Capacity vs energy subsidies for promoting renewable investment: Benefits and costs for the EU power market

Özdemir, Özge; Hobbs, Benjamin F.; Hout, M. van; Koutstaal, Paul

doi:10.1016/j.enpol.2019.111166

Cited by 59 publications

(24 citation statements)

References 23 publications

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“…The EU put great emphasis on various types of activities and promotion of renewable energy [26][27][28]. However, due to its high cost, generating energy from renewable sources on a large scale is not possible without support [29].…”

Section: Renewable Energy Sources In Literature and Eu Directivesmentioning

confidence: 99%

Changes in Electricity Production from Renewable Energy Sources in the European Union Countries in 2005–2019

Matuszewska‐Janica

Żebrowska‐Suchodolska

Ala-Karvia

et al. 2021

Energies

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The policy related to the use of renewable sources is a key element of the energy policy executed in the European Union (EU). One of the targets set for 2050 is to increase the share of electricity in energy consumption to 50%, and 80% of electricity is to be generated from low-carbon sources. In recent years, the EU economies have significantly modified their electricity production, which raises the question of the scale of these changes. The aim of the presented analysis is to assess changes in the use of renewable sources for electricity production in the EU countries in 2005–2019. Gini coefficient and k-mean are applied in the analysis. The conducted research shows that EU countries, in line with the energy policy assumptions, have both increased the share of renewable sources in energy production, especially in electricity production, as well as increased the diversity of used renewable sources. The results also indicate a vast diversity in terms of the use of such sources for the production of renewable electricity in the EU. This indicates that the energy transition is being implemented by EU countries with individual country-level approaches. Nonetheless, a variety of the EU’s both support and restrictive measures are of considerable importance for the ongoing energy transition.

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Section: Renewable Energy Sources In Literature and Eu Directivesmentioning

confidence: 99%

Changes in Electricity Production from Renewable Energy Sources in the European Union Countries in 2005–2019

Matuszewska‐Janica

Żebrowska‐Suchodolska

Ala-Karvia

et al. 2021

Energies

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show abstract

“…When evaluating how efficient those policies are, different indicators can be used-the total investments, specific renewable energy costs, achieved share of renewable energy, the amount of subsidies, consumer prices and others rates [8]. The analysis shows that for short run, the subsidies which are applied for certain energy output are more cost-effective, but for the long-term perspective, the policies related to installed capacity might be more effective due to reduced technology costs [9].…”

Section: Introductionmentioning

confidence: 99%

Does the Balance Exist between Cost Efficiency of Different Energy Efficiency Measures? DH Systems Case

2020

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The main aim of this study is to evaluate the results achieved by implementation of different support policies in form of subsidies for energy efficiency improvements and transition to renewable energy sources. The article compares the energy efficiency measures in district heating systems with other support program. In order to assess the effectiveness of implementation of different renewable energy technologies and energy efficiency projects, the levelized costs of saved energy for different support programs were determined. Authors compared different co-financed projects related to replacement of fossil fuel energy sources in district heating (mainly to biomass) and the installation of new biomass boilers, heat pumps, solar collectors and other local technologies in municipal buildings. Results show that financial support for energy efficiency measures in industrial enterprises and district heating systems has been most cost-effective, mainly due to the low co-financing rate (30%) and the high potential for energy savings in different production processes. Authors have identified the blind-spots within the funding allocation for different municipalities, which is not always dedicated to achieved energy savings.

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“…The RLDCs of constraint family (3) models deviate only marginally. 5 While less pronounced, similar effects also occur in settings with proportionate SLCR. Yet, for better illustration, we contrast RLDCs of models with zero and complete SLCR.…”

Section: System Effects Of Storage Illustrated With Residual Load Dur...mentioning

confidence: 94%

“…Many governments on state, national, and even intergovernmental levels have adopted a minimum renewable energy share by a target date to promote the deployment of renewable energy [5]. Essentially, this share describes the ratio of energy from renewable sources to the total energy supplied or consumed in a specific economic sector, or in the entire energy system.…”

Section: Introductionmentioning

confidence: 99%

Renewable Energy Targets and Unintended Storage Cycling: Implications for Energy Modeling

Kittel¹,

Schill²

2021

Preprint

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To decarbonize the economy, many governments have set targets for the use of renewable energy sources. These are often formulated as relative shares of electricity demand or supply. Implementing respective constraints in energy models is a surprisingly delicate issue. They may cause a modeling artifact of excessive electricity storage use. We introduce this phenomenon as 'unintended storage cycling,' which can be detected in case of simultaneous storage charging and discharging. In this paper, we provide an analytical representation of different approaches for implementing minimum renewable share constraints in models, and show how these may lead to unintended storage cycling. Using a parsimonious optimization model, we quantify related distortions of optimal dispatch and investment decisions as well as market prices, and identify important drivers of the phenomenon. Finally, we provide recommendations on how to avoid the distorting effects of unintended storage cycling in energy modeling.

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Capacity vs energy subsidies for promoting renewable investment: Benefits and costs for the EU power market

Cited by 59 publications

References 23 publications

Changes in Electricity Production from Renewable Energy Sources in the European Union Countries in 2005–2019

Changes in Electricity Production from Renewable Energy Sources in the European Union Countries in 2005–2019

Does the Balance Exist between Cost Efficiency of Different Energy Efficiency Measures? DH Systems Case

Renewable Energy Targets and Unintended Storage Cycling: Implications for Energy Modeling

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