The Influence of Small-Scale Power Plant Supporting Schemes on the Public Trader and Consumers

Renata Varfolomejeva, Antans Sauhats, Nikita Sokolovs and Hasan Coban
Additional contact information
Renata Varfolomejeva: Institute of Power Engineering, Riga Technical University, Azenes Str. 12/1, LV-1069 Riga, Latvia
Antans Sauhats: Institute of Power Engineering, Riga Technical University, Azenes Str. 12/1, LV-1069 Riga, Latvia
Nikita Sokolovs: Institute of Power Engineering, Riga Technical University, Azenes Str. 12/1, LV-1069 Riga, Latvia
Hasan Coban: Mmeka Construction and Industry Trade Inc. Orucreis Mah. Tekstilkent Koza Plaza. A Blok. Kat 12. No.:46, Esenler, 34220 Istanbul, Turkey

Energies, 2017, vol. 10, issue 6, 1-12

Abstract: The mechanism of support schemes for achieving the required share of renewable energy sources (RES) was implemented into the energy sector. The issued amount of support requires state subsidies. The end-users of electricity are paying the mandatory procurement component taxes to cover these subsidies. The article examines the way of minimizing the influence of the existing RES supporting schemes on the consumers. The fixed purchased electricity price in the case of RES does not encourage producers to operate at hours of peak consumption or when the price is high. Modification of the RES support mechanisms at the legislative level, firstly, could minimize the influence of the mandatory procurement component on the end-users’ electricity price, and secondly, could provide a great opportunity for the public trader to forecast the operation of small power plants and their generation abilities. Numerical experiments with models of two types of power plants (biofuel and hydropower) prove the existence of a problem and the presence of a solution. This problem constitutes the main subject of the present paper.

Keywords: energy supply; biofuel; hydropower; supporting schemes; optimization; mandatory procurement (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/1996-1073/10/6/800/pdf (application/pdf)
https://www.mdpi.com/1996-1073/10/6/800/ (text/html)

Related works:
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:gam:jeners:v:10:y:2017:i:6:p:800-:d:101224

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().