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U.S. Department of Energy
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The impact of financing on renewable energy costs: Implications for renewable policy

Conference ·
OSTI ID:355772
;  [1]
  1. Lawrence Berkeley National Lab., CA (United States)

In this paper the authors describe the power plant financing process, estimate the impact of financing terms on renewable energy costs, and provide insights to policymakers on the important nexus between renewables policy design and financing. They review a number of past and current renewable energy policies. They find that policies that do not provide long-term stability or that have negative secondary impacts on investment decisions will increase financing costs, sometimes dramatically reducing the effectiveness of the program. Within a restructured electric industry, it is critical for policymakers to consider the impacts of renewables policy design on financing. The authors therefore identify several key issues that must be addressed in the design of distribution surcharge-based policies, minimum renewables purchase requirements, and green marketing programs. They also briefly mention several policies that can directly reduce financing costs and barriers.

Sponsoring Organization:
USDOE Assistant Secretary for Energy Efficiency and Renewable Energy, Washington, DC (United States)
DOE Contract Number:
AC03-76SF00098
OSTI ID:
355772
Report Number(s):
CONF-970441--; ISBN 0-89553-169-0
Country of Publication:
United States
Language:
English