| ID | 176821 |
| Title Proper | Quantifying the impact of R&D on PV project financing costs |
| Language | ENG |
| Author | Feldman, David |
| Summary / Abstract (Note) | 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%. |
| `In' analytical Note | Energy Policy Vol.142; Jul 2020: p.111525 |
| Journal Source | Energy Policy 2020-07 142 |
| Key Words | R&D ; Capital ; Solar Photovoltaic ; Financial Risk ; Uncertainty Assessment ; Financing Costs |