Topic: subsidies for renewable energy generation Subscribe | Previous | Next
Huaqing Wang 8/19/2024
Huaqing Wang 8/20/2024
I tried to include it in variable costs or fuel costs, but it prompts that the value must be greater than 0.
Pintoko Aji 8/21/2024
As I understand from using LEAP and other energy modeling tools, we often take a broader perspective, looking at the energy system on a national or country level rather than just as an individual plant or investment plan from the viewpoint of a renewable energy developer. In this context, the costs—whether covered by developers or through public subsidies—are considered collectively.
If your goal is to analyze the gap between developer capability and the actual costs, and you're assuming that this gap will be covered by government subsidies, this type of analysis might need to be conducted outside of LEAP.
It sounds like you might be more interested in incentives rather than subsidies. Typically, subsidies are directed towards vulnerable or low-income groups. If you're looking to analyze how much subsidy is needed to cover the cost burden for vulnerable or low-income consumers, you might want to explore LEAP's new feature, 'Affordability Analysis.' However, this would require your model to accommodate disaggregation between different income groups.
Huaqing Wang 8/21/2024
Thank you very much, Pintoko Aji. As you mentioned, I am studying the impact of renewable energy incentives.
I have constructed a power system model that includes both fossil fuel and renewable energy generation, and I hope to use NEMO to study the impact of different incentives on renewable energy penetration. Some of these incentives involve providing financial subsidies to renewable energy generation.
Could the benefits brought by these subsidies be modeled using LEAP?
Smail Khennas 9/8/2024
An option to set up subsidies or incentives is in the capital costs. For instance no tax for renewable energy equipment. In this case you will have two options and two scenarios in your capital cost calculations: a) when taxes are accounted for and b) when they are lifted
Hope it may help