IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v95y2016icp94-102.html
   My bibliography  Save this article

The future of the Feed-in Tariff (FiT) scheme in Europe: The case of photovoltaics

Author

Listed:
  • Pyrgou, Andri
  • Kylili, Angeliki
  • Fokaides, Paris A.

Abstract

The key objective of this study is the examination of the regulatory and policy framework of the feed-in-tariff (FiT) scheme, specifically its effect on both the electricity pricing as well as the local and European renewable energy sources (RES) market, and accordingly the definition of its feasibility as a scheme for the further development and promotion of renewable energy technologies (RETs). This work discusses the FiT scheme implementation for photovoltaics (PVs) in four case study countries - Denmark, Germany, Cyprus, and Spain. A model describing the conditions under which a FiT scheme is led to collapse is also introduced and a parametric analysis towards revealing the sensitivity of the different parameters affecting it, is delivered. The study concludes with significant policy implications that should be considered for future implementation of the scheme. For the prevention of the collapse of the scheme, the tariff's value ought to be determined by each country's government based on a set of influencing factors including the operational, capital and investment costs of each RET, the standard cost of renewable energy (RE) generation and the avoidance cost, which would be regularly reviewed depending on the excess of the annual capacity.

Suggested Citation

  • Pyrgou, Andri & Kylili, Angeliki & Fokaides, Paris A., 2016. "The future of the Feed-in Tariff (FiT) scheme in Europe: The case of photovoltaics," Energy Policy, Elsevier, vol. 95(C), pages 94-102.
    • Handle: RePEc:eee:enepol:v:95:y:2016:i:c:p:94-102
    DOI: 10.1016/j.enpol.2016.04.048
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421516302257
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2016.04.048?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Papadopoulos, A.M. & Karteris, M.M., 2009. "An assessment of the Greek incentives scheme for photovoltaics," Energy Policy, Elsevier, vol. 37(5), pages 1945-1952, May.
    2. Poullikkas, Andreas & Hadjipaschalis, Ioannis & Kourtis, George, 2010. "The cost of integration of parabolic trough CSP plants in isolated Mediterranean power systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(5), pages 1469-1476, June.
    3. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M., 2008. "Germany's solar cell promotion: Dark clouds on the horizon," Energy Policy, Elsevier, vol. 36(11), pages 4198-4204, November.
    4. Kylili, Angeliki & Fokaides, Paris A., 2015. "Competitive auction mechanisms for the promotion renewable energy technologies: The case of the 50MW photovoltaics projects in Cyprus," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 226-233.
    5. Fokaides, Paris A. & Kylili, Angeliki, 2014. "Towards grid parity in insular energy systems: The case of photovoltaics (PV) in Cyprus," Energy Policy, Elsevier, vol. 65(C), pages 223-228.
    6. Ciarreta, Aitor & Espinosa, Maria Paz & Pizarro-Irizar, Cristina, 2014. "Is green energy expensive? Empirical evidence from the Spanish electricity market," Energy Policy, Elsevier, vol. 69(C), pages 205-215.
    7. Huenteler, Joern, 2014. "International support for feed-in tariffs in developing countries—A review and analysis of proposed mechanisms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 857-873.
    8. Ma, Alyson C. & Van Assche, Ari, 2014. "Vertical Specialization, Tariff Shirking, and Trade," ADB Economics Working Paper Series 390, Asian Development Bank.
    9. repec:zbw:rwirep:0040 is not listed on IDEAS
    10. Alyson C. Ma & Ari Van Assche, 2014. "Vertical specialization, tariff shirking and trade," Chapters, in: Benno Ferrarini & David Hummels (ed.), Asia and Global Production Networks, chapter 5, pages 148-178, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christoforou, Elias & Kylili, Angeliki & Fokaides, Paris A., 2016. "Technical and economical evaluation of olive mills solid waste pellets," Renewable Energy, Elsevier, vol. 96(PA), pages 33-41.
