EconPapers    
Economics at your fingertips  
 

Contracting for Wind Generation

David M Newbery ()

Economics of Energy & Environmental Policy, 2012, vol. Volume 1, issue Number 2

Abstract: The UK Government proposes offering long-term Feed-in-Tariffs (FiTs) to low-carbon generation to reduce risk and encourage new entrants. Their preference is for a Contract-for-Difference (CfD) for all generation regardless of type. I argue that a standard CfD is unsuitable for on-shore wind, where a fixed FiT appears less risky. The estimated extra trading and balancing costs of a CfD for on-shore wind might be £56 million/yr by 2020 and £170 million/yr for all wind. The extra costs of investment risk could be comparable and additional.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.iaee.org/en/publications/eeeparticle.aspx?id=18 (text/html)
Access to full text is restricted to IAEE members and subscribers.

Related works:
Working Paper: Contracting for wind generation (2011) Downloads
Working Paper: Contracting for wind generation (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aen:eeepjl:1_2_a02

Ordering information: This journal article can be ordered from
http://www.iaee.org/ ... ons/eeepjournal.aspx

Access Statistics for this article

More articles in Economics of Energy & Environmental Policy from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams ().

 
Page updated 2019-07-28
Handle: RePEc:aen:eeepjl:1_2_a02