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Analyzing policy support instruments and regulatory risk factors for wind energy deployment--A developers' perspective

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  • Lüthi, Sonja
  • Prässler, Thomas
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    Abstract

    A transition to a renewable energy system is high on the policy agenda in many countries. A promising energy source for a low-carbon energy future is wind. Policy-makers can attract wind energy development by providing attractive policy frameworks. This paper argues that apart from the level of financial support, both the risks stemming from the regulatory environment (legal security, administrative process and grid access) and the ability to finance projects play a critical role in determining the attractiveness of the development environment. It sheds light on how project developers trade off these different aspects and to what extent the attractiveness of a certain policy framework increases with the introduction of specific measures. Conjoint analysis is employed to provide empirical evidence on the preference of wind energy developers in the EU and the US. The analysis shows that developers' preferences are very similar across the studied regions and for different types of developers. Which policy measures could be most valuable depends on the specific existing environment. In some southeastern European countries, a reduction of administrative process duration may yield the highest utility gains, whereas, in the US, improvements in grid access regulation and an increase in remuneration levels may be more effective.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 39 (2011)
    Issue (Month): 9 (September)
    Pages: 4876-4892

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    Handle: RePEc:eee:enepol:v:39:y:2011:i:9:p:4876-4892

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    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: Renewable energy policy Wind energy development Conjoint analysis;

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    Cited by:
    1. Mani, Swaminathan & Dhingra, Tarun, 2013. "Offshore wind energy policy for India—Key factors to be considered," Energy Policy, Elsevier, vol. 56(C), pages 672-683.
    2. Liam Byrnes & Colin Brown & John Foster & Liam Wagner, 2013. "Australian Renewable Energy Policy: Barriers and Challenges," Energy Economics and Management Group Working Papers 2-2013, School of Economics, University of Queensland, Australia.
    3. Shrimali, Gireesh & Nelson, David & Goel, Shobhit & Konda, Charith & Kumar, Raj, 2013. "Renewable deployment in India: Financing costs and implications for policy," Energy Policy, Elsevier, vol. 62(C), pages 28-43.
    4. Mani, Swaminathan & Dhingra, Tarun, 2013. "Critique of offshore wind energy policies of the UK and Germany—What are the lessons for India," Energy Policy, Elsevier, vol. 63(C), pages 900-909.

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