Cooperation mechanisms to achieve EU renewable targets

There are considerable benefits from cooperating among member states on meeting the 2020 renewable energy sources (RES) targets. Today countries are supporting investments in renewable energy by many different types of support schemes and with different levels of support. The EU has opened for cooperation mechanisms such as joint support schemes for promoting renewable energy to meet the 2020 targets. The potential coordination benefits, with more efficient localisation and composition of renewable investment, can be achieved by creating new areas/sub-segments of renewable technologies where support costs are shared and credits are transferred between countries.Countries that are not coordinating support for renewable energy might induce inefficient investment in new capacity that would have been more beneficial elsewhere and still have provided the same contribution to meeting the 2020 RES targets. Furthermore, countries might find themselves competing for investment in a market with limited capital available. In both cases, the cost-efficiency of the renewable support policies is reduced compared to a coordinated solution.Barriers for joint support such as network regulation regarding connection of new capacity to the electricity grid and cost sharing rules for electricity transmission expansion are examined and examples given. The influence of additional renewable capacity on domestic/regional power market prices can be a barrier. The market will be influenced by for example an expansion of the wind capacity resulting in lower prices, which will affect existing conventional producers. This development will be opposed by conventional producers, whereas consumers will support such a strategy.A major barrier is the timing of RES targets and the uncertainty regarding future targets. We illustrate the importance of different assumptions on future targets and the implied value of RES credits. The effect on the credit price for 2020 is presented in an exemplary case study of 200 MW wind capacity.     

Green electricity market development: Lessons from Europe and the US

This study compares the development and implementation of green electricity policies in Germany, the Netherlands, Sweden, and the United States, a set of countries applying a range of policy instruments to encourage electricity from renewable energy sources. A general tendency is identified that policies shift emphasis from R&D stimulation towards dissemination and market application of renewable energy technologies. We argue that in light of the long term nature of policy goals on energy security, mitigation of climate change, and environmental protection, the applied range of policy instruments may be lacking in providing incentives for the long term development of new technologies. Clarifying policy objectives would allow careful selection of policy instruments, including support for R&D. Improved capacity building for policy implementation is also important.     

Economic analysis of different supporting policies for the production of electrical energy by solar photovoltaics in eastern European Union countries

Today, photovoltaic (PV) attracts considerable interest in relation to renewable energy technologies, because of its potential to contribute significantly to the future of renewable energy. However, PV market development is related strongly to the support policies introduced by national governments, defined in national laws. The modification or fading out of such incentive schemes can strongly influence the development of the PV market in any given country. In this paper, after a brief review of national support policies in PV technology in eastern European Union (EU) countries, the authors perform an economic analysis of the main support mechanisms that are implemented in these countries. The comparative analysis is based on the calculation of the cash flow, the Net Present Value (NPV) and the Internal Rate of Return (IRR) indices. The analysis shows that in some situations, support policies can be inconvenient for the owner of the PV system and that, in many cases, the differences between the implementation of the same support policy in different countries, can give rise to significantly different results.     

Energy storage for peak shaving and frequency regulation in the front of meter：Progress and prospect

作为清洁的可再生发电资源,光伏和风电的装机量在经历着快速发展的同时,也面临着弃风、弃光和可再生能源并网消纳困难等一系列问题。经过十多年的研发和示范应用,储能已经被认为是解决这些问题的关键技术。本文主要论述了储能在电力调峰调频领域的应用现状以及发展前景,并建议通过出台支持政策和建立合理的市场机制,使得储能在电力调峰调频领域大有可为。     

A regulatory policy to promote renewable energy consumption in China: Review and future evolutionary path

Renewable energy has become the world's strategic choice to solve environmental pollution, address the energy crisis and achieve social sustainable development. The establishment of a regulatory system coincides with the development stage of renewable energy and electricity market operation is significant in standardizing the market competition and guaranteeing healthy development of renewable energy in China. This paper analyses the current situation of renewable energy development and the existing renewable energy regulation system in China, pointing out that the main problems restricting renewable energy development are institutional mechanisms and market factors. The existing regulatory mechanisms also have deficiencies, such as the inclination towards economic regulation and the lack of a market adjustment mechanism. This paper proposes that China should comprehensively consider the renewable energy development stage, electricity market trading mechanisms and other factors in electricity regulatory requirements when policy making, actively exploring a new renewable energy regulation model adapted to different development phases. In addition, this paper suggests China's regulatory policy path based on the forecasting of renewable energy developing models.     

