Solar energy: Markets, economics and policies

Solar energy has experienced phenomenal growth in recent years due to both technological improvements resulting in cost reductions and government policies supportive of renewable energy development and utilization. This study analyzes the technical, economic and policy aspects of solar energy development and deployment. While the cost of solar energy has declined rapidly in the recent past, it still remains much higher than the cost of conventional energy technologies. Like other renewable energy technologies, solar energy benefits from fiscal and regulatory incentives, including tax credits and exemptions, feed-in-tariff, preferential interest rates, renewable portfolio standards and voluntary green power programs in many countries. The emerging carbon credit markets are expected to provide additional incentives to solar energy deployment; however, the scale of incentives provided by the existing carbon market instruments, such as, the Clean Development Mechanism of the Kyoto Protocol is limited. Despite the huge technical potential, the development and large scale deployment of solar energy technologies world-wide still has to overcome a number of technical, financial, regulatory and institutional barriers. The continuation of policy supports might be necessary for several decades to maintain and enhance the growth of solar energy in both developed and developing countries.     

Renewable energy sources for clean and sustainable energy policies in Turkey

Energy is an essential factor to achieve sustainable development. So, countries striving to this end are seeking to reassess their energy systems with a view towards planning energy programmes and strategies in line with sustainable development goals and objectives. As would be expected, the rapid expansion of energy production and consumption has brought with it a wide range of environmental issues at the local, regional and global levels. States have played a leading role in protecting the environment by reducing emissions of greenhouse gases. Turkey is an energy importing country with more than half of the energy requirement being supplied by imports, and air pollution is becoming a great environmental concern in the country. On the other hand, Turkey's geographical location has several advantages for extensive use of most of the renewable energy sources. In this regard, renewable energy resources appear the most efficient and effective solutions for clean and sustainable energy development in Turkey. This paper provides an overview of global energy use and renewables for clean and sustainable energy policies in Turkey.     

Solar energy in India: Strategies, policies, perspectives and future potential

Renewable energy sources and technologies have potential to provide solutions to the longstanding energy problems being faced by the developing countries like India. Solar energy can be an important part of India's plan not only to add new capacity but also to increase energy security, address environmental concerns, and lead the massive market for renewable energy. Solar thermal electricity (STE) also known as concentrating solar power (CSP) are emerging renewable energy technologies and can be developed as future potential option for electricity generation in India. In this paper, efforts have been made to summarize the availability, current status, strategies, perspectives, promotion policies, major achievements and future potential of solar energy options in India.     

Supporting the externality of intermittency in policies for renewable energy

We analyse the joint problem of supporting renewables and resource adequacy in a liberalised electricity market and present a detailed model-based comparison of two alternative policies. We undertake this in the context of the British market. We show how, ceteris paribus, the progressive replacement of coal with wind imposes extra costs of reserve and evaluate alternative way to meet this, whether through capacity payments funded by customers, or a reliability requirement on wind generators with capital cost or energy feed-in subsidies. We consider the reality of market concentration and the extent to which pragmatic regulation could allow prices to rise above marginal cost to reduce the extent of direct subsidies and complex market designs. We also evaluate the implied cost of carbon reduction in a progressive replacement of coal with wind, when the security is maintained by extra peaking gas. We find that support through capital allowances rather than the energy market is more efficient.     

Beyond electricity: The potential of ocean thermal energy and ocean technology ecoparks in small tropical islands

Small islands face difficult challenges to guarantee energy, freshwater and food supply, and sustainable development. The urge to meet their needs, together with the mitigation and adaptation plans to address climate change, have led them to develop renewable energy systems, with a special interest in Ocean Thermal Energy Conversion (OTEC) in tropical islands. Deep Ocean Water (DOW) is a resource that can provide electricity (through OTEC in combination with warm surface water), low temperatures for refrigeration, and nutrients for food production. In this paper we propose an Ocean Technology Ecopark (OTEP) as an integral solution for small islands that consists of an OTEC plant, other alternative uses of DOW, and a Research and Development (R&D) center. We present an application of OTEP to San Andres, a Colombian island that meets all the necessary conditions for the implementation of OTEC technology, water desalinization, and a business model for DOW. We present the main entrance barriers and a four-stage roadmap for the consolidation and sustainability of the OTEP.     

