Wind electricity in Greece: recent developments, problems and prospects

Electricity generation from renewable energy sources (RES) in Greece is regulated by the energy law 2244/94 which provides incentives to attract private investments in the RES sector. The wind energy sector is highly attractive due to the verified large wind potential in many regions of the country. This paper presents the current situation concerning wind energy exploitation, analyses the technical problems following the penetration of wind power into electricity grids, and the consequent technical solutions proposed by the Public Power Corporation (PPC). It also describes the perspectives for high wind power penetration into Greek power system.     

The effect of the feed-in-system policy on renewable energy investments: Evidence from the EU countries

We study the effect of the Feed-in-System (FIS) policy on wind and solar photovoltaic energy investments in the European Union (EU), over the time period between 1992 and 2015, considering the heterogeneity of the policies and market conditions across the EU countries. We develop a FIS subsidy performance indicator that distinguishes feed-in-tariff (FIT) from feed-in-premium (FIP) and considers other important aspects of each of these contracts, such as the duration, tariff price, energy spot price and production costs, as well as the market conditions. We conclude that the mere existence of the FIS policy does not necessarily enhance renewable energy investments, it depends on the type of the FIS contract and its features, and may vary across the different sources of renewable energy. Some of our findings are new to the literature and can have important implications in the development of new public investment incentives to promote renewable energy.     

The analysis of the renewable energy production sector in Serbia

Producing energy from renewable sources in Serbia is in its initial phase, and therefore this paper points towards the basic assumptions, potentials and institutional framework for the development of this activity in Serbia. Until recently, production and consumption of energy in Serbia was a social category, but the shift towards market economy together with the fact that Serbia has adopted Kyoto protocol, production of energy from renewable sources became a competitive and obligatory activity. Research shows that the current potentials for producing energy from renewable sources in Serbia are favorable. Besides this, the paper provides an overview of the existing institutional structure in the energy sector in Serbia, but also the short overview of the adequate legal acts. Researches that were done so far have proven that energy potentials of Serbia are insufficiently known and therefore authors will give an overview of the foreign investments in this sector and reveal the possibilities for further investing. Considering the existing know-how base and potentials for the production of equipment, geothermal energy and energy coming from biomass have been identified as priority renewable sources of energy. Producing energy from other renewable sources is also possible, but would require substantial foreign investments. As a final conclusion, the paper states that completely unused potentials for production of energy from renewable sources, together with adequately set institutional framework, would create great possibilities for foreign investments.     

Exuberance in China's renewable energy investment: Rationality,capital structure and implications with firm level evidence

The new century has witnessed phenomenal worldwide growth in renewable energy investments. China has been especially remarkable, surpassing both the US and the EU in 2013. Some recent facts, however, have raised the question of whether exuberant investment in China’s renewable energy sector is rational. This paper aims to contribute to the literature and to the debate in two ways. First, it tests the over-investment hypothesis based on the main stream finance methodology; second, it analyzes the role of capital structure in the performance of China's renewable energy firms. Empirical results show that overinvestment in the renewable energy sector exists. The problem is more significant in the biomass and wind sector. Capital structure is found to be more important to downstream firms, indicating that policy makers may provide support that enables these firms to finance their investments through corporate bonds, commercial credit, or long-terms debts.     

Valuing the attributes of renewable energy investments

Increasing the proportion of power derived from renewable energy sources is becoming an increasingly important part of many countries's strategies to achieve reductions in greenhouse gas emissions. However, renewable energy investments can often have external costs and benefits, which need to be taken into account if socially optimal investments are to be made. This paper attempts to estimate the magnitude of these external costs and benefits for the case of renewable technologies in Scotland, a country which has set particularly ambitious targets for expanding renewable energy. The external effects we consider are those on landscape quality, wildlife and air quality. We also consider the welfare implications of different investment strategies for employment and electricity prices. The methodology used to do this is the choice experiment technique. Renewable technologies considered include hydro, on-shore and off-shore wind power and biomass. Welfare changes for different combinations of impacts associated with different investment strategies are estimated. We also test for differences in preferences towards these impacts between urban and rural communities, and between high- and low-income households.     

