Evolution of Hydropower Support Schemes in Poland and Their Assessment Using the LCOE Method

Izabela Godyń and Anna Dubel
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Anna Dubel: Faculty of Management, AGH University of Science and Technology, Gramatyka 10, 30-067 Kraków, Poland

Energies, 2021, vol. 14, issue 24, 1-23

Abstract: Hydropower as stable power installations play an important role among renewable energy sources. Yet, their share in renewable energy is small. Currently, it is only 10% of energy from renewable energy sources (RES), compared to 27% in 2010. Therefore, the aim of this paper is to assess the RES support schemes in Poland related to hydropower, such as green certificates, auctions and FIT, with the use of the Levelized Cost of Electricity (LCOE) analysis in order to determine which support scheme is best incentivizing hydropower development. The evolution of the hydropower support scheme in Poland is presented. The total LCOE and possible revenues from support systems for various segments of hydropower installations are graphically analyzed for two analysis periods (15 and 50 years) and for two discount rates (7% and 11.4%). The analysis shows the great importance of the support schemes in the profitability of the hydropower plants investments. The LCOE graphical analysis proves to be suitable for showing sensitivity analysis of capital and operating costs of various sizes of hydropower plants. The analysis shows that the LCOE in micro-power plants is usually higher than the support and revenues available in the green certificates or auctions or FIT schemes in Poland.

Keywords: hydropower; support scheme; auctions; feed-in tariffs; green certificates; levelized cost of electricity LCOE (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: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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