Page 19 - European Energy Innovation - summer 2018 publication

Summer 2018 European Energy Innovation 19
BANKABLE
PROJECT
Required Power Purchase
Agreement Wc€/kwh
PPA after using suitable EU
financing instruments (eg: Innovfin)
Zc€/kwh
Off-taker price with specific
dispatch profile Yc€/kwh
Average pool price
Xc€/kwh
Figure 1: Example; how to reduce the financial gap between PPA and pool price. Source: Adapted from ESTELA (2017)
European countries, is under
development as a result of the
collaboration within the solar
smart specialisation partnership.
The project, a first of a kind (FOAK)
generation plant, could bring multiple
benefits for Europe as well as for
the involved countries and regions,
addressing the main goals of the
Energy Union and CLIMA priorities:
1. The decarbonisation of the
European economy, through the
progressive replacement of the
high intensive carbon generation
power plants in Europe. The design
and development of a combined
cycle generation concentrated
solar plant, hybridised with
photovoltaic plant and gas or
biomasse, is the only possibility to Cooperation Mechanisms, the
provide renewable baseload power
www.europeanenergyinnovation.eu
SOLAR SMART SPECIALISATION PLATFORM
Viability
GAP
for the European energy market.
2. Increasing of the limited
interconnection capacities; the
contribution to a fully-integrated grant financial support to solar FOAK
internal energy market, to better
exploit the renewable energy
export-import potential across
Europe.
3. The use of the Cooperation
mechanism.
4. Maintaining the European industrial such Directive. The use of such
and research leadership in
concentrated solar technologies
and contribute to improve its
techno-economic performance.
As for the possibility to use the
Renewable Energy Directive 28/2009/
NON-BANKABLE
PROJECT
Reduction in the GAP Original
due to EU financial GAP
instruments
Support provided by an
off-taker MS through
Cooperation Mechanisms
Reduction in the GAP due
to higher value of the
dispatchable electricity
EC – also known as RED - provides
the regulatory framework to allow
for cross-border electricity trade
while providing the possibility to
projects for exports in Southern
Europe. Back in 2009, the RED set
national binding renewable target
and allowed member state (MS)
to cooperate to partially achieve
their target jointly by making use
of the Cooperation Mechanisms
defined in Articles 6, 7, 9 and 11 of
cooperation mechanisms was
intended to help MS by providing
them with more flexibility in reaching
their renewable targets as well as to
achieve their 2020 renewable target
in a more cost-effective. Alongside
this, the proposal for Governance for
the Energy Union aims at facilitating