Multidimensional evaluation of global investments on the renewable energy with the integrated fuzzy decision‐making model under the hesitancy

This study aims to assess global investment alternatives with respect to renewable energy. Within this framework, five different renewable energy types (biomass, hydropower, geothermal, wind, and solar) are determined as investment alternatives. Moreover, eight different criteria are selected by considering the four different dimensions of balanced scorecard. Additionally, the fuzzy‐based decision making trial and the evaluation laboratory under the hesitancy (HF‐DEMATEL) model are taken into the account to weight these dimensions and criteria and the technique for order the preferences by the similarity to the ideal solution with the fuzzy hesitant methodology (HF‐TOPSIS) is considered to select the alternatives of renewable energy investments. The novelties of this study are to propose an integrated model and provide the balanced scorecard–based evaluations of global renewable energy investment alternatives. The findings show that learning and growth and customer are the most important dimensions for the investment on renewable energy. It is also identified that market potential, product customization, and technological development are the most significant criteria for this situation. On the other side, solar and wind energy are the most important renewable investment alternatives. These results explain that technological improvement should be maintained, and customer expectations should be met by the companies. Furthermore, solar power plant and wind power plant should be developed in the countries. For this purpose, governments should give necessary incentives to the investors, such as allocating appropriate lands. These actions can attract the attentions of the potential investors for these renewable energy alternatives. Owing to this issue, it can be possible to increase the capacity of electricity productions in the countries with a potential minimum cost.     

Green accounting for greener energy

The first step towards the widespread use of renewable energy sources and preservation of our environment for the people of the future is to adopt the “green accounting” standards that translate socially and environmentally responsible behavior into monetary terms, the only language businesses understand. These standards have the potential of switching on the red light for all pollution-causing power plants, and those depleting the natural capital in any way, be it over-harvesting the forests, or exhausting the underground treasures – coal, oil, natural gas, etc. This paper will show how green accounting can help in changing the focus from the economic welfare to the total societal welfare, acknowledging the fact that human society is an integral part of the natural world. The paper will also briefly present the software developed by the authors that introduce the green accounting principles into the investment appraisal process, aiming at encouraging investments into renewable energy. The tool is also useful as a platform facilitating calibration of economic/financial instruments, like environmental taxes of governmental incentives, that are usually to boost renewable energy sector. The comparative analysis of investment into biofuel-powered combined heat and power production plant using two types of investment valuation standards, one based on conventional cash-flow analysis, the other based on green-accounting standards is detailed in the paper. The analysis is performed as a part of the European Commission Framework Program Project AFTUR, undertaken by the consortium consisting of respectful European Research Establishments in renewable energy area as well as major European biofuel-powered turbine producers. The results show that the wider adoption of green accounting standards would induce the unprecedented growth of the renewable energy sector, because it would make the investment into renewable energy attractive for investors.     

Potential of renewable energy systems in China

Along with high-speed economic development and increasing energy consumption, the Chinese Government faces a growing pressure to maintain the balance between energy supply and demand. In 2009, China has become both the largest energy consumer and CO₂ emitting country in the world. In this case, the inappropriate energy consumption structure should be changed. As an alternative, a suitable infrastructure for the implementation of renewable energy may serve as a long-term sustainable solution. The perspective of a 100% renewable energy system has been analyzed and discussed in some countries previously. In this process, assessment of domestic renewable energy sources is the first step. Then appropriate methodologies are needed to perform energy system analyses involving the integration of more sustainable strategies. Denmark may serve as an example of how sustainable strategies can be implemented. The Danish system has demonstrated the possibility of converting into a 100% renewable energy system. This paper discusses the perspective of renewable energy in China firstly, and then analyses whether it is suitable to adopt similar methodologies applied in other countries as China approaches a renewable energy system. The conclusion is that China’s domestic renewable energy sources are abundant and show the possibility to cover future energy demand; the methodologies used to analyse a 100% renewable energy system are applicable in China. Therefore, proposing an analysis of a 100% renewable energy system in China is not unreasonable.     

