IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v46y2012icp141-147.html
   My bibliography  Save this article

The impact of state feed-in tariffs and federal tradable quota support policies on grid-connected small wind turbine installed capacity in Australia

Author

Listed:
  • Ross, S.J.
  • McHenry, M.P.
  • Whale, J.

Abstract

Until recently, Australian federal renewable energy tradable quota policy support mechanisms were modest and failed to differentiate between technologies at different stages of industry development. Subsequent changes to federal tradable quota schemes and the development of a number of state-based feed-in tariffs (FiTs) have attempted to overcome recent deficiencies. This research discusses the relationships between federal and state-based support policies, small wind turbine (SWT) system installed capacity, and the intricacies of developing instruments that sustain the renewable energy industry over time. The research found the lack of due diligence in policy mechanism development generated poor outcomes for the small-scale renewable energy industry and a higher level of political risk. Australian state-based FiTs were generally poorly designed with respect to known risks, and are unlikely to promote sustainable industry development for small-scale grid-connected renewable energy systems, including SWT systems. The research suggests detailed independent and collaborative policy development is necessary (prior to policy implementation) that considers a range of technology types, the influence of other cross-jurisdictional support mechanisms, and regionally-specific system technical performance and project development costs. The recent 'mixed bag' of Australian support mechanisms have resulted in fluctuating private costs for small-scale systems, which has lead to disruptive industry expansion and contraction with ironically unsustainable regularity.

