“…Energy subsidies are frequently used by governments to mitigate the impact of high and volatile oil prices on consumers, prevent inflation, boost competitiveness, and protect the standard of living of vulnerable segments of the population (Kojima, 2016;Marchan et al, 2017). Such subsidies come with high fiscal costs and introduce price distortions that promote wasteful usage of energy, increase greenhouse gas (GHG) emissions, and hamper the development of energy efficiency and renewable energy technologies (IEA, 2014).…”
Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public.
“…Energy subsidies are frequently used by governments to mitigate the impact of high and volatile oil prices on consumers, prevent inflation, boost competitiveness, and protect the standard of living of vulnerable segments of the population (Kojima, 2016;Marchan et al, 2017). Such subsidies come with high fiscal costs and introduce price distortions that promote wasteful usage of energy, increase greenhouse gas (GHG) emissions, and hamper the development of energy efficiency and renewable energy technologies (IEA, 2014).…”
Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public.
“…Considering these additional opportunity costs, estimated total fossil fuel subsidies are 1.5 times higher than officially reported 2 and almost equivalent to government expenditures on education and health in 2012 (Table S14). Marchán et al (2017) estimate that between 2008 and 2014, Ecuador had the third highest fuel subsidies relative to GDP in LAC countries, only surpassed by Bolivia and Venezuela.…”
Section: Energy Supply and Subsidiesmentioning
confidence: 99%
“…Besides the targeted explicit subsidies, in Ecuador implicit electricity subsidies are in place due to opaque electricity costs. For instance, public electricity companies exclude capital costs from energy cost calculation (Asamblea Nacional, 2015) and capital costs are frequently not included in cost accounting for transmission and distribution system operators (Marchán et al, 2017). Another example is the use of subsidized fuels in thermal power generation (Executive Decree No.…”
Section: Energy Supply and Subsidiesmentioning
confidence: 99%
“…The difference between estimated costs and revenues yields the implicit electricity subsidy amounting to roughly US$ 950 million. For comparison, Marchán et al (2017) estimate a similar average annual subsidy of US$ 800 million for the period 2008 to 2014.…”
“…For instance, the subsidized electricity generation cost is 24.31 USc/kWh, which has not been audited to clarify the real cost [17]. Furthermore, Ecuador ranks third in terms of fossil fuel subsidies in Latin America [18]. This represents 5.4% of the Ecuadorian Gross Domestic Product (GDP) and 14% of the government revenues [19].…”
The fragile ecosystem of the Galapagos Islands is being affected by population growth, intensive tourism, the exploitation of local resources and the high consumption of imported fossil fuels. This unsustainable development model makes the provision of services such as electricity a challenge. This research investigates the hybrid renewable mini-grid Baltra-Santa Cruz, which represents 62% of the electricity generation mix of the archipelago. This study aims to support the Galapagos Zero Fossil Fuel Initiative and the Sustainable Development Goal 7 through the reduction in diesel consumption and electricity generation costs. To do so, HOMER Pro, a specialized hybrid renewable mini-grid planning tool, is used to perform several techno-economic assessments, focusing on different electricity demand scenarios. Therefore, multiple pathways are compared to identify the most reliable alternatives towards the progressive decarbonization of this hybrid system. The results indicate that installing 18.25 MWp of photovoltaic and 20.68 MWh of battery capacity could reduce the Levelized Cost of Electricity (LCOE) from 32.06 to 18.95 USc/kWh, increasing the renewable energy (RE) share from 18% to 39%. Additionally, the successful application of energy efficiency measures would even reduce the LCOE to 17.10 USc/kWh. What is more, distributed energy is considered the most attractive way to involve islanders in the energy transition process. Finally, this paper offers a comprehensive business model proposal to achieve a resilient energy supply, based on a combination of auctions and energy community models, which demands high political will, reliable and innovative regulations and social awareness about energy use.Sustainability 2020, 12, 2282 4 of 47 and implement RE projects. In addition, the Ecuadorian Electricity Master Plan (PME) 2016-2025 [44] contains the list of priority projects to increase renewable electricity generation. Moreover, those possible new partners can propose additional RE initiatives thanks to the General Regulation of the LOSPEE. This regulation [43] is based on the targets of the National Plan of Development 2017Development -2021 which prioritize RE resources exploitation to reduce the dependency of fossil fuels. What is more, new companies interested in developing RE projects can receive an income-tax-exemption for five years [46].As regards distributed generation, the photovoltaic microgeneration to electricity self-sufficiency for final consumers of electricity regulation [47] and its amendment [48] promote the installation of PV systems up to 300 kWp per user in the residential sector and below 1000 kWp per user in the commercial and industrial sectors. This regulation is not limited to rooftop PV systems. A net-metering scheme is applied to compensate electricity costs. Thanks to this mechanism, consumers are billed for their "net" electricity use and the associated costs become credits for the following months if the electricity balance is positive for users. [47]. The National Rate Schedule for ...
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