Renewable electricity in Sweden: an analysis of policy and regulations

This study aims to analyse the developments in renewable energy policy making in Sweden. It assesses the energy policy context, changes in the choice of policy instruments, and provides explanations behind policy successes and failures. Swedish renewable energy policy has been developing in a context of uncertainty around nuclear issues. While there has been made a political decision to replace nuclear power with renewables, there is a lack of consensus about the pace of phasing out nuclear power due to perceived negative impacts on industrial competitiveness. Such uncertainty had an effect in the formulation of renewable energy policy. Biomass and wind power are the main options for renewable electricity production. Throughout 1990s, the combined effect of different policy instruments has stimulated the growth of these two renewable sources. Yet, both biomass and wind power are still a minor contributor in the total electricity generation. Lack of strong government commitment due to uncertainty around nuclear issues is a crucial factor. Short-term subsidies have been preferred rather than open-ended subsidy mechanisms, causing intervals without subsidies and interruption to development. Other factors are such as lack of incentives from the major electricity companies and administrative obstacles. The taxation system has been successful in fostering an expansion of biomass for heating but hindered a similar development in the electricity sector. The quota system adopted in 2003 is expected to create high demand on biomass but does not favour wind power. The renewable energy aims are unlikely to be changed. Yet, the future development of renewable energy policies especially for high-cost technologies will again depend strongly on nuclear policies, which are still unstable and might affect the pace of renewable energy development.     

Does electricity price matter for innovation in renewable energy technologies in China?

Though the development of renewable energy is rapid, innovation in renewable energy technologies is relatively weak due to the late commencement of renewable energy in China. In addition, renewable energy is mainly introduced into the supply mix of electricity generation, which increases the costs of electricity generation. Higher electricity price will make renewable energy more competitive and call forth renewable energy technological innovation. Based on FMOLS and DOLS models, as well as PMG model, this paper investigates the induced long and short run effects of electricity price, funding support, and economic growth on innovation in renewable energy technologies at the provincial level in China during the period 2006–2016. The Conclusions drawn were: (1) R&D expenditure and economic growth have positive impacts on innovation in renewable energy technologies in the long and short run; (2) Electricity price only has a long run effect on patenting in renewable energy technologies; (3) In the long run, a 1% increase in electricity price can lead to a 0.7825%–1.0952% increase in the patent counts of renewable energy technologies; (4) Electricity pricing system in China does not play any role in driving renewable energy technological innovation in the short run.     

Renewable energy resources,policies and gaps in BRICS countries and the global impact

This paper presents comparative yet extensive analysis of existing non-conventional renewable resources, energy policies and gaps in BRICS countries. An intelligent transformation to green economy to maintain natural resources is noted. Brazil has stable energy policies and is the leading producer of biofuels following hydropower until 2014 but supported wind and solar power development by tendering specific tariffs for energy generation from solar and wind. Russia needs improvement in its legal and regulatory framework with more incentives in energy policies. China is improving upon wind and hydropower but it needs strong policy measures to put cap on increased CO₂ emissions. India needs revision in energy policy and requires extra incentives and consumer specific energy policies for research-infrastructure and energy generation technologies. South Africa requires lessons to increase renewable energy and reduce coal mining. Moreover, BRICS countries need to redefine their energy policies based upon their existing geographical, economical, societal and environmental conditions which will help in shaping global energy policies and more financial stability. This paper recognizes the potential of BRICS to reshape the global system paralleled with minimizing CO₂ emissions. The concerted role of BRICS needs to be recognized as the leading contributor of global renewable capacity where the developed world is geared and busy to address the environmental issues.     

