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Feed-in-Premium Renewable Energy Support Scheme: A Scenario Approach

Author

Listed:
  • George Xydis

    (Department of Business Development and Technology, Aarhus University, Birk Centerpark 15, 7400 Herning, Denmark)

  • Nick Vlachakis

    (Soft Energy Applications & Environmental Protection Lab, Piraeus University of Applied Sciences, P.O. Box, 41046, 12201 Athens, Greece)

Abstract

Topics such as energy demand, energy security and greenhouse emissions have made countries around the world turn to more environmentally friendly resources to produce electricity. Due to their stochastic behaviour (particularly wind energy and solar photovoltaics (PV)), the energy producers that are renewable energy driven need concrete financial mechanisms in order to sell their generated electricity under uncertainty in a highly competitive environment. In this work, the application of the Feed-in Premium (FiP) policy in the Greek wholesale liberalised electricity market is compared against a multiple revenue stream tactic. The investigation of the financial performance is conducted in terms of Net Present Value and Complete Payback Period of a 10 MW wind park and a 2 MW solar PV park and is questioned under a multiple revenue stream approach. It was found for projects that offer at least 75% of their electricity production to the market, if their operation licence is extended for five more years, incentivising them to participate in the FiP scheme, instead of the Feed-in-Tariff one, this will increase their profitability in most cases, for both wind and PV projects.

Suggested Citation

  • George Xydis & Nick Vlachakis, 2019. "Feed-in-Premium Renewable Energy Support Scheme: A Scenario Approach," Resources, MDPI, vol. 8(2), pages 1-13, June.
    • Handle: RePEc:gam:jresou:v:8:y:2019:i:2:p:106-:d:237620
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    References listed on IDEAS

    as
    1. Wang, Qi & Zhang, Chunyu & Ding, Yi & Xydis, George & Wang, Jianhui & Østergaard, Jacob, 2015. "Review of real-time electricity markets for integrating Distributed Energy Resources and Demand Response," Applied Energy, Elsevier, vol. 138(C), pages 695-706.
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    3. George Xydis & Evanthia Nanaki, 2015. "Wind Energy Based Electric Vehicle Charging Stations Sitting. A GIS/Wind Resource Assessment Approach," Challenges, MDPI, vol. 6(2), pages 1-13, November.
    4. George Xydis, 2015. "Wind Energy Integration through District Heating. A Wind Resource Based Approach," Resources, MDPI, vol. 4(1), pages 1-18, March.
    5. Varun & Prakash, Ravi & Bhat, Inder Krishnan, 2009. "Energy, economics and environmental impacts of renewable energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2716-2721, December.
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