Policy options for reducing the costs of reaching the European renewables target

Kleßmann, Corinna; Rathmann, Max; Jäger, D.; Gazzo, Alexis; Resch, Gustav; Busch, Sebastian; Ragwitz, Mario

doi:10.1016/j.renene.2013.01.041

Cited by 72 publications

(37 citation statements)

References 9 publications

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“…Haas et al, 2011;Klessmann et al, 2013;Mendonca, 2009) compared to U.S. policies consisting of a combination of tax credits, local incentives, and net-metering policies.…”

Section: Discussion Of Findingsmentioning

confidence: 99%

An analysis of residential PV system price differences between the United States and Germany

2014

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addition we are indebted to the helpful comments of our anonymous reviewers. Of course, any remaining errors or omissions are our own. iv EXECUTIVE SUMMARYResidential photovoltaic (PV) systems were twice as expensive in the United States as in Germany (median of $5.29/W vs. $2.59/W) in 2012. This price discrepancy stems primarily from differences in non-hardware or "soft" costs between the two countries, which can only in part be explained by differences in cumulative market size and associated learning. A survey of German PV installers was deployed to collect granular data on PV soft costs in Germany, and the results are compared to those of a similar survey of U.S. PV installers. Non-module hardware costs and all analyzed soft costs are lower in Germany, especially for customer acquisition, installation labor, and profit/overhead costs, but also for expenses related to permitting, interconnection, and inspection procedures. Additional costs occur in the United States due to state and local sales taxes, smaller average system sizes, and longer project-development times.To reduce the identified additional costs of residential PV systems, the United States could introduce policies that enable a robust and lasting market while minimizing market fragmentation. Regularly declining incentives offering a transparent and certain value proposition-combined with simple interconnection, permitting, and inspection requirements-might help accelerate PV cost reductions in the United States. HIGHLIGHTS• Residential PV system prices are twice as high in the USA than in Germany in 2012.• Different cumulative national PV market sizes explain only 35% of price gap.• Installer surveys show that price differences stem from non-module and soft costs.• Largest cost differences stem from customer acquisition and installation labor.• Incentives in the US are less effective in driving and following cost reductions.v

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“…Haas et al, 2011;Klessmann et al, 2013;Mendonca, 2009) compared to U.S. policies consisting of a combination of tax credits, local incentives, and net-metering policies.…”

Section: Discussion Of Findingsmentioning

confidence: 99%

An analysis of residential PV system price differences between the United States and Germany

2014

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“…It regards partial equilibrium energy system models, energy models dedicated to specific sectors, general equilibrium models, and macro-econometric models. In particular, the GREEN-X model underlines the development of RESs policy choices in energy sector [25] evaluating the possible impacts of green technologies costs on European 2020 targets [26].…”

Section: The Description Of the Modelmentioning

confidence: 99%

Future Trajectories of Renewable Energy Consumption in the European Union

2018

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Renewable energy sources (RESs) are able to reduce the European Union (EU)'s dependence on foreign energy imports, also meeting sustainable objectives to tackle climate change and to enhance economic opportunities. Energy management requires a quantitative analysis and the European Commission follows the performance of each Member State (MS) in order to define the corrective measures towards 2020 targets. Starting from historical data reported in the Eurostat database and through a mathematical model, this work proposes future trajectories towards 2020 of the share of energy from renewables (REs) in terms of gross final energy consumption (GFEC). Furthermore, a quantitative analysis based on two indices-(i) the share of REs in GFEC, and (ii) gross final renewable energy consumption (GFREC) per capita-permits a comparison among 28 MSs. The share of REs in GFEC in EU 28 varies from 19.4% to 21.8% in future trajectories towards 2020. Sweden and Finland occupy the top part of the ranking, while six MSs (Belgium, France, Ireland, Luxembourg, The Netherlands, and the United Kingdom) are not able to reach the 2020 targets.

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“…Several studies have shown that investment risks increase when switching from fixed feed-in tariffs to premium schemes, tenders or quotas (Rathmann et al 2011;Klessmann et al 2013;see, e.g., Kitzing 2014). For instance, while under feed-in tariff systems there is no risk in terms of price fluctuations, RES-E generators face price volatility under a quota system.…”

Section: Capital Market Failures and Other Obstacles To Long-term Rismentioning

confidence: 99%

Can Technology-Specific Deployment Policies Be Cost-Effective? The Case of Renewable Energy Support Schemes

Lehmann

Söderholm

2017

Environ Resource Econ

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Standard-Nutzungsbedingungen: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. Abstract: While there is relatively limited disagreement on the general need for supporting the deployment of renewable energy sources for electricity generation (RES-E), there are diverging views on whether the granted support levels should be technology-neutral or technology-specific. In this paper we question the frequently stressed argument that technology-neutral schemes will promote RES-E deployment cost-effectively. A simple partial equilibrium model of the electricity sector with one representative investor is developed to illustrate how the cost-effective support levels to different RES-E technologies will be influenced when selected market failures are introduced. We address market failures associated with technological development, long-term risk taking, path dependencies as well as various external costs, all of which drive a wedge between the private and the social costs of RES-E deployment. Based on these analytical findings and a review of empirical literature, we conclude that the relevance of these market failures is typically heterogeneous across different RES-E technologies. The paper ends by discussing a number of possible caveats to implementing cost-effective technology-specific support schemes in practice, including the role of various information and political economy constraints. While these considerations involve important challenges, neither of them suggests an unambiguous plea for technology-neutral RES support policies either. Terms of use: Documents in

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Policy options for reducing the costs of reaching the European renewables target

Cited by 72 publications

References 9 publications

An analysis of residential PV system price differences between the United States and Germany

An analysis of residential PV system price differences between the United States and Germany

Future Trajectories of Renewable Energy Consumption in the European Union

Can Technology-Specific Deployment Policies Be Cost-Effective? The Case of Renewable Energy Support Schemes

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