Tracking the impact of innovation on the levelised cost of energy.
The evolution of the cost of energy supply is at the heart of the debate on energy security and competitiveness in Europe. Many different drivers affect the cost of energy, beyond them international geopolitics affecting the cost of raw materials and fossil fuels, financial cycle and the existing cash, grid availability, country specific regulations, etc. In this ever changing scenario, the cost reductions obtained through technology innovations are long lasting ones and with a durable impact on costs.
InnoEnergy’s new cost evaluation platform, DELPHOS, is designed to make publicly available a series of cost models and basic datasets to improve the analysis of the impact of innovations on costs and to allow the research community, industry, policy makers and investors to make robust decisions about the role of innovation in the energy sector as well as to feed their strategy definition processes.
InnoEnergy’s goal is that DELPHOS become a reference tool for the evaluation of the impact of single and concrete innovation on the typical economical parameters of energy facilities, being the levelised cost of energy (LCOE) the key indicator. DELPHOS provides a simple but exhaustive methodology to assess the impact of innovation on typical renewable energies power plants such as wind energy (onshore and offshore), photovoltaics (coming soon) and solar-thermal electricity 1.
InnoEnergy, together with BVG Associates, is developing credible future technology cost models in four renewable energy generation technologies using a consistent methodology. DELPHOS is an online and simplified version of these cost models.
The purpose of these cost models is to enable the impact of innovations on the levelised cost of energy (LCOE) to be explored and tracked in a consistent way across the four technologies and over the next 12 to 15 years. A specificity of those models is that the impact of innovations is not only modelled according to their technicality but also taking into account their marketability. While the priority is to help focus on key innovations, DELPHOS also consider real world effects to ensure a realistic overall LCOE trajectory.
Together with the robustness of the model, credibility is also ensured by the use of datasets recognised by major players of the industry. Of course those datasets correspond to a picture of a sector at a certain point in time and might become outdated. For this reason DELPHOS was designed to allow users edit the existing datasets and adapt the cost tool to their own experience.
Tutorial 1: How to use Delphos? General presentation.
Tutorial 2: How to evaluate a single innovation in Delphos?
Tutorial 3: How to evaluate a portfolio of innovations in Delphos?
1 The tool will be progressively upgraded to study the impact of innovation in other technologies supported by InnoEnergy.