Oil Price Volatility, Economic Growth and the Hedging Role of Renewable Energy

OpenAIRE

Rentschler, Jun E.

2013-01-01

This paper investigates the adverse effects of oil price volatility on economic activity and the extent to which countries can hedge against such effects by using renewable energy. By considering the Realized Volatility of oil prices, rather than following the standard approach of considering oil price shocks in levels, the effects of factor price uncertainty on economic activity are analy...

DCCA analysis of renewable and conventional energy prices

Science.gov (United States)

Paiva, Aureliano Sancho Souza; Rivera-Castro, Miguel Angel; Andrade, Roberto Fernandes Silva

2018-01-01

Here we investigate the inter-influence of oil prices and renewable energy sources. The non-stationary time series are scrutinized within the Detrended Cross-Correlation Analysis (DCCA) framework, where the resulting DCCA coefficient provides a useful and reliable index to the evaluate the cross correlation between events at the same time instant as well as at a suitably chosen time lags. The analysis is based on the quotient of two successive daily closing oil prices and composite indices of renewable energy sources in USA and Europe in the period 2006-2015, which was subject to several social and economic driving forces, as the increase of social pressure in favor of the use of non-fossil energy sources and the worldwide economic crisis that started in 2008. The DCCA coefficient is evaluated for different window sizes, extracting information for short and long term correlation between the indices. Particularly, strong correlation between the behavior of the two distinct economic sectors are observed for large time intervals during the worst period of the economic crisis (2008-2012), hinting at a very cautious behavior of the economic agents. Before and after this period, the behavior of two economic sectors are overwhelmingly uncorrelated or very weakly correlated. The results reported here may be useful to select proper strategies in future similar scenarios.

Renewable energies and their effect on electricity prices: the case of the German nuclear phase-out

Energy Technology Data Exchange (ETDEWEB)

Comtesse, Daniel; Schroeer, Sebastian

2010-07-01

The aim of this article is to analyze the price effects of the market integration of renewable energies. Previous related studies describe a so-called 'merit order-effect', implying that decreasing electricity prices are caused by an increasing share of renewable energies. However, this is a static effect resulting from the assumption that the existing power plant fleet remains constant. Our contribution is to analyze the long-run price effect of the substitution of renewable energies for existing technologies like nuclear power, coal or gas. This aspect is relevant, since more and more countries increase the share of renewable energies in order to substitute fossil or nuclear power plants. Higher market shares of renewable energies are caused both by their increasing competitiveness and by political actions such as national targets or promotion schemes. Background and Stylized facts Since renewable energies usually have a lower marginal price of electricity generation - which determines the electricity prices at spot markets - their addition to an established power plant fleet consisting of nuclear, coal, lignite and gas power plants leads to lower electricity prices. However, the long-run price effect when fossil or nuclear power plants are substituted remains ambiguous. This is due to the fact that, if compared to fossil and nuclear fuels, renewable energies are characterized by three specific features: firstly, they lack the ability to secure base load. Secondly, they produce energy which is extremely volatile. Thirdly, their marginal costs of production are close to zero. These characteristics are caused by the high dependency of renewable energies on weather conditions. As electricity generation and consumption must happen simultaneously (electricity storage does not pay off yet), power plants with low base load capacity need back-up capacities. Given the actual technological state of the art, these back-up capacities must be fossil or nuclear power

The electricity prices in the European Union. The role of renewable energies and regulatory electric market reforms

International Nuclear Information System (INIS)

Moreno, Blanca; López, Ana J.; García-Álvarez, María Teresa

2012-01-01

The European Union electricity market has been gradually liberalized since 1990s. Theoretically, competitive markets should lead to efficiency gains in the economy thus reducing electricity prices. However, there is a controversial debate about the real effects of the electricity liberalization on electricity prices. Moreover, the increased generation of electricity from renewable energies RES-E (Electricity from Renewable Energy Sources) is also integrated in wholesale market reducing wholesale prices, but the final effect over household prices is not clear. In order to contribute to this debate, this paper provides an empirical investigation into the electricity prices determinants. In fact we develop econometric panel models to explore the relationship between the household electricity prices and variables related to the renewable energy sources and the competition in generation electricity market. More specifically we use a panel data set provided by Eurostat and covering 27 European Union countries during the period 1998–2009. Our results suggest that electricity prices increase with the deployment of RES-E and with the expansion of greenhouse gas emissions produced by energy industries- as a European Union CO 2 emission trading scheme exists. Results also reveal that country's characteristics can affect household electricity prices. -- Highlights: ► Electricity liberalized markets should lead to reduce electricity prices. ► The use of renewable energies (RES) reduce wholesale electricity prices. ► However, household electricity prices are increasing in European Union. ► Panel data models are developed to investigate the effect of RES and electricity competition on household electricity prices. ► We find that the deployment of RES increases prices paid by consumers in a liberalized market.

PEI's perspective on renewable energy development

International Nuclear Information System (INIS)

Brown, B.

2005-01-01

Approximately 7 per cent of Prince Edward Island's (PEI) energy supply is from renewable sources, acquired mainly from biomass. Wind power accounts for 0.5 per cent of electricity production. This paper discussed issues concerning renewable energy developments in PEI, with particular reference to the PEI Renewable Energy Act as well as the PEI energy framework and renewable energy strategy, which was the result of public consultation sessions held in 2003. The results of these sessions indicated that greater development of indigenous renewable energy resources was desired, particularly in wind power. It was also stated that the government should help to advance renewable energy development in the province. Several development opportunities were highlighted, including: wind; biodiesel; ethanol; biomass; bio-gas; and small-scale hydro. The advantages of wind power were reviewed and wind data was presented. The economic and community benefits of renewable energy include local price stability, development opportunities, diversity of fuel type and security of supply. It was noted that renewable energy fully complemented the energy goals of the PEI government. Several strategies were discussed towards the development of renewable energy, including feasibility studies in biogas and biomass generation. The PEI government's commitment towards developing a regulatory framework acknowledging environmental sustainability was re-stated. Objectives include the promotion of renewable energy sources through the establishment of a Renewable Portfolio Standard for electricity; improvements in the economics of small-scale electricity production from renewable resources through the introduction of net metering; decreases in peak demand; enablement of green credits; the designation of areas for large-scale wind developments; and provision of guaranteed prices paid to producers for medium and large-scale renewable energy generators through feed-in tariffs. tabs, figs

Threshold effect of the economic growth rate on the renewable energy development from a change in energy price. Evidence from OECD countries

International Nuclear Information System (INIS)

Chang, Ting-Huan; Huang, Chien-Ming; Lee, Ming-Chih

2009-01-01

This paper uses a panel threshold regression (PTR) model to investigate the influence that energy prices have on renewable energy development under different economic growth rate regimes. The empirical data are obtained from each of the OECD member-countries over the period from 1997 to 2006. We show that there is one threshold in the regression relationship, which is 4.13% of a one-period lag in the annual gross domestic product (GDP) growth rate. The consumer price index (CPI), in so far as it relates to variations in energy, is significantly positively correlated with the contribution of renewables to energy supply in the regime with higher-economic growth, but there is no relationship in the regime with lower economic growth. Therefore, countries characterized by high-economic growth are able to respond to high energy prices with increases in renewable energy use, while countries characterized by low-economic growth countries tend to be unresponsive to energy price changes when they come to their level of renewable energy. (author)

Easing the natural gas crisis: Reducing natural gas prices through increased deployment of renewable energy and energy efficiency

Energy Technology Data Exchange (ETDEWEB)

Wiser, Ryan; Bolinger, Mark; St. Clair, Matt

2004-12-21

Heightened natural gas prices have emerged as a key energy-policy challenge for at least the early part of the 21st century. With the recent run-up in gas prices and the expected continuation of volatile and high prices in the near future, a growing number of voices are calling for increased diversification of energy supplies. Proponents of renewable energy and energy efficiency identify these clean energy sources as an important part of the solution. Increased deployment of renewable energy (RE) and energy efficiency (EE) can hedge natural gas price risk in more than one way, but this paper touches on just one potential benefit: displacement of gas-fired electricity generation, which reduces natural gas demand and thus puts downward pressure on gas prices. Many recent modeling studies of increased RE and EE deployment have demonstrated that this ''secondary'' effect of lowering natural gas prices could be significant; as a result, this effect is increasingly cited as justification for policies promoting RE and EE. This paper summarizes recent studies that have evaluated the gas-price-reduction effect of RE and EE deployment, analyzes the results of these studies in light of economic theory and other research, reviews the reasonableness of the effect as portrayed in modeling studies, and develops a simple tool that can be used to evaluate the impact of RE and EE on gas prices without relying on a complex national energy model. Key findings are summarized.