    2. Briguglio, Marie & Formosa, Glenn, 2017. "When households go solar: Determinants of uptake of a Photovoltaic Scheme and policy insights," Energy Policy, Elsevier, vol. 108(C), pages 154-162.
    3. Antonelli, Marco & Desideri, Umberto, 2014. "The doping effect of Italian feed-in tariffs on the PV market," Energy Policy, Elsevier, vol. 67(C), pages 583-594.
    4. Punda, Luka & Capuder, Tomislav & Pandžić, Hrvoje & Delimar, Marko, 2017. "Integration of renewable energy sources in southeast Europe: A review of incentive mechanisms and feasibility of investments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 77-88.
    5. Bouvet, Florence & Ma, Alyson C. & Van Assche, Ari, 2017. "Tariff and exchange rate pass-through for Chinese exports: A firm-level analysis across customs regimes," China Economic Review, Elsevier, vol. 46(C), pages 87-96.
    6. Taliotis, Constantinos & Rogner, Holger & Ressl, Stephan & Howells, Mark & Gardumi, Francesco, 2017. "Natural gas in Cyprus: The need for consolidated planning," Energy Policy, Elsevier, vol. 107(C), pages 197-209.
    7. de Mello Santana, Paulo Henrique, 2016. "Cost-effectiveness as energy policy mechanisms: The paradox of technology-neutral and technology-specific policies in the short and long term," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1216-1222.
    8. Martin, Nigel J. & Rice, John L., 2017. "Examining the use of concept analysis and mapping software for renewable energy feed-in tariff design," Renewable Energy, Elsevier, vol. 113(C), pages 211-220.
    9. Karneyeva, Yuliya & Wüstenhagen, Rolf, 2017. "Solar feed-in tariffs in a post-grid parity world: The role of risk, investor diversity and business models," Energy Policy, Elsevier, vol. 106(C), pages 445-456.
    10. Martin, Nigel & Rice, John, 2013. "The solar photovoltaic feed-in tariff scheme in New South Wales, Australia," Energy Policy, Elsevier, vol. 61(C), pages 697-706.
    11. Yuan, Jian & Zhang, Zhiming & Lou, Chunjie, 2023. "Do the rise of global value chain status avoid anti-dumping barriers? Evidence from Chinese micro-enterprises," Finance Research Letters, Elsevier, vol. 55(PA).
    12. Iolanda Saviuc & Herbert Peremans & Steven Van Passel & Kevin Milis, 2019. "Economic Performance of Using Batteries in European Residential Microgrids under the Net-Metering Scheme," Energies, MDPI, vol. 12(1), pages 1-28, January.
    13. Capellán-Pérez, Iñigo & Campos-Celador, Álvaro & Terés-Zubiaga, Jon, 2018. "Renewable Energy Cooperatives as an instrument towards the energy transition in Spain," Energy Policy, Elsevier, vol. 123(C), pages 215-229.
    14. Kannan, Nadarajah & Vakeesan, Divagar, 2016. "Solar energy for future world: - A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 1092-1105.
    15. Sener, Can & Fthenakis, Vasilis, 2014. "Energy policy and financing options to achieve solar energy grid penetration targets: Accounting for external costs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 854-868.
    16. Gobong Choi & Eunnyeong Heo & Chul-Yong Lee, 2018. "Dynamic Economic Analysis of Subsidies for New and Renewable Energy in South Korea," Sustainability, MDPI, vol. 10(6), pages 1-19, June.
    17. Ciarreta, Aitor & Espinosa, Maria Paz & Pizarro-Irizar, Cristina, 2017. "Has renewable energy induced competitive behavior in the Spanish electricity market?," Energy Policy, Elsevier, vol. 104(C), pages 171-182.
    18. Toka, Agorasti & Iakovou, Eleftherios & Vlachos, Dimitrios & Tsolakis, Naoum & Grigoriadou, Anastasia-Loukia, 2014. "Managing the diffusion of biomass in the residential energy sector: An illustrative real-world case study," Applied Energy, Elsevier, vol. 129(C), pages 56-69.
    19. Wüstenhagen, Rolf & Menichetti, Emanuela, 2012. "Strategic choices for renewable energy investment: Conceptual framework and opportunities for further research," Energy Policy, Elsevier, vol. 40(C), pages 1-10.
    20. Melliger, Marc, 2023. "Quantifying technology skewness in European multi-technology auctions and the effect of design elements and other driving factors," Energy Policy, Elsevier, vol. 175(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:95:y:2016:i:c:p:94-102. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.