Present status of renewable energy resources in Jammu and Kashmir State of India

Jammu and Kashmir State of India is one of the energy starved states despite of having tremendous potential for utilization of renewable energy. The natural energy sources like sunshine, wind, vegetation, water flow, biomass and other biological wastes are abundantly available in the state yet are not being potentially harnessed resulting in very low per capita energy availability forcing peoples to use wood resulting into deforestation. The fossils fuels, which pollute the environment, are extensively utilized even though they are not sustainable. Developing and properly implementing renewable energy technologies in this state can provide secure energy supply for rapid domestic and industrial development which will attract new investments, thereby creates additional employment. It shall also generate additional state income by allowing the state to sell renewable energy trading certificates to other states. Therefore, it is important that the region moves to clear and sustainable energy. This paper presents an overview of the present status of renewable energy development and summarizes key issues in each of the major industrial segments. It also examines crucial gaps in the renewable energy market, describes the goals set out by various government programs, and estimates the resources and effort required to meet these goals.     

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.     

Renewable energy perspectives and support mechanisms in Taiwan

The use and development of renewable energy has become a major policy incentive in Taiwan. Some measures, promoting renewable energy, were previously instituted, but many legal and institutional barriers, hampering the development of renewable energy, remain; thus, it is necessary to encourage discussion to eliminate barriers and implement support mechanisms. This article reviews current measures and addresses the perspectives and support mechanisms of renewable energy in Taiwan. Basically, Taiwan's short, medium and long-term development progress and strategies for renewable energy sources can be seen to correspond to current international initiatives; in practice, however, many issues (such as establishing domestic renewable energy technologies and inter-departmental coordination mechanisms) must still be addressed, in order to actively promote the utilization of renewable energy.     

A comparison of the drivers influencing adoption of on-farm anaerobic digestion in Germany and Australia

This review examines the drivers behind the adoption of on-farm anaerobic digestion in Germany where there were more than 4000 plants operating in 2009. In Australia, only one plant is operating, at a piggery in the State of Victoria. Germany’s generous feed-in-tariffs for renewable energy are typically given the credit for promoting investment in on-farm anaerobic digestion. But the particular biophysical and socio-economic character of farming in the country provided the fertile ground for these financial incentives to take root. Energy security has also been a major driver for the promotion of renewable energy in Germany since it imports over 60% of its energy needs. In contrast, Australia is a net energy exporter, exporting about two-thirds of its domestic energy. Although it has considerable potential for application in Australia, anaerobic digestion is unlikely to be widely adopted unless new incentives emerge to strongly encourage investment. Stronger Australian regulation of manures and effluent may serve as an incentive to a limited extent in the future. Yet the experience in Germany suggests that regulation on its own was not sufficient to encourage large numbers of farmers to invest in anaerobic digestion. Even with generous incentives from the German government, increasing construction costs and the rising cost of energy crops can put the financial viability of anaerobic digestion plants at risk. Unless improvements in efficiency are found and implemented, these pressures could lead to unsustainable rises in the cost of the incentive schemes that underpin the development of renewable energy technologies.     

Flexibility in Europe's power sector — An additional requirement or an automatic complement?