Going beyond best technology and lowest price: on renewable energy investors’ preference for service-driven business models

International Nuclear Information System (INIS)

Loock, Moritz

2012-01-01

Renewable energy is becoming increasingly important for economies in many countries. But still in an emerging industry, renewable energy requires supportive energy policy helping firms to develop and protect competitive advantages in global competition. As a guideline for designing such policy, we consult well-informed stakeholders within the renewable energy industry: investors. Their preferences serve as explorative indicator for assessing which business models might succeed in competition. To contribute to only limited research on renewable energy investors’ preferences, we ask, which business models investment managers for renewable energy prefer to invest in. We report from an explorative study of 380 choices of renewable energy investment managers. Based on the stated preferences, we modelled three generic business models to calculate the share of investors’ preferences. We find exiting evidence: a “customer intimacy” business model that proposes best services is much more preferred by investors than business models that propose lowest price or best technology. Policy-makers can use those insights for designing policy that supports service-driven business models for renewable energy with a scope on customer needs rather than technology or price. Additionally, we state important implications for renewable energy entrepreneurs, managers and research.

The impact of renewable energy on electricity prices in the Netherlands

NARCIS (Netherlands)

Mulder, Machiel; Scholtens, Bert

Electricity markets may become more sensitive to weather conditions because of a higher penetration of renewable energy sources and climatic changes. We investigate whether weather conditions had a growing influence on the average daily day-ahead price in the Dutch electricity market in the period

A TOU Pricing Mechanism to Promote Renewable Energy Consumption: The Case of the Western Inner Mongolia Grid in China

Directory of Open Access Journals (Sweden)

Yong-xiu He

2017-01-01

Full Text Available The curtailment of wind power and photovoltaic power is becoming increasingly serious from the year 2012 to present in China. And the small installed capacity captive coal-fired power plants have been developed rapidly aiming to cut production costs. Therefore, by the substitution of renewable energy for captive coal-fired power plants, this paper establishes a time-of-use (TOU pricing mechanism with a linkage between the supply side and the demand side to promote renewable energy consumption, which is applied to the Western Inner Mongolia grid in China. The results show that the benefits to the grid company, electricity users, renewable energy producers, and social environment are influenced by the quantity of renewable energy purchased in the market, the market price for renewable energy, the quantity of electricity from grid to peak shaving, the carbon price, and the quantity of electricity generated by captive coal-fired power plants shifting to grid, in which the first factor has the greatest influence on the benefits of stakeholders. Furthermore, improving the accuracy of renewable energy generation forecast and optimizing using electricity behaviors by considering the renewable energy generation characteristics could ensure the TOU mechanism implementation successfully.

The unstudied barriers to widespread renewable energy deployment: Fossil fuel price responses

International Nuclear Information System (INIS)

Foster, Edward; Contestabile, Marcello; Blazquez, Jorge; Manzano, Baltasar; Workman, Mark; Shah, Nilay

2017-01-01

Renewable energy policy focuses on supporting the deployment of renewable power generators so as to reduce their costs through scale economies and technological learning. It is expected that, once cost parity with fossil fuel generation is achieved, a transition towards renewable power should continue without the need for further renewable energy subsidies. However, this reasoning implicitly assumes that the cost of fossil fuel power generation does not respond to the large scale penetration of renewable power. In this paper we build a standard economic framework to test the validity of this assumption, particularly in the case of coal and gas fired power generation. We find that it is likely that the cost of fossil fuel power generation will respond to the large scale penetration of renewables, thus making the renewable energy transition slower or more costly than anticipated. More analysis is needed in order to be able to quantify this effect, the occurrence of which should be considered in the renewable energy discourse. - Highlights: • Renewables are increasingly competing with fossil fuel power generation. • This may have various effects on the fossil fuel generation value chain. • One such possible effect is a response of fossil fuel prices to renewables deployment. • We have tested this hypothesis using a supply-demand analytical framework. • We found that the effect is likely to occur and should be further investigated.

An analysis of Renewable Portfolio Standard policy formulation and its influence on state level energy prices

Science.gov (United States)

McCollester, Peter Colin

Over the past two decades, environmental concern has crept to the forefront of the world policy agenda. This concern has manifested itself differently throughout the world. In the United States, this has come in the form of Renewable Portfolio Standards (RPS) which have become one of the primary policy tools which states use to encourage renewable energy generation. The advent of RPS has spurred intense debate at a federal and state level, centering on the economic merits of promoting renewable energy generation. Detractors argue that RPS will raise electricity rates, since generation from renewable sources is typically costlier than energy generated from fossil fuels. At this point, evidence to the relationship between RPS on electricity prices remains unclear. Researchers have attempted to understand this relationship through a variety of means. The most common being regression based models, which utilize readily available United States Energy Information Agency (US EIA) data, and have uncovered a number of important independent variables which are incorporated into the model in this study. Examples include personal income, state population, and deregulation of an energy market. In addition to empirical studies, the National Renewable Energy Laboratory (NREL) has created complex mathematical models which generate scenario projections based on a number of assumptions. While interesting, these are forward looking tools and as such have not yielded a tremendous amount of insight into the underlying policy mechanics of RPS. A challenge of addressing this topic which is worth noting is that much of the research available which analyzes the merits of RPS caters to distinct political or private sector agendas. The research gathered for this study is comprehensive, and attempts to avoid studies with any clear political, ideological, or financial motivation. Using the insights from previous researchers this study develops a rigorous fixed effects regression model to

Use of derivative instruments to integrate renewable energies into the electricity market

International Nuclear Information System (INIS)

Hartmann, Kilian; Nelles, Michael; Candra, Dodiek Ika

2017-01-01

The implementation of renewable energies to the electricity market is inefficient and expensive with current measures. Further these measures are prejudicial for the existing energy-only-market. The combination of fluctuating and controllable renewable powers in virtual power plants enables the marketing of this power as a derivate on the future market. Thus would relieve the spot market and stabilize pricing on both markets. Subsequently the renewable energy obligation will reduce and renewable energies could be marketed as secured power.

Modeling renewable energy company risk

International Nuclear Information System (INIS)

Sadorsky, Perry

2012-01-01

The renewable energy sector is one of the fastest growing components of the energy industry and along with this increased demand for renewable energy there has been an increase in investing and financing activities. The tradeoff between risk and return in the renewable energy sector is, however, precarious. Renewable energy companies are often among the riskiest types of companies to invest in and for this reason it is necessary to have a good understanding of the risk factors. This paper uses a variable beta model to investigate the determinants of renewable energy company risk. The empirical results show that company sales growth has a negative impact on company risk while oil price increases have a positive impact on company risk. When oil price returns are positive and moderate, increases in sales growth can offset the impact of oil price returns and this leads to lower systematic risk.

Renewable energy consumption, CO2 emissions and oil prices in the G7 countries

International Nuclear Information System (INIS)

Sadorsky, Perry

2009-01-01

Economic and societal issues related to energy security and global warming is placing greater emphasis on the consumption of renewable energy. This paper presents and estimates an empirical model of renewable energy consumption for the G7 countries. Panel cointegration estimates show that in the long term, increases in real GDP per capita and CO 2 per capita are found to be major drivers behind per capita renewable energy consumption. These results are robust across two different panel cointegration estimators. Oil price increases have a smaller although negative impact on renewable energy consumption. Deviations from equilibrium are driven mostly by the error correction term as opposed to short term shocks. Short term deviations from the long term equilibrium take anywhere from between 1.3 years (France) and 7.3 years (Japan) to correct. (author)

How to give up fossil energies and reduce CO2 emissions: an incentive for competitive renewable energies

International Nuclear Information System (INIS)

2015-01-01

After having outlined the relationship between cheap energy and human progress, and the increasing share of electric power in energy consumption (which means that electricity price will be a major determining factor of economic growth), this note briefly discusses the role of different energy sources. Coal appears to be the cheapest, but the most dangerous for mankind, renewable energies are expensive and intermittent and require an intensification of research works. Finally, the French system is presented as being one of the most efficient in the world, specifically in terms of CO 2 emissions. Some proposals are formulated regarding research on renewable energies, extension of nuclear plant lifetime, stability of electric power prices, and determination of a floor price for the CO 2 ton

