Abstract
Owing to rapid growth in the Asian solar photovoltaic (PV) power market, decision-making models are required to develop efficient investment strategies. Previous studies have largely focused on technological conditions and macroeconomic indicators, but not on the increasing needs of the financial sector. In this study, we developed an evaluation model of solar PV investment and financial factors at the project level. The model applies the fuzzy analytic hierarchy process and selects appropriate evaluation indicators for investment by emphasizing financial factors such as access to finance and exit strategies after the initial investment. Furthermore, we derived the relative importance of the indicators for each stakeholder. Stakeholder analysis enables comparison by quantifying the risks of each market participant. Economic factors (71.57%) were selected as the most important evaluation factors, followed by policy factors (16.26%), and technical factors (12.17%). Higher weights were assigned to indicators that directly affect profitability. Stakeholders showed significant differences in policy factors. Power generation companies showed higher weight values in policy factors than other groups. Quantification of differences in perceptions provides basic data for establishing effective investment strategies and developing policies. Therefore, the proposed model will contribute to more efficient solar PV project development.
Highlights
Solar photovoltaic (PV) power is the fastest growing renewable energy source, accounting for over 37% of the expansion of global renewable capacity between 2012 and 2017 [1]
It is important to analyze the different perspectives of stakeholders participating in the solar PV power market as the solar PV power market is rapidly expanding and there are a variety of market participants
In this study, we analyzed the differences in the perspectives of academic experts in fields that are directly or indirectly related to policy establishment and investment as well as financial investors and power generation company representatives who are the main players in the solar PV power market
Summary
Solar photovoltaic (PV) power is the fastest growing renewable energy source, accounting for over 37% of the expansion of global renewable capacity between 2012 and 2017 [1]. According to the International Energy Agency [1], solar PV power in Asia will account for more than 50% of the increase in total renewable energy sources in the 5 years. In South Korea, the fast expansion of solar PV power is anticipated as a response to the Renewable Energy 3020 policy of the new government [3]. According to the Financial Times [4], the renewable energy field was the third largest sector for direct investment in 2016, amounting for USD 77.1 billion, which is 10% of total direct investments, and solar PV power has the fastest-growing capacity and investment size [1]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
