EconPapers    
Economics at your fingertips  
 

The levelized costs of electricity generation by the CDM power projects

Shaikh M. Rahman, Randall Spalding-Fecher, Erik Haites and Grant A. Kirkman

Energy, 2018, vol. 148, issue C, 235-246

Abstract: This paper examines the costs of electricity generation by the power projects under the Clean Development Mechanism (CDM) of the Kyoto Protocol. Using the CDM project-specific data, the levelized cost of electricity (LCOE) for each project is calculated. Based on the calculated LCOEs, an electricity cost function is estimated and the average cost curves for different renewable technologies, project locations, and time are derived. The results show that LCOE decreases, at a decreasing rate, with the scale and duration of the projects while the degree of economies of scale and time significantly vary across different technologies and locations. Results further show that the distribution of power projects in the CDM energy portfolio or a given location does not quite follow the relative cost structure for different technologies. Also, the distribution of different types of projects across different regions or host countries does not strictly follow the relative average costs for different locations. As the power projects under the CDM earn additional revenues from the sales of Certified Emissions Reduction credits (CERs), the CDM enables renewable electricity to be more competitive which crucially depends on CER prices, costs of CER issuance, and the length of crediting period.

Keywords: Levelized cost of electricity; Power projects; Clean development mechanism; Kyoto protocol; Certified emission reductions (search for similar items in EconPapers)
JEL-codes: F53 Q54 Q56 Q58 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544218301725
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:148:y:2018:i:c:p:235-246

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-04-28
Handle: RePEc:eee:energy:v:148:y:2018:i:c:p:235-246