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Comparison of Feed in Tariff, Quota and Auction Mechanisms to Support Wind Power Development

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  • Butler, L.
  • Neuhoff, K.

Abstract

A comparison of policy instruments employed to support onshore wind projects suggests that in terms of capacity installed, policies adopted in Germany have been more effective than those adopted in the UK. Price comparisons have frequently neglected differences in resource base: once accounted for we find the cost of policies to be similar. A developer survey identifies planning constraints as only one reason why installed capacity is greater in Germany, and indicates that price support is also important. Information provided by developers also suggests that although the tendering process adopted in the UK is highly competitive in terms of price paid for energy delivered, competition in other areas of the market is significantly lower than in Germany.

Suggested Citation

  • Butler, L. & Neuhoff, K., 2005. "Comparison of Feed in Tariff, Quota and Auction Mechanisms to Support Wind Power Development," Cambridge Working Papers in Economics 0503, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:0503
    Note: CMI, IO
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    File URL: http://www.econ.cam.ac.uk/electricity/publications/wp/ep70.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Wind Generation; Renewable Energy; Subsidy; Policy;
    All these keywords.

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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