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Market and policy risk under different renewable electricity support schemes

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  • Boomsma, Trine Krogh
  • Linnerud, Kristin

Abstract

Worldwide, renewable electricity projects are granted production support to ensure competitiveness. Depending on the design of these support schemes, the cash inflows to investment projects will be more or less exposed to fluctuations in electricity and/or subsidy prices. Furthermore, as renewable electricity technologies mature, there is a possibility that the current support scheme will be terminated or revised in ways that make it less generous or more in line with market mechanism.

Suggested Citation

  • Boomsma, Trine Krogh & Linnerud, Kristin, 2015. "Market and policy risk under different renewable electricity support schemes," Energy, Elsevier, vol. 89(C), pages 435-448.
  • Handle: RePEc:eee:energy:v:89:y:2015:i:c:p:435-448
    DOI: 10.1016/j.energy.2015.05.114
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