By 2050, the European Union aims to reduce greenhouse gases by more than 80%. The EU member states have therefore declared to strongly increase the share of renewable energy sources (RES-E) in the next decades. Given a large deployment of wind and solar capacities, there are two major impacts on electricity systems: First, the electricity system must be flexible enough to cope with the volatile RES-E generation, i.e., ramp up supply or ramp down demand on short notice. Second, sufficient back-up capacities are needed during times with low feed-in from wind and solar capacities. This paper analyzes whether there is a need for additional incentive mechanisms for flexibility in electricity markets with a high share of renewables. For this purpose, we simulate the development of the European electricity markets up to the year 2050 using a linear investment and dispatch optimization model. Flexibility requirements are implemented in the model via ramping constraints and provision of balancing power. We found that an increase in fluctuating renewables has a tremendous impact on the volatility of the residual load and consequently on the flexibility requirements. However, any market design that incentivizes investments in least (total system) cost generation investment does not need additional incentives for flexibility. The main trigger for investing in flexible resources is the achievable full load hours and the need for backup capacity. In a competitive market, the cost-efficient technologies that are most likely to be installed, i.e., gas-fired power plants or flexible CCS plants, provide flexibility as a by-product. Under the condition of system adequacy, flexibility never poses a challenge in a cost-minimal capacity mix. Therefore, any market design incentivizing investments in efficient generation thus provides flexibility as an inevi complement.     

Explaining the diversity of motivations behind community renewable energy

Community-based renewable energy initiatives may be important actors in the transition toward low-carbon energy systems. In turn, stimulating investments in renewable energy production at the community level requires a better understanding of investors' motives. This paper aims to study the heterogeneity of motivations that drive individuals to participate in community renewable energy projects and the underlying explanatory factors behind this, as well as the implications for their level of engagement in initiatives. Based on quantitative data from an original survey conducted with two renewable energy cooperatives in Flanders, the statistical analysis shows that cooperative members should not be considered as one homogeneous group. Several categories of members with different motives and levels of engagement can be distinguished. This heterogeneity is explained by contrasts in terms of institutional settings, spatial patterns and attitudes to the diffusion of institutional innovations. Regarding policy implications, the findings suggest that this heterogeneity should be taken into account in designing more effective supporting policies to stimulate investments at the community level. The activation of social norms is also shown to be a promising mechanism for triggering investment decisions, although the implications of its interplay with economic incentives should be further explored.     

意大利的节能和可再生能源激励机制

新能源与可再生能源产业是具有环境效益的弱势产业，在市场化过程中面临着诸多的障碍和问题，政府支持是新能源与可再生能源市场培育的原动力。不论是发达国家还是发展中国家，新能源与可再生能源的发展离不开政府的支持，如投融资、税收、补贴、市场渗透等一系列的优惠政策。文章介绍了意大利在节能和可再生能源方面的激励政策。     

德国《可再生能源法》2014年最新改革解析及启示

德国政府计划于2014年对可再生能源支持政策进行全面改革,此次改革仍保留了《可再生能源法2012》的整体架构,重点是要控制非水电可再生能源的补贴成本。采取的主要措施包括控制风电、光伏和生物质发电年度装机容量增长目标,补贴重点侧重更加经济有效的可再生能源类型(即陆上风电和光伏),上网电价递减率与年度新增装机容量挂钩的灵活限额机制,调整上网电价递减周期等。同时通过直接营销和拍卖等市场机制,让可再生能源更加融入市场。这标志着德国可再生能源的发展进入到引导投资和重点扶持的新阶段。建议借鉴德国《可再生能源法》完善我国可再生能源支持政策,包括针对不同可再生能源的技术特点制定完善的、自适应的上网电价模型,顺应技术发展规律实行"老机老电价、新机新电价"的电价调整机制,不断提高补贴手段的市场化和有效性等。     

Top down strategy for renewable energy investment: Conceptual framework and implementation

Electricity market is undergoing a tremendous transformation throughout the world. A drastic reduction of carbon emission cannot be realized if renewable energy resources are not increased in share of generation mix. Currently, most of the traditional mechanisms, including regulatory policies, fiscal incentives and public financing, are initiated from and heavily relied on policymakers and governments. However, not only these schemes do not necessarily align with business interests of investors, but also the motivations for renewable energy developments are always initiated by governments. In order to realize the full potential of renewable energy investment, an innovative approach is necessary to motivate investors and lessen government expenditures.In this paper, we present a top down strategy for renewable energy investment. The proposed approach is a three-step framework. By applying the approach, renewable energy global market leaders and trends will be identified and analyzed that included: (1) economics and renewable energy policy, (2) specific renewable energy sectors that presents the most attractive investment opportunity, (3) and finally the most promising renewable energy investment vehicles for investors. Other stakeholders can also use the developed framework, such as consumers and policymakers, to make socio-economic decisions and assess renewable energy investments.     

