Barriers to renewable energy penetration; a framework for analysis

Painuly, Jyoti P.

doi:10.1016/s0960-1481(00)00186-5

Cited by 798 publications

(477 citation statements)

References 2 publications

Supporting

Mentioning

456

Contrasting

Unclassified

Order By: Relevance

“…Often the result of barriers is to put renewable energy at an economic, regulatory, or institutional disadvantage relative to other forms of energy supply. Many of these barriers could be considered ''market distortions'' that unfairly discriminate against renewable energy, such as poor market acceptance, imperfect capital markets, technology prejudice; while others have the effect of increasing the costs of renewable energy relative to the alternatives, such as subsidies for conventional forms of energy, high initial capital costs, high transactions costs [19][20][21][22][23]. So, renewable energy in its infancy needs policy support and market cultivation to overcome such barriers.…”

Section: Increasingly Energy Demandmentioning

confidence: 99%

Effective policies for renewable energy—the example of China's wind power—lessons for China's photovoltaic power

Wang

2010

Renewable and Sustainable Energy Reviews

199

View full text Add to dashboard Cite

Section: Increasingly Energy Demandmentioning

confidence: 99%

Effective policies for renewable energy—the example of China's wind power—lessons for China's photovoltaic power

Wang

2010

Renewable and Sustainable Energy Reviews

199

View full text Add to dashboard Cite

“…The reason is that the source of generation determines how much the price fluctuates (Painuly, 2001;Sensfu et al, 2008) and the need for ancillary services (Hammons (2008)). Systems that are characterized by a high share of slow generation capacity (i.e.…”

Section: Chapter 4 the Electricity Marketmentioning

confidence: 99%

Investment in electric energy storage under uncertainty: a real options approach

et al. 2016

View full text Add to dashboard Cite

Problem descriptionThe growing portion of renewables in the generation mix has led to an increasing need for ancillary services in the electricity grid. As a part of this green shift, the role of storage in the electricity market has changed. Traditionally, the motivation for investing in storage was based on time arbitrage of the spot price. Today, the investments in storage are being linked with the need for improving the power quality and balancing the grid.Recent research papers point out that investments in small storage facilities are not profitable today without public support. This thesis will apply the real options framework, and investigate the profitability of energy storage under uncertain electricity prices, balancing prices and investment cost. It will further consider how policy makers can trigger investments in electric energy storage. PrefaceThis is a master thesis written within the field of Financial Engineering at the Department of Industrial Economics and Technology Management, Norwegian University of Science and Technology (NTNU). We would like to thank our supervisors, Verena Hagspiel and Stein-Erik Fleten, for professional guidance throughout the project. We also wish to thank Professor Sonja Wogrin at Universidad Pontificia Comillas de Madrid for technical assistance, PhD candidate Lars Ivar Hagfors at NTNU for valuable input and Statkraft for providing market data. Trondheim, 8th of June 2015Ida BakkeBeate Norheim AbstractThe transition from conventional power sources to renewable energy sources is taking place in a number of European countries. Electric energy storage has been proposed as an environmentally friendly solution to make this transition possible. This thesis analyzes the profitability of investing in a battery bank in Germany and the UK, using a real options model. The model determines the option value and the optimal investment time, under the conditions of uncertain revenues and investment cost. The results show that it is profitable to invest in both countries, given that the battery banks can participate in both the spot and balancing market. The valuation also gives insight into how the battery bank should be operated between the two markets to maximize its expected profits and discovers that the battery earns over 70 % of its profit from ancillary services. This finding underlines the importance for investors to not only consider revenues from the spot market. The thesis further analyzes how uncertainty affects investor behavior and explains why there is a reluctance to invest in storage technology under the current market conditions; the investor is favoring the option to wait for more information. SammendragOvergangen fra konvensjonelle energikilder til fornybare energikilder finner sted i en rekke europeiske land. Elektrisk energilagring har blitt foreslått som en miljøvennlig løsning forå gjøre denne overgangen mulig. I denne masteroppgaven utvikler vi en realopsjonsmodel for a analysere lønnsomheten vedå investere i batteribanker i Storbritannia og Tyskland. Mode...

show abstract

“…Valencia and Caspary 2008;Sun and Feng 2012;Ansari et al 2013) and frameworks for barrier analysis have been discussed in the academic literature. Of particular importance, Painuly (2001) provided an initial framework for how to conduct barrier analyses for renewable energy technologies, which characterised barriers into various types, such as: i) market failure; ii) market distortion; iii) economic and financial; and iv) institutional.…”

Section: Introductionmentioning

confidence: 99%

The conceptual and practical challenges to technology categorisation in the preparation of technology needs assessments

Nygaard

Hansen

2015

Climatic Change

View full text Add to dashboard Cite

Barriers to renewable energy penetration; a framework for analysis

Cited by 798 publications

References 2 publications

Effective policies for renewable energy—the example of China's wind power—lessons for China's photovoltaic power

Effective policies for renewable energy—the example of China's wind power—lessons for China's photovoltaic power

Investment in electric energy storage under uncertainty: a real options approach

The conceptual and practical challenges to technology categorisation in the preparation of technology needs assessments

Contact Info

Product

Resources

About