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Critical review of competitiveness indicators for energy projects

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  • Colla, Martin
  • Ioannou, Anastasia
  • Falcone, Gioia

Abstract

The decarbonisation of the energy sector can be a key contributor in the transition to a low-carbon economy. New low-CO2 energy production technologies are becoming available in the international market, contributing to building diversified portfolios of projects with very different features. Apart from technology-related features, the deployment of an energy production plant also depends on the availability of resources of the country/installation site, socio-economic implications, environmental impact and integration with the existing power grid. Decision makers should take all these factors into consideration when determining which project is more likely to move forward. Several studies have proposed the use of Key Performance Indicators (KPIs) to facilitate the decision-making process when selecting viable and sustainable energy projects. However, fewer studies exist that provide a detailed assessment of these KPIs. The scope of this paper is to critically review and investigate a set of multi-disciplinary KPIs, allowing a holistic comparison across different types of energy projects. The identified KPIs were classified as physical, economic, environmental and social. They were subsequently analysed to assess their limitations, determine inter-connections and identify the need for additional indicators to capture risks and opportunities within a mixed energy market. This paper can be the basis for the development of an integrated framework, allowing a fairer assessment of competing energy projects by relevant stakeholders.

Suggested Citation

  • Colla, Martin & Ioannou, Anastasia & Falcone, Gioia, 2020. "Critical review of competitiveness indicators for energy projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 125(C).
    • Handle: RePEc:eee:rensus:v:125:y:2020:i:c:s1364032120300903
    DOI: 10.1016/j.rser.2020.109794
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