caa a22 4500 606169946 CHVBK 20210128100714.0 cr unu---uuuuu 210128e20150401xx s 000 0 eng 10.1007/s10098-014-0839-z doi (NATIONALLICENCE)springer-10.1007/s10098-014-0839-z Financial analysis for investment and policy decisions in the renewable energy sector [Elektronische Daten] [Federica Cucchiella, Idiano D'Adamo, Massimo Gastaldi] The management and exploitation of renewable energy sources is now recognised as central to sustainable development. Environmental concerns, recurring oil crises and market weaknesses, combined with the availability of power from natural resources and resulting possibilities for job creation and energy independence, have all pushed developed and developing countries towards new energy strategies that include RES. This paper analyses the profitability of potential investments in small, medium and large RE electrical power facilities, applying a Net Present Value (NPV) methodology. The proposed financial analysis permits strategic selection of an energy portfolio from among available sources and plant sizes. The paper then discusses potential constraints, and where possible applies the NPV methodology for estimating the necessary changes in decision-making. It defines the role of government incentive schemes in the financial results and evaluates the impact of variation in critical variables (subsidies, sale price of electricity, investment cost, operating cost and equivalent operating hours) on the estimation of NPV. Finally, the paper analyses the environmental impact of all the energy sources examined, examines the links with the financial results and proposes socio-economic policy considerations based on the entirety of the research results. While the methodology is applied to the Italian case, it could be modified to serve in other nations by adapting the input parameters to reflect the different regulatory and market contexts. Springer-Verlag Berlin Heidelberg, 2014 Decision-making nationallicence Environmental analysis nationallicence Financial analysis nationallicence Plant size nationallicence Subsidies nationallicence Renewable energy nationallicence AiFiT : All-inclusive feed-in tariff for energy from Bi,Hy,Wi (€/kWh) nationallicence Bi : Biomass source nationallicence Capex : Total capital expenditure (€) nationallicence capex U : Net capital expenditure per kW (€/kW) nationallicence C in : Capacity of the installed facility (kW) nationallicence dE f : Annual decrease in plant efficiency (%) nationallicence DT (PV) : State duties on Net metered revenue from PV (€) nationallicence DT (Bi,Hy,Wi) : State duties on Net metered revenue from Bi,Hy,Wi (€) nationallicence DT U : Unit duty for Net metered kW (%) nationallicence E f : Embodied energy by RE facility (kWh) nationallicence FiP CE : Premium Feed-in Tariff per kW from PV (€) nationallicence FiP PV : Total Premium Feed-in Tariff for PV(€) nationallicence FiT (Bi,Hy,Wi) : Feed-in tariff for Bi, Hy, Wi (€) nationallicence h eq : Equivalent hours of operation (h) nationallicence Hy : Hydro source nationallicence Inf : Inflation rate (%) nationallicence inf el : Energy inflation rate (%) nationallicence K : Constant for Green Certificate nationallicence L CS : Loan capital share (%) nationallicence L IS : Loan interest share (%) nationallicence N R : Time for plant construction (years) nationallicence opex : Total operating expenditure (€) nationallicence opex U : Operating expenditure per kW (€/kW) nationallicence p GC : Price of Green Certificate (€/kWh) nationallicence PV : Photovoltaic source nationallicence r : Opportunity cost (%) nationallicence SP el (Bi,Hy,Wi) : Sales of electricity from Bi, Hy, Wi (€) nationallicence SP el (PV) : Sales of electricity from PV (€) nationallicence SPu el : Sale price per kWh of electrical energy (€/kWh) nationallicence Wi : Wind source nationallicence Cucchiella Federica Department of Industrial and Information Engineering and Economics, University of L'Aquila, Via G. Gronchi, 18, 67100, L'Aquila, Italy aut D'Adamo Idiano Department of Industrial and Information Engineering and Economics, University of L'Aquila, Via G. Gronchi, 18, 67100, L'Aquila, Italy aut Gastaldi Massimo Department of Industrial and Information Engineering and Economics, University of L'Aquila, Via G. Gronchi, 18, 67100, L'Aquila, Italy aut Clean Technologies and Environmental Policy Springer Berlin Heidelberg 17/4(2015-04-01), 887-904 1618-954X 17:4<887 2015 17 10098 https://doi.org/10.1007/s10098-014-0839-z text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s10098-014-0839-z text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Cucchiella Federica Department of Industrial and Information Engineering and Economics, University of L'Aquila, Via G. Gronchi, 18, 67100, L'Aquila, Italy aut NATIONALLICENCE 700 1- D'Adamo Idiano Department of Industrial and Information Engineering and Economics, University of L'Aquila, Via G. Gronchi, 18, 67100, L'Aquila, Italy aut NATIONALLICENCE 700 1- Gastaldi Massimo Department of Industrial and Information Engineering and Economics, University of L'Aquila, Via G. Gronchi, 18, 67100, L'Aquila, Italy aut NATIONALLICENCE 773 0- Clean Technologies and Environmental Policy Springer Berlin Heidelberg 17/4(2015-04-01), 887-904 1618-954X 17:4<887 2015 17 10098