NewEnergyNews: Cross-Border Costs Of New Energy

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    Friday, October 26, 2018

    Cross-Border Costs Of New Energy

    New study examines key cost factors in cross-border renewable energy projects Robin Whitlock, 23 October 2018 (Renewable Energy Magazine)

    “…[An assessment of key cost factors in cross-border renewable energy projects shows] costs stemming from differences in regulation have the potential to distort an otherwise competitive playing field…Regulations governing the construction of wind farms vary considerably between countries, and these differences can have a stronger impact on generation costs than differences in wind resources…[The new study] argues that in the future, cross-border renewable energy auctions should take diverging regulatory conditions into account.

    …[In Belgium,] costs of 26 euros per megawatt arise for project planning, approval, grid connection, taxes and financing. In Germany and France, by contrast, the equivalent figures are 12 and 20 euros, respectively. To make up for this difference, a wind park in Belgium would need to produce 20 percent more power than its counterpart in Germany. To date, the cost differences resulting from divergent regulatory regimes have not been taken into account in cross-border renewable energy auctions…As a result, competitive cross-border auctions can produce distorted outcomes, as a Danish–German solar energy auction held in 2016 shows: all of the successful bids were located in Denmark, primarily because it is easier and cheaper [there] to use agricultural land for ground-mounted solar parks…” click here for more

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