Recent experience from around the world suggests that feed-in tariffs (FITs) are the most effective policy to encourage the rapid and sustained deployment of renewable energy. There are several ...different ways to structure a FIT policy, each with its own strengths and weaknesses. This paper presents an overview of seven different ways to structure the remuneration of a FIT policy, divided into two broad categories: those in which remuneration is dependent on the electricity price, and those that remain independent from it. This paper examines the advantages and disadvantages of these different FIT models, and concludes with an analysis of these design options, with a focus on their implications both for investors and for society.
Hiang Kwee Lee
Angewandte Chemie International Edition,
March 1, 2023, 2023-Mar-01, 2023-03-00, 20230301, Letnik:
62, Številka:
10
Journal Article
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“The most exciting thing about my research is manipulating renewable energy and chemical feedstock at the nanoscale to create useful molecules… To improve my work–life balance, I ask my team members ...to have work–life balance too, especially over the weekend. …” Find out more about Hiang Kwee Lee in his Introducing … Profile.
With the development of renewable energy market, Renewable Portfolio Standard (RPS) has become the targeted renewable energy incentive mechanism in China and it is under a government's long-term plan ...that RPS overtakes feed-in tariff gradually in recent years. Given this background, the decision-making model of electricity retailers to accomplish the obligation under RPS is constructed as a bi-layer portfolio selection model. In the inner-layer, both capital allocation of the retailers to purchase various kinds of renewable energy capacity as well as RECs are optimised. In the outer-layer, the capital investment portfolio of each risky and risk-free strategy is determined based on the Behavioural Portfolio Theory, with different mental accounts (MAs) with different aspiration points and threshold levels built to describe the investor philosophy of retailers during the decision-making process. The simulation results of a provincial electricity market in China demonstrate that the presented model can effectively assist electricity retailers in making their capital investment strategies under RPS with relevant market factors. In addition, the proposed model provides insights for policy makers to set key parameters involving the design of RPS by analysing behaviours of retailers, including required quota ratio and value of fines.
Corporate adoption of renewables has been lukewarm at best in Singapore. This study aims to identify the drivers and barriers to renewable procurement, establish key criteria for renewable energy ...certificates (RECs, a type of renewable energy product), and recommend policies to accelerate corporate renewable energy adoption in Singapore. We surveyed seven drivers, 12 barriers, nine criteria of RECs, and 11 actions for REC adoption with 35 experienced professionals from major business sectors in Singapore. The top three drivers of corporate renewable procurement were to meet corporate sustainability goals, reduce energy procurement costs, and demonstrate corporate leadership. The most concerning criterion of RECs was traceability that RECs must be generated and transacted through a REC tracking system endorsed by the government or a third party. The most significant barrier to REC adoption was the lack of awareness of RECs and their benefits. Plausible actions to address the barriers include seeking support from senior management, establishing corporate sustainability targets, developing national standards for RECs, promoting successful local business cases, and for government to endorse private-sector REC tracking system(s). The findings could raise corporate awareness and assist policymakers in formulating policies, infrastructure, and initiatives to accelerate renewable energy adoption in Singapore.
Greenhouse gas mitigation strategies are generally considered costly with world leaders often engaging in debate concerning the costs of mitigation and the distribution of these costs between ...different countries. In this paper, the analyses and results of the design of a 100% renewable energy system by the year 2050 are presented for a complete energy system including transport. Two short-term transition target years in the process towards this goal are analysed for 2015 and 2030. The energy systems are analysed and designed with hour-by-hour energy system analyses. The analyses reveal that implementing energy savings, renewable energy and more efficient conversion technologies can have positive socio-economic effects, create employment and potentially lead to large earnings on exports. If externalities such as health effects are included, even more benefits can be expected. 100% Renewable energy systems will be technically possible in the future, and may even be economically beneficial compared to the business-as-usual energy system. Hence, the current debate between leaders should reflect a combination of these two main challenges.
In this article, we develop an empirical model to investigate the causal link amid renewable and non-renewable electricity consumption, GDP and carbon emissions by using a panel of 9 Mediterranean ...countries over the period 1980–2014. Using the PMG panel ARDL and panel econometric technics, heterogeneity and cross-sectional dependence among the panel were considered to explore the long and short-run dynamic relationships as well as the validity of a proposed model. The results provide panel empirical evidence that there is short-term bidirectional causality between GDP, renewable electricity consumption and CO2 emissions and between non-renewable electricity consumption, GDP and renewable electricity consumption. For the long-term causal relationship, the result indicates that there is bidirectional causality between non-renewable electricity consumption and CO2 emissions. However, there is evidence of unidirectional causal relationships from GDP to CO2 emissions and non-renewable electricity consumption and from renewable electricity consumption to CO2 emissions. The findings imply that non-renewable electricity consumption and economic growth stimulate CO2 emissions in southern and northern Mediterranean countries, while renewable electricity reduces them. This empirical evidence suggests that expansion of renewable energy sources is a viable strategy for addressing energy security and reducing carbon emissions to protect the environment for future generations.
•We examine the dynamic relationship between CO2 emission and renewable electricity.•We employed cointegration technique allowing cross-section dependence among the panel.•Non-renewable electricity found to have a detrimental impact on the environment quality.•Whereas renewable found to have a positive effect on the environmental quality.•Expansion of renewable energy sources is a strategic plan enhance environmental quality.
This paper attempts to empirically analyze the compatibility of national trade liberalization policies with regards to promoting widespread use of renewable energy resources across 71 low, ...lower-middle and upper-middle income countries from South Asia, East Asia, Pacific, Central Asia, Latin America, Caribbean islands and Sub-Saharan Africa. Annual time series data from 2000 to 2017 is employed to perform panel data cointegration and regression analyses. The results from the cointegration analyses show long-run associations between trade liberalization policies and the renewable energy consumption indicators. The Instrumental Variable Two-Stage Least Squares panel data estimator is employed to control for the endogeneity in the dataset. The overall results broadly point towards the effectiveness of greater trade openness in facilitating renewable energy transition only in the low-income economies while prolonging the transition periods in the lower and upper-middle income countries. The marginal impact of a rise in the trade openness index is estimated to enhance the renewable energy share in total energy consumption within low-income countries by 0.24% as opposed to lowering this share by 0.19% within lower-middle income economies. However, trade liberalization is found to attribute to greater efficiency of renewable energy use across all the three income groups. Thus, these findings have critically important policy implications for the respective governments.
•Trade liberalization exerts heterogeneous impacts on renewable energy transition.•Trade openness increases renewable energy consumption only across the LIC.•Liberal trade policies enhance renewable energy shares only within LIC and UMIC.•Efficiency of renewable energy-use is amplified via trade liberalization.•Higher trade openness accounts for greater access to clean cooking fuels in LMIC.
The recast of the Renewable Energy Directive (RED II) provides an enabling framework for “Renewable Energy Communities” (RECs) that is being transposed into law by the 27 European Union Member States ...by June 2021. RECs are majority owned by local members or shareholders who are authorized to share energy within the community, offering the potential to unlock private investment and financing for renewable energy sources and provide social benefits. However, successful implementation and a just energy transition requires the coupling of technological solutions with more open decision making, based on sound analysis, knowledge of engineering, spatial planning, and social science. We argue that financing and ownership models that address renewable energy complementarity, spatial organization of resource potential, demographics, pushback from incumbents, and inclusion of traditionally marginalized groups, are common issues across all Member States that are crucial for the transposition of RED II and a just energy transition. This paper highlights the benefits and challenges of widespread development of RECs, and using examples from the pending transposition process provides policy advice for effective implementation of the RED II with respect to RECs.
•Rules for renewable energy communities (RECs) are being transposed in the EU.•RECs can contribute to a just and democratic energy transition.•There are common issues for implementation across EU member states.•Complementarity and proximity of renewable energy must be explicitly considered.•Ownership models that promote justice and community control are crucial to success.
This paper presents a literature review addressing the public acceptance of renewable energy as a replacement for fossil fuels in electricity production. This review was motivated by the global ...tendency for a substitution of conventional fuels by renewable energy sources (RES) during the global financial crisis. It studies research on the preferences and attitudes of local communities towards investments in renewable energy projects and their perception of the use of new energy technologies in their daily lives, through various case studies worldwide. An effort is made to identify the parameters that influence consumers' energy behaviour, together with their interest, or lack thereof, in the environmental impact of using fossil fuels to produce energy and their willingness to reduce it. Applications of contingent valuation are examined, which are employed to analyse public attitudes towards the use of RES for electricity production. Willingness-to-pay is observed to be correlated to socioeconomic characteristics including education, interest in environmental issues and knowledge of RES. Finally, the profile of a typical green energy consumer and appropriate policy paths for the penetration of RES into the energy market are outlined.
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