scholarly journals Economic Sustainability of Small-Scale Hydroelectric Plants on National Scale – The Italian Case Study

2021 ◽  
Author(s):  
Anita Raimondi ◽  
Filippo Bettoni ◽  
Alberto Bianchi ◽  
Gianfranco Becciu
Keyword(s):  
Economic Value ◽  
Future Trend ◽  
Small Scale ◽  
Economic Sustainability ◽  
Italian Case ◽  
Analysis Of Results ◽  
Hydroelectric Plants ◽  
Available Technology ◽  
Project Life

The feasibility of hydroelectric plants depends on a variety of factors: water resource regime, geo-graphical, geological and environmental context, available technology, construction cost and eco-nomic value of produced energy. Choices about the building or renewal of hydroelectric plants should be based on the forecast of the future trend of these factors at least during the project life of the system. Focusing on the economic value of the produced energy this paper examines its influ-ence on the feasibility of hydroelectric plants. Analysis, referred to Italian case, were based on three different phases: i) the economic sustainability of small-scale hydroelectric plants under a minimum price guaranteed to the hydroelectric operator; ii) the estimate of the incentives to reach the thresholds of "acceptability" and "bankability" of the investment; iii) the analysis of results ob-tained in the previous phases using a model of the evolution of the electricity price in the period 2014-2100.

scholarly journals Economic Sustainability of Small-Scale Hydroelectric Plants on National Scale – The Italian Case Study

2021 ◽  
Author(s):  
Anita Raimondi ◽  
Filippo Bettoni ◽  
Alberto Bianchi ◽  
Gianfranco Becciu
Keyword(s):  
Economic Value ◽  
Future Trend ◽  
Small Scale ◽  
Economic Sustainability ◽  
Italian Case ◽  
Analysis Of Results ◽  
Hydroelectric Plants ◽  
Available Technology ◽  
Project Life

The feasibility of hydroelectric plants depends on a variety of factors: water resource regime, geographical, geological and environmental context, available technology, construction cost and economic value of produced energy. Choices about the building or renewal of hydroelectric plants should be based on the forecast of the future trend of these factors at least during the project life of the system. Focusing on the economic value of the produced energy this paper examines its influence on the feasibility of hydroelectric plants. Analysis, referred to Italian case, were based on three different phases: i) the economic sustainability of small-scale hydroelectric plants under a minimum price guaranteed to the hydroelectric operator; ii) the estimate of the incentives to reach the thresholds of "acceptability" and "bankability" of the investment; iii) the analysis of results obtained in the previous phases using a model of the evolution of the electricity price in the period 2014-2100.

scholarly journals Economic Sustainability of Small-Scale Hydroelectric Plants on a National Scale—The Italian Case Study

Water ◽  
2021 ◽  
Vol 13 (9) ◽  
pp. 1170
Author(s):  
Anita Raimondi ◽  
Filippo Bettoni ◽  
Alberto Bianchi ◽  
Gianfranco Becciu
Keyword(s):  
Economic Value ◽  
Future Trend ◽  
Small Scale ◽  
Economic Sustainability ◽  
National Scale ◽  
Italian Case ◽  
Incentive Policy ◽  
Hydroelectric Plants ◽  
Available Technology

The feasibility of hydroelectric plants depends on a variety of factors: water resource regime, geographical, geological and environmental context, available technology, construction cost, and economic value of the energy produced. Choices for the building or renewal of hydroelectric plants should be based on a forecast of the future trend of these factors at least during the projected lifespan of the system. In focusing on the economic value of the energy produced, this paper examines its influence on the feasibility of hydroelectric plants. This analysis, referred to as the Italian case, is based on three different phases: (i) the economic sustainability of small-scale hydroelectric plants under a minimum price guaranteed to the hydroelectric operator; (ii) an estimate of the incentives for reaching the thresholds of “acceptability” and “bankability” of the investment; (iii) an analysis of the results obtained in the previous phases using a model of the evolution of the electricity price over the 2014–2100 period. With reference to the Italian case, the analysis suggests that, to maintain the attractiveness of the sector, it is necessary to safeguard the access to a minimum guaranteed price. With the current tariff plan, complete sustainability is only achieved for plants with p ≤ 100 kW. For the remaining sizes, investments under current conditions would not be profitable. The extension of minimum guaranteed prices could make new medium-large plants (500–1000 kW) more attractive. The current incentive policy is not effective for the development of plants larger than 250 kW, as systems with lower capital expenditures are preferred. Uncertainty about the evolution of the price of energy over time is a concern for the sector; the use of evolutionary models of technical economic analysis tried to reduce these criticalities, and it was shown that they can be transformed into opportunities. It was also found that profitability due to the growing trend expected for the price of energy cannot be highlighted by a traditional analysis.