The renewable energy development framework - II. The foundations of renewable energy development: Economic foundations of renewable energies; International foundations of renewable energies; European foundations of renewable energy development; Foundations of renewable energy development in internal law

International Nuclear Information System (INIS)

Combes Motel, Pascale; Thebaut, Matthieu; Loic Grard; Michallet, Isabelle

2012-01-01

A first article analysis the reasons for the development of renewable energies (economic and environmental reasons, European commitments in terms of production objectives), how these renewable energies can be developed (acceptation by the population, administrative, technological, and financial constraints, political instruments related to market, taxes and purchase prices). A second article proposes a discussion about the way international law deals with renewable energies as far as texts as well as actors are concerned. The third article describes the European ambitions regarding renewable energies as a product of national perspectives (national action plans and projects) as well as of European perspectives (financing, integrated actions). The last article presents and comments various legal texts dealing with the development of renewable energies in France (texts concerning the right to energy, the environment law, planning tools, incentive measures)

Strategy for the expansion of renewable energies. An investigation of the pricing strategy of the Renewable Energy Law from the viewpoint of an evolutionary cybernetic theory of economic policy

International Nuclear Information System (INIS)

Schlueter, Fabian

2015-01-01

This publication reports on how the steadily increasing costs caused by the Renewable Energy Law (EEG) have brought the German strategy for the expansion of renewable energies under criticism. According to theories of regulatory economic policy, which state that politico-economic incentives of this kind must necessarily result in an inefficient allocation of scarce resources, this cost increase can be interpreted as a direct consequence of the price intervention. The present publication takes a critical stance on this viewpoint, developing for its purpose a new position on regulatory policy referred to as the evolutionary cybernetic theory of economic policy. It starts out from the works of F.A. von Hayek, which it then takes a significant step further however. The author argues that price interventions can be meaningful strategies of economic policy as long as they are aimed at a temporary initiation of market development towards sustainability and efficiency. Based on this model conception of a shrewd pricing strategy the publication undertakes an analysis from the perspective of regulatory policy of the German subsidisation of renewable energies. In the process it not only reveals errors in design of the EEG but also makes a proposal for an amendment that could be effective in cutting through the present price dynamics. In presenting its recommendation of a self-steering expansion policy the publication not only contributes to the further development of an evolutionary cybernetic theory of economic policy but addresses the urgent problem of how to wisely use regulatory policy to create pricing strategies which serve the expansion of renewable energies.

Renewable energy consumption, CO{sub 2} emissions and oil prices in the G7 countries

Energy Technology Data Exchange (ETDEWEB)

Sadorsky, Perry [Schulich School of Business, York University, 4700 Keele Street, Toronto, Ontario (Canada)

2009-05-15

Economic and societal issues related to energy security and global warming is placing greater emphasis on the consumption of renewable energy. This paper presents and estimates an empirical model of renewable energy consumption for the G7 countries. Panel cointegration estimates show that in the long term, increases in real GDP per capita and CO{sub 2} per capita are found to be major drivers behind per capita renewable energy consumption. These results are robust across two different panel cointegration estimators. Oil price increases have a smaller although negative impact on renewable energy consumption. Deviations from equilibrium are driven mostly by the error correction term as opposed to short term shocks. Short term deviations from the long term equilibrium take anywhere from between 1.3 years (France) and 7.3 years (Japan) to correct. (author)

The market for tradable renewable energy credits

International Nuclear Information System (INIS)

Berry, David

2002-01-01

As states seek to foster the development of renewable energy resources, some have introduced renewable portfolio standards (RPSs) which require retailers of electricity to derive a specified amount of their energy supply from renewable energy resources. RPSs in Texas, Arizona, Wisconsin and Nevada allow for or require the use of tradable renewable energy credits. The price of such credits is expected to reflect the cost premium for generating electricity from renewable resources relative to the market price of conventionally generated electricity. Using the market to trade renewable energy credits exposes buyers and sellers to risks of imperfect information, poor performance, and opportunism. These risks can be managed through contractual arrangements and regulatory requirements pertaining to property rights in credits, pricing, term of the contract, and assurance of performance

The impact of intermittently renewable energy on Italian wholesale electricity prices: Additional benefits or additional costs?

International Nuclear Information System (INIS)

Gullì, Francesco; Balbo, Antonio Lo

2015-01-01

Most studies of the literature find that the development of renewable energy sources determines a decrease in the wholesale prices. Some authors use this finding to state that the current subsidies for renewable technologies cannot be considered as excessive. By carrying out a hybrid analysis (both simulation and ex-post empirical analyses) of the case of photovoltaic energy in Italy, this article demonstrates that this result cannot be generalised. Under market power, an increase in PV production can provide benefits in terms of a wholesale price decrease only beyond a specific threshold and especially if combined with other effects. Otherwise, it is likely that PV development could imply an increase in prices. Therefore, on the one hand, caution is necessary when using the estimated change in wholesale prices to evaluate the net cost for consumers of the supporting policies for renewables: either the simulation-based models or the full empirical analyses may be misleading. On the other hand, if 'decarbonisation' is the main objective, the energy policies should be designed in order to assure a deep and balanced penetration of the clean technologies, regardless of their estimated transitory impact on wholesale prices (and in the meantime reviewing the organisation of power markets). -- Highlights: •We use a hybrid analysis based on a combined approach (both simulation and ex-post empirical analyses). •There is a critical threshold of RES penetration within which prices may increase. •Price increases are more likely with PV rather than with wind power. •Either the simulation models or the full empirical analyses may be misleading. •Caution is necessary when using the results of these analyses for policy decisions

Renewable energy

International Nuclear Information System (INIS)

Berghmans, J.

1994-01-01

Renewable energy sources have a small environmental impact and can be easily integrated within existing structures. Moreover, the use of renewable energy sources can contribute to achieve a zero emission of carbon dioxide by 2100, provided an efficient environmental policy during the next 40 years. This includes a correct pricing policy of renewable energy sources with respect to nuclear energy and fossil fuel. The latter energy sources have been favoured in the past. In addition, an open market policy, the restructuring or conversion of existing international energy institutes, and international treaties for the protection of the natural environment are needed in view of achieving the zero carbon dioxide emission objective. (A.S.)

On the global economic potentials and marginal costs of non-renewable resources and the price of energy commodities

International Nuclear Information System (INIS)

Mercure, Jean-François; Salas, Pablo

2013-01-01

A model is presented in this work for simulating endogenously the evolution of the marginal costs of production of energy carriers from non-renewable resources, their consumption, depletion pathways and timescales. Such marginal costs can be used to simulate the long term average price formation of energy commodities. Drawing on previous work where a global database of energy resource economic potentials was constructed, this work uses cost distributions of non-renewable resources in order to evaluate global flows of energy commodities. A mathematical framework is given to calculate endogenous flows of energy resources given an exogenous commodity price path. This framework can be used in reverse in order to calculate an endogenous marginal cost of production of energy carriers given an exogenous carrier demand. Using rigid price inelastic assumptions independent of the economy, these two approaches generate limiting scenarios that depict extreme use of natural resources. This is useful to characterise the current state and possible uses of remaining non-renewable resources such as fossil fuels and natural uranium. The theory is however designed for use within economic or technology models that allow technology substitutions. In this work, it is implemented in the global power sector model FTT:Power. Policy implications are given. - Highlights: • Theoretical model to forecast marginal costs of non-renewable resources. • Tracks the consumption and costs of non-renewable resources. • For use in economic or technology models

Merit-order effects of renewable energy and price divergence in California’s day-ahead and real-time electricity markets

International Nuclear Information System (INIS)

Woo, C.K.; Moore, J.; Schneiderman, B.; Ho, T.; Olson, A.; Alagappan, L.; Chawla, K.; Toyama, N.; Zarnikau, J.

2016-01-01

We answer two policy questions: (1) what are the estimated merit-order effects of renewable energy in the California Independent System Operator’s (CAISO’s) day-ahead market (DAM) and real-time market (RTM)? and (2) what causes the hourly DAM and RTM prices to systematically diverge? The first question is timely and relevant because if the merit-order effect estimates are small, California’s renewable energy development is of limited help in cutting electricity consumers’ bills but also has a lesser adverse impact on the state’s investment incentive for natural-gas-fired generation. The second question is related to the efficient market hypothesis under which the hourly RTM and DAM prices tend to converge. Using a sample of about 21,000 hourly observations of CAISO market prices and their fundamental drivers during 12/12/2012–04/30/2015, we document statistically significant estimates (p-value≤0.01) for the DAM and RTM merit-order effects. This finding lends support to California’s adopted procurement process to provide sufficient investment incentives for natural-gas-fired generation. We document that the RTM-DAM price divergence partly depends on the CASIO’s day-ahead forecast errors for system loads and renewable energy. This finding suggests that improving the performance of the CAISO’s day-ahead forecasts can enhance trading efficiency in California’s DAM and RTM electricity markets. - Highlights: •Estimate the day-ahead and real-time merit-order effects of renewable energy in California. •Document statistically significant merit-order effects of solar and wind energy. •Document the difference between the day-ahead and real-time prices. •Attribute the price differences to forecast errors for load, solar and wind energy. •Discuss the evidence’s implications for California’s energy policy.