Renewable energy policies in promoting financing and investment among the East Asia Summit countries: Quantitative assessment and policy implications

Many countries have implemented various policies for renewable energy development ranging from setting power purchase agreements and the legislation of renewable energy requirements to providing incentives and imposing carbon taxes. The evaluation of the effectiveness of such policies, however, is fragmented, which raises a need for a comprehensive analysis. This paper aims to assess whether and how policies promoting renewable energy investment have achieved the intended goals. It employs five broadly defined criteria - market, uncertainty, profitability, technology, and financial resources - to build an index to assess respectively if such policies have helped create a market for renewable energy, maximize potential profits, reduce risks relating to the investment, develop and adopt new technologies, and improve the access to financial resources. Each criterion is reflected by three indicators. Values of each indicator are converted into ordinal values for analysis. The index not only scans comprehensively all relevant renewable energy investment policies in the East Asia Summit countries, but also provides systematic and quantitative measures to compare the effectiveness of policies in these countries with respect to the creation of market, the degree of uncertainty, the potential of profitability, the development and adoption of technology and the accessibility of financial resources.     

UK innovation systems for new and renewable energy technologies: drivers,barriers and systems failures

A better understanding of the systemic processes by which innovation occurs is useful, both conceptually and to inform policy-making in support of innovation in more sustainable technologies. This paper analyses current innovation systems in the UK for a range of new and renewable energy technologies, and generates policy recommendations for improving the effectiveness of these innovation systems. Although incentives are in place in the UK to encourage innovation in these technologies, system failures—or ‘gaps’—are identified in moving technologies along the innovation chain, preventing their successful commercialisation. Sustained investment will be needed for these technologies to achieve their potential. It is argued that a stable and consistent policy framework is required to help create the conditions for this. In particular, such a framework should be aimed at improving risk/reward ratios for demonstration and pre-commercial stage technologies. This would enhance positive expectations, stimulate learning effects leading to cost reductions, and increase the likelihood of successful commercialisation.     

Towards improved policy processes for promoting innovation in renewable electricity technologies in the UK

This paper analyses recent, current and potential future relations between policy processes and substantive outcomes in UK low carbon innovation policy, focussing on policies relating to renewable electricity generation technologies. It examines the development of policy processes relating to the adoption and implementation of the Renewables Obligation and how these may affect the current and likely future success of the Obligation in promoting low carbon innovation. It examines the new policy and institutional processes put in place in the 2003 Energy White Paper and argues that these are unlikely to provide the strategic long-term framework needed to realise the ambitious goals for UK energy policy set out in the White Paper. Finally, it outlines some suggestions for further development of policy processes to facilitate improved delivery of these goals, based on guiding principles for sustainable innovation policy processes, developed by the authors and their colleagues.     

Financing investments in renewable energy : the impacts of policy design

The costs of electric power projects utilizing renewable energy technologies (RETs) are highly sensitive to financing terms. Consequently, as the electricity industry is restructured and new renewables policies are created, it is important for policymakers to consider the impacts of renewables policy design on RET financing. This paper reviews the power plant financing process for renewable energy projects, estimates the impact of financing terms on levelized energy costs, and provides insights to policymakers on the important nexus between renewables policy design and financing. We review five case studies of renewable energy policies, and find that one of the key reasons that RET policies are not more effective is that project development and financing processes are frequently ignored or misunderstood when designing and implementing renewable energy policies. The case studies specifically show that policies that do not provide long-term stability or that have negative secondary impacts on investment decisions will increase financing costs, sometimes dramatically reducing the effectiveness of the program. Within U.S. electricity restructuring proceedings, new renewable energy policies are being created, and restructuring itself is changing the way RETs are financed. As these new policies are created and implemented, it is essential that policymakers acknowledge the financing difficulties faced by renewables developers and pay special attention to the impacts of renewables policy design on financing. As shown in this paper, a renewables policy that is carefully designed can reduce renewable energy costs dramatically by providing revenue certainty that will, in turn, reduce financing risk premiums.     

