De-risking investment into concentrated solar power in North Africa: Impacts on the costs of electricity generation

11978 16 33713 3 73093 document 33713 De-risking_CSP_in_North_Africa_final_author_version_for_IIASA_repository.pdf application/pdf 5097918f1b7392c55ad3b05c506ee24b MD5 1005954 2016-02-23 14:28:40 https://pure.iiasa.ac.at/id/eprint/11978/1/De-risking_CSP_in_North_Africa_final_author_version_for_IIASA_repository.pdf 11978 1 1 application/pdf text en public cc_by_nc_nd

De-risking_CSP_in_North_Africa_final_author_version_for_IIASA_repository.pdf

accepted 33715 2 73106 document 33715 lightbox.jpg image/png 03dae5de5c20d4657ea9e06fc9722977 MD5 45582 2016-02-23 14:38:59 https://pure.iiasa.ac.at/id/eprint/11978/2/lightbox.jpg 11978 2 2 image/png other Thumbnails conversion from text to thumbnail_lightbox en staffonly

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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/33713 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/33713 http://eprints.org/relation/isIndexCodesVersionOf https://pure.iiasa.ac.at/id/document/33713 archive 353 disk0/00/01/19/78 2016-02-23 10:20:16 2021-08-27 17:25:56 2016-02-23 10:20:16 article show Schinko T. 8847 0000-0003-1156-7574 Komendantova N. 1880 0000-0003-2568-6179 De-risking investment into concentrated solar power in North Africa: Impacts on the costs of electricity generation pub prog_risk prog_rpv concentrated solar power; risks for investment; risk perception; North Africa A low-carbon energy transition on the basis of renewable energy sources (RES) is of crucial importance to solve the interlinked global challenges of climate change and energy security. However, large-scale deployment of RES requires substantial investments, including the participation of private capital. Scientific evidence shows that the economic feasibility of a RES project hinges on the availability of affordable project financing, which itself depends on risk perceptions by private investors. Since financing costs tend to be particularly high for capital-intensive RES projects and in developing countries, we investigate the impacts of addressing these perceived risks on electricity prices from semi-dispatchable concentrated solar power (CSP) in four North African countries. By employing a levelized cost of electricity (LCOE) model we find that comprehensively de-risking CSP investments leads to a 39% reduction in the mean LCOE from CSP. However, this reduction is still not sufficient to achieve economic competitiveness of CSP with highly subsidized conventional electricity from fossil fuels in North Africa. Hence, our results suggest that de-risking reflects an important strategy to foster the deployment of CSP in North Africa but additional measures to support RES, such as reconsidering fossil fuel subsidies, will be needed. 2016-07 published Elsevier 10.1016/j.renene.2016.02.009 272 161 public Renewable Energy 92 262-272 TRUE 0960-1481 FALSE no info:eu-repo/semantics/article