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Carbon Lock-Out: Advancing Renewable Energy Policy in Europe

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  • Paul Lehmann

    ()
    (Helmholtz Centre for Environmental Research, UFZ, Department of Economics, Permoserstr. 15, 04315 Leipzig, Germany)

  • Felix Creutzig

    ()
    (Technical University Berlin, Department of Economics of Climate Change, Straße des 17. Juni 145, 10623 Berlin, Germany)

  • Melf-Hinrich Ehlers

    ()
    (University of York, Environment Department, Heslington, York, YO10 5DD, UK)

  • Nele Friedrichsen

    ()
    (Bremer Energie Institut, Jacobs University Bremen, College Ring 2, Res V, 28759 Bremen, Germany)

  • Clemens Heuson

    ()
    (Helmholtz Centre for Environmental Research, UFZ, Department of Economics, Permoserstr. 15, 04315 Leipzig, Germany)

  • Lion Hirth

    ()
    (Consultant, Solmstr. 24, 10961 Berlin, Germany)

  • Robert Pietzcker

    ()
    (Potsdam Institute for Climate Research, PIK, Telegraphenberg A 31, 14473 Potsdam, Germany)

Abstract

As part of its climate strategy, the EU aims at increasing the share of electricity from renewable energy sources (RES-E) in overall electricity generation. Attaining this target poses a considerable challenge as the electricity sector is “locked” into a carbon-intensive system, which hampers the adoption of RES-E technologies. Electricity generation, transmission and distribution grids as well as storage and demand response are subject to important path dependences, which put existing, non-renewable energy sources at an advantage. This paper examines how an EU framework for RES-E support policies should be designed to facilitate a carbon lock-out. For this purpose, we specify the major technological, economic and institutional barriers to RES-E. For each of the barriers, a policy review is carried out which assesses the performance of existing policy instruments and identifies needs for reform. The review reveals several shortcomings: while policies targeting generation are widely in place, measures to address barriers associated with electricity grids, storage and demand are still in their infancy and have to be extended. Moreover, the implementation of policies has been fragmented across EU Member States. In this respect, national policies should be embedded into an integrated EU-wide planning of the RES-E system with overarching energy scenarios and partially harmonized policy rules.

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Bibliographic Info

Article provided by MDPI, Open Access Journal in its journal Energies.

Volume (Year): 5 (2012)
Issue (Month): 2 (February)
Pages: 323-354

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Handle: RePEc:gam:jeners:v:5:y:2012:i:2:p:323-354:d:16131

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Keywords: carbon lock-in; demand management; electricity; energy policy; feed-in tariff; electricity generation; grids; renewable energy sources; storage;

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References

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  3. Purkus, Alexandra & Gawel, Erik & Thrän, Daniela, 2012. "Bioenergy governance between market and government failures: A new institutional economics perspective," UFZ Discussion Papers, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS) 13/2012, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
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  5. Simon Hagemann & Christoph Weber, 2013. "An Empirical Analysis of Liquidity and its Determinants in The German Intraday Market for Electricity," EWL Working Papers, University of Duisburg-Essen, Chair for Management Science and Energy Economics 1317, University of Duisburg-Essen, Chair for Management Science and Energy Economics, revised Oct 2013.
  6. Gawel, Erik & Strunz, Sebastian & Lehmann, Paul, 2014. "A public choice view on the climate and energy policy mix in the EU — How do the emissions trading scheme and support for renewable energies interact?," Energy Policy, Elsevier, Elsevier, vol. 64(C), pages 175-182.
  7. Perica Ilak & Slavko Krajcar & Ivan Rajšl & Marko Delimar, 2014. "Pricing Energy and Ancillary Services in a Day-Ahead Market for a Price-Taker Hydro Generating Company Using a Risk-Constrained Approach," Energies, MDPI, Open Access Journal, vol. 7(4), pages 2317-2342, April.

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