Comparison of feed-in tariff, quota and auction mechanisms to support wind power development

Lucy Butler and Karsten Neuhoff ()

Renewable Energy, 2008, vol. 33, issue 8, 1854-1867

Abstract: A comparison of support schemes for market-based deployment of renewable energy in the UK and Germany shows that the feed-in tariff reduces costs to consumers and results in larger deployment. A survey among project developers suggests two explanations: (1) Site selection presents the biggest obstacle under the feed-in tariff. Uncertain financing of other schemes reduces efforts at initial project stages and planning permits become a major obstacle. (2) Project developers do not compete in price but for good sites under the feed-in tariff. Most importantly, turbine producers and construction services contribute to most of the costs, and face at least equal levels of competition under the feed-in tariff.

Keywords: Renewable deployment; Instrument comparison; Barriers; Level of competition (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (211)

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Working Paper: Comparison of Feed in Tariff, Quota and Auction Mechanisms to Support Wind Power Development (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:33:y:2008:i:8:p:1854-1867

DOI: 10.1016/j.renene.2007.10.008

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