Accounting for fuel price risk when comparing renewable togas-fired generation: the role of forward natural gas prices

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Wiser, Ryan; Golove, William

2004-07-17

Unlike natural gas-fired generation, renewable generation (e.g., from wind, solar, and geothermal power) is largely immune to fuel price risk. If ratepayers are rational and value long-term price stability, then--contrary to common practice--any comparison of the levelized cost of renewable to gas-fired generation should be based on a hedged gas price input, rather than an uncertain gas price forecast. This paper compares natural gas prices that can be locked in through futures, swaps, and physical supply contracts to contemporaneous long-term forecasts of spot gas prices. We find that from 2000-2003, forward gas prices for terms of 2-10 years have been considerably higher than most contemporaneous long-term gas price forecasts. This difference is striking, and implies that comparisons between renewable and gas-fired generation based on these forecasts over this period have arguably yielded results that are biased in favor of gas-fired generation.

Green power: A renewable energy resources marketing plan

International Nuclear Information System (INIS)

Barr, R.C.

1997-01-01

Green power is electricity generated from renewable energy sources such as power generated from the sun, the wind, the heat of the earth, and biomass. Green pricing is the marketing strategy to sell green power to customers who voluntarily pay a premium for it. Green pricing is evolving from the deregulation of the electric industry, the need for clean air, reflected in part as concern over global warming, and technology advances. The goal of the renewable energy marketing plan is to generate enough revenues for a utility to fund power purchase agreements (PPAs) with renewable energy developers or construct its own renewable facilities. Long-term, fixed price PPAs enable developers to obtain financing to construct new facilities, sometimes taking technological risks which a utility might not take otherwise. The marketing plan is built around different rate premiums for different categories of ratepayers, volunteer customer participation, customer participation recognition, and budget allocations between project costs and power marketing costs. Green prices are higher than those for conventional sources, particularly prices from natural gas fired plants. Natural gas is abundant relative to oil in price per British thermal unit (Btu). Green pricing can help bridge the gap between the current oversupply of gas and the time, not far off, when all petroleum prices will exceed those for renewable energy. The rapid implementation of green pricing is important. New marketing programs will bolster the growing demand for renewable energy evidenced in many national surveys thus decreasing the consumption of power now generated by burning hydrocarbons. This paper sets forth a framework to implement a green power marketing plan for renewable energy developers and utilities working together

Energy trading and pricing in microgrids with uncertain energy supply

DEFF Research Database (Denmark)

Ma, Kai; Hu, Shubing; Yang, Jie

2017-01-01

This paper studies an energy trading and pricing problem for microgrids with uncertain energy supply. The energy provider with the renewable energy (RE) generation (wind power) determines the energy purchase from the electricity markets and the pricing strategy for consumers to maximize its profi....... In particular, the uncertainty of the energy supply from the energy provider is considered. Simulation results show that the energy provider can obtain more profit using the proposed decision-making scheme.......This paper studies an energy trading and pricing problem for microgrids with uncertain energy supply. The energy provider with the renewable energy (RE) generation (wind power) determines the energy purchase from the electricity markets and the pricing strategy for consumers to maximize its profit...

Renewable and recoverable energies. ADEME's views

International Nuclear Information System (INIS)

2017-12-01

This report presents the opinion (December 2017) of ADEME, the French office for energy management and sustainable development, on the future prospects of renewable and recoverable energies in France for 2050. It is assessed that, if associated to a firm energy conservation policy, the renewable and recoverable energies will have the ability to cover more than two thirds of the French energy needs in 2050, while ensuring energy supply security and price stability, a high level of energy independence, the preservation of the environment and a re-localization of the production value and of the employment. The report then presents the various renewable and recoverable energies, the assessment of the potential resources, the applications in the residential (individual and collective), industrial and commercial sectors, the comparison with other European countries, the public financial incentives and support, cost estimations of each energy source, assessments of the markets and of the potential economic impacts, etc. Some recommendations are given, notably concerning the necessary public support for the renewable and recoverable energy sectors, and the synergy between power distribution systems and the energy systems. An annex gives details on the environmental impacts of renewable and recoverable energy sources

Economic modelling of price support mechanisms for renewable energy: case study on Ireland

International Nuclear Information System (INIS)

Huber, C.; Resch, G.

2007-01-01

The Irish Government is considering its future targets, policy and programmes for renewable energy for the period beyond 2005. This follows a review in 2003 of policy options that identified a number of different measures to stimulate increased deployment of renewable energy generation capacity. This paper expands this review with an economic analysis of renewable energy price support mechanisms in the Irish electricity generation sector. The focus is on three primary price support mechanisms quota obligations, feed in tariffs and competitive tender schemes. The Green-X computer model is utilised to characterise the RES-E potential and costs in Ireland up until, and including, 2020. The results from this dynamic software tool are used to compare the different support mechanisms in terms of total costs to society and the average premium costs relative to the market price for electricity. The results indicate that in achieving a 20% RES-E proportion of gross electricity consumption by 2020, a tender scheme provides the least costs to society over the period 2006-2020 but only in case there is limited or no strategic bidding. Considering, however, strategic bidding, a feed-in tariff can be the more efficient solution. Between the other two support mechanisms, the total costs to society are highest for feed-in-tariffs (FIT) until 2013, at which point the costs for the quota system begin to rise rapidly and overtake FIT in 2014-2020. The paper also provides a sensitivity analysis of the support mechanism calculations by varying default parameters such as the interim (2010) target, the assumed investment risk levels and the amount of biomass co-firing. This analysis shows that a 2010 target of 15% rather than 13.2% generates lower costs for society over the whole period 2006-2020, but higher costs for the RES-E strategy over the period 2006-2010. (author)

Economic modelling of price support mechanisms for renewable energy: Case study on Ireland

International Nuclear Information System (INIS)

Huber, Claus; Ryan, Lisa; O Gallachoir, Brian; Resch, Gustav; Polaski, Katrina; Bazilian, Morgan

2007-01-01

The Irish Government is considering its future targets, policy and programmes for renewable energy for the period beyond 2005. This follows a review in 2003 of policy options that identified a number of different measures to stimulate increased deployment of renewable energy generation capacity. This paper expands this review with an economic analysis of renewable energy price support mechanisms in the Irish electricity generation sector. The focus is on three primary price support mechanisms quota obligations, feed in tariffs and competitive tender schemes. The Green-X computer model is utilised to characterise the RES-E potential and costs in Ireland up until, and including, 2020. The results from this dynamic software tool are used to compare the different support mechanisms in terms of total costs to society and the average premium costs relative to the market price for electricity. The results indicate that in achieving a 20% RES-E proportion of gross electricity consumption by 2020, a tender scheme provides the least costs to society over the period 2006-2020 but only in case there is limited or no strategic bidding. Considering, however, strategic bidding, a feed-in tariff can be the more efficient solution. Between the other two support mechanisms, the total costs to society are highest for feed-in-tariffs (FIT) until 2013, at which point the costs for the quota system begin to rise rapidly and overtake FIT in 2014-2020. The paper also provides a sensitivity analysis of the support mechanism calculations by varying default parameters such as the interim (2010) target, the assumed investment risk levels and the amount of biomass co-firing. This analysis shows that a 2010 target of 15% rather than 13.2% generates lower costs for society over the whole period 2006-2020, but higher costs for the RES-E strategy over the period 2006-2010

Accounting for fuel price risk when comparing renewable to gas-fired generation: the role of forward natural gas prices

International Nuclear Information System (INIS)