Suggested Citation

  • Ross, S.J. & McHenry, M.P. & Whale, J., 2012. "The impact of state feed-in tariffs and federal tradable quota support policies on grid-connected small wind turbine installed capacity in Australia," Renewable Energy, Elsevier, vol. 46(C), pages 141-147.
    • Handle: RePEc:eee:renene:v:46:y:2012:i:c:p:141-147
    DOI: 10.1016/j.renene.2012.03.019
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148112002066
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2012.03.019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Klessmann, Corinna & Nabe, Christian & Burges, Karsten, 2008. "Pros and cons of exposing renewables to electricity market risks--A comparison of the market integration approaches in Germany, Spain, and the UK," Energy Policy, Elsevier, vol. 36(10), pages 3646-3661, October.
    2. Bouffard, François & Kirschen, Daniel S., 2008. "Centralised and distributed electricity systems," Energy Policy, Elsevier, vol. 36(12), pages 4504-4508, December.
    3. McHenry, Mark P., 2009. "Remote area power supply system technologies in Western Australia: New developments in 30 years of slow progress," Renewable Energy, Elsevier, vol. 34(5), pages 1348-1353.
    4. Sauter, Raphael & Watson, Jim, 2007. "Strategies for the deployment of micro-generation: Implications for social acceptance," Energy Policy, Elsevier, vol. 35(5), pages 2770-2779, May.
    5. Owen, Anthony D., 2006. "Renewable energy: Externality costs as market barriers," Energy Policy, Elsevier, vol. 34(5), pages 632-642, March.
    6. Szarka, Joseph, 2006. "Wind power, policy learning and paradigm change," Energy Policy, Elsevier, vol. 34(17), pages 3041-3048, November.
    7. 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.
    8. McHenry, Mark P., 2011. "Integrating climate change mitigation and adaptation: Refining theory for a mathematical framework to quantify private and public cost-effectiveness, and C emissions for energy and development project," Renewable Energy, Elsevier, vol. 36(4), pages 1166-1176.
    9. 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.
    10. 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.
    11. Butler, Lucy & Neuhoff, Karsten, 2008. "Comparison of feed-in tariff, quota and auction mechanisms to support wind power development," Renewable Energy, Elsevier, vol. 33(8), pages 1854-1867.
    12. McHenry, Mark P., 2012. "Small-scale (≤6 kWe) stand-alone and grid-connected photovoltaic, wind, hydroelectric, biodiesel, and wood gasification system’s simulated technical, economic, and mitigation analyses for rural region," Renewable Energy, Elsevier, vol. 38(1), pages 195-205.
    13. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801.
    14. McHenry, Mark, 2009. "Policy options when giving negative externalities market value: Clean energy policymaking and restructuring the Western Australian energy sector," Energy Policy, Elsevier, vol. 37(4), pages 1423-1431, April.
    15. Allen, S.R. & Hammond, G.P. & McManus, M.C., 2008. "Prospects for and barriers to domestic micro-generation: A United Kingdom perspective," Applied Energy, Elsevier, vol. 85(6), pages 528-544, June.
    16. Cossent, Rafael & Gómez, Tomás & Frías, Pablo, 2009. "Towards a future with large penetration of distributed generation: Is the current regulation of electricity distribution ready? Regulatory recommendations under a European perspective," Energy Policy, Elsevier, vol. 37(3), pages 1145-1155, March.
    17. McHenry, Mark P., 2009. "Why are remote Western Australians installing renewable energy technologies in stand-alone power supply systems?," Renewable Energy, Elsevier, vol. 34(5), pages 1252-1256.
    18. Verbruggen, Aviel & Lauber, Volkmar, 2009. "Basic concepts for designing renewable electricity support aiming at a full-scale transition by 2050," Energy Policy, Elsevier, vol. 37(12), pages 5732-5743, December.
    19. Kildegaard, Arne, 2008. "Green certificate markets, the risk of over-investment, and the role of long-term contracts," Energy Policy, Elsevier, vol. 36(9), pages 3413-3421, September.
    20. Chicco, Gianfranco & Mancarella, Pierluigi, 2009. "Distributed multi-generation: A comprehensive view," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(3), pages 535-551, April.
    21. Mitchell, C. & Bauknecht, D. & Connor, P.M., 2006. "Effectiveness through risk reduction: a comparison of the renewable obligation in England and Wales and the feed-in system in Germany," Energy Policy, Elsevier, vol. 34(3), pages 297-305, February.
    22. Jacobsson, Staffan & Bergek, Anna & Finon, Dominique & Lauber, Volkmar & Mitchell, Catherine & Toke, David & Verbruggen, Aviel, 2009. "EU renewable energy support policy: Faith or facts?," Energy Policy, Elsevier, vol. 37(6), pages 2143-2146, June.
    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. Grieser, Benno & Madlener, Reinhard & Sunak, Yasin, 2013. "Economics of Small Wind Power Plants in Urban Settings: An Empirical Investigation for Germany," FCN Working Papers 1/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    2. Juntunen, Jouni K. & Hyysalo, Sampsa, 2015. "Renewable micro-generation of heat and electricity—Review on common and missing socio-technical configurations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 857-870.
    3. Bashirzadeh Tabrizi, Amir & Whale, Jonathan & Lyons, Thomas & Urmee, Tania & Peinke, Joachim, 2017. "Modelling the structural loading of a small wind turbine at a highly turbulent site via modifications to the Kaimal turbulence spectra," Renewable Energy, Elsevier, vol. 105(C), pages 288-300.
    4. Lee, Chul-Yong & Huh, Sung-Yoon, 2017. "Forecasting the diffusion of renewable electricity considering the impact of policy and oil prices: The case of South Korea," Applied Energy, Elsevier, vol. 197(C), pages 29-39.
    5. Simpson, Genevieve & Clifton, Julian, 2014. "Picking winners and policy uncertainty: Stakeholder perceptions of Australia's Renewable Energy Target," Renewable Energy, Elsevier, vol. 67(C), pages 128-135.
    6. Tanesab, Julius & Parlevliet, David & Whale, Jonathan & Urmee, Tania, 2018. "Energy and economic losses caused by dust on residential photovoltaic (PV) systems deployed in different climate areas," Renewable Energy, Elsevier, vol. 120(C), pages 401-412.
    7. Whale, J. & McHenry, M.P. & Malla, A., 2013. "Scheduling and conducting power performance testing of a small wind turbine," Renewable Energy, Elsevier, vol. 55(C), pages 55-61.
    8. Tabrizi, Amir Bashirzadeh & Whale, Jonathan & Lyons, Thomas & Urmee, Tania, 2015. "Rooftop wind monitoring campaigns for small wind turbine applications: Effect of sampling rate and averaging period," Renewable Energy, Elsevier, vol. 77(C), pages 320-330.
    9. Buckman, Greg & Sibley, Jon & Ward, Megan, 2019. "The large-scale feed-in tariff reverse auction scheme in the Australian Capital Territory 2012, to 2016," Renewable Energy, Elsevier, vol. 132(C), pages 176-185.
    10. Grieser, Benno & Sunak, Yasin & Madlener, Reinhard, 2015. "Economics of small wind turbines in urban settings: An empirical investigation for Germany," Renewable Energy, Elsevier, vol. 78(C), pages 334-350.
    11. Bongsuk Sung & Sang-Do Park, 2018. "Who Drives the Transition to a Renewable-Energy Economy? Multi-Actor Perspective on Social Innovation," Sustainability, MDPI, vol. 10(2), pages 1-32, February.
    12. Auld, Trisha & McHenry, Mark P. & Whale, Jonathan, 2014. "Options to mitigate utility-scale wind turbine impacts on defence capability, air supremacy, and missile detection," Renewable Energy, Elsevier, vol. 63(C), pages 255-262.