scholarly journals The Small-Scale Hydropower Plants in Sites of Environmental Value: An Italian Case Study

2017 ◽  
Vol 9 (12) ◽  
pp. 2211 ◽  
Author(s):  
Marianna Rotilio ◽  
Chiara Marchionni ◽  
Pierluigi De Berardinis
Keyword(s):  
Small Scale ◽  
Italian Case ◽  
Environmental Value ◽  
Hydropower Plants

scholarly journals The Value of PV Power Forecast and the Paradox of the “Single Pricing” Scheme: The Italian Case Study

2020 ◽  
Author(s):  
Marco Pierro ◽  
David Moser ◽  
Richard Perez ◽  
Cristina Cornaro
Keyword(s):  
Economic Value ◽  
Forecast Accuracy ◽  
Grid Integration ◽  
Energy Prices ◽  
Market Pricing ◽  
Italian Case ◽  
Pricing Scheme ◽  
Utility Scale ◽  
Pricing Rule

One of the major problem of photovoltaic grid integration is limiting the solar-induced imbalances since these can undermine the security and stability of the electrical system. Improving the forecast accuracy of photovoltaic generation is becoming essential to allow a massive solar penetration. In particular, improving the forecast accuracy of large solar farms generation is important both for the producers/traders to minimize the imbalance costs and for the Transmission System Operators to insure stability. In this article, we provide a benchmark for the day-ahead forecast accuracy of utility scale PV plants in 1325 locations spanning the country of Italy. We then use these benchmarked forecasts and real energy prices to compute the economic value of forecast accuracy and accuracy improvement in the context of the Italian energy market regulatory framework. Through this study, we further point out some several important criticisms of the Italian “single pricing” system that brings to paradoxical and counterproductive effects regarding the need to reduce the imbalance volumes. Finally, we propose a new market-pricing rule and innovative actions to overcome these undesired effects of the current dispatching regulations.

scholarly journals The Value of PV Power Forecast and the Paradox of the “Single Pricing” Scheme: The Italian Case Study

Energies ◽  
2020 ◽  
Vol 13 (15) ◽  
pp. 3945 ◽  
Author(s):  
Marco Pierro ◽  
David Moser ◽  
Richard Perez ◽  
Cristina Cornaro
Keyword(s):  
Economic Value ◽  
Forecast Accuracy ◽  
Energy Prices ◽  
Market Pricing ◽  
Italian Case ◽  
Pricing Scheme ◽  
Pricing System ◽  
Utility Scale ◽  
Pricing Rule

One of the major problem of photovoltaic grid integration is limiting the solar-induced imbalances since these can undermine the security and stability of the electrical system. Improving the forecast accuracy of photovoltaic generation is becoming essential to allow a massive solar penetration. In particular, improving the forecast accuracy of large solar farms’ generation is important both for the producers/traders to minimize the imbalance costs and for the transmission system operators to ensure stability. In this article, we provide a benchmark for the day-ahead forecast accuracy of utility scale photovoltaic (PV) plants in 1325 locations spanning the country of Italy. We then use these benchmarked forecasts and real energy prices to compute the economic value of the forecast accuracy and accuracy improvement in the context of the Italian energy market’s regulatory framework. Through this study, we further point out several important criticisms of the Italian “single pricing” system that brings paradoxical and counterproductive effects regarding the need to reduce the imbalance volumes. Finally, we propose a new market-pricing rule and innovative actions to overcome the undesired effects of the current dispatching regulations.

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