How regional differences in cost of capital influence the optimal design of power systems

摘要: In order to reduce greenhouse gas emissions of the power sector, high shares renewable sources need be integrated into existing systems. This will require vast amounts investments. Cost capital needed for these investments are unevenly distributed among European regions. They show a clear North-South and West-East divide, which has not exhibited significant signs narrowing in recent years. Power system studies investigating continent-wide system, however, usually assume homogeneous cost capital. The objective this paper is investigate how regional differences affect result with respect optimal design. Our analysis based on optimization inhomogeneous Europe. We find that assuming leads estimates levelized costs electricity highly too conservative. The design significantly affected compared an scenario. particular, we favors overall wind deployment case Europe, while investment solar decreases.