IDEAS home Printed from
   My bibliography  Save this article

Renewable energy support mechanisms in the Gulf Cooperation Council states: Analyzing the feasibility of feed-in tariffs and auction mechanisms


  • Atalay, Yasemin
  • Kalfagianni, Agni
  • Pattberg, Philipp


Renewable energy will be a crucial ingredient in the transition to a more sustainable future. The renewable energy sector requires a variety of financial support mechanisms in order to further consolidate and expand. Currently, the most prominent renewable energy support mechanisms are feed-in tariffs and renewable energy auctions. Although these mechanisms have been used and analyzed extensively in Western countries and, more recently, economies in transition, they have rarely been examined in the Arab Gulf region. Yet, particularly the Gulf Cooperation Council (GCC) states have undertaken important steps towards renewable energy adoption, which could be greatly facilitated with the use of financial support mechanisms. This paper analyzes the feasibility of feed-in tariffs and renewable energy auctions adoption in GCC. Based on an extensive meta-analysis of the literature on these two mechanisms in both developed and developing countries, the paper identifies a set of conditions necessary for success and evaluates the presence of favorable these conditions in the GCC context. Our findings reveal that while conditions that would ensure political feasibility are largely absent for both types of mechanisms, auctions could be a more successful strategy at the moment.

Suggested Citation

  • Atalay, Yasemin & Kalfagianni, Agni & Pattberg, Philipp, 2017. "Renewable energy support mechanisms in the Gulf Cooperation Council states: Analyzing the feasibility of feed-in tariffs and auction mechanisms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 723-733.
  • Handle: RePEc:eee:rensus:v:72:y:2017:i:c:p:723-733
    DOI: 10.1016/j.rser.2017.01.103