Bolinger, Mark; Wiser, Ryan; Golove, William

2006-01-01

Unlike natural gas-fired generation, renewable generation (e.g., from wind, solar, and geothermal power) is largely immune to fuel price risk. If ratepayers are rational and value long-term price stability, then-contrary to common practice-any comparison of the levelized cost of renewable to gas-fired generation should be based on a hedged gas price input, rather than an uncertain gas price forecast. This paper compares natural gas prices that can be locked in through futures, swaps, and physical supply contracts to contemporaneous long-term forecasts of spot gas prices. We find that from 2000 to 2003, forward gas prices for terms of 2-10 years have been considerably higher than most contemporaneous long-term gas price forecasts. This difference is striking, and implies that comparisons between renewable and gas-fired generation based on these forecasts over this period have arguably yielded results that are biased in favor of gas-fired generation

Distributional effects of the Australian Renewable Energy Target (RET) through wholesale and retail electricity price impacts

International Nuclear Information System (INIS)

Cludius, Johanna; Forrest, Sam; MacGill, Iain

2014-01-01

The Australian Renewable Energy Target (RET) has spurred significant investment in renewable electricity generation, notably wind power, over the past decade. This paper considers distributional implications of the RET for different energy users. Using time-series regression, we show that the increasing amount of wind energy has placed considerable downward pressure on wholesale electricity prices through the so-called merit order effect. On the other hand, RET costs are passed on to consumers in the form of retail electricity price premiums. Our findings highlight likely significant redistributive transfers between different energy user classes under current RET arrangements. In particular, some energy-intensive industries are benefiting from lower wholesale electricity prices whilst being largely exempted from contributing to the costs of the scheme. By contrast, many households are paying significant RET pass through costs whilst not necessarily benefiting from lower wholesale prices. A more equitable distribution of RET costs and benefits could be achieved by reviewing the scope and extent of industry exemptions and ensuring that methodologies to estimate wholesale price components in regulated electricity tariffs reflect more closely actual market conditions. More generally, these findings support the growing international appreciation that policy makers need to integrate distributional assessments into policy design and implementation. - Highlights: • The Australian RET has complex yet important distributional impacts on different energy users. • Likely wealth transfers from residential and small business consumers to large energy-intensive industry. • Merit order effects of wind likely overcompensate exempt industry for contribution to RET costs. • RET costs for households could be reduced if merit order effects were adequately passed through. • Need for distributional impact assessments when designing and implementing clean energy policy

Renewable energy costs, potentials, barriers: Conceptual issues

International Nuclear Information System (INIS)

Verbruggen, Aviel; Fischedick, Manfred; Moomaw, William; Weir, Tony; Nadai, Alain; Nilsson, Lars J.; Nyboer, John; Sathaye, Jayant

2010-01-01

Renewable energy can become the major energy supply option in low-carbon energy economies. Disruptive transformations in all energy systems are necessary for tapping widely available renewable energy resources. Organizing the energy transition from non-sustainable to renewable energy is often described as the major challenge of the first half of the 21st century. Technological innovation, the economy (costs and prices) and policies have to be aligned to achieve full renewable energy potentials, and barriers impeding that growth need to be removed. These issues are also covered by IPCC's special report on renewable energy and climate change to be completed in 2010. This article focuses on the interrelations among the drivers. It clarifies definitions of costs and prices, and of barriers. After reviewing how the third and fourth assessment reports of IPCC cover mitigation potentials and commenting on definitions of renewable energy potentials in the literature, we propose a consistent set of potentials of renewable energy supplies.

Prices versus quantities: choosing policies for promoting the development of renewable energy

International Nuclear Information System (INIS)

Menanteau, Philippe; Finon, Dominique; Lamy, Marie-Laure

2003-01-01

Now that the risks of climate change have been confirmed and the European States have declared their willingness to pursue ambitious objectives for producing electricity from renewable energy sources, it becomes crucial to take a look at the relative efficiency of the different incentive schemes used. Such schemes may focus on quantities-defining national targets and setting up bidding systems, or quota systems providing for green certificate trading, or they may focus on prices-feed-in tariffs. Clearly, these instruments are much the same as those used in environmental policies, with similar discussion involved in their choice. Whatever the system chosen, the role of the public authorities is quite specific: to stimulate technical progress and speed up the technological learning processes so that ultimately renewable energy technologies will be able to compete with conventional technologies, once the environmental costs have been internalised. A comparison of instruments must thus take into account the characteristics of the innovation process and adoption conditions--uncertainties regarding cost curves, learning effects--which means also looking at dynamic efficiency criteria. The authors examine the efficiency of the different incentive schemes for the development of renewable energy sources, both from a theoretical point of view by comparing price-based approaches with quantity-based approaches, and from a practical point of view by looking at concrete examples of how these different instruments have been implemented. The paper concludes that a system of feed-in tariffs is more efficient than a bidding system, but highlights the theoretical interest of green certificate trading which must be confirmed through practice, given the influence of market structures and rules on the performance of this type of approach

Supply amount and marginal price of renewable electricity under the renewables portfolio standard in Japan

International Nuclear Information System (INIS)

Nishio, Kenichiro; Asano, Hiroshi

2006-01-01

The Renewables Portfolio Standard (RPS) in Japan requires that approximately 1.35% of each retail supplier's electricity sales in FY2010 come from renewable energy sources (RES), for example, photovoltaics, wind, biomass, geothermal, and small hydropower. To help retail suppliers and renewable generators develop effective strategies, this study provides a quantitative analysis of the impact of this measure. We assume the supply conditions for electricity generation from renewable energy sources (RES-E) based on regional resource endowments, and we derive the cost-effective compositions of renewable portfolios, RES-E certificate prices, and additional costs to retail suppliers. The future prospects of RES-E are assessed based on technology, region, and year up to FY2010. The analysis reveals that wind power and biomass power generated from municipal waste will provide the majority of the total supply of RES-E under the RPS. It also indicates that the marginal price of RES-E certificates will be approximately 5.8 JPY/kWh (5.2 USc/kWh) in FY2010, in the case wherein the marginal price of electricity is assumed to be 4 JPY/kWh (3.6 USc/kWh). In order to elaborate on this further, sensitivity analyses for some parameters of RES and the price of electricity are provided. The dynamic supply curves of RES-E certificates are also indicated. (author)

Supply amount and marginal price of renewable electricity under the renewables portfolio standard in Japan

International Nuclear Information System (INIS)

Nishio, Kenichiro; Asano, Hiroshi

2006-01-01

The Renewables Portfolio Standard (RPS) in Japan requires that approximately 1.35% of each retail supplier's electricity sales in FY2010 come from renewable energy sources (RES), for example, photovoltaics, wind, biomass, geothermal, and small hydropower. To help retail suppliers and renewable generators develop effective strategies, this study provides a quantitative analysis of the impact of this measure. We assume the supply conditions for electricity generation from renewable energy sources (RES-E) based on regional resource endowments, and we derive the cost-effective compositions of renewable portfolios, RES-E certificate prices, and additional costs to retail suppliers. The future prospects of RES-E are assessed based on technology, region, and year up to FY2010. The analysis reveals that wind power and biomass power generated from municipal waste will provide the majority of the total supply of RES-E under the RPS. It also indicates that the marginal price of RES-E certificates will be approximately 5.8 JPY/kWh (5.2 USc/kWh) in FY2010, in the case wherein the marginal price of electricity is assumed to be 4 JPY/kWh (3.6 USc/kWh). In order to elaborate on this further, sensitivity analyses for some parameters of RES and the price of electricity are provided. The dynamic supply curves of RES-E certificates are also indicated

Supply amount and marginal price of renewable electricity under the renewables portfolio standard in Japan

Energy Technology Data Exchange (ETDEWEB)

Nishio, Kenichiro; Asano, Hiroshi [Central Research institute of Electric Power Industry, Tokyo (Japan). Socio-economic Research Center

2006-10-15

The Renewables Portfolio Standard (RPS) in Japan requires that approximately 1.35% of each retail supplier's electricity sales in FY2010 come from renewable energy sources (RES), for example, photovoltaics, wind, biomass, geothermal, and small hydropower. To help retail suppliers and renewable generators develop effective strategies, this study provides a quantitative analysis of the impact of this measure. We assume the supply conditions for electricity generation from renewable energy sources (RES-E) based on regional resource endowments, and we derive the cost-effective compositions of renewable portfolios, RES-E certificate prices, and additional costs to retail suppliers. The future prospects of RES-E are assessed based on technology, region, and year up to FY2010. The analysis reveals that wind power and biomass power generated from municipal waste will provide the majority of the total supply of RES-E under the RPS. It also indicates that the marginal price of RES-E certificates will be approximately 5.8 JPY/kWh (5.2 USc/kWh) in FY2010, in the case wherein the marginal price of electricity is assumed to be 4 JPY/kWh (3.6 USc/kWh). In order to elaborate on this further, sensitivity analyses for some parameters of RES and the price of electricity are provided. The dynamic supply curves of RES-E certificates are also indicated. (author)

International Voluntary Renewable Energy Markets (Presentation)

Energy Technology Data Exchange (ETDEWEB)

Heeter, J.

