Initiating a sustained diffusion of wind power: The role of public-private partnerships in Spain
AbstractThe literature on policy approaches for the market support of renewable electricity is dominated by narrow conceptualizations of policy, referring mostly to direct instruments for economic feasibility. Such approaches often led to unsatisfactory explanations of diffusion results. This is the case of wind power diffusion in Spain, the success of which is typically credited to the 'feed-in-tariff' instrument. This paper offers an alternative explanatory account for wind power diffusion in Spain. It is argued that diffusion can be explained by a less obvious policy of stimulating investments by means of public-private partnerships (PPPs). The three legal frameworks for economic feasibility applicable up to 2004 harbored high economic risks. Although projects could have high profitability because of generous investment subsidies, up to mid 1990s most investments were based on PPPs, to address the risk perceptions of early investors. Fully-private partnerships now dominate investments, though PPPs have not disappeared. Next to winning investors' confidence, the PPP policy led to an investment culture whereby partnership investments dominate. By 2000, 95.7% of the installed wind capacity was owned by partnerships, and only 4.3% by individual companies. Partnerships invest in larger projects, have ambitious investment plans, and these lead to a high diffusion tempo.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 36 (2008)
Issue (Month): 9 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Haas, R. & Eichhammer, W. & Huber, C. & Langniss, O. & Lorenzoni, A. & Madlener, R. & Menanteau, P. & Morthorst, P. -E. & Martins, A. & Oniszk, A. & Schleich, J. & Smith, A. & Vass, Z. & Verbruggen, A, 2004. "How to promote renewable energy systems successfully and effectively," Energy Policy, Elsevier, vol. 32(6), pages 833-839, April.
- Montes, Germán Martínez & Prados Martín, Enrique & Ordóñez García, Javier, 2007. "The current situation of wind energy in Spain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(3), pages 467-481, April.
- Lipp, Judith, 2007. "Lessons for effective renewable electricity policy from Denmark, Germany and the United Kingdom," Energy Policy, Elsevier, vol. 35(11), pages 5481-5495, November.
- Blok, Kornelis, 2006. "Renewable energy policies in the European Union," Energy Policy, Elsevier, vol. 34(3), pages 251-255, February.
- do Valle Costa, Claudia & La Rovere, Emilio & Assmann, Dirk, 2008. "Technological innovation policies to promote renewable energies: Lessons from the European experience for the Brazilian case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(1), pages 65-90, January.
- Toke, David & Breukers, Sylvia & Wolsink, Maarten, 2008. "Wind power deployment outcomes: How can we account for the differences?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(4), pages 1129-1147, May.
- Agnolucci, Paolo, 2006. "Use of economic instruments in the German renewable electricity policy," Energy Policy, Elsevier, vol. 34(18), pages 3538-3548, December.
- Menz, Fredric C. & Vachon, Stephan, 2006. "The effectiveness of different policy regimes for promoting wind power: Experiences from the states," Energy Policy, Elsevier, vol. 34(14), pages 1786-1796, September.
- Meyer, Niels I., 2003. "European schemes for promoting renewables in liberalised markets," Energy Policy, Elsevier, vol. 31(7), pages 665-676, June.
- Gan, Lin & Eskeland, Gunnar S. & Kolshus, Hans H., 2007. "Green electricity market development: Lessons from Europe and the US," Energy Policy, Elsevier, vol. 35(1), pages 144-155, January.
- Söderholm, Patrik, 2008. "Harmonization of renewable electricity feed-in laws: A comment," Energy Policy, Elsevier, vol. 36(3), pages 946-953, March.
- Walters, Ryan & Walsh, Philip R., 2011. "Examining the financial performance of micro-generation wind projects and the subsidy effect of feed-in tariffs for urban locations in the United Kingdom," Energy Policy, Elsevier, vol. 39(9), pages 5167-5181, September.
- Boccard, Nicolas, 2009. "Capacity factor of wind power realized values vs. estimates," Energy Policy, Elsevier, vol. 37(7), pages 2679-2688, July.
- Boccard, Nicolas, 2010. "Economic properties of wind power: A European assessment," Energy Policy, Elsevier, vol. 38(7), pages 3232-3244, July.
- Lüthi, Sonja & Prässler, Thomas, 2011. "Analyzing policy support instruments and regulatory risk factors for wind energy deployment--A developers' perspective," Energy Policy, Elsevier, vol. 39(9), pages 4876-4892, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.