Issue 02/2012
| Joint Support and Efficient Offshore Investment: Market and Transmission
Connection Barriers and Solutions Sascha Thorsten Schröder, Lena Kitzing, Henrik Klinge Jacobsen, Lise-Lotte Pade Hansen Different support schemes are applied for the promotion of renewable energy sources in EU Member States. Current EU legislation opens opportunities for international cooperation to achieve national renewable targets more efficiently, either by statistical transfers, joint projects or joint support schemes. This article investigates their interplay with support schemes and applies the results to offshore wind energy. With all North Sea neighbouring countries planning offshore wind installations and considering a coordinated offshore grid, this constitutes a good starting point for coordinated action. Two case studies on the regulatory combinations of joint projects financed under tendering and tradable green certificates as a joint support scheme are contrasted, addressing main barriers and possible solutions. Joint projects are an interesting option in the midterm, whereas joint support schemes may be more attractive on a longer time horizon. |
| Large-Scale Electricity Supergrids and the Transition to Electricity From Renewable
Sources The decarbonisation of our electricity supply, which accounts for a quarter of our CO2 emissions, is crucial to achieving substantial cuts in our greenhouse gas emissions. This article will explore the concept of large-scale electricity supergrids as a way of integrating variable and often remote sources of renewable energy into our power supply. Europe and the surrounding regions will be considered as an example of an area that could have such a grid. It will then discuss the political challenge involved and how to tackle it, and finish by considering which other regions around the world could also have a long-distance renewable energy grid. |
| Private Renewable Energy Production In Israel: Background And Lessons To Be Drawn Adam Eytan, Noy Dor The objective of this paper is to provide the reader with an overview of the regulatory framework for private renewable energy production in Israel, focusing on its licensing arrangements and Feed-in-Tariffs (FiT) for solar photovoltaic (PV), solar thermal, wind power, bio-gas, and bio-mass power production. After a general overview, this paper concludes with initial lessons to be drawn from the Israeli experience thus far. The authors believe that this paper will be of interest to policy makers, academic researchers and legal experts, as well as investors and business people who wish to understand the new Israeli renewable energy market. |
| Promoting Renewable Energies in the Philippines: Policies and Challenges The potential renewable energy capacity of the Philippines is estimated to be 2,600 MW of geothermal, 13,097 MW of hydroelectric, 70,000 MW of wind, 170,000 MW of ocean energy, 323 MMBFOE of biomass, and 5.1 kilowatt-hour (kWh)/m2/day of solar energy. |
| Securing India’s Energy Options in an Interdependent World The International Energy Agency (IEA) defines energy security as “the physical availability of energy at a price which is affordable, while respecting environment concerns.”1 Today, energy security has become a worldwide concern due to the uneven distribution of energy supplies across the world. Many countries face a tough task in securing reliable sources of energy to power their economies. Common threats to energy security include political instability in various countries having huge oil and natural gas reserves, terrorism, attacks on supply infrastructure, rising prices of fossil fuels due to limited availability of resources (peaking of oil production) and overall competition by dominant countries in securing oil supplies. |
| Failed With Subsidies? – Try CO2 Tax! Ricardo G. Barcelona Subsidies and feed-in tariffs have become a pre-condition for wide-scale renewable energy deployment. However, outcomes after twenty years of generous technologyspecific support are diametrically opposed to policy objectives. This paper examines the causes of this apparent “green paradox”, and differentiates subsidies and CO2 tax’s influence on firms’ strategic decisions. I posit that subsidies choose a priori technology champions that ignore technological obsolescence risks. In contrast, CO2 taxes provide pricing signals that inform exit decisions from polluting technologies. By leaving firms to decide on their technological responses, CO2 tax penalties could encourage low carbon technology innovations. |
| Wind Power Deployment – Why Spain Succeeded Ricardo G. Barcelona Spain’s success in wind power deployment goes beyond subsidies. An incremental approach to regulatory design allows regulator and firms to proactively adapt strategies and pursue wind power opportunities. Technical advances are incorporated, while economic incentives focus on rewarding integration of renewable energy into mainstream power supplies. Within an internationalising context, Spanish utilities selectively “export” their domestic experience to gain global footholds. |
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