    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. Paul Lehmann & Felix Creutzig & Melf-Hinrich Ehlers & Nele Friedrichsen & Clemens Heuson & Lion Hirth & Robert Pietzcker, 2012. "Carbon Lock-Out: Advancing Renewable Energy Policy in Europe," Energies, MDPI, vol. 5(2), pages 1-32, February.
    2. del Río, Pablo & Bleda, Mercedes, 2012. "Comparing the innovation effects of support schemes for renewable electricity technologies: A function of innovation approach," Energy Policy, Elsevier, vol. 50(C), pages 272-282.
    3. 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).
    4. Wolfgang Buchholz & Jonas Frank & Hans-Dieter Karl & Johannes Pfeiffer & Karen Pittel & Ursula Triebswetter & Jochen Habermann & Wolfgang Mauch & Thomas Staudacher, 2012. "Die Zukunft der Energiemärkte: Ökonomische Analyse und Bewertung von Potenzialen und Handlungsmöglichkeiten," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 57, October.
    5. 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.
    6. del Río, Pablo & Tarancón, Miguel-Ángel, 2012. "Analysing the determinants of on-shore wind capacity additions in the EU: An econometric study," Applied Energy, Elsevier, vol. 95(C), pages 12-21.
    7. Sakah, Marriette & Diawuo, Felix Amankwah & Katzenbach, Rolf & Gyamfi, Samuel, 2017. "Towards a sustainable electrification in Ghana: A review of renewable energy deployment policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 544-557.
    8. Maria Kopsakangas-Savolainen & Rauli Svento, 2013. "Promotion of Market Access for Renewable Energy in the Nordic Power Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(4), pages 549-569, April.
    9. Felix Groba & Barbara Breitschopf, 2013. "Impact of Renewable Energy Policy and Use on Innovation: A Literature Review," Discussion Papers of DIW Berlin 1318, DIW Berlin, German Institute for Economic Research.
    10. Darmani, Anna & Rickne, Annika & Hidalgo, Antonio & Arvidsson, Niklas, 2016. "When outcomes are the reflection of the analysis criteria: A review of the tradable green certificate assessments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 372-381.
    11. Klessmann, Corinna & Held, Anne & Rathmann, Max & Ragwitz, Mario, 2011. "Status and perspectives of renewable energy policy and deployment in the European Union—What is needed to reach the 2020 targets?," Energy Policy, Elsevier, vol. 39(12), pages 7637-7657.
    12. Verbruggen, Aviel & Lauber, Volkmar, 2012. "Assessing the performance of renewable electricity support instruments," Energy Policy, Elsevier, vol. 45(C), pages 635-644.
    13. Darudi, Ali & Weigt, Hannes, 2019. "Renewable Support, Intermittency and Market Power: An Equilibrium Investment Approach," Working papers 2019/06, Faculty of Business and Economics - University of Basel.
    14. Paul Koutstaal & X. van Tilburg & Michiel Bijlsma & Gijsbert Zwart, 2009. "Market performance and distributional effects on renewable energy markets," CPB Document 190, CPB Netherlands Bureau for Economic Policy Analysis.
    15. Feurtey, Évariste & Ilinca, Adrian & Sakout, Anas & Saucier, Carol, 2016. "Institutional factors influencing strategic decision-making in energy policy; a case study of wind energy in France and Quebec (Canada)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1455-1470.
    16. Tim Mennel & Teresa Romano & Sara Scatasta, 2013. "Comparing Feed-In Tariffs and Renewable Obligation Certificates - The Case of Repowering Wind Farms," IEFE Working Papers 57, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    17. Pérez de Arce, Miguel & Sauma, Enzo & Contreras, Javier, 2016. "Renewable energy policy performance in reducing CO2 emissions," Energy Economics, Elsevier, vol. 54(C), pages 272-280.
    18. Polzin, Friedemann & Migendt, Michael & Täube, Florian A. & von Flotow, Paschen, 2015. "Public policy influence on renewable energy investments—A panel data study across OECD countries," Energy Policy, Elsevier, vol. 80(C), pages 98-111.
    19. 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.
    20. Marian Klobasa & Jenny Winkler & Frank Sensfuß & Mario Ragwitz, 2013. "Market Integration of Renewable Electricity Generation — The German Market Premium Model," Energy & Environment, , vol. 24(1-2), pages 127-146, February.

    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:renene:v:46:y:2012:i:c:p:141-147. 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.journals.elsevier.com/renewable-energy .

    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.