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Renewable Energy Support Policy Design

  • Rahmatallah Poudineh
  • Craig Brown
  • Benjamin Foley
Chapter

Abstract

As most types of renewable generation technologies are relatively expensive, at the prevailing electricity market prices, government support is crucial to promote their share in the generation mix. Nonetheless, designing a suitable support scheme is not a straightforward task, not least because of the competing and sometimes conflicting objectives of policies. This chapter reviews renewable support models and highlights their main specifications in relation to providing incentive for investment and cost reduction, as well as compatibility with renewable policy design principles. It concludes that the choice of support scheme depends on the characteristics of the electricity market, technology, economic institutions, public acceptance, and the ability of the model to reduce risk to investors and provide efficiency.

Keywords

Renewable policy design Indirect support schemes Direct support schemes Policy design trade-off 

References

  1. Fischer, C., & Preonas, L. (2010). Combining Policies for Renewable Energy: Is the Whole Less Than the Sum of Its Parts? International Review of Environmental and Resource Economics, 4, 51–92.CrossRefGoogle Scholar
  2. Krupa, J., & Poudineh, R. (2017). Financing Renewable Electricity in the Resource-Rich Countries of the Middle East and North Africa: A Review (Working paper no. EL 22). Oxford Institute for Energy Studies.Google Scholar
  3. Poudineh, R., Sen, A., & Fattouh, B. (2016). Advancing Renewable Energy in Resource-Rich Economies of the MENA (Working paper no. MEP 15). Oxford Institute for Energy Studies.Google Scholar

Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Rahmatallah Poudineh
    • 1
  • Craig Brown
    • 1
  • Benjamin Foley
    • 2
  1. 1.The Oxford Institute for Energy StudiesOxfordUK
  2. 2.Keystone Engineering Inc.New OrleansUSA

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