IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v39y2011i3p1410-1425.html
   My bibliography  Save this article

Feed-in tariffs for promotion of energy storage technologies

Author

Listed:
  • Krajacic, Goran
  • Duic, Neven
  • Tsikalakis, Antonis
  • Zoulias, Manos
  • Caralis, George
  • Panteri, Eirini
  • Carvalho, Maria da Graça

Abstract

Faster market integration of new energy technologies can be achieved by use of proper support mechanisms that will create favourable market conditions for such technologies. The best examples of support mechanisms presented in the last two decades have been the various schemes for the promotion of renewable energy sources (RES). In the EU, the most successful supporting schemes are feed-in tariffs which have significantly increased utilisation of renewable energy sources in Germany, Spain, Portugal, Denmark and many other EU countries. Despite the successful feed-in tariffs for RES promotion, in many cases RES penetration is limited by power system requirements linked to the intermittency of RES sources and technical capabilities of grids. These problems can be solved by implementation of energy storage technologies like reversible or pumped hydro, hydrogen, batteries or any other technology that can be used for balancing or dump load. In this paper, feed-in tariffs for various energy storage technologies are discussed along with a proposal for their application in more appropriate regions. After successful application on islands and outermost regions, energy storage tariffs should be also applied in mainland power systems. Increased use of energy storage could optimise existing assets on the market.