The impact of different grid regulatory scenarios on the development of renewable energy on islands: A comparative study and improvement proposals

Electricity generation costs are typically higher on islands than in mainland regions, primarily due to the costs associated with conventional primary energy transportation. However, at the same time, islands are commonly granted with significant renewable energy potential in terms of wind, solar radiation and marine energy, among others, varying by case.This article is focused on the impact that the grid regulatory framework has had on several islands from both the technical and economical points of view, with respect to renewable energy development. A comparison among the studied islands is carried out. Additionally, the possible differences between each island (or archipelago) and the rest of the corresponding country on the mainland are analysed to determine to what extent the peculiarities of the islands have been taken into account in the regulations.Our objective is to analyse whether the renewable energy developments on certain islands have taken place because of certain favourable scenarios or by promoting specific actuations, which could be applicable on other islands to promote similar developments. As a result of the study, strategic key ideas are identified to increase the renewable energy percentage of the electricity generation and energy consumption mix on islands.     

EU Research and Innovation (R&I) in renewable energies: The role of the Strategic Energy Technology Plan (SET-Plan)

The SET-Plan established a strategy to use Research and Innovation (R&I) to green the EU energy sector while ensuring a secure supply and increasing EU competitiveness. The strategy sets clear objectives and programming plans and takes stock of existing initiatives in the energy sector, fosters a cooperative approach to R&I, introduces a high-level steering group (the SET-Plan Steering Group) to monitor progress, creates a dedicated information system (the SETIS) to fill the void in policy information and produces estimates of financial needs over the programming period. In this respect, the SET-Plan could serve as a blueprint for R&I strategies to tackle other societal challenges. To be effective, such strategies should further clarify the hierarchy of existing objectives and instruments, introduce specific instruments to pull the demand of new technologies, strengthen links with education and training policies and formalize links with the governance structures of existing initiatives.     

Renewable energy: Progressing towards a net zero energy island, the case of Reunion Island

For the last two decades, economic development in Reunion Island has led to major structural changes. The latter have been characterized by an increase in energy demand per person. This demand is mostly related to a high population growth (1.55% per year). Reunion currently has 833,000 inhabitants. The population will rise to 1 million in 2030. Like most ultraperipheral regions of the European Union, Reunion is heavily dependent on imported fossil fuels for its energy production. The total primary energy consumption amounted to 1352 ktep in 2009 and 87.1% is imported energy. The development of various renewable energies such as solar energy, biomass, ocean energy, etc. is thus of priority concern to aim to achieve energetic independence. Just like other French overseas territories, Reunion policies have widely invested in Renewable Energy Sources (RES) since 2000. This paper aims at presenting the current status, the major achievements of policies and the future objectives in the deployment of renewable energy programmes. The perspective of a net zero energy island versus the pressure of the population is analysed. The barriers to penetration of RES in a small-scale territory are also discussed.     

Renewable energy sources in the Mexican electricity sector

This paper analyzes the role of renewable energy sources (RES) in the Mexican electricity sector in the context of the proposed renewable energy bill currently under consideration in the Mexican Congress. This paper was divided into three parts. The first part presents a chronology of institutional background related to the RES. This is followed by an analysis of the coordination and management system of the Mexican electricity sector, which can facilitate the promotion and integration of the RES without significant structural changes. Finally, the pros and cons of the renewable energy bill are analyzed in order to demonstrate the need for greater coherence between the bill and the coordination system of the sector. It is concluded that when inconsistency is eliminated, RES would strongly be promoted in Mexico.     

Estimation of the wave energy conversion efficiency in the Atlantic Ocean close to the European islands

This paper presents an evaluation of the efficiency of twelve state of the art wave energy converters in the Atlantic Ocean, in the vicinity of the most important European islands and archipelagos (Iceland, Archipelago of Azores, Madeira Archipelago and Canary Islands). An analysis of the wave conditions in the target areas was first performed by considering a 10-year interval (2004–2013) of wave data provided by the European Centre for Medium-Range Weather Forecasts. For this reason, twenty reference points, all located in water depths of about 50 m, were defined. In order to provide a general picture of the wave potential and also to highlight the presence of some hot spots, several wave parameters, such as significant wave height, mean wave direction and wave power, were evaluated. Then, for every nearshore area, based on the bivariate distributions of the sea states occurrences and also on the power matrix of each device, the performances of each wave energy converter were estimated in terms of the expected electrical power. The results of the present work provide valuable information for the future wave farm projects, which could become in the near future a reliable and effective way to produce energy in island environments.     

