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Comparison of feed-in tariff, quota and auction mechanisms to support wind power development

Listed author(s):
  • Butler, Lucy
  • Neuhoff, Karsten

A comparison of support schemes for market-based deployment of renewable energy in the UK and Germany shows that the feed-in tariff reduces costs to consumers and results in larger deployment. A survey among project developers suggests two explanations: (1) Site selection presents the biggest obstacle under the feed-in tariff. Uncertain financing of other schemes reduces efforts at initial project stages and planning permits become a major obstacle. (2) Project developers do not compete in price but for good sites under the feed-in tariff. Most importantly, turbine producers and construction services contribute to most of the costs, and face at least equal levels of competition under the feed-in tariff.

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File URL: http://www.sciencedirect.com/science/article/pii/S0960148107003242
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Article provided by Elsevier in its journal Renewable Energy.

Volume (Year): 33 (2008)
Issue (Month): 8 ()
Pages: 1854-1867

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Handle: RePEc:eee:renene:v:33:y:2008:i:8:p:1854-1867
DOI: 10.1016/j.renene.2007.10.008
Contact details of provider: Web page: http://www.journals.elsevier.com/renewable-energy

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  1. Madlener, Reinhard & Stagl, Sigrid, 2005. "Sustainability-guided promotion of renewable electricity generation," Ecological Economics, Elsevier, vol. 53(2), pages 147-167, April.
  2. Mitchell, Catherine & Connor, Peter, 2004. "Renewable energy policy in the UK 1990-2003," Energy Policy, Elsevier, vol. 32(17), pages 1935-1947, November.
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  6. Kim Keats Martinez & Karsten Neuhoff, 2005. "Allocation of carbon emission certificates in the power sector: how generators profit from grandfathered rights," Climate Policy, Taylor & Francis Journals, vol. 5(1), pages 61-78, January.
  7. Karsten Neuhoff, 2005. "Large-Scale Deployment of Renewables for Electricity Generation," Oxford Review of Economic Policy, Oxford University Press, vol. 21(1), pages 88-110, Spring.
  8. Lauber, Volkmar, 2004. "REFIT and RPS: options for a harmonised Community framework," Energy Policy, Elsevier, vol. 32(12), pages 1405-1414, August.
  9. 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.
  10. Gross, Robert, 2004. "Technologies and innovation for system change in the UK: status, prospects and system requirements of some leading renewable energy options," Energy Policy, Elsevier, vol. 32(17), pages 1905-1919, November.
  11. Langniss, Ole & Wiser, Ryan, 2003. "The renewables portfolio standard in Texas: an early assessment," Energy Policy, Elsevier, vol. 31(6), pages 527-535, May.
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