Regional economic and environmental impacts of renewable energy developments: Solar PV in the Aachen Region

Abstract

The energy transition is a challenge that affects regions on various scales. This paper presents the economic chances of deploying the renewable energy technology solar photovoltaic in a German region. Total regional economic effects of 280 PV plants, installed in 2014 with a cumulative capacity of 3.7 MW, lead to a regional value added of approximately €3.8 million (€1019/kW installed, €57/MWh electricity generated) and employment effects of 42 full-time person years (11 person years/MW installed), occurring from 2014 to 2034. The avoided greenhouse gas emissions of these plants are 2365 tons CO2 equivalents per year (0.7 kgCO2-eq/kWh generated) and the avoided air pollution is 0.97 tSO2 per year, 1.48 tNOx per year, and 0.07 t NMVOCs per year in 2014. The total economic effects of regional value added, avoided CO2 emissions, and avoided air pollution per year in 2014 range from €0.8 million - €1 million or (€208–€277 per kW installed, €231–€307 per MWh electricity generated).