Efficiency and effectiveness of promotion systems for electricity generation from renewable energy sources – Lessons from EU countries

Reinhard Haas, Gustav Resch, Christian Panzer, Sebastian Busch, Mario Ragwitz and Anne Held

Energy, 2011, vol. 36, issue 4, 2186-2193

Abstract: Currently, a wide range of strategies is implemented in different countries to increase the share of electricity from renewable energy sources (RES-E). A still controversial discussion is whether quantity-driven (like Tradable Green Certificates (TGCs) based on quotas) or price-driven (like feed-in-tariffs (FIT)) instruments lead to preferable solutions for society. The core objective of this paper is to compare the perspectives of quota-based certificate trading systems for an efficient and effective increase of RES-E with FIT. The major results of this analysis are: (i) The success stories of growth in RES-E in EU member states in recent years has been triggered by FIT implemented in a technology-specific manner at modest costs for European citizens; (ii) At present, TGC systems in most countries applied show a low effectiveness with respect to RES-E deployment of less mature technologies such as solar PV (with improving tendencies in e.g. the UK or Italy with respect to certain technologies); (iii) Compared to short term trading in TGC markets the intrinsic stability of FIT systems appears to be a key element for success; (iv) Hence, currently a well-designed (dynamic) FIT system provides a certain deployment of RES-E in the shortest time and at lowest costs for society.

Keywords: Renewable energy; Promotion schemes; Cost effectiveness (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (128)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:36:y:2011:i:4:p:2186-2193

DOI: 10.1016/j.energy.2010.06.028

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