2012-06-01

This presentation provides an overview of international voluntary renewable energy markets, with a focus on the United States and Europe. The voluntary renewable energy market is the market in which consumers and institutions purchase renewable energy to match their electricity needs on a voluntary basis. In 2010, the U.S. voluntary market was estimated at 35 terawatt-hours (TWh) compared to 300 TWh in the European market, though key differences exist. On a customer basis, Australia has historically had the largest number of customers, pricing for voluntary certificates remains low, at less than $1 megawatt-hour, though prices depend on technology.

S-ratio method as criteria for renewable energy development in Indonesia

International Nuclear Information System (INIS)

Rinaldy Dalimi

2000-01-01

One of the strategy for national energy development in Indonesia is energy diversification, such as, by exploiting more renewable energy. Renewable energy development in the near future, particularly, is for rural electrification and remote area, where the electricity is not available and the price of conventional energy is higher than the possible electricity price. The government will give a priority to the rural area who already pay more for energy conventional. The conventional energy price is called as a substitute energy price (or willingness to pay). To determine which area can afford the renewable energy price, S-ratio method could also be used for the criteria. S-ratio is the ratio between net present value of the possible benefit and the investment needed. The possible benefit is calculated by using the substitute energy price. If the value of S-ratio is greater than 1 (one), it is the area can afford the renewable energy as a substitute energy. (Author)

Renewable energy policy in South Africa: policy options for renewable electricity

International Nuclear Information System (INIS)

Winkler, H.

2005-01-01

Investment in renewable energy and energy efficiency is important to reduce the negative economic, social and environmental impacts of energy production and consumption in South Africa. Currently, renewable energy contributes relatively little to primary energy and even less to the consumption of commercial energy. This article examines policy options for promoting renewable electricity. Feed-in tariffs guarantee prices for developers, but lack certainty on the amount of renewable electricity such laws would deliver under local conditions. Portfolio standards set a fixed quantity, which would guarantee diversity of supply. The question is whether the incremental upfront cost to be paid by society may be unacceptably high, compared to future health and environmental benefits. A renewables obligation combines the setting of a target with a tendering process, but may be bureaucratic to administer. Neither setting targets or regulating prices alone, however, will be sufficient. Power purchase agreements, access to the grid and creating markets for green electricity are some supporting activities that should be considered. Given that renewable electricity technologies have to compete with relatively low electricity tariffs, funding will be needed. Possible sources, both locally and internationally, are identified. The extent to which these are utilised will determine the future mix of renewable energy in South Africa. (author)

Renewable energy policy in South Africa: policy options for renewable electricity

International Nuclear Information System (INIS)

Winkler, Harald

2005-01-01

Investment in renewable energy and energy efficiency is important to reduce the negative economic, social and environmental impacts of energy production and consumption in South Africa. Currently, renewable energy contributes relatively little to primary energy and even less to the consumption of commercial energy. This article examines policy options for promoting renewable electricity. Feed-in tariffs guarantee prices for developers, but lack certainty on the amount of renewable electricity such laws would deliver under local conditions. Portfolio standards set a fixed quantity, which would guarantee diversity of supply. The question is whether the incremental upfront cost to be paid by society may be unacceptably high, compared to future health and environmental benefits. A renewables obligation combines the setting of a target with a tendering process, but may be bureaucratic to administer. Neither setting targets or regulating prices alone, however, will be sufficient. Power purchase agreements, access to the grid and creating markets for green electricity are some supporting activities that should be considered. Given that renewable electricity technologies have to compete with relatively low electricity tariffs, funding will be needed. Possible sources, both locally and internationally, are identified. The extent to which these are utilised will determine the future mix of renewable energy in South Africa

Planning for Micro-grid with Static Voltage Stability and Maximizing Renewable Energy Utilization

Science.gov (United States)

Zhou, Youfu; Zhang, Yuhong; Lv, Xuehai; Zhang, Wentai; Wei, Jun; Zhang, Changhua; Chen, Xin

2017-05-01

The access position and capacity of distribution generation (DG) affect the static voltage stability of micro-grid, thus affecting the renewable energy utilization. In the current reform of the energy supply side, a multi-objective optimization model is established, aiming at the abandoning wind and abandoning light problem. This model has three advantages, which are the largest renewable energy utilization, static voltage stability of micro-grid and the minimum cost of DG investment considering environmental benefits. It can effectively promote the use of wind power, photovoltaic power generation and other renewable energy sources. In this paper, the multi-objective optimization problem is transformed into a single objective programming problem by using the deviation method; the optimal solution of multi-objective function is solved by using particle swarm optimization algorithm, so as to establish the planning scheme of micro-grid. Simulation results prove the correctness and feasibility of the optimization method.

Modern Energy Markets Real-Time Pricing, Renewable Resources and Efficient Distribution

CERN Document Server

Kopsakangas-Savolainen, Maria

2012-01-01

Energy has moved to the forefront in terms of societal and economic development. Modern Energy Markets is a comprehensive, economically oriented, exploration of modern electricity networks from production and distribution to deregulation and liberalization processes. Updating previous work by the authors, different aspects are considered resulting in a complete and detailed picture of  the systems and characteristics of modern electricity markets. Modern Energy Markets provides clear detail whilst encompassing a broad scope of topics and includes: •A method to model energy production systems including the main characteristics of future demand side management, •Different applications of this model in nuclear and renewable energy scenarios, •An analysis of Real-Time Pricing of electricity and its potential effects across the market, and, •A discussion of the need for regulation in an easily monopolized industry. Engineering and Economics students alike will find that Modern Energy Markets is a succinct...

Energy prices and agricultural commodity prices: Testing correlation using copulas method

International Nuclear Information System (INIS)

Koirala, Krishna H.; Mishra, Ashok K.; D'Antoni, Jeremy M.; Mehlhorn, Joey E.

2015-01-01

The linear relationships between energy prices and prices for agricultural commodities such as corn and soybeans may have been affected, over the last several years, by policy legislations in the farm sector, the Energy Independence and Security Act of 2007, and the Renewable Fuel Standard Program for 2014. Using high-frequency data and newer methodology, this study investigates dependence between agricultural commodity futures prices and energy futures prices. Results reveal that agricultural commodity and energy future prices are highly correlated and exhibit positive and significant relationship. Findings from this study highlight that an increase in energy price increases the price of agricultural commodities. - Highlights: • Energy policy mandates production of 15 billion gallons of corn ethanol by 2015. • Energy-intensive agriculture has a link between energy sector and crop production costs. • We investigate correlation between energy prices and agricultural commodity prices. • Agricultural commodity and energy future prices are highly correlated. • Increase in energy price increases the price of agricultural commodity

Research document no. 25. Prices versus quantities: environmental policies for promoting the development of renewable energy

International Nuclear Information System (INIS)

Menanteau, Ph.; Finon, D.; Lamy, M.L.

2001-05-01

Now that the risks of climate change have been confirmed and the European States have declared their willingness to pursue ambitious objectives for producing electricity from renewable energy sources, it becomes crucial to take a look at the relative efficiency of the different incentive schemes used. Such schemes may focus on quantities, or on prices. Whatever the system chosen, the role of the public authorities is quite specific: to stimulate technical progress and speed up the technological learning processes so that ultimately renewable energy technologies will be able to compete with conventional technologies, once the environmental costs have been internalized. The authors examine the efficiency of the different incentive schemes for the development of renewable energy sources, both from a theoretical point of view by comparing price-based approaches with quantity-based approaches, and from a practical point of view by looking at concrete examples of how these different instruments have been implemented. The paper concludes that a system of fixed feed-in tariffs is more efficient than a bidding system, but highlights the theoretical interest of green certificate trading which must be confirmed through practice, given the influence of market structures and rules on the performance of this type of approach. (A.L.B.)

