How Fit are Feed-in Tariff Policies? Evidence from the European Wind Market

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Can the US keep the PACE? A natural experiment in accelerating the growth of solar electricity

“…However rigorous policy evaluations of specific programs are still rare. Studies have mainly focused on broad energy policies on nation-wide basis, including among others feed-in tariffs (FiT) [7][8][9][10][11], renewable portfolio standards (RPS) [12][13][14][15][16], tenders and tax incentives [17]. This growing body of empirical evidence have concentrated mostly on FiT and RPS policies as they have vastly used [18].…”

“…These results are confirmed by Bolkesjø et al [10], who conclude that FiT has significantly affected the development of PV and onshore wind farms in five European countries in the period 1990-2012. Zang [11] finds that the length of a FiT contract has more impact on wind capacity additions than the tariff level, suggesting investors favours long-term market security. A number of studies also underline the superiority of FiT compared to other schemes to foster deployment and technological diversity, and lower risks for private actors associated with RE technologies [7,8,19].…”

Mechanisms that accelerate the diffusion of renewable technologies in new markets: Insights from the wind industry in Portugal

“…das Forças Armadas, 1649-026 Lisboa, PORTUGAL Tel. 210464031 -Extensão 293100 E-mail: dinamia@iscte.pt www.dinamiacet.iscte.pt (McDowall et al, 2013) and econometrical analysis of the performance of support mechanisms (Jenner et al, 2013;Zhang, 2013). The importance of the combination of both demand-pull and supply-push instruments is also supported by some empirical studies (e.g.…”

What Do Capacity Deployment Rates Tell Us about the Efficiency of Electricity Generation from Renewable Energy Sources Support Measures in Greece?

“…Energies 2016, 9,38 The benchmark project for the calculation of the residential systems' PI is based on a system with capacity equal to 9 kWp. The initial investment expenditure corresponds to the equity capital, covering 50% of the total investment cost.…”

“…At the same time, there is always a concern among policy makers that falling technology prices may not carry over to falling turnkey prices. Zhang [9] suggested that such a disconnect could indicate a correlation between remuneration and investment costs: high remuneration allowing deployment in high-cost locations (e.g., with poor wind conditions). Moreover, an International Energy Agency (IEA) study [10] suggests that high remuneration may have encouraged rent-seeking behavior: solar panel sellers pricing their products according to the incentive in a given country, trying to take a share of any excess remuneration.…”