The future of the Feed-in Tariff (FiT) scheme in Europe: The case of photovoltaics

Pyrgou, Andri; Kylili, Angeliki; Fokaides, Paris A.

doi:10.1016/j.enpol.2016.04.048

Cited by 153 publications

(65 citation statements)

References 10 publications

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“…Because the costs of FiTs are typically passed through to consumers via higher electricity prices or taxes, FiTs can quickly become unsustainable when set well above the cost-reflective price of fossil-based power generation. This issue with the FiT policy mechanism has been observed in several European countries [19]. Although auctions eliminate such issues, they can come with significant administrative costs and reduce the levels of small-scale generation and private sector engagement that FiTs have been effective at stimulating.…”

Section: Global Renewable Energy Policy Status and Trendsmentioning

confidence: 99%

Renewable energy policy trends and recommendations for GCC countries

Griffiths

2017

Energy Transit

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Policies to support the deployment of renewable energy technologies have been widely established for power generation, heating, cooling, and transportation. However, as renewable energy technologies have become increasingly cost-competitive and more widely deployed, policymakers have begun to focus their attention on the adaption of existing policies to reflect the rapidly changing economics of these technologies and the impacts they have may have on the energy systems in which they are deployed. Optimal renewable energy policies moving forward must, therefore, be context specific and tailored to the unique political, economic and social circumstances of the regional, national or sub-national energy systems in which they are to be applied. The Gulf Cooperation Council (GCC) is a region where each member country has stated ambitions and targets for renewable energy but deployment to date has been minimal. Therefore, GCC ambitions must be translated into actions via defined policies and regulations that reflect regional context, and thus have the highest likelihood of achieving success. This paper investigates current trends in renewable energy policy with the aim of identifying those that will be the most effective and feasible to catalyze renewable energy in GCC countries. The findings show that utility-scale renewable energy auctions are a primary mode of stimulating renewable energy deployment internationally and this mechanism is optimally aligned with catalyzing renewable energy deployment in the GCC countries. However, further evolution of regionally tailored renewable energy policy will be required as auction mechanisms gain traction and renewable energy becomes increasingly prominent.

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Section: Global Renewable Energy Policy Status and Trendsmentioning

confidence: 99%

Renewable energy policy trends and recommendations for GCC countries

Griffiths

2017

Energy Transit

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“…works define as the definition of subsidies, that they must require careful analysis and an evaluation of the socio-economic impact and energy policy [45,46]. FIT provides subsidies that are not concentrated in a single rate and a progressive reduction over time [47,48]. The "redefined subsidies" scenario is characterized by a reduction in comparison to a "baseline" one.…”

Section: Sensitivity Analysismentioning

confidence: 99%

The Economic Feasibility of Residential Energy Storage Combined with PV Panels: The Role of Subsidies in Italy

2017

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A solar photovoltaic system produces electricity by converting energy from the sun. By the end of 2016, the global installed solar photovoltaic capacity reached 305 GW. Its growth is impressive in the last years; in fact, it was only equal to 41 GW in 2010. However, Europe has installed only 6.9 GW in 2016 (−1.7 GW in comparison to previous year) and this annual power installed is equal to 9% of global one in according to data released by Solar Power Europe. The profitability of PV systems in mature markets depends on the harmonization between demanded energy and produced one residential energy storage when combined with photovoltaic panels is able to increase the share of self-consumption. This work proposes a mathematical model, in which a Discounted Cash Flow analysis is conducted to evaluate the financial feasibility of photovoltaic-integrated lead acid battery systems in Italy. The indicator used is Net Present Value. Furthermore, a break-even point analysis, in terms of an increase of self-consumption, is conducted. The residential sector is investigated and energy storage system investment is incentivized by fiscal deduction and regional subsidies. The analysis provides several case studies, determined by combinations of the following variables: photovoltaic plant size, battery capacity, the increase of the share of self-consumption, and the useful lifetime of energy storage system. The same case studies are proposed also in four alternative scenarios, where is the modified the structure of subsidies. Results confirm that the profitability can be reached in presence of subsidies.

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“…The long-running struggle of European policy makers to find the right structure and level for renewable energy feed-in tariffs illustrates the difficulty of allocating limited public subsidies efficiently and transparently in a national context (IRENA, 2013;Pyrgou, Kylili, & Fokaides, 2016). Auctioned price floors can be applied within the context of dedicated domestic funds or programmes aimed at promoting climate action.…”

Section: Domestic Climate Financementioning

confidence: 99%

Underwriting 1.5°C: competitive approaches to financing accelerated climate change mitigation

et al. 2017

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Delivering emission reductions consistent with a 1.5°C trajectory will require innovative public financial instruments designed to mobilize trillions of dollars of low-carbon private investment. Traditional public subsidy instruments such as grants and concessional loans, while critical to supporting nascent technologies or high-capital-cost projects, do not provide the price signals required to shift private investments towards low-carbon alternatives at a scale. Programmes that underwrite the value of emission reductions using auctioned price floors provide price certainty over long time horizons, thus improving the cost-effectiveness of limited public funds while also catalysing private investment.Taking lessons from the World Bank's Pilot Auction Facility, which supports methane and nitrous oxide mitigation projects, and the United Kingdom's Contracts for Difference programme, which supports renewable energy deployment, we show that auctioned price floors can be applied to a variety of sectors with greater efficiency and scalability than traditional subsidy instruments. We explore how this new class of instrument can enhance the cost-effectiveness of carbon pricing and complementary policies needed to achieve a 1.5°C outcome, including through large-scale adoption by the Green Climate Fund and other international and domestic climate finance vehicles.

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The future of the Feed-in Tariff (FiT) scheme in Europe: The case of photovoltaics

Cited by 153 publications

References 10 publications

Renewable energy policy trends and recommendations for GCC countries

Renewable energy policy trends and recommendations for GCC countries

The Economic Feasibility of Residential Energy Storage Combined with PV Panels: The Role of Subsidies in Italy

Underwriting 1.5°C: competitive approaches to financing accelerated climate change mitigation

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