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

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

    References listed on IDEAS

    1. Negro, Simona O. & Alkemade, Floortje & Hekkert, Marko P., 2012. "Why does renewable energy diffuse so slowly? A review of innovation system problems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3836-3846.
    2. Rüdiger Bachmann & Jinhui H. Bai, 2013. "Public consumption over the business cycle," Quantitative Economics, Econometric Society, vol. 4(3), pages 417-451, November.
    3. Mondal, Md. Alam Hossain & Hawila, Diala & Kennedy, Scott & Mezher, Toufic, 2016. "The GCC countries RE-readiness: Strengths and gaps for development of renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1114-1128.
    4. Ayoub, Nasser & Yuji, Naka, 2012. "Governmental intervention approaches to promote renewable energies—Special emphasis on Japanese feed-in tariff," Energy Policy, Elsevier, vol. 43(C), pages 191-201.
    5. Han, Jingyi & Mol, Arthur P.J. & Lu, Yonglong & Zhang, Lei, 2009. "Onshore wind power development in China: Challenges behind a successful story," Energy Policy, Elsevier, vol. 37(8), pages 2941-2951, August.
    6. Boute, Anatole, 2016. "Off-grid renewable energy in remote Arctic areas: An analysis of the Russian Far East," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1029-1037.
    7. Jacobsson, Staffan & Lauber, Volkmar, 2006. "The politics and policy of energy system transformation--explaining the German diffusion of renewable energy technology," Energy Policy, Elsevier, vol. 34(3), pages 256-276, February.
    8. Abd-ur-Rehman, Hafiz M. & Al-Sulaiman, Fahad A., 2016. "Optimum selection of solar water heating (SWH) systems based on their comparative techno-economic feasibility study for the domestic sector of Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 336-349.
    9. Huenteler, Joern & Schmidt, Tobias S. & Kanie, Norichika, 2012. "Japan's post-Fukushima challenge – implications from the German experience on renewable energy policy," Energy Policy, Elsevier, vol. 45(C), pages 6-11.
    10. Owen, Anthony D., 2006. "Renewable energy: Externality costs as market barriers," Energy Policy, Elsevier, vol. 34(5), pages 632-642, March.
    11. Ribeiro, Fernando & Ferreira, Paula & Araújo, Madalena & Braga, Ana Cristina, 2014. "Public opinion on renewable energy technologies in Portugal," Energy, Elsevier, vol. 69(C), pages 39-50.
    12. Gallego-Castillo, Cristobal & Victoria, Marta, 2015. "Cost-free feed-in tariffs for renewable energy deployment in Spain," Renewable Energy, Elsevier, vol. 81(C), pages 411-420.
    13. Burgos-Payán, Manuel & Roldán-Fernández, Juan Manuel & Trigo-García, Ángel Luis & Bermúdez-Ríos, Juan Manuel & Riquelme-Santos, Jesús Manuel, 2013. "Costs and benefits of the renewable production of electricity in Spain," Energy Policy, Elsevier, vol. 56(C), pages 259-270.
    14. Wang, Qiang & Li, Rongrong, 2015. "Cheaper oil: A turning point in Paris climate talk?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1186-1192.
    15. Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Abu-Bakar, Siti Hawa & McMeekin, Scott G. & Stewart, Brian G., 2011. "An evaluation of the installation of solar photovoltaic in residential houses in Malaysia: Past, present, and future," Energy Policy, Elsevier, vol. 39(12), pages 7975-7987.
    16. Hertog, Steffen, 2013. "The private sector and reform in the Gulf Cooperation Council," LSE Research Online Documents on Economics 54398, London School of Economics and Political Science, LSE Library.
    17. Sarraf, M. & Rismanchi, B. & Saidur, R. & Ping, H.W. & Rahim, N.A., 2013. "Renewable energy policies for sustainable development in Cambodia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 223-229.
    18. Thiam, Djiby Racine, 2011. "An energy pricing scheme for the diffusion of decentralized renewable technology investment in developing countries," Energy Policy, Elsevier, vol. 39(7), pages 4284-4297, July.
    19. Lesser, Jonathan A. & Su, Xuejuan, 2008. "Design of an economically efficient feed-in tariff structure for renewable energy development," Energy Policy, Elsevier, vol. 36(3), pages 981-990, March.
    20. Patlitzianas, Konstantinos D. & Doukas, Haris & Psarras, John, 2006. "Enhancing renewable energy in the Arab States of the Gulf: Constraints & efforts," Energy Policy, Elsevier, vol. 34(18), pages 3719-3726, December.
    21. Atalay, Yasemin & Biermann, Frank & Kalfagianni, Agni, 2016. "Adoption of renewable energy technologies in oil-rich countries: Explaining policy variation in the Gulf Cooperation Council states," Renewable Energy, Elsevier, vol. 85(C), pages 206-214.
    22. Butler, Lucy & Neuhoff, Karsten, 2008. "Comparison of feed-in tariff, quota and auction mechanisms to support wind power development," Renewable Energy, Elsevier, vol. 33(8), pages 1854-1867.
    23. Cherni, Judith A. & Kentish, Joanna, 2007. "Renewable energy policy and electricity market reforms in China," Energy Policy, Elsevier, vol. 35(7), pages 3616-3629, July.
    24. Dong He & Wei Liao, 2012. "Asian Business Cycle Synchronization," Pacific Economic Review, Wiley Blackwell, vol. 17(1), pages 106-135, February.
    25. Wustenhagen, Rolf & Wolsink, Maarten & Burer, Mary Jean, 2007. "Social acceptance of renewable energy innovation: An introduction to the concept," Energy Policy, Elsevier, vol. 35(5), pages 2683-2691, May.
    26. Mezher, Toufic & Dawelbait, Gihan & Abbas, Zeina, 2012. "Renewable energy policy options for Abu Dhabi: Drivers and barriers," Energy Policy, Elsevier, vol. 42(C), pages 315-328.