The insurance effect of renewable distributed energy resources against uncertain electricity price developments

To combat climate change, many countries all around the world currently foster the development of renewable energy sources (RES). However, in contrast to traditional energy systems that relied on few central power plants, RES are typically highly decentral and spread all over a country. Against this backdrop, the promotion of a decentralization of the energy system by fostering a regional balance of energy demand and supply with a corresponding increase in energy democracy is seen as a promising approach. However, energy democracy driven by an increasing involvement of consumers requires adequate investments of consumers in their own local RES in order to become active players, usually called prosumers. Risk associated with uncertain long-term electricity price developments is generally seen as a barrier to investments. In contrast, we describe that an investment in distributed energy resources (DERs) may actually serve as a consumer's insurance against price risk. Our results set out that the consideration of risk-aversion may actually positively shift an investment decision in renewable DERs. This is due to the prosumer becoming more self-sufficient and less dependent on uncertain price developments. To analyze such an insurance effect, we create a formal decision model considering the prosumer's risk-aversion and derive the prosumer's optimal investment in renewable DERs. However, our results also indicate that under some circumstances the insurance effect disappears: When a prosumer turns into a predominant producer, the prosumer is again exposed to risk in terms of uncertain revenues. Ultimately, our work highlights the importance of a consideration of the insurance effect when assessing an investment in renewable DERs.     

Heat planning for fossil-fuel-free district heating areas with extensive end-use heat savings: A case study of the Copenhagen district heating area in Denmark

The Danish government plans to make the Danish energy system to be completely free of fossil fuels by 2050 and that by 2035 the energy supply for buildings and electricity should be entirely based on renewable energy sources. To become independent from fossil fuels, it is necessary to reduce the energy consumption of the existing building stock, increase energy efficiency, and convert the present heat supply from fossil fuels to renewable energy sources. District heating is a sustainable way of providing space heating and domestic hot water to buildings in densely populated areas. This paper is a theoretical investigation of the district heating system in the Copenhagen area, in which heat conservation is related to the heat supply in buildings from an economic perspective. Supplying the existing building stock from low-temperature energy resources, e.g. geothermal heat, might lead to oversized heating plants that are too expensive to build in comparison with the potential energy savings in buildings. Long-term strategies for the existing building stock must ensure that costs are minimized and that investments in energy savings and new heating capacity are optimized and carried out at the right time.     

Adoption of residential solar power under uncertainty: Implications for renewable energy incentives

Many incentives at the state and federal level exist for household adoption of renewable energy like solar photovoltaic (PV) panels. Despite generous financial incentives the adoption rate is low. We use the option value framework, which takes into account the benefit of delaying investment in response to uncertainty, to examine the decision by households to invest in solar PV. Using a simulation model, we determine optimal adoption times, critical values of discounted benefits, and adoption rates over time for solar PV investments using data from Massachusetts. We find that the option value multiplier is 1.6, which implies that the discounted value of benefits from solar PV needs to exceed installation cost by 60% for investment to occur. Without any policies, median adoption time is eight years longer under the option value decision rule compared to the net present value decision rule where households equate discounted benefits to installation cost. Rebates and other financial incentives decrease adoption time, but their effect is attenuated if households apply the option value decision rule to solar PV investments. Results suggest that policies that reduce the uncertainty in returns from solar PV investments would be most effective at incentivizing adoption.