A dynamic analysis of financing conditions for renewable energy technologies

Florian Egli, Bjarne Steffen, Tobias S. Schmidt

Research output: Contribution to journalArticlepeer-review

207 Scopus citations

Abstract

Renewable energy technologies often face high upfront costs, making financing conditions highly relevant. Thus far, the dynamics of financing conditions are poorly understood. Here, we provide empirical data covering 133 representative utility-scale photovoltaic and onshore wind projects in Germany over the last 18 years. These data reveal that financing conditions have strongly improved. As drivers, we identify macroeconomic conditions (general interest rate) and experience effects within the renewable energy finance industry. For the latter, we estimate experience rates. These two effects contribute 5% (photovoltaic) and 24% (wind) to the observed reductions in levelized costs of electricity (LCOEs). Our results imply that extant studies may overestimate technological learning and that increases in the general interest rate may increase renewable energies’ LCOEs, casting doubt on the efficacy of plans to phase out policy support.

Original languageEnglish
Pages (from-to)1084-1092
Number of pages9
JournalNature Energy
Volume3
Issue number12
DOIs
StatePublished - 1 Dec 2018
Externally publishedYes

Fingerprint

Dive into the research topics of 'A dynamic analysis of financing conditions for renewable energy technologies'. Together they form a unique fingerprint.

Cite this