic; Capital; Financing costs (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:142:y:2020:i:c:s0301421520302706 DOI: 10.1016/j.enpol.2020.111525 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.