Basic concepts for designing renewable electricity support aiming at a full-scale transition by 2050
Renewable electricity supply is a crucial factor in the realization of a low-carbon energy economy. The understanding is growing that a full turn-over of the electricity sectors by 2050 is an elementary condition for avoiding global average temperature increase beyond 2Â Â°C. This article adopts such full transition as Europe's target when designing renewable energy policy. An immediate corollary is that phasing-in unprecedented energy efficiency and renewable generation must be paralleled by phasing-out non-sustainable fossil fuel and nuclear power technologies. The double phasing programme assigns novel meaning to nearby target settings for renewable power as share of total power consumption. It requires organizing in the medium term EU-wide markets for green power, a highly demanding task in the present context of poorly functional markets in brown power. The EU Commission's 2007/2008 proposals of expanding tradable certificates markets were not based on solid analysis of past experiences and future necessities. The keystone of sound policies on renewable electricity development is a detailed scientific differentiation and qualification of renewable electricity sources and technologies, for measuring the huge diversity in the field. We provide but structuring concepts about such qualification, because implementation requires extensive research resources. Support for renewable electricity development is organized via feed-in prices or premiums, and via quota obligations connected to tradable green certificates. Green certificates are dependent on physical generated renewable power, but separable and no joint products. Contrary to conventional wisdom we argue their separation in cost analysis but firm linking during trade. A few graphs illustrate the importance of assigning qualities to different renewable power sources/technologies. Feed-in systems based on an acceptable qualification perform generally better than certificate markets imposing uniform approaches on a very diverse reality. For a similar reason, uniform and undifferentiated taxation of non-sustainable energy sources cannot replace renewable energy support schemes capable of differentiation.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Unruh, Gregory C., 2000. "Understanding carbon lock-in," Energy Policy, Elsevier, vol. 28(12), pages 817-830, October.
- Travis Bradford, 2006. "Solar Revolution: The Economic Transformation of the Global Energy Industry," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202604x, June.
- Verbruggen, Aviel, 2009. "Performance evaluation of renewable energy support policies, applied on Flanders' tradable certificates system," Energy Policy, Elsevier, vol. 37(4), pages 1385-1394, April.
- Page, S.C. & Williamson, A.G. & Mason, I.G., 2009. "Carbon capture and storage: Fundamental thermodynamics and current technology," Energy Policy, Elsevier, vol. 37(9), pages 3314-3324, September.
- Robert W. Fri, 2003. "The Role of Knowledge: Technological Innovation in the Energy System," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 51-74.
- Lund, H. & Mathiesen, B.V., 2009. "Energy system analysis of 100% renewable energy systems—The case of Denmark in years 2030 and 2050," Energy, Elsevier, vol. 34(5), pages 524-531.
- Langni, Ole & Diekmann, Jochen & Lehr, Ulrike, 2009.
"Advanced mechanisms for the promotion of renewable energy--Models for the future evolution of the German Renewable Energy Act,"
Elsevier, vol. 37(4), pages 1289-1297, April.
- Ole Langniß & Jochen Diekmann & Ulrike Lehr, 2008. "Advanced Mechanisms for the Promotion of Renewable Energy: Models for the Future Evolution of the German Renewable Energy Act," Discussion Papers of DIW Berlin 826, DIW Berlin, German Institute for Economic Research.
- 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.
- Thomas, Steve, 2003. "The Seven Brothers," Energy Policy, Elsevier, vol. 31(5), pages 393-403, April.
- Menanteau, Philippe & Finon, Dominique & Lamy, Marie-Laure, 2003. "Prices versus quantities: choosing policies for promoting the development of renewable energy," Energy Policy, Elsevier, vol. 31(8), pages 799-812, June.
- Verbruggen, Aviel, 2008. "Renewable and nuclear power: A common future?," Energy Policy, Elsevier, vol. 36(11), pages 4036-4047, November.
- 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.
- Morthorst, P. E., 2000. "The development of a green certificate market," Energy Policy, Elsevier, vol. 28(15), pages 1085-1094, December.
- Domanico, Fabio, 2007. "Concentration in the European electricity industry: The internal market as solution?," Energy Policy, Elsevier, vol. 35(10), pages 5064-5076, October.
- Ropenus, Stephanie & Jensen, Stine Grenaa, 2009. "Support schemes and vertical integration--Who skims the cream?," Energy Policy, Elsevier, vol. 37(3), pages 1104-1115, March.
- Agnolucci, Paolo, 2007. "The effect of financial constraints, technological progress and long-term contracts on tradable green certificates," Energy Policy, Elsevier, vol. 35(6), pages 3347-3359, June.
- Jefferson, Michael, 2008. "Accelerating the transition to sustainable energy systems," Energy Policy, Elsevier, vol. 36(11), pages 4116-4125, November.
- del Rio, Pablo & Gual, Miguel A., 2007. "An integrated assessment of the feed-in tariff system in Spain," Energy Policy, Elsevier, vol. 35(2), pages 994-1012, February.
- Lauber, Volkmar, 2004. "REFIT and RPS: options for a harmonised Community framework," Energy Policy, Elsevier, vol. 32(12), pages 1405-1414, August.
- Jacobsson, Staffan & Lauber, Volkmar, 2006. "The politics and policy of energy system transformation--explaining the German diffusion of renewable energy technology," Energy Policy, Elsevier, vol. 34(3), pages 256-276, February.
- 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.
- Unruh, Gregory C., 2002. "Escaping carbon lock-in," Energy Policy, Elsevier, vol. 30(4), pages 317-325, March.
- Verbruggen, Aviel, 2004. "Tradable green certificates in Flanders (Belgium)," Energy Policy, Elsevier, vol. 32(2), pages 165-176, January.
- Fouquet, Doerte & Johansson, Thomas B., 2008. "European renewable energy policy at crossroads--Focus on electricity support mechanisms," Energy Policy, Elsevier, vol. 36(11), pages 4079-4092, November.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:37:y:2009:i:12:p:5732-5743. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.