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Balancing demand-pull and supply-push measures to support renewable electricity in Europe

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  • Albrecht, Johan
  • Laleman, Ruben
  • Vulsteke, Elien

Abstract

Increasing the share of renewable energy is deemed essential to reduce the carbon intensity of the current electricity mix. The promotion of renewable energy technologies should thus be as effective and efficient as possible. Therefore, support schemes should explicitly consider the balance between demand-pull (e.g. production subsidies) and supply-push efforts (public RD&D investments). In this paper we estimate the deployment costs for renewable generation technologies between 2005 and 2030 in the EU-27. Then, we relate our findings to public RD&D expenditures (2005–2010) on these technologies. Based on several “lags” between RD&D spending and market impact, we obtained cumulative pull/push ratios between 100 and 190 for wind technologies and between 80 and 210 for PV. For solid biomass, pull/push ratios are lower, in a range of 60–120. The imbalance for biogas is much larger; the cumulative pull/push ratio for biogas is about 700 in the ‘5 year lag’ case and about 1200 in the other cases (10 yr. lag or more).

Suggested Citation

  • Albrecht, Johan & Laleman, Ruben & Vulsteke, Elien, 2015. "Balancing demand-pull and supply-push measures to support renewable electricity in Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 267-277.
    • Handle: RePEc:eee:rensus:v:49:y:2015:i:c:p:267-277
    DOI: 10.1016/j.rser.2015.04.078
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