Interactions of Policies for Renewable Energy and Climate

Energy Technology Data Exchange (ETDEWEB)

NONE

2011-07-01

This paper explores the relationships between climate policy and renewable energy policy instruments. It shows that, even where CO2 emissions are duly priced, specific incentives for supporting the early deployment of renewable energy technologies are justified by the steep learning curves of nascent technologies. This early investment reduces costs in the longer term and makes renewable energy affordable when it needs to be deployed on a very large scale to fully contribute to climate change mitigation and energy security. The paper also reveals other noteworthy interaction effects of climate policy and renewable policy instruments on the wholesale electricity prices in deregulated markets, which open new areas for future research.

Impacts of High Variable Renewable Energy Futures on Wholesale Electricity Prices, and on Electric-Sector Decision Making

OpenAIRE

Seel, J; Mills, AD; Wiser, RH

2018-01-01

Increasing penetrations of variable renewable energy (VRE) can affect wholesale electricity price patterns and make them meaningfully different from past, traditional price patterns. Many long-lasting decisions for supply- and demand-side electricity infrastructure and programs are based on historical observations or assume a business-as-usual future with low shares of VRE. Our motivating question is whether certain electric-sector decisions that are made based on assumptions reflecting low V...

REAL OPTIONS ANALYSIS OF RENEWABLE ENERGY INVESTMENT SCENARIOS IN THE PHILIPPINES

Directory of Open Access Journals (Sweden)

Casper Agaton

2017-12-01

Full Text Available Abstract - With the continuously rising energy demand and much dependence on imported fossil fuels, the Philippines is developing more sustainable sources of energy. Renewable energy seems to be a better alternative solution to meet the country’s energy supply and security concerns. Despite its huge potential, investment in renewable energy sources is challenged with competitive prices of fossil fuels, high start-up cost and lower feed-in tariff rates for renewables. To address these problems, this study aims to analyze energy investment scenarios in the Philippines using real options approach. This compares the attractiveness of investing in renewable energy over continuing to use coal for electricity generation under uncertainties in coal prices, investments cost, electricity prices, growth of investment in renewables, and imposing carbon tax for using fossil fuels.

Energy price comparison of new, renewable, and fossil energy sources

International Nuclear Information System (INIS)

Edwaren Liun; Sunardi

2014-01-01

Low cost transportation for people and goods is essential to the economic well-being of the nation. Until now, if the oil prices rise, the cost of transportation will automatically follow and most of the people suffering due to soaring prices of food and other items. Almost 100 percent of Indonesian transportation energy demand is supported by oil. Supply disruption - or even the threat of disruption - in the Middle East or elsewhere may lead to a shift in consumer prices and the cost of the industry in significant numbers. While costs in the energy sector, especially electricity in developed countries that also contribute significantly to support the transport sector, is much more stable and predictable. Energy requirements are so high in the transport sector tends to force people to seek the source and means of energy in other forms such as electricity or hydrogen that can match or exceed the performance of fuel oil. This paper aims to analyze the economics of energy price comparison to see the extent of the economic opportunities some kind of energy to play a significant role in the transport sector and the subsequent impact on the energy system. From the results obtained by the analysis that will be increasingly necessary role of nuclear energy and other specific energy as a source of electrical energy considering its economical aspects are relatively better. (author)

Willingness to pay for electricity from renewable energy

Energy Technology Data Exchange (ETDEWEB)

Farhar, B.C.; Houston, A.H.

1996-09-01

National polls reveal widespread public preference and willingness to pay more for renewables. ``Green pricing`` programs attempt to capitalize on these preferences and on an expressed willingness to pay more for environmental protection. This report explores the utility option of green pricing as a method of aggregating public preferences for renewables. It summarizes national data on public preferences for renewables and willingness to pay (WTP) for electricity from renewable energy sources; examines utility market studies on WTP for renewables and green-pricing program features; critiques utility market research on green pricing; and discusses experiences with selected green-pricing programs. The report draws inferences for program design and future research. Given the limited experiences with the programs so far, the evidence suggests that programs in which customers pay a monthly premium for a specific renewable electricity product elicit a higher monthly financial commitment per customer than programs asking for contributions to unspecified future actions involving renewables. The experience with green-pricing programs is summarized and factors likely to affect customer participation are identified.

Electricity prices, large-scale renewable integration, and policy implications

International Nuclear Information System (INIS)

Kyritsis, Evangelos; Andersson, Jonas; Serletis, Apostolos

2017-01-01

This paper investigates the effects of intermittent solar and wind power generation on electricity price formation in Germany. We use daily data from 2010 to 2015, a period with profound modifications in the German electricity market, the most notable being the rapid integration of photovoltaic and wind power sources, as well as the phasing out of nuclear energy. In the context of a GARCH-in-Mean model, we show that both solar and wind power Granger cause electricity prices, that solar power generation reduces the volatility of electricity prices by scaling down the use of peak-load power plants, and that wind power generation increases the volatility of electricity prices by challenging electricity market flexibility. - Highlights: • We model the impact of solar and wind power generation on day-ahead electricity prices. • We discuss the different nature of renewables in relation to market design. • We explore the impact of renewables on the distributional properties of electricity prices. • Solar and wind reduce electricity prices but affect price volatility in the opposite way. • Solar decreases the probability of electricity price spikes, while wind increases it.

Market performance and distributional effects on renewable energy markets

International Nuclear Information System (INIS)

Koutstaal, P.; Bijlsma, M.; Zwart, G.; Van Tilburg, X.; Ozdemir, O.

2009-08-01

A renewable obligation (RO) combined with tradable renewable energy certificates is a market-based instrument used to promote the production of electricity from renewable energy sources. A renewable obligation is an alternative for subsidies. A renewable obligation will only be an efficient instrument if certificate markets are efficient. This requires that there is no market power and no anti-competitive behaviour on the certificate market. If the current developments in Dutch renewable energy production continue, market power on a future renewable certificate market in the Netherlands will probably not be an issue, even if the RO should only rest on the retail market instead of on the whole electricity market. A renewable obligation will raise the retail price for consumers, thereby reducing consumer surplus. Simulations show that the retail electricity price increases with 30 euro per MWh to a level of 104 euro per MWh in case of a 30% renewable target. Consumer surplus is reduced with 19% compared to the baseline scenario. In contrast, a subsidy such as the Dutch SDE (Promoting Renewable Energy scheme or 'Stimulering Duurzame Energie') which is financed from the state budget has the effect to (slightly) lower the retail electricity price, thereby increasing consumer surplus. It should however be realised that the costs of the subsidy will indirectly affect electricity consumers through their tax payments.

Renewable energy investment: Policy and market impacts

International Nuclear Information System (INIS)

Reuter, Wolf Heinrich; Szolgayová, Jana; Fuss, Sabine; Obersteiner, Michael

2012-01-01

Highlights: ► Feedback of decisions to the market: large companies can have an impact on prices in the market. ► Multiple uncertainties: analysis of uncertainties emanating from both markets and environment. ► Policy analysis: impact of uncertainty about the durability of feed-in tariffs. -- Abstract: The liberalization of electricity markets in recent years has enhanced competition among power-generating firms facing uncertain decisions of competitors and thus uncertain prices. At the same time, promoting renewable energy has been a key ingredient in energy policy seeking to de-carbonize the energy mix. Public incentives for companies to invest in renewable technologies range from feed-in tariffs, to investment subsidies, tax credits, portfolio requirements and certificate systems. We use a real options model in discrete time with lumpy multiple investments to analyze the decisions of an electricity producer to invest into new power generating capacity, to select the type of technology and to optimize its operation under price uncertainty and with market effects. We account for both the specific characteristics of renewables and the market effects of investment decisions. The prices are determined endogenously by the supply of electricity in the market and by exogenous electricity price uncertainty. The framework is used to analyze energy policy, as well as the reaction of producers to uncertainty in the political and regulatory framework. In this way, we are able to compare different policies to foster investment into renewables and analyze their impacts on the market.

Renewable energy outlook in Iran and World's energy structure

International Nuclear Information System (INIS)

Azarm, D.; Adl, M.

2001-01-01

Limited fossil fuel resources and environmental impact of energy production technologies causing Global Warming have encouraged wide spread used of renewable energies. This article reviews the characteristics of renewable energy sources as well as their status within IR of Iran and pro-countries. According to the mentioned Information and Status, currently 22% of world electricity is produced through conversion of various renewable energies and expected to grow even further. This trend has been a main factor in reduction of end-used renewable energy prices. Consideration of social and environmental costs of fossil fuel use will help to reveal compatibility of renewable energies. Utilization of renewable energy potentials apart from proven environmental advantages and job creation effects may conserve country's conventional fossil fuel resources. In general, growth of renewable energy in a country is direct result of existing energy policies with respect to increasing the share of clean energies in the energy basket. Nevertheless in Iran yearly demand hikes for energy and considering the fact the fossil fuel reservoirs are limited, utilization of renewable energy potentials is inevitable

Energy price uncertainty, energy intensity and firm investment

International Nuclear Information System (INIS)

Yoon, Kyung Hwan; Ratti, Ronald A.