Suggested Citation

  • Krajacic, Goran & Duic, Neven & Tsikalakis, Antonis & Zoulias, Manos & Caralis, George & Panteri, Eirini & Carvalho, Maria da Graça, 2011. "Feed-in tariffs for promotion of energy storage technologies," Energy Policy, Elsevier, vol. 39(3), pages 1410-1425, March.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:3:p:1410-1425
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(10)00894-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Segurado, Raquel & Krajacic, Goran & Duic, Neven & Alves, Luís, 2011. "Increasing the penetration of renewable energy resources in S. Vicente, Cape Verde," Applied Energy, Elsevier, vol. 88(2), pages 466-472, February.
    2. Rathmann, M., 2007. "Do support systems for RES-E reduce EU-ETS-driven electricity prices?," Energy Policy, Elsevier, vol. 35(1), pages 342-349, January.
    3. Bueno, C. & Carta, J.A., 2006. "Wind powered pumped hydro storage systems, a means of increasing the penetration of renewable energy in the Canary Islands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 10(4), pages 312-340, August.
    4. Meyer, Niels I., 2003. "European schemes for promoting renewables in liberalised markets," Energy Policy, Elsevier, vol. 31(7), pages 665-676, June.
    5. 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.
    6. Calero, R. & Carta, J. A., 2004. "Action plan for wind energy development in the Canary Islands," Energy Policy, Elsevier, vol. 32(10), pages 1185-1197, July.
    7. Oikonomou, Emmanouil K. & Kilias, Vassilios & Goumas, Aggelos & Rigopoulos, Alexandrous & Karakatsani, Eirini & Damasiotis, Markos & Papastefanakis, Dimitrios & Marini, Natassa, 2009. "Renewable energy sources (RES) projects and their barriers on a regional scale: The case study of wind parks in the Dodecanese islands, Greece," Energy Policy, Elsevier, vol. 37(11), pages 4874-4883, November.
    8. Ragwitz, Mario & del Río González, Pablo & Resch, Gustav, 2009. "Assessing the advantages and drawbacks of government trading of guarantees of origin for renewable electricity in Europe," Energy Policy, Elsevier, vol. 37(1), pages 300-307, January.
    9. Hvelplund, Frede, 2006. "Renewable energy and the need for local energy markets," Energy, Elsevier, vol. 31(13), pages 2293-2302.
    10. Zoulias, E.I. & Lymberopoulos, N., 2007. "Techno-economic analysis of the integration of hydrogen energy technologies in renewable energy-based stand-alone power systems," Renewable Energy, Elsevier, vol. 32(4), pages 680-696.
    11. Lund, Henrik & Kempton, Willett, 2008. "Integration of renewable energy into the transport and electricity sectors through V2G," Energy Policy, Elsevier, vol. 36(9), pages 3578-3587, September.
    12. Sáenz de Miera, Gonzalo & del Ri­o González, Pablo & Vizcaino, Ignacio, 2008. "Analysing the impact of renewable electricity support schemes on power prices: The case of wind electricity in Spain," Energy Policy, Elsevier, vol. 36(9), pages 3345-3359, September.
    13. Danchev, Svetoslav & Maniatis, George & Tsakanikas, Aggelos, 2010. "Returns on investment in electricity producing photovoltaic systems under de-escalating feed-in tariffs: The case of Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 500-505, January.
    14. Connolly, D. & Lund, H. & Mathiesen, B.V. & Leahy, M., 2010. "A review of computer tools for analysing the integration of renewable energy into various energy systems," Applied Energy, Elsevier, vol. 87(4), pages 1059-1082, April.
    15. Caralis, G. & Rados, K. & Zervos, A., 2010. "On the market of wind with hydro-pumped storage systems in autonomous Greek islands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2221-2226, October.
    16. 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.
    17. Lund, Henrik, 2005. "Large-scale integration of wind power into different energy systems," Energy, Elsevier, vol. 30(13), pages 2402-2412.
    18. Couture, Toby & Gagnon, Yves, 2010. "An analysis of feed-in tariff remuneration models: Implications for renewable energy investment," Energy Policy, Elsevier, vol. 38(2), pages 955-965, February.
    19. Kapsali, M. & Kaldellis, J.K., 2010. "Combining hydro and variable wind power generation by means of pumped-storage under economically viable terms," Applied Energy, Elsevier, vol. 87(11), pages 3475-3485, November.
    20. del Ri­o González, Pablo, 2008. "Ten years of renewable electricity policies in Spain: An analysis of successive feed-in tariff reforms," Energy Policy, Elsevier, vol. 36(8), pages 2907-2919, August.
    21. del Rio, Pablo & Gual, Miguel A., 2007. "An integrated assessment of the feed-in tariff system in Spain," Energy Policy, Elsevier, vol. 35(2), pages 994-1012, February.
    22. Lund, Henrik & Duić, Neven & Krajac˘ić, Goran & Graça Carvalho, Maria da, 2007. "Two energy system analysis models: A comparison of methodologies and results," Energy, Elsevier, vol. 32(6), pages 948-954.
    23. Korpås, Magnus & Greiner, Christopher J., 2008. "Opportunities for hydrogen production in connection with wind power in weak grids," Renewable Energy, Elsevier, vol. 33(6), pages 1199-1208.
    24. Karagiannis, Ioannis C. & Soldatos, Peter G., 2010. "Estimation of critical CO2 values when planning the power source in water desalination: The case of the small Aegean islands," Energy Policy, Elsevier, vol. 38(8), pages 3891-3897, August.
    25. Duic, Neven & Krajacic, Goran & da Graça Carvalho, Maria, 2008. "RenewIslands methodology for sustainable energy and resource planning for islands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(4), pages 1032-1062, May.