Interactions between renewable energy policy and renewable energy industrial policy: A critical analysis of China's policy approach to renewable energies

This paper analyzes China's policy approach to renewable energies and assesses how effectively China has met the ideal of appropriate interactions between renewable energy policy and renewable energy industrial policy. First we briefly discuss the interactions between these two policies. Then we outline China's key renewable energy and renewable industrial policies and find that China's government has well recognized the need for this policy interaction. After that, we study the achievements and problems in China's wind and solar PV sector during 2005–2012 and argue that China's policy approach to renewable energies has placed priority first on developing a renewable energy manufacturing industry and only second on renewable energy itself, and it has not effectively met the ideal of appropriate interactions between renewable energy policy and renewable energy industrial policy. Lastly, we make an in-depth analysis of the three ideas underlying this policy approach, that is, the green development idea, the low-carbon leadership idea and indigenous innovation idea. We conclude that Chinas' policy approach to renewable energies needs to enhance the interactions between renewable energy policy and renewable energy industrial policy. The paper contributes to a deeper understanding of China's policy strategy toward renewable energies.     

Renewable energy sources in Cameroon: Potentials,benefits and enabling environment

The price of hydroelectricity in Cameroon has recently sky-rocketed. At the same time, firewood in remote areas is being depleted without being replenished. This has led to a number of challenges; energy is no longer affordable and environmental impacts from the wanton exploitation of firewood are widespread. Therefore, there is a need to explore other renewable energy sources which have enormous environmental and energy potentials. However, there is limited scholarly work on the potential of other renewable energy sources in Cameroon. Literature on the potential of renewable energy in Cameroon is still very limited and scattered. The exact sizes of the different renewable energy sources, their benefits and the market potential that can stimulate their uptake are not well-known. Therefore, stakeholders including policy makers, researchers and investors lack guidelines on how and at what level to invest, intervene, and design policies that can lead to the practical exploitation of renewable energy sources. This article investigates the extent to which renewable energy can contribute to the energy sector in Cameroon. The article lays the groundwork that can inform various stakeholders to engage into different activities which can foster the understanding of renewable energy sources and their potentials and limitations. Some key findings are that: while solar and biomass energy are abundant almost everywhere in Cameroon, wind energy is feasible in some selected regions. Furthermore, while the few literature sources about geothermal sources are contradictory or at best non-conclusive about their potential, tidal energy is yet to receive considerable attention, with its first feasibility studies having been just recently begun. These findings point to the fact that if renewable energy is to be part of the Cameroon’s energy programme, there is need to scale-up research in the development of renewable energy in order to better inform energy policies.     

The energy subsidisation policies of Cyprus and their effect on renewable energy systems economics

In this paper, the energy subsidisation policies that are in effect in Cyprus are investigated with respect to their effect on renewable energy systems economics. Two subsidisation policies are investigated, those of renewable energy and fuels. These are contradictory, as one is in favour and the other is against the exploitation of renewable energies on the island, which is the declared Government policy. First, the policy measures are described and their effect on the economic viability of a solar system is investigated by means of an example. This concerns a solar industrial process heat system for which four types of collectors are considered. From the results presented it is clear that renewable energy subsidies create a positive impulse on renewable energies whereas the economic factors improve considerably when the subsidy for fuel is removed, as the expenditure made for the erection of a solar system replaces a more expensive fuel.     

A review of technology diffusion models with special reference to renewable energy technologies

Diffusion of renewable energy technologies (RETs) are driven by policies and incentives due to their inherent characteristics such as high upfront costs, lack of level playing field but distinct advantages from energy security, environmental and social considerations. Even after three decades of their promotion, only 20–25% of their potential has been realized. The theory of diffusion modeling allows analysis of diffusion processes and study of growth rates of different technologies and underlying diffusion factors. Their applications have focused on commercial and consumer products such as television, automobiles and IT products and their applications to RETs have been limited. Diffusion analysis of RETs have been based on barriers’ to RET adoption and techno–economic, learning and experience curve approaches. It is observed that these diffusion models when applied to commercial products do not deal with the issues of policy influences which are critical to RET diffusion. Since policies drive RET diffusion, the models for analyzing RET diffusion should allow establishing explicit relationships between the diffusion parameters and policies and their impact on diffusion rates. Given the potential of renewable energy technologies for sustainable development, the aim of this paper is to review different diffusion theory based models and their applicability to RET diffusion analysis.     

