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A techno-economic analysis of EU renewable electricity policy pathways in 2030

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  • del Río, Pablo
  • Resch, Gustav
  • Ortner, Andre
  • Liebmann, Lukas
  • Busch, Sebastian
  • Panzer, Christian

Abstract

The aim of this paper is to assess several pathways of a harmonised European policy framework for supporting renewable electricity (RES-E) in a 2030 horizon according to different criteria. The pathways combine two main dimensions: degrees of harmonisation and instruments and design elements. A quantitative model-based analysis with the Green-X model is provided. The results of the simulations show that there are small differences between the evaluated cases regarding effectiveness. All the policy pathways score similarly with respect to RES-E deployment, i.e., with different degrees of harmonisation and whether using a feed-in tariff, a feed-in premium, a quota system with banding or a quota without banding scheme. In contrast, the policy costs clearly differ across the pathways, but the differences can mostly be attributed to the instruments rather than to the degrees of harmonisation. This is also the case with other criteria (static and dynamic efficiency and the socioeconomic and environmental benefits in terms of CO2 emissions and fossil fuels avoided). Both the degree of harmonisation and the choice of instrument influence the distribution of support costs across countries. Finally, our findings suggest that keeping strengthened national support leads to similar results to other policy pathways.

Suggested Citation

  • del Río, Pablo & Resch, Gustav & Ortner, Andre & Liebmann, Lukas & Busch, Sebastian & Panzer, Christian, 2017. "A techno-economic analysis of EU renewable electricity policy pathways in 2030," Energy Policy, Elsevier, vol. 104(C), pages 484-493.
    • Handle: RePEc:eee:enepol:v:104:y:2017:i:c:p:484-493
    DOI: 10.1016/j.enpol.2017.01.028
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    References listed on IDEAS

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    1. Gustav Resch & Malte Gephart & Simone Steinhilber & Corinna Klessmann & Pablo del Rio & Mario Ragwitz, 2013. "Coordination or Harmonisation? Feasible Pathways for a European Res Strategy beyond 2020," Energy & Environment, , vol. 24(1-2), pages 147-169, February.
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    5. del Río, Pablo & Cerdá, Emilio, 2014. "The policy implications of the different interpretations of the cost-effectiveness of renewable electricity support," Energy Policy, Elsevier, vol. 64(C), pages 364-372.
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    Cited by:

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    2. Özdemir, Ö. & Hobbs, B. & van Hout, M. & Koutstaal, P., 2019. "Capacity vs Energy Subsidies for Renewables: Benefits and Costs for the 2030 EU Power Market," Cambridge Working Papers in Economics 1927, Faculty of Economics, University of Cambridge.
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    5. Pablo-Romero, María P. & Sánchez-Braza, Antonio & Galyan, Anna, 2021. "Renewable energy use for electricity generation in transition economies: Evolution, targets and promotion policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
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    9. Inna Čábelková & Wadim Strielkowski & Irina Firsova & Marina Korovushkina, 2020. "Public Acceptance of Renewable Energy Sources: a Case Study from the Czech Republic," Energies, MDPI, vol. 13(7), pages 1-15, April.
    10. Quintana-Rojo, Consolación & Callejas-Albiñana, Fernando-Evaristo & Tarancón, Miguel-Ángel & del Río, Pablo, 2020. "Assessing the feasibility of deployment policies in wind energy systems. A sensitivity analysis on a multiequational econometric framework," Energy Economics, Elsevier, vol. 86(C).
    11. Lana Ollier & Marc Melliger & Johan Lilliestam, 2020. "Friends or Foes? Political Synergy or Competition between Renewable Energy and Energy Efficiency Policy," Energies, MDPI, vol. 13(23), pages 1-23, December.
    12. Meus, Jelle & Van den Bergh, Kenneth & Delarue, Erik & Proost, Stef, 2019. "On international renewable cooperation mechanisms: The impact of national RES-E support schemes," Energy Economics, Elsevier, vol. 81(C), pages 859-873.
    13. Suzer, Ahmet Esat & Atasoy, Vehbi Emrah & Ekici, Selcuk, 2021. "Developing a holistic simulation approach for parametric techno-economic analysis of wind energy," Energy Policy, Elsevier, vol. 149(C).
    14. Marrero-Trujillo, Verónica & Arias-Gaviria, Jessica & Arango-Aramburo, Santiago & Larsen, Erik R., 2023. "Gamification model for communicating and evaluating renewable energy planning," Utilities Policy, Elsevier, vol. 84(C).
    15. Kwon, Tae-hyeong, 2018. "Policy synergy or conflict for renewable energy support: Case of RPS and auction in South Korea," Energy Policy, Elsevier, vol. 123(C), pages 443-449.
    16. Ossenbrink, Jan & Finnsson, Sveinbjoern & Bening, Catharina R. & Hoffmann, Volker H., 2019. "Delineating policy mixes: Contrasting top-down and bottom-up approaches to the case of energy-storage policy in California," Research Policy, Elsevier, vol. 48(10).
    17. Yu, Shiwei & Zhou, Shuangshuang & Zheng, Shuhong & Li, Zhenxi & Liu, Lancui, 2019. "Developing an optimal renewable electricity generation mix for China using a fuzzy multi-objective approach," Renewable Energy, Elsevier, vol. 139(C), pages 1086-1098.
    18. Özdemir, Özge & Hobbs, Benjamin F. & van Hout, Marit & Koutstaal, Paul R., 2020. "Capacity vs energy subsidies for promoting renewable investment: Benefits and costs for the EU power market," Energy Policy, Elsevier, vol. 137(C).
    19. Díaz, Guzmán & Coto, José & Gómez-Aleixandre, Javier, 2019. "Levelized income loss as a metric of the adaptation of wind and energy storage to variable prices," Applied Energy, Elsevier, vol. 238(C), pages 1179-1191.
    20. Costa-Campi, Maria Teresa & Davi-Arderius, Daniel & Trujillo-Baute, Elisa, 2020. "Locational impact and network costs of energy transition: Introducing geographical price signals for new renewable capacity," Energy Policy, Elsevier, vol. 142(C).

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    More about this item

    Keywords

    Renewable electricity; Policy; Model simulations; Cost-effectiveness;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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