The role of costs, incentives and risks
The report finds that because policy goals can depend upon investment in particular technologies, it must be designed with the investment risks, not just technology costs, in mind. This is not because concern with costs is wrong, but because costs are only part of the equation.
Policymakers cannot detrmine which technologies get built, they can only provide incentives to encourage a diverse and/or low carbon generation mix. And if incentives are to deliver such investment, they must be based on a clear understanding of how investment decisions are made.
Key OuputsInvestment in Electricity Generation: The Role of Costs, Incentives and Risks
- Electricity Generation Costs and Investment Decisions: A Review, February 2007
- Factoring Risk Into Investment Decisions, November 2006
- A Review of Electricity Unit Cost Estimates, December 2006, updated May 2007
- Investment: Risk, Return and the Role of Policy, November 2006