The geography of project finance in U.S. electricity generation

Rebecca W. Dell; Stephen H. Hendrickson; Stanton W. Hadley; Supriya Chinthavali

doi:10.1016/j.tej.2017.07.008

The geography of project finance in U.S. electricity generation

Rebecca W. Dell, Stephen H. Hendrickson, Stanton W. Hadley, Supriya Chinthavali

Critical Infrastructure Resilience

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

Technology costs, state and federal policies and incentives, and local factors such as construction costs and prevailing electricity prices interact to determine the economic favorability of a generation technology in a particular place. To disentangle these factors and better understand how federal policies can make new generation economically viable, we present an integrated multi-technology, state-level project finance model called the Project Finance Mapping Tool and apply it to a variety of policy scenarios.

Original language	English
Pages (from-to)	8-17
Number of pages	10
Journal	Electricity Journal
Volume	30
Issue number	7
DOIs	https://doi.org/10.1016/j.tej.2017.07.008
State	Published - Aug 1 2017

Funding

This manuscript has been authored by UT-Battelle, LLC under Contract No. DE-AC05-00OR22725 with the U.S. Department of Energy. The United States Government retains and the publisher, by accepting the article for publication, acknowledges that the United States Government retains a non-exclusive, paid-up, irrevocable, worldwide license to publish or reproduce the published form of this manuscript, or allow others to do so, for United States Government purposes. The Department of Energy will provide public access to these results of federally sponsored research in accordance with the DOE Public Access Plan ( http://energy.gov/downloads/doe-public-access-plan ). The PFMT can estimate the impact of a range of financial policies on a given technology’s project economics in each of the 50 states. The federal government provides financial support for the deployment of renewable power generation by reducing project cost with the investment tax credit (ITC) and accelerated depreciation under the Modified Accelerated Cost Recovery System (MACRS), and by increasing project revenue with the production tax credit (PTC). The tax credits reduce the tax burden of power generation projects, and accelerated depreciation defers tax liabilities to later years. This section looks in detail at how each policy affects the economic viability of two generation technologies: onshore wind and PV.

Funders	Funder number
Office of Energy Policy and Systems Analysis
U.S. Department of Energy

Keywords

Cost
Federal
Finance
Gas
Generation
Incentives
Mapping
Natural
Policies
Policy
Power
Project
Scenario
Solar
Technology
Tool
Wind

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10.1016/j.tej.2017.07.008

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The geography of project finance in U.S. electricity generation

Abstract

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Keywords

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