Market and policy risk under different renewable electricity support schemes

Trine Krogh Boomsma and Kristin Linnerud

Energy, 2015, vol. 89, issue C, 435-448

Abstract: Worldwide, renewable electricity projects are granted production support to ensure competitiveness. Depending on the design of these support schemes, the cash inflows to investment projects will be more or less exposed to fluctuations in electricity and/or subsidy prices. Furthermore, as renewable electricity technologies mature, there is a possibility that the current support scheme will be terminated or revised in ways that make it less generous or more in line with market mechanism.

Keywords: Renewable energy; Policy uncertainty; Green certificates; Feed-in tariffs; Irreversible investments; Real options (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (58)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:89:y:2015:i:c:p:435-448

DOI: 10.1016/j.energy.2015.05.114

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