    26. Kaldellis, J.K. & Zafirakis, D. & Kavadias, K., 2009. "Techno-economic comparison of energy storage systems for island autonomous electrical networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(2), pages 378-392, February.
    27. Lesser, Jonathan A. & Su, Xuejuan, 2008. "Design of an economically efficient feed-in tariff structure for renewable energy development," Energy Policy, Elsevier, vol. 36(3), pages 981-990, March.
    28. Duic, Neven & da Graça Carvalho, Maria, 2004. "Increasing renewable energy sources in island energy supply: case study Porto Santo," Renewable and Sustainable Energy Reviews, Elsevier, vol. 8(4), pages 383-399, August.
    29. Deane, J.P. & Ó Gallachóir, B.P. & McKeogh, E.J., 2010. "Techno-economic review of existing and new pumped hydro energy storage plant," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(4), pages 1293-1302, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Setiawan, Andri D. & Dewi, Marmelia P. & Jafino, Bramka Arga & Hidayatno, Akhmad, 2022. "Evaluating feed-in tariff policies on enhancing geothermal development in Indonesia," Energy Policy, Elsevier, vol. 168(C).
    2. Ismail, M.S. & Moghavvemi, M. & Mahlia, T.M.I. & Muttaqi, K.M. & Moghavvemi, S., 2015. "Effective utilization of excess energy in standalone hybrid renewable energy systems for improving comfort ability and reducing cost of energy: A review and analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 726-734.
    3. Steffen, Bjarne, 2012. "Prospects for pumped-hydro storage in Germany," Energy Policy, Elsevier, vol. 45(C), pages 420-429.
    4. Freitas Gomes, Icaro Silvestre & Perez, Yannick & Suomalainen, Emilia, 2020. "Coupling small batteries and PV generation: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 126(C).
    5. Vahl, Fabrício Peter & Rüther, Ricardo & Casarotto Filho, Nelson, 2013. "The influence of distributed generation penetration levels on energy markets," Energy Policy, Elsevier, vol. 62(C), pages 226-235.
    6. Krajačić, Goran & Lončar, Dražen & Duić, Neven & Zeljko, Mladen & Lacal Arántegui, Roberto & Loisel, Rodica & Raguzin, Igor, 2013. "Analysis of financial mechanisms in support to new pumped hydropower storage projects in Croatia," Applied Energy, Elsevier, vol. 101(C), pages 161-171.
    7. Perković, Luka & Silva, Pedro & Ban, Marko & Kranjčević, Nenad & Duić, Neven, 2013. "Harvesting high altitude wind energy for power production: The concept based on Magnus’ effect," Applied Energy, Elsevier, vol. 101(C), pages 151-160.
    8. Hartner, Michael & Permoser, Andreas, 2018. "Through the valley: The impact of PV penetration levels on price volatility and resulting revenues for storage plants," Renewable Energy, Elsevier, vol. 115(C), pages 1184-1195.
    9. Rövekamp, Patrick & Schöpf, Michael & Wagon, Felix & Weibelzahl, Martin & Fridgen, Gilbert, 2021. "Renewable electricity business models in a post feed-in tariff era," Energy, Elsevier, vol. 216(C).
    10. Abolhosseini, Shahrouz & Heshmati, Almas, 2014. "The main support mechanisms to finance renewable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 876-885.
    11. Brusco, Giovanni & Burgio, Alessandro & Menniti, Daniele & Pinnarelli, Anna & Sorrentino, Nicola, 2016. "The economic viability of a feed-in tariff scheme that solely rewards self-consumption to promote the use of integrated photovoltaic battery systems," Applied Energy, Elsevier, vol. 183(C), pages 1075-1085.
    12. Ban, Marko & Krajačić, Goran & Grozdek, Marino & Ćurko, Tonko & Duić, Neven, 2012. "The role of cool thermal energy storage (CTES) in the integration of renewable energy sources (RES) and peak load reduction," Energy, Elsevier, vol. 48(1), pages 108-117.
    13. Wu, Qiong & Ren, Hongbo & Gao, Weijun & Ren, Jianxing, 2016. "Multi-objective optimization of a distributed energy network integrated with heating interchange," Energy, Elsevier, vol. 109(C), pages 353-364.
    14. Anuta, Oghenetejiri Harold & Taylor, Phil & Jones, Darren & McEntee, Tony & Wade, Neal, 2014. "An international review of the implications of regulatory and electricity market structures on the emergence of grid scale electricity storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 489-508.
    15. Haas, Reinhard & Lettner, Georg & Auer, Hans & Duic, Neven, 2013. "The looming revolution: How photovoltaics will change electricity markets in Europe fundamentally," Energy, Elsevier, vol. 57(C), pages 38-43.
    16. Ramli, Makbul A.M. & Twaha, Ssennoga, 2015. "Analysis of renewable energy feed-in tariffs in selected regions of the globe: Lessons for Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 649-661.
    17. Arteconi, A. & Hewitt, N.J. & Polonara, F., 2012. "State of the art of thermal storage for demand-side management," Applied Energy, Elsevier, vol. 93(C), pages 371-389.
    18. Wu, Qiong & Ren, Hongbo & Gao, Weijun & Ren, Jianxing & Lao, Changshi, 2017. "Profit allocation analysis among the distributed energy network participants based on Game-theory," Energy, Elsevier, vol. 118(C), pages 783-794.
    19. Ćosić, Boris & Krajačić, Goran & Duić, Neven, 2012. "A 100% renewable energy system in the year 2050: The case of Macedonia," Energy, Elsevier, vol. 48(1), pages 80-87.
    20. Pinto, F. Silva & Marques, R. Cunha, 2017. "Desalination projects economic feasibility: A standardization of cost determinants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 904-915.
