A standardized parametric framework for techno-economic analysis of renewable and clean energy systems

To foster informed policy formulation and decision-making for the evolving energy transition and the rising demand for renewable and clean energy systems (REACES), it is imperative to establish a standardized and comprehensive Techno-Economic Analysis (TEA) method for widespread adoption. Existing TEA studies on REACES have been noted to contain significant inconsistencies and deficiencies in the economic frameworks, financial parameters, decision-making metrics, and methodological approaches. Key TEA parameters, such as balance of plant, land, and contingency cost, etc., were found underutilized, with implementation rates of only 36 %, 28 %, and 26 %, respectively. This study addresses these critical gaps by developing a robust, comprehensive, and standardized TEA model specifically tailored to REACES. System-level macro- and micro parameters related to technical, economic, financial, and business risk were integrated. The impact of key parameters illustrated through a pilot case study emphasized that overlooking these parameters significantly skews the final decision metrics. Excluding incentives resulted in an 18 % underestimation of the Levelized Cost of Energy (LCOE) and a 14 % miscalculation in the Discounted Payback Period. Implementing this standardized model will enhance the accuracy, consistency, and credibility of TEA practices, enabling more precise evaluations and fostering meaningful cross-comparisons among various REACES.