The New and Renewable ENergy technologies module Sample Clauses

The New and Renewable ENergy technologies module. (NREN) The NREN module proposes a dynamic approach of the development and diffusion of 12 generic technologies10 that may be representative solutions for different categories of countries and might play a quantitatively significant role in the long term development of energy systems. Their diffusion and production profile is determined by a logistic curve function, the shape of which is determined by two key factors: the size of the economic potential for the technology considered and the length of the diffusion process, both variables depending mostly on the cost of the technology, relatively to the one of the alternative solution. − The size of the economic potential It is determined by the share of the potential - determined by resource or technical constraints - that turns out to be economically competitive under the conditions simulated by the model (investment cost of the technology considered, cost of the alternative conventional solutions, price of the competing energy carriers). This share is a function of the average payback period for the considered investment: the lower is the payback period (i.e. the more cost-effective the technology) and the larger the share of the technical potential that is considered as an economic potential. Because of the importance of site specific factors in the costs and performances of new and renewable technologies, their cost-effectiveness cannot be assessed by determining a unique cost-effectiveness benchmark for which all the technical potential could be economically attainable. This leads to the definition of a logistic curve determining the share of the technical potential which is turned into economic potential as a function of the PBP.
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