This chapter is presented in two parts. The first part details the debate about new renewables, particularly wind and solar, and the value of these technologies to the power system. The second part presents in simple terms examples and financial and economic methodologies for evaluating them.

Chapter Contents:

• Part I: Debating the value of the new renewable technologies
• 12.1 Introduction
• 12.2 Economics of renewables and the role of the state
• 12.2.1 UK renewable energy strike prices
• 12.3 Debating new renewables
• 12.3.1 The utilisation factor (capacity factor)
• 12.3.2 Dispatching and transmission cost
• 12.4 Considerations in costing of renewables generation
• 12.4.1 Economic value of green energy
• 12.4.2 New renewables as a disruptive technology
• 12.4.3 Net energy metering
• 12.4.4 Smart grids value to new renewables
• 12.5 Part I conclusions
• 12.5 Part II: The financial and economic evaluation
• 12.6 Assessing the returns on investment in renewables
• 12.7 The value factor
• 12.8 Effects of new renewables on the merit-order (merit-order effect)
• 12.9 Calculating benefits in investing in renewables
• 12.10 The challenge of net energy metering (NEM)
• References

Inspec keywords: power generation economics; wind power; solar power

Other keywords: power system; solar; renewable tunnel; renewable technologies; financial methodologies; renewable economics; wind

Subjects: Energy resources; Power system management, operation and economics; Wind power plants; Solar energy; Solar power stations and photovoltaic power systems; Wind energy