可再生能源发展的必经过程和我国的政策取向

本文以学习曲线规律为理论依据,描述了可再生能源技术发展和产业成长的必经过程,以及可再生能源不同发展阶段所面临的障碍。分析了我国可再生能源的发展现状和所需要的支持政策的特点。同时分析了发展可再生能源与常规能源新技术之间的关系,探讨了常规能源的先进利用方式和可再生能源相互促进的发展思路。在此基础上提出我国应该按照发展阶段制订可再生能源的鼓励政策。     

Boosting new renewable technologies towards grid parity – Economic and policy aspects

The intensity of market penetration and hence the relevance of clean energy technologies in mitigating climate change will greatly depend on their cost-effectiveness. This paper discusses the economic and policy aspects of speeding up the market of these technologies to reach cost parity. A combination of historical energy market dynamics, technology diffusion and endogenous learning models were employed in the analyses. Starting from giving a preferential position to emerging renewable energy technologies in the energy and climate policy, which also means securing adequate financial resources for their deployment, could lead in the base scenario to a full-cost breakthrough of wind power around 2027 and of photovoltaics in 2032. The combined global market share of renewable electricity in 2050 could reach 62% of all electricity (now 19%) of which wind and solar power alone could account for almost two-thirds corresponding to a carbon saving in the range of 8–16 GtCO₂. However, if the new technologies were downgraded in the energy and climate policy context, the combined impact of solar and wind could remain at no less than 11% which would marginalize these technologies in the fight against climate change. The estimates for financial support to achieve cost parity were very sensitive to the assumptions of the input parameters: in the base case the extra costs or learning investments for solar power were €1432 billion and for wind power €327 billion, but with more conservative input data these values could grow manifold. On the other hand, considering the potentially cheaper electricity from new technologies above the cost parity point and putting a price on carbon could result in a positive yield from public support instead of it being regarded merely as unnecessary spending. The findings stress the necessity of long-term policies and strong commercialization strategies to bring the new energy technologies to breakeven point, but also highlight the complexity of assessing the true costs of making new energy technologies fully competitive.     

Green electricity policies in the Netherlands: an analysis of policy decisions

Over the last decades, fundamental changes can be observed in both market conditions and the national policy framework for green electricity in the Netherlands. The Dutch Government has regularly intervened in markets, demonstrating fundamental shifts in policy and approach. This study aims to analyse the developments in renewable energy policy making in the Netherlands. It assesses changes in the choice of policy instruments and target groups, the role of stakeholders, and offers explanations behind policy successes and failures. Dutch green electricity policy over the last decade can be characterised roughly by three phases: in the early 1990s, the government negotiated voluntary agreements with the energy distribution sector on targets for green electricity sales, which were never met. In the second half of the 1990s, a regulatory energy tax was introduced, from which customers of green electricity were exempt. This led to a substantial increase in demand, which was largely met by green electricity imports, and did not lead to additional domestic renewable energy capacity. Finally, a change in policy has taken place recently (2003) shifting the focus from promotion of demand to the promotion of supply through a system of regulated feed-in tariffs. Despite the renewable energy policies, growth of the renewable energy market in the Netherlands has been small and targets have not been fully met. The Dutch government has not yet succeeded in substantially reducing market uncertainties and in building confidence among market parties, because the policies have not been stable and policy objectives have frequently been partly ambiguous. In addition, the influence of stakeholders in renewable energy policy making has been small which has the early acceptance and implementation of alternative policies.     

Strategies for the deployment of micro-generation: Implications for social acceptance

Social acceptance of renewable energy innovation has often been discussed in the context of large renewable technology projects, acceptance having been seen as rather passive consent by the public. The potential importance of micro-generation technologies in the future energy supply mix and policymakers’ increasing attention to these technologies requires a different approach to the social acceptance of renewable energy innovation and energy infrastructure technologies.