Green electricity policies in the United States: case study

While there has been interest in promoting the use of renewable energy in electricity production for a number of years in the United States, the market share of non-hydro renewable energy sources in electricity production has remained at about 2 percent over the past decade. The paper reviews the principal energy resources used for electricity production, considers the changing regulatory environment for the electricity industry, and describes government policies that have been used to promote green electricity in the United States, with an emphasis on measures adopted by state governments. Factors influencing the development of green power markets are also discussed, including underlying economic issues, public policy measures, the regulatory environment, external costs, and subsidies. Without significant increases in fossil fuel prices, much more stringent environmental regulations, or significant changes in electricity customer preferences, green electricity markets are likely to develop slowly in the United States.     

An energy pricing scheme for the diffusion of decentralized renewable technology investment in developing countries

The purpose of this paper is to investigate price support for market penetration of renewable energy in developing nations through a decentralized supply process. We integrate the new decentralized energy support: renewable premium tariff, to analyze impacts of tariff incentives on the diffusion of renewable technology in Senegal. Based on photovoltaic and wind technologies and an assessment of renewable energy resources in Senegal, an optimization technique is combined with a cash flow analysis to investigate investment decisions in renewable energy sector. Our findings indicate that this support mechanism could strengthen the sustainable deployment of renewable energy in remote areas of Senegal. Although different payoffs emerged, profits associated with a renewable premium tariff are the highest among the set of existing payoffs. Moreover in analyzing impacts of price incentives on social welfare, we show that price tariffing schemes must be strategically scrutinized in order to minimize welfare loss associated with price incentives. Finally we argue that a sustainable promotion of incentive mechanisms supporting deployment of renewable technology in developing nations should be carried out under reliable institutional structures. The additional advantage of the proposed methodology is its ability to integrate different stakeholders (producers, investors and consumers) in the planning process.     

Cost efficient utilisation of biomass in the German energy system in the context of energy and environmental policies

The possible uses of biomass for energy provision are manifold. Gaseous, liquid and solid bioenergy carriers can be alternatively converted into heat, power or transport fuel. The contribution of the different utilisation pathways to environmental political targets for greenhouse gas (GHG) emission reduction and energy political targets for the future share of renewable energy vary accordingly to their techno-economic characteristics. The aim of the presented study is to assess the different biomass options against the background of energy and environmental political targets based on a system analytical approach for the future German energy sector. The results show that heat generation and to a lower extent combined heat and power (CHP) production from solid biomass like wood and straw are the most cost effective ways to contribute to the emission reduction targets. The use of energy crops in fermentation biogas plants (maize) and for production of 1st generation transportation fuels, like biodiesel from rapeseed and ethanol from grain or sugar beet, are less favourable. Optimisation potentials lie in a switch to the production of 2nd generation biofuels and the enhanced use of either biomass residues or low production intensive energy crops.     

Project appraisal for small and medium size wind energy installation: The Italian wind energy policy effects

In the last few years, the distributed energy production from small wind turbines (i.e.<200 kWp) has developed into a relevant business opportunity for different investors in Italy. The market, especially in Italy, has rapidly grown, achieving 9 MWp only in 2011, with an increase from 1.5 MW in 2009 to 13.3 MW at the end of 2011. This paper reports the results of a case study on the installation of several small wind turbines. It aims to provide an analysis of the conditions in Italy that make it possible to install these machines and offer a reliable reference for designing, planning, and controlling small wind turbine projects while focusing on the strategic variables of time, cost, and quality used by typical enterprises in the investment projects. The results are relevant to investors as well as engineering, procurement, and construction companies involved in this new sector, which must understand Italy’s renewable energy policy and its effects in practice. Moreover, certain national energy policy conclusions are reported and discussed in this paper. To properly study the sector, the data on time, cost and quality are analysed using typical project management tools.     

Renewable energy and the need for local energy markets

In Denmark, a technological change towards cleaner energy technologies has been developed and implemented since around 1975. This development has had two phases: The first from 1975 until around 1996, when wind power was a niche production that supplied only 3.5% of the electricity consumption and was brought close to cost competitiveness, and the present second phase, in which wind power supplies an increasing share (in 2004 18.6%) of electricity consumption along with combined heat and power plants, which supply around 50% of consumption. Denmark succeeded in overcoming the first phase, and a large green energy technology cluster was established. During the second phase, new difficulties and challenges have arisen, both with regard to local public acceptance and the need for integrating an increasing percentage of fluctuating energy sources into the energy system. In this Phase 2, a new offensive green energy policy should be introduced in order to secure both public and political acceptance. Local markets should be established in order to secure the technical integration of a large proportion of wind power and other fluctuating renewable energy sources into the energy system.     

Linking least-cost energy system costs models with MCA: An assessment of the EU renewable energy targets and supporting policies

There are several technoeconomic modeling approaches that provide quantitative results such as costs and the level of achievement of certain renewable energy (RE) policy targets. These approaches often do not consider other important factors for policy implementation (such as socio-political aspects and stakeholders' preferences). Recent multicriteria analysis (MCA) approaches attempt to integrate these multiple aspects in decision making process. In this respect, aim of this paper is to combine technoeconomic modeling and MCA approaches in a general analytical framework incorporating multiple aspects. Each method in an RE policy interaction problem can feed in the necessary policy information for the subsequent steps of an ex-ante and an ex-post assessment in a decision tree, starting from recognizing the need for implementing a new policy in parallel to the incumbent ones, assessing the actual policy costs and finally identifying the social acceptability of these RE policies.     

U.S. state policies for renewable energy: Context and effectiveness

Over the past decade, state policies on renewable energy have been on the rise in the U.S., providing states with various options for encouraging the generation of renewable electricity. Two promising policies, the Renewable Portfolio Standard (RPS) and the Mandatory Green Power Option (MGPO), have been implemented in many states but the evidence about their effectiveness is mixed. In this paper, we argue that recognizing the natural, social, and policy context under which MGPO and RPS are adopted is necessary in order to measure their true effectiveness. This is because the context rather than the policy might lead to positive outcomes and there is the possibility for sample bias. When controlling for the context in which the policies are implemented, we find that RPS has a negative impact on investments in renewable capacity. However, we find that investor-owned utilities seem to respond more positively to RPS mandates than publicly owned utilities. By contrast, MGPO appears to have a significant effect on installed renewable capacity for all utilities regardless of the context in which it is implemented.     

The diverging paths of German and United States policies for renewable energy: Sources of difference

The United States and Germany started out with very similar policies for renewable energy after the energy crisis of the 1970s. By the year 2000 they were on very different policy paths and, as a result, the German renewable energy industry has moved well ahead of that in the United States, both in terms of installed capacity in the country and in terms of creating a highly successful export market. In this paper, we reject some of the conventional explanations for this difference. Instead, these differences arise from the intersection of contingent historical events with the distinctive institutional and social structures that affect policy making in each country. Our analysis of the historical path-dependent dynamics of each country suggests that those who wish to further renewable energy policy in the United States need to take into account these institutional and social factors so that they will better be able to exploit the next set of favorable historical circumstances.     

Renewable energy in India: Historical developments and prospects

Promoting renewable energy in India has assumed great importance in recent years in view of high growth rate of energy consumption, high share of coal in domestic energy demand, heavy dependence on imports for meeting demands for petroleum fuels and volatility of world oil market. A number of renewable energy technologies (RETs) are now well established in the country. The technology that has achieved the most dramatic growth rate and success is wind energy; India ranks fourth in the world in terms of total installed capacity. India hosts the world's largest small gasifier programme and second largest biogas programme. After many years of slow growth, demand for solar water heaters appears to be gaining momentum. Small hydro has been growing in India at a slow but steady pace. Installation of some of the technologies appears to have slowed down in recent years; these include improved cooking stoves (ICSs) and solar photovoltaic (PV) systems. In spite of many successes, the overall growth of renewable energy in India has remained rather slow. A number of factors are likely to boost the future prospects of renewable energy in the country; these include global pressure and voluntary targets for greenhouse gas emission reduction, a possible future oil crisis, intensification of rural electrification program, and import of hydropower from neighbouring countries.