A standardized parametric framework for techno-economic analysis of renewable and clean energy systems

Muhammad Sadiq, Ahmad Mayyas and Max Wei

Renewable Energy, 2025, vol. 243, issue C

Abstract: To foster informed policy formulation and decision-making for the evolving energy transition and the rising demand for renewable and clean energy systems (REACES), it is imperative to establish a standardized and comprehensive Techno-Economic Analysis (TEA) method for widespread adoption. Existing TEA studies on REACES have been noted to contain significant inconsistencies and deficiencies in the economic frameworks, financial parameters, decision-making metrics, and methodological approaches. Key TEA parameters, such as balance of plant, land, and contingency cost, etc., were found underutilized, with implementation rates of only 36 %, 28 %, and 26 %, respectively. This study addresses these critical gaps by developing a robust, comprehensive, and standardized TEA model specifically tailored to REACES. System-level macro- and micro parameters related to technical, economic, financial, and business risk were integrated. The impact of key parameters illustrated through a pilot case study emphasized that overlooking these parameters significantly skews the final decision metrics. Excluding incentives resulted in an 18 % underestimation of the Levelized Cost of Energy (LCOE) and a 14 % miscalculation in the Discounted Payback Period. Implementing this standardized model will enhance the accuracy, consistency, and credibility of TEA practices, enabling more precise evaluations and fostering meaningful cross-comparisons among various REACES.

Keywords: Economic analysis; Energy transition; Standardization; Techno-economic model (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960148125001557
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:renene:v:243:y:2025:i:c:s0960148125001557

DOI: 10.1016/j.renene.2025.122493

Access Statistics for this article

Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides

More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().