Feed-in tariffs with minimum price guarantees and regulatory uncertainty

Barbosa, Luciana; Ferrão, Paulo; Rodrigues, Artur; Sardinha, Alberto

doi:10.1016/j.eneco.2018.04.028

Cited by 28 publications

(10 citation statements)

References 27 publications

(40 reference statements)

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“…Many studies have been done that support this assertion; they are Yang and Ge ( 2018 ), who contended FiTs are effective and reasonable to the deployment of distributed photovoltaic in China and should be amended regularly to reflect market dynamics. In addition, Barbosa et al ( 2018 ) asserted that FiTs with a minimum guaranteed price would attract investment even if revenue is less than the actual investment when a risk-free investment is being offered. Zhao et al ( 2020 ) in their paper, delving into the effectiveness of wind power policy in China, found price policy and two non-price policy to have significant effects on the deployment of wind energy in China, of which price is vitally important to the deployment of wind in China.…”

Section: Resultsmentioning

confidence: 99%

Energy insecurity, pollution mitigation, and renewable energy integration: prospective of wind energy in Ghana

Sun

Khan

Bashir

et al. 2020

Environ Sci Pollut Res

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Wind energy is seen as an important energy to sustainably meet the energy needs of Ghana. However, the industry in Ghana is yet to take off due to policy uncertainty and regulatory costs. The paper analyzed the key determinants and how they interact to impact the scaling up of wind energy in Ghana, using time series data, the vector auto regression (VAR) model from 2013 to 2019.There were four endogenous variables, grouped under policy, population growth, wind capacity, and electrification rate. The findings revealed the dynamic behavior of the variables from the VAR to a strongly significant positive correlation to deploying wind energy in Ghana. The impulse response functions (IRFs) equally exhibited a positive impact long-run trajectory growth of the variables after a shock to the system. The response of the first lags had differences of log policy and that of the log of GDP produced a curious result from the shock by taking a steady positive growth path in the short run and nosedived to a negative pathway in the long run. On the other hand, the interaction of the first differences of the lags of log wind capacity and log policy is quite instructive, as the headwind produced a negative relationship in the short run and to a positive growth path in the long run. This was anticipated, as the wind capacity installation of Ghana is expected to increase in the long run, when pipeline projects materialize.

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Section: Resultsmentioning

confidence: 99%

Energy insecurity, pollution mitigation, and renewable energy integration: prospective of wind energy in Ghana

Sun

Khan

Bashir

et al. 2020

Environ Sci Pollut Res

View full text Add to dashboard Cite

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“…Poisson processes are also considered jump processes because the realization of an event causes a discontinuity in the sample path. They have been observed to model price floor rates [28], policy interventions, technology innovations [109], and the arrival of new information related to the project [101] Combinations of GBM, mean-reverting, and jump processes are also found in the literature. These jump-diffusion processes explain the evolution of the SoU more generally.…”

Section: Jump Processes: Markov and Poisson Modelsmentioning

confidence: 94%

Economic and Regulatory Uncertainty in Renewable Energy System Design: A Review

et al. 2023

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Renewable energy is increasingly mobilizing more investment around the globe. However, there has been little attention to evaluating economic and regulatory (E&R) uncertainties, despite their enormous impact on the project cashflows. Consequently, this review analyzes, classifies, and discusses 130 articles dealing with the design of renewable energy projects under E&R uncertainties. After performing a survey and identifying the selected manuscripts, and the few previous reviews on the matter, the following innovative categorization is designed: sources of uncertainty, uncertainty characterization methods, problem formulations, solution methods, and regulatory frameworks. The classification reveals that electricity price is the most considered source of uncertainty, often alone, despite the existence of six other equally influential groups of E&R uncertainties. In addition, real options and optimization arise as the two main approaches researchers use to solve problems in energy system design. Subsequently, the following aspects of interest are discussed in depth: how modeling can be improved, which are the most influential variables, and potential lines of research. Conclusions show the necessity of modeling E&R uncertainties with currently underrepresented methods, suggest several policy recommendations, and encourage the integration of prevailing approaches.

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“…Now, we build on the work from Barbosa et al (2018) in order to find the value of project, the value of the option, and the investment trigger.…”

Section: Fit With a Minimum Price Guaranteementioning

confidence: 99%

Investment Timing and Social Welfare under Feed-in Tariff Contract

Barbosa¹,

Rodrigues²,

Sardinha³

2020

CICEE - Working Papers Series

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This paper presents a novel model to analyze the effects on the investment timing and social welfare of three feed-in tariffs (FIT) within an oligopolistic market structure. The FIT contracts are the fixed price, the fixed premium, and the minimum price guarantee. The model allows the identification of the optimal time to deploy a renewable energy project and the value of the tariff that maximizes the social welfare for each FIT design. These optimal tariffs generate the same investment timing and the same social welfare.

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Feed-in tariffs with minimum price guarantees and regulatory uncertainty

Cited by 28 publications

References 27 publications

Energy insecurity, pollution mitigation, and renewable energy integration: prospective of wind energy in Ghana

Energy insecurity, pollution mitigation, and renewable energy integration: prospective of wind energy in Ghana

Economic and Regulatory Uncertainty in Renewable Energy System Design: A Review

Investment Timing and Social Welfare under Feed-in Tariff Contract

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