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The Influence of Renewable Energy’s Changing Cost on Its Capacity Growth

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This paper explores whether the changing cost of renewable energy influences renewable electricity capacity growth. Using Levelized Cost of Electricity (LCOE) as the standard to measure cost, the study finds that as the cost decreases by 1%, 0.85% more renewable capacity would be added to the grid. Furthermore, appropriate policy incentives can further accelerate the growth of renewables.
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2023-11-22
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