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Comparison of Feed in Tariff, Quota and Auction Mechanisms to Support Wind Power Development

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Author Info

  • Butler, L.
  • Neuhoff, K.

Abstract

A comparison of policy instruments employed to support onshore wind projects suggests that in terms of capacity installed, policies adopted in Germany have been more effective than those adopted in the UK. Price comparisons have frequently neglected differences in resource base: once accounted for we find the cost of policies to be similar. A developer survey identifies planning constraints as only one reason why installed capacity is greater in Germany, and indicates that price support is also important. Information provided by developers also suggests that although the tendering process adopted in the UK is highly competitive in terms of price paid for energy delivered, competition in other areas of the market is significantly lower than in Germany.

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Bibliographic Info

Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0503.

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Length: 35
Date of creation: Jan 2005
Date of revision:
Handle: RePEc:cam:camdae:0503

Note: CMI, IO
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Web page: http://www.econ.cam.ac.uk/index.htm

Related research

Keywords: Wind Generation; Renewable Energy; Subsidy; Policy;

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References

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  1. Jensen, Stine Grenaa & Skytte, Klaus, 2003. "Simultaneous attainment of energy goals by means of green certificates and emission permits," Energy Policy, Elsevier, vol. 31(1), pages 63-71, January.
  2. Langniss, Ole & Wiser, Ryan, 2003. "The renewables portfolio standard in Texas: an early assessment," Energy Policy, Elsevier, vol. 31(6), pages 527-535, May.
  3. Keats, K. Martinez & Neuhoff, K., 2004. "Allocation of Carbon Emission Certificates in the Power Sector: How generators profit from grandfathered rights," Cambridge Working Papers in Economics 0444, Faculty of Economics, University of Cambridge.
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Citations

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Cited by:
  1. Leo Wangler, 2012. "The political economy of the green technology sector: A study about institutions, diffusion and efficiency," European Journal of Law and Economics, Springer, vol. 33(1), pages 51-81, February.
  2. Conor Devitt & Laura Malaguzzi Valeri, 2011. "The Effect of REFIT on Irish Wholesale Electricity Prices," The Economic and Social Review, Economic and Social Studies, vol. 42(3), pages 343–369.
  3. Fischer, Carolyn & Preonas, Louis, 2010. "Combining Policies for Renewable Energy: Is the Whole Less than the Sum of Its Parts?," Discussion Papers dp-10-19, Resources For the Future.
  4. Stefan Ambec & Claude Crampes, 2010. "Electricity Production with Intermittent Sources of Energy," LERNA Working Papers 10.07.313, LERNA, University of Toulouse.
  5. Bechberger, Mischa & Reiche, Danyel, 2006. "Good environmental governance for renewable energies - the example of Germany: lessons for China?," Discussion Papers, Presidential Department P 2006-006, Social Science Research Center Berlin (WZB).
  6. Okumu, Luke & Nyankori, James Cyprian Okuk, 2010. "Non-tariff barriers in EAC customs union: implications for trade between Uganda and other EAC countries," Research Series 113621, Economic Policy Research Centre (EPRC).
  7. Finon, Dominique & Perez, Yannick, 2007. "The social efficiency of instruments of promotion of renewable energies: A transaction-cost perspective," Ecological Economics, Elsevier, vol. 62(1), pages 77-92, April.
  8. Amundsen, Eirik Schrøder & Bergman, Lars, 2010. "Green Certificates and Market Power on the Nordic Power Market," Working Papers in Economics 12/10, University of Bergen, Department of Economics.
  9. Amundsen, Eirik S. & Nese, Gjermund, 2006. "Integratation of Tradable Green Certificate Markets: What can be expected?," MPRA Paper 10628, University Library of Munich, Germany.
  10. Giebel, Olaf & Breitschopf, Barbara, 2011. "The impact of policy elements on the financing costs of RE investment: The case of wind power in Germany," Working Papers "Sustainability and Innovation" S11/2011, Fraunhofer Institute for Systems and Innovation Research (ISI).
  11. Alfredo Garcia & Juan Alzate & Jorge Barrera, 2012. "Regulatory design and incentives for renewable energy," Journal of Regulatory Economics, Springer, vol. 41(3), pages 315-336, June.
  12. Paul Koutstaal & Michiel Bijlsma & Gijsbert Zwart & X. van Tilburg, 2009. "Market performance and distributional effects on renewable energy markets," CPB Document 190, CPB Netherlands Bureau for Economic Policy Analysis.

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