The effect of financial constraints on energy-climate scenarios

Tutkimustuotos: Lehtiartikkelivertaisarvioitu

Tutkijat

Organisaatiot

  • Massachusetts Institute of Technology
  • VTT Technical Research Centre of Finland
  • International Institute for Applied Systems Analysis

Kuvaus

In this paper, we discuss the implications of financing constraints for future energy and climate scenarios. Aspirations to improve energy access and electrification rates in developing countries, while simultaneously reducing greenhouse gas emissions, can be seriously hindered by the availability of low-cost capital for the necessary investments. We first provide a brief description of the theoretical foundations for financing constraints in the energy sector. Then, using a broad range of alternate assumptions we introduce capital supply curves to an energy system model for Sub-Saharan Africa, with a specific focus on the power sector. Our results portray the effect of capital cost on technology selection in electricity generation, specifically how limited capital supply decreases investments to capital-intensive zero-emission technologies. As a direct consequence, the emission price required to meet given emission targets is considerably increased when compared to case that disregards the capital constraints. Finally, we discuss possible policy instruments for resolving the constraints.

Yksityiskohdat

AlkuperäiskieliEnglanti
Sivut562-572
Sivumäärä11
JulkaisuEnergy Policy
Vuosikerta59
TilaJulkaistu - elokuuta 2013
OKM-julkaisutyyppiA1 Julkaistu artikkeli, soviteltu

ID: 15990404