    21. Leonzio, Grazia, 2017. "Solar systems integrated with absorption heat pumps and thermal energy storages: state of art," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 492-505.
    22. Zhang, M.M. & Zhou, D.Q. & Zhou, P. & Liu, G.Q., 2016. "Optimal feed-in tariff for solar photovoltaic power generation in China: A real options analysis," Energy Policy, Elsevier, vol. 97(C), pages 181-192.
    23. Ahmed Gailani & Tracey Crosbie & Maher Al-Greer & Michael Short & Nashwan Dawood, 2020. "On the Role of Regulatory Policy on the Business Case for Energy Storage in Both EU and UK Energy Systems: Barriers and Enablers," Energies, MDPI, vol. 13(5), pages 1-20, March.
    24. Bongsuk Sung & Cui Wen, 2018. "Causal Dynamic Relationships between Political–Economic Factors and Export Performance in the Renewable Energy Technologies Market," Energies, MDPI, vol. 11(4), pages 1-18, April.
    25. Firozjaei, Hamzeh Karimi & Firozjaei, Mohammad Karimi & Nematollahi, Omid & Kiavarz, Majid & Alavipanah, Seyed Kazem, 2020. "On the effect of geographical, topographic and climatic conditions on feed-in tariff optimization for solar photovoltaic electricity generation: A case study in Iran," Renewable Energy, Elsevier, vol. 153(C), pages 430-439.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shen, Neng & Deng, Rumeng & Liao, Haolan & Shevchuk, Oleksandr, 2020. "Mapping renewable energy subsidy policy research published from 1997 to 2018: A scientometric review," Utilities Policy, Elsevier, vol. 64(C).
    2. Stokes, Leah C., 2013. "The politics of renewable energy policies: The case of feed-in tariffs in Ontario, Canada," Energy Policy, Elsevier, vol. 56(C), pages 490-500.
    3. Cabrera, Pedro & Lund, Henrik & Carta, José A., 2018. "Smart renewable energy penetration strategies on islands: The case of Gran Canaria," Energy, Elsevier, vol. 162(C), pages 421-443.
    4. Krajačić, Goran & Lončar, Dražen & Duić, Neven & Zeljko, Mladen & Lacal Arántegui, Roberto & Loisel, Rodica & Raguzin, Igor, 2013. "Analysis of financial mechanisms in support to new pumped hydropower storage projects in Croatia," Applied Energy, Elsevier, vol. 101(C), pages 161-171.
    5. Martin, Nigel & Rice, John, 2013. "The solar photovoltaic feed-in tariff scheme in New South Wales, Australia," Energy Policy, Elsevier, vol. 61(C), pages 697-706.
    6. Jenner, Steffen & Groba, Felix & Indvik, Joe, 2013. "Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries," Energy Policy, Elsevier, vol. 52(C), pages 385-401.
    7. Li, Jinke & Liu, Guy & Shao, Jing, 2020. "Understanding the ROC transfer payment in the renewable obligation with the recycling mechanism in the United Kingdom," Energy Economics, Elsevier, vol. 87(C).
    8. Connolly, D. & Lund, H. & Mathiesen, B.V. & Leahy, M., 2010. "A review of computer tools for analysing the integration of renewable energy into various energy systems," Applied Energy, Elsevier, vol. 87(4), pages 1059-1082, April.
    9. Simoglou, Christos K. & Bakirtzis, Emmanouil A. & Biskas, Pandelis N. & Bakirtzis, Anastasios G., 2016. "Optimal operation of insular electricity grids under high RES penetration," Renewable Energy, Elsevier, vol. 86(C), pages 1308-1316.
    10. Rehman, Shafiqur & Al-Hadhrami, Luai M. & Alam, Md. Mahbub, 2015. "Pumped hydro energy storage system: A technological review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 586-598.
    11. Martin, Nigel J. & Rice, John L., 2017. "Examining the use of concept analysis and mapping software for renewable energy feed-in tariff design," Renewable Energy, Elsevier, vol. 113(C), pages 211-220.
    12. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    13. Ardizzon, G. & Cavazzini, G. & Pavesi, G., 2014. "A new generation of small hydro and pumped-hydro power plants: Advances and future challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 746-761.
    14. Katsaprakakis, Dimitris Al. & Christakis, Dimitris G. & Stefanakis, Ioannis & Spanos, Petros & Stefanakis, Nikos, 2013. "Technical details regarding the design, the construction and the operation of seawater pumped storage systems," Energy, Elsevier, vol. 55(C), pages 619-630.
    15. Díaz-González, Francisco & Sumper, Andreas & Gomis-Bellmunt, Oriol & Villafáfila-Robles, Roberto, 2012. "A review of energy storage technologies for wind power applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2154-2171.
    16. Verbruggen, Aviel, 2009. "Performance evaluation of renewable energy support policies, applied on Flanders' tradable certificates system," Energy Policy, Elsevier, vol. 37(4), pages 1385-1394, April.
    17. Reinhard Madlener & Weiyu Gao & Ilja Neustadt & Peter Zweifel, 2008. "Promoting renewable electricity generation in imperfect markets: price vs. quantity policies," SOI - Working Papers 0809, Socioeconomic Institute - University of Zurich.
    18. Krajacic, Goran & Duic, Neven & Carvalho, Maria da Graça, 2011. "How to achieve a 100% RES electricity supply for Portugal?," Applied Energy, Elsevier, vol. 88(2), pages 508-517, February.
    19. Walker, S.L., 2012. "Can the GB feed-in tariff deliver the expected 2% of electricity from renewable sources?," Renewable Energy, Elsevier, vol. 43(C), pages 383-388.
    20. Ma, Tao & Østergaard, Poul Alberg & Lund, Henrik & Yang, Hongxing & Lu, Lin, 2014. "An energy system model for Hong Kong in 2020," Energy, Elsevier, vol. 68(C), pages 301-310.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:39:y:2011:i:3:p:1410-1425. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.