    27. Ahmad, Salsabila & Kadir, Mohd Zainal Abidin Ab & Shafie, Suhaidi, 2011. "Current perspective of the renewable energy development in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 897-904, February.
    28. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    29. Johan Lilliestam & Anthony Patt, 2015. "Barriers, Risks and Policies for Renewables in the Gulf States," Energies, MDPI, Open Access Journal, vol. 8(8), pages 1-23, August.
    30. Abdmouleh, Zeineb & Alammari, Rashid A.M. & Gastli, Adel, 2015. "Recommendations on renewable energy policies for the GCC countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 1181-1191.
    31. Stambouli, A. Boudghene & Khiat, Z. & Flazi, S. & Kitamura, Y., 2012. "A review on the renewable energy development in Algeria: Current perspective, energy scenario and sustainability issues," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4445-4460.
    32. Stambouli, Amine Boudghene, 2011. "Promotion of renewable energies in Algeria: Strategies and perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 1169-1181, February.
    33. Boudghene Stambouli, Amine, 2011. "Algerian renewable energy assessment: The challenge of sustainability," Energy Policy, Elsevier, vol. 39(8), pages 4507-4519, August.
    34. Reiche, Danyel, 2010. "Renewable Energy Policies in the Gulf countries: A case study of the carbon-neutral "Masdar City" in Abu Dhabi," Energy Policy, Elsevier, vol. 38(1), pages 378-382, January.
    35. Weisser, Daniel, 2004. "Power sector reform in small island developing states: what role for renewable energy technologies?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 8(2), pages 101-127, April.
    36. Li, Jiaming & Guo, Ying & Platt, Glenn & Ward, John K., 2013. "Renewable energy aggregation with intelligent battery controller," Renewable Energy, Elsevier, vol. 59(C), pages 220-228.
    37. Richard H. Day & Chengyu Yang, 2011. "Economic Growth And The Effects Of Fiscal Policy," Metroeconomica, Wiley Blackwell, vol. 62(1), pages 218-234, February.
    38. -, 2011. "Distributive impact of public policy," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 3137 edited by Eclac.
    39. Mokri, Alaeddine & Aal Ali, Mona & Emziane, Mahieddine, 2013. "Solar energy in the United Arab Emirates: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 340-375.
    40. Rigter, Jasper & Vidican, Georgeta, 2010. "Cost and optimal feed-in tariff for small scale photovoltaic systems in China," Energy Policy, Elsevier, vol. 38(11), pages 6989-7000, November.
    41. Lema, Adrian & Ruby, Kristian, 2007. "Between fragmented authoritarianism and policy coordination: Creating a Chinese market for wind energy," Energy Policy, Elsevier, vol. 35(7), pages 3879-3890, July.
    42. Taleb, H.M. & Pitts, A.C., 2009. "The potential to exploit use of building-integrated photovoltaics in countries of the Gulf Cooperation Council," Renewable Energy, Elsevier, vol. 34(4), pages 1092-1099.
    43. Doukas, Haris & Patlitzianas, Konstantinos D. & Kagiannas, Argyris G. & Psarras, John, 2006. "Renewable energy sources and rationale use of energy development in the countries of GCC: Myth or reality?," Renewable Energy, Elsevier, vol. 31(6), pages 755-770.
    44. Rao, K. Usha & Kishore, V.V.N., 2010. "A review of technology diffusion models with special reference to renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(3), pages 1070-1078, April.
    45. Djiby Thiam, 2011. "An energy pricing scheme for the diffusion of decentralized renewable technology investment in developing countries," Post-Print hal-01135616, HAL.
    46. Division of Policy and Practice,UNICEF, 2011. "Policy Matters," Working briefs 1103, UNICEF, Division of Policy and Strategy.
    47. Himri, Y. & Malik, Arif S. & Boudghene Stambouli, A. & Himri, S. & Draoui, B., 2009. "Review and use of the Algerian renewable energy for sustainable development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1584-1591, August.
    48. Mahmoudi, Hacene & Abdellah, Ouagued & Ghaffour, Noreddine, 2009. "Capacity building strategies and policy for desalination using renewable energies in Algeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(4), pages 921-926, May.
    49. Telford, P. G. & Browne, B. A. & Collinge, E. J. & Fulcher, P. & Johnson, B. E. & Little, W. & Lu, J. L. C. & Nurse, J. M. & Smith, D. W. & Zhang, F., 2011. "Developments in the Management of Annuity Business," British Actuarial Journal, Cambridge University Press, vol. 16(03), pages 471-551, September.
    50. van Alphen, Klaas & Kunz, Huden S. & Hekkert, Marko P., 2008. "Policy measures to promote the widespread utilization of renewable energy technologies for electricity generation in the Maldives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(7), pages 1959-1973, September.
    51. IFRIM Mihaela & IGNAT Ion, 2011. "Business Cycle. An Austrian View," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 55(2), pages 362-366.
    52. Pushpa Trivedi & Rajmal, 2011. "Growth Effects of Fiscal Policy of India States," Millennial Asia, , vol. 2(2), pages 141-162, July.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. repec:gam:jsusta:v:9:y:2017:i:10:p:1895-:d:115723 is not listed on IDEAS
    2. repec:eee:rensus:v:107:y:2019:i:c:p:133-144 is not listed on IDEAS
    3. repec:eee:energy:v:166:y:2019:i:c:p:1047-1062 is not listed on IDEAS


    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:rensus:v:72:y:2017:i:c:p:723-733. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.