Capital Solar Photovoltaic Power Generation Documents

What is the cost of capital (COC) for renewable power generation technologies?

The cost of capital (CoC) for renewable power generation technologies is a major determinant of the total price to purchasers of renewable electricity. Both reliable data, and a deep understanding of the composition of the CoC and its drivers, are therefore critical information.

Can cost of capital be used to estimate power generation cost?

Results underline large country differences in cost of capital. The approach can complement but not replace other methods to estimate cost of capital. The cost of capital (CoC) is an important parameter for accurately calculating power generation cost, particularly for capital-intensive renewables such as solar PV.

How does CAPEX affect a solar PV project?

For the United States, we adjust CAPEX values to account for the Federal Investment Tax Credit (ITC), which indirectly reduces CAPEX of a solar PV project (Krupa and Harvey, 2017). The ITC amounted to 30% for the period 2006–2019 and was reduced to 26% for 2020–2022 (U.S. Department of Energy, 2021).

What is the LCOE of photovoltaic plants?

Based on these results the LCOE of photovoltaic plants are estimated to drop up to more than 70% (2050), while for wind turbines reductions up to 40–50% (2050) are calculated. The highest sensitivity of the LCOE was identified for a variation of the CAPEX and annual full load hours.

How do we determine the future cost of PV systems?

The key parameter to determine the future cost of compo-nents of PV systems by a learning approach (methodology of price experience curve described in Section 4.1) is the num-ber of duplications in the cumulated produced PV capacity until 2050. We calculated the corresponding duplications for each of the 4 scenarios (Figure 15).

What is the growth rate for photovoltaics?

The historical data is based on the EPIA Global Market Outlook for Photovoltaics and result in a compound annual growth rate (CAGR) of 50 percent between 2000 and 2013. The projections for the near future depicted in Figure 8 are results of diferent mar-ket research institutions as well as contributions by experts at the workshops.