Economic and regulatory feasibility of solar PV in the Austrian multi-apartment housing sector

,Nadejda Komendantova,Wolfgang Amann,Markus Manuel Schwarz

doi:10.3934/energy.2018.5.810

Abstract

Austria established energy policy targets to decarbonize the housing sector with an increasing usage of low carbon electricity. Solar photovoltaic (PV) is one of the technologies being used to reach this target. Currently, the deployment of PV in the multi-apartment building sector is supported by subsidies. Taking into account the available potential and the policy goals for large-scale PV deployment in the residential sector in Austria, this paper investigates the economic feasibility of PV generation in multi-apartment buildings in the absence of subsidies. It also looks at the necessary regulatory conditions for implementation of economically feasible business models for PV generation in multi-apartment buildings. The empirical data for current research came from case studies of three actual projects, which were implemented by stakeholders with practical experience and knowledge in residential PV.

Highlights

Climate change mitigation policy calls for significant reductions of greenhouse gas (GHG) emissions to avoid potentially catastrophic risks of climate change [1]
Taking into account the available potential and the policy goals for largescale PV deployment in the residential sector in Austria, this paper investigates the economic feasibility of PV generation in multi-apartment buildings in the absence of subsidies
[25] analyzed factors influencing the costs of PV, such as weighted average cost of capital (WACC) and developed a global map of PV costs, accounting for differences in solar irradiance and WACC in order to calculate levelized costs of electricity (LCOE) for PV systems in 143 countries [25]. These results suggest that WACC has a significant impact on LCOE and that policies are needed to de-risk low carbon investment

Summary

Introduction

Climate change mitigation policy calls for significant reductions of greenhouse gas (GHG) emissions to avoid potentially catastrophic risks of climate change [1]. Austria was among the first European countries to ratify the Paris Agreement in July 2016 and is currently developing an integrated energy and climate strategy that is consistent with it. As a member country of the European Union, Austria is covered by the European energy policy, such as the EU roadmap for renewable energies and the EU Directive on Energy Performance of Buildings. The EU roadmap, published in 2011, requires reduction of GHG emissions by at least 80% by 2050 through a significant increase in the share of renewable energy sources (RES) [10]. The EU 2030 policy framework for climate and energy requires an increase in the share of RES to at least 27% of the EU’s energy consumption by 2030 [11]. The Austria Energy Strategy states that the largest potential for PV is through integration into buildings [12]

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Conclusion