The primary objective of the project is to calculate the value of renewable electricity, using several techniques, in different European electricity systems and under different circumstances.
This is important for renewable electricity because it will illuminate the price at which renewables are competitive without subsidies with other sources of electricity. The market for renewables and the rate of installation should increase. This has a number of follow-on effects:
1. it supports distributed electricity production
2. it supports independent power production
3. it is likely to increase rural jobs thereby supporting the rural economy
4. it is likely to increase manufacturing jobs for renewable technologies 5. it will reduce pollution
RE-VALUE will assess the value of renewable electricity through three different methods:
1. A cash flow analysis which will examine the system average costs and allocate these to different constituent components.
2. A tariff analysis which will examine published variations in value components within countries and regions.
3. A market price method which will compare output data with variations in market price and local demands to correlate these variables.
The project will consider two other areas where the value of electricity is particularly high: island systems, where renewables have already made a contribution; and rural networks where renewables could save grid-reinforcement costs. The results of these studies will then be compared to value studies in European and American literature and to empirical examples employed within North American electricity utilities.
Expected Achievements and Exploitation
The Final Report will synthesise and appraise these different approaches and illuminate the value of renewable electricity in EU electricity systems. It will make clear the policy implications of the concept of 'value' and it will make recommendations on the method for 'value' assessment. Finally, it will make recommendations on EU policy to enable market exploitation of these values and how RE-VALUE can be linked to other Commission research.
Funding SchemeCSC - Cost-sharing contracts
NE46 3PU Hexham,northumberland
RH12 3LD Horsham
SL8 5AJ Bourne End - Buckinghamshire
94736 Nogent Sur Marne