2011-01-01

This paper examines the effect of energy price uncertainty on firm-level investment. An error correction model of capital stock adjustment is estimated with data on U.S. manufacturing firms. Higher energy price uncertainty is found to make firms more cautious by reducing the responsiveness of investment to sales growth. The result is robust to consideration of energy intensity by industry. The effect is greater for high growth firms. It must be emphasized that the direct effect of uncertainty is not estimated. Conditional variance of energy price is obtained from a GARCH model. Findings suggest that stability in energy prices would be conducive to greater stability in firm-level investment. (author)

Renewable energy technologies: costs and markets

International Nuclear Information System (INIS)

Nitsch, J.; Langniss, O.

1997-01-01

A prominent feature of renewable energy utilisation is the magnitude of renewable energy that is physically available worldwide. The present paper attempts an economic valuation of development strategies for renewable energy sources (RES) on the basis of the past development of RES markets. It comes to the conclusion that if current energy prices remain largely unchanged, it will be necessary to promote RES technologies differentially according to the technique and type of energy employed or to provide start-up funding. The more probable a long-term increase in energy prices becomes, the greater will be the proportion of successfully promoted technologies. Energy taxes on exhaustible or environmentally harmful energy carriers and other instruments to this end would contribute greatly to the attractivity of RES investment both in terms of national economy and from the viewpoint of the private investor. Renewable energies will play an important role in the hardware and services sectors of the energy market in the decades to come. Long-term promotion of market introduction programmes and unequivocal energy-political aims on the part of the government are needed if the German industry is to have a share in this growing market and be able to offer internationally competitive products [de

Use of derivative instruments to integrate renewable energies into the electricity market; Einsatz derivativer Instrumente zur Integration erneuerbarer Energien in den Strommarkt

Energy Technology Data Exchange (ETDEWEB)

Hartmann, Kilian [Hochschule Aschaffenburg (Germany). Fakultaet fuer Ingenieurwissenschaften; Nelles, Michael [Rostock Univ. (Germany). Agrar- und Umweltwissenschaftliche Fakultaet; Candra, Dodiek Ika

2017-08-01

The implementation of renewable energies to the electricity market is inefficient and expensive with current measures. Further these measures are prejudicial for the existing energy-only-market. The combination of fluctuating and controllable renewable powers in virtual power plants enables the marketing of this power as a derivate on the future market. Thus would relieve the spot market and stabilize pricing on both markets. Subsequently the renewable energy obligation will reduce and renewable energies could be marketed as secured power.

Somerset County Renewable Energy Initiative

Energy Technology Data Exchange (ETDEWEB)

Katula, Denise [County of Somerset, Somervile, NJ (United States)

2014-05-07

The County of Somerset, New Jersey, through the Somerset County Improvement Authority (SCIA), applied Federal funding through the U.S. Department of Energy to will apply project funds to buy-down the capital costs of equipment associated with the installation of solar photovoltaic (PV) systems at two sites owned by the County. This Renewable Energy Initiative allows the County to take advantage of clean renewable energy, without any adverse debt impacts, and at a price that results in operating budget savings beyond what is presently available in the marketplace. This project addressed the objectives of the Office of Energy Efficiency and Renewable Energy by making the acquisition of renewable energy more affordable for the County, thereby, encouraging other counties and local units to develop similar programs and increase the deployment of solar energy technologies. The two sites that were funded by the DOE grant are part of a much larger, ambitious, and unique renewable energy project, described in the next section.

Renewable energy 1998: Issues and trends

Energy Technology Data Exchange (ETDEWEB)

NONE

1999-03-01

This report presents the following five papers: Renewable electricity purchases: History and recent developments; Transmission pricing issues for electricity generation from renewable resources; Analysis of geothermal heat pump manufacturers survey data; A view of the forest products industry from a wood energy perspective; and Wind energy developments: Incentives in selected countries. A glossary is included. 19 figs., 27 tabs.

Renewable Energy CSOPs in Germany

Directory of Open Access Journals (Sweden)

Jens Lowitzsch

2013-01-01

Full Text Available The Energy-CSOP facilitates broad equity participation of citizens without assets or savings in a regulated public energy utility. As the CSOP is designed for regulated markets with guaranteed prices, regulated market access and long-term relationships between producer and consumer, the energy market is predestined. A CSOP trust can be set up for a renewable energy plant (e.g., a biogas reactor, a solar panel, a windmill or a geothermic drill. European states have set an ambitious target to reach 20% share of energy from renewable sources by 2020. Germany as Europe’s green energy leader could become a pioneer in CSOP implementation. Small communities in Europe would benefit from the increased share of renewable energy resources.

Current Renewable Energy Technologies and Future Projections

Energy Technology Data Exchange (ETDEWEB)

Allison, Stephen W [ORNL; Lapsa, Melissa Voss [ORNL; Ward, Christina D [ORNL; Smith, Barton [ORNL; Grubb, Kimberly R [ORNL; Lee, Russell [ORNL

2007-05-01

The generally acknowledged sources of renewable energy are wind, geothermal, biomass, solar, hydropower, and hydrogen. Renewable energy technologies are crucial to the production and utilization of energy from these regenerative and virtually inexhaustible sources. Furthermore, renewable energy technologies provide benefits beyond the establishment of sustainable energy resources. For example, these technologies produce negligible amounts of greenhouse gases and other pollutants in providing energy, and they exploit domestically available energy sources, thereby reducing our dependence on both the importation of fossil fuels and the use of nuclear fuels. The market price of renewable energy technologies does not reflect the economic value of these added benefits.

Does renewable energies’ usage act as a shield against oil price changes?

OpenAIRE

Cardoso, Duarte Cortez dos Santos Vaz

2014-01-01

The purpose of this dissertation is to contribute to the existing literature on equity markets and energy prices by studying the impact of oil price changes on several American and European companies, taking into consideration their level of renewable energies’ usage within the total energy consumption. The results show that in fact there is an overall negative impact of oil price changes. However, when we split the oil price changes in positive and negative ones, it seems that their impact i...

Simulation of hybrid renewable microgeneration systems for variable electricity prices

International Nuclear Information System (INIS)

Brandoni, C.; Renzi, M.; Caresana, F.; Polonara, F.

2014-01-01

This paper addresses a hybrid renewable system that consists of a micro-Combined Cooling Heat and Power (CCHP) unit and a solar energy conversion device. In addition to a traditional PV system, a High Concentrator Photovoltaic (HCPV) device, the design of which is suitable for building integration application, was also modelled and embedded in the hybrid system. The work identifies the optimal management strategies for the hybrid renewable system in an effort to minimise the primary energy usage, the carbon dioxide emissions and the operational costs for variable electricity prices that result from the day-ahead electricity market. An “ad hoc” model describes the performance of the HCPV module, PV and Internal Combustion Engine, whilst the other units were simulated based on their main characteristic parameters. The developed algorithm was applied to three different building typologies. The results indicate that the best configuration is the hybrid renewable system with PV, which can provide a yearly primary energy reduction of between 20% and 30% compared to separate production. The hybrid renewable system with HCPV becomes competitive with the PV technology when the level of solar radiation is high. - Highlights: • The paper addresses a hybrid renewable system that consists of a micro-CCHP unit and a solar energy conversion device. • Both PV and High Concentrator Photovoltaic (HCPV) systems have been modelled and embedded in the hybrid system. • The work identifies the optimal management strategies for variable electricity prices. • Hybrid renewable systems provide a yearly primary energy reduction of between 20% and 30% compared to separate production. • When the level of solar radiation is high, HCPV becomes competitive with the PV technology

Adjusting the CO2 cap to subsidised RES generation: Can CO2 prices be decoupled from renewable policy?

International Nuclear Information System (INIS)

Richstein, Jörn C.; Chappin, Émile J.L.; Vries, Laurens J. de

2015-01-01

Highlights: • Strong renewable policy can cause price drops in an emission trading system (ETS). • Cap reduction based on exceedance of original policy goals could prevent price drops. • Dynamic cap reduction makes renewable policy climate effective in an ETS. • Dynamic cap reduction is not useful for reaching carbon price or volