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Analyzing policy support instruments and regulatory risk factors for wind energy deployment--A developers' perspective

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  • Lüthi, Sonja
  • Prässler, Thomas

Abstract

A transition to a renewable energy system is high on the policy agenda in many countries. A promising energy source for a low-carbon energy future is wind. Policy-makers can attract wind energy development by providing attractive policy frameworks. This paper argues that apart from the level of financial support, both the risks stemming from the regulatory environment (legal security, administrative process and grid access) and the ability to finance projects play a critical role in determining the attractiveness of the development environment. It sheds light on how project developers trade off these different aspects and to what extent the attractiveness of a certain policy framework increases with the introduction of specific measures. Conjoint analysis is employed to provide empirical evidence on the preference of wind energy developers in the EU and the US. The analysis shows that developers' preferences are very similar across the studied regions and for different types of developers. Which policy measures could be most valuable depends on the specific existing environment. In some southeastern European countries, a reduction of administrative process duration may yield the highest utility gains, whereas, in the US, improvements in grid access regulation and an increase in remuneration levels may be more effective.

Suggested Citation

  • Lüthi, Sonja & Prässler, Thomas, 2011. "Analyzing policy support instruments and regulatory risk factors for wind energy deployment--A developers' perspective," Energy Policy, Elsevier, vol. 39(9), pages 4876-4892, September.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:9:p:4876-4892
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    Cited by:

    1. Marc Baudry & Clément Bonnet, 2016. "Demand pull isntruments and the development of wind power in Europe: A counter-factual analysis," Working Papers 1607, Chaire Economie du climat.
    2. repec:spr:scient:v:102:y:2015:i:2:d:10.1007_s11192-014-1448-7 is not listed on IDEAS
    3. Wang, Zhaohua & Yang, Zhongmin & Zhang, Yixiang & Yin, Jianhua, 2012. "Energy technology patents–CO2 emissions nexus: An empirical analysis from China," Energy Policy, Elsevier, vol. 42(C), pages 248-260.
    4. Byrnes, Liam & Brown, Colin & Foster, John & Wagner, Liam D., 2013. "Australian renewable energy policy: Barriers and challenges," Renewable Energy, Elsevier, vol. 60(C), pages 711-721.
    5. Marc Baudry & Clément Bonnet, 2015. "Market pull instruments and the development of wind power in Europe: a counterfactual analysis," EconomiX Working Papers 2015-18, University of Paris Nanterre, EconomiX.
    6. Mani, Swaminathan & Dhingra, Tarun, 2013. "Policies to accelerate the growth of offshore wind energy sector in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 24(C), pages 473-482.
    7. Schinko, Thomas & Komendantova, Nadejda, 2016. "De-risking investment into concentrated solar power in North Africa: Impacts on the costs of electricity generation," Renewable Energy, Elsevier, vol. 92(C), pages 262-272.
    8. Shrimali, Gireesh & Nelson, David & Goel, Shobhit & Konda, Charith & Kumar, Raj, 2013. "Renewable deployment in India: Financing costs and implications for policy," Energy Policy, Elsevier, vol. 62(C), pages 28-43.
    9. repec:eee:renene:v:121:y:2018:i:c:p:730-744 is not listed on IDEAS
    10. Mani, Swaminathan & Dhingra, Tarun, 2013. "Offshore wind energy policy for India—Key factors to be considered," Energy Policy, Elsevier, vol. 56(C), pages 672-683.
    11. Hua, Yaping & Oliphant, Monica & Hu, Eric Jing, 2016. "Development of renewable energy in Australia and China: A comparison of policies and status," Renewable Energy, Elsevier, vol. 85(C), pages 1044-1051.
    12. Shrimali, Gireesh & Lynes, Melissa & Indvik, Joe, 2015. "Wind energy deployment in the U.S.: An empirical analysis of the role of federal and state policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 796-806.
    13. Kucukali, Serhat, 2016. "Risk scorecard concept in wind energy projects: An integrated approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 975-987.
    14. Jin, Xin & Zhang, Zhaolong & Shi, Xiaoqiang & Ju, Wenbin, 2014. "A review on wind power industry and corresponding insurance market in China: Current status and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 1069-1082.
    15. Mani, Swaminathan & Dhingra, Tarun, 2013. "Critique of offshore wind energy policies of the UK and Germany—What are the lessons for India," Energy Policy, Elsevier, vol. 63(C), pages 900-909.
    16. Holburn, Guy L.F., 2012. "Assessing and managing regulatory risk in renewable energy: Contrasts between Canada and the United States," Energy Policy, Elsevier, vol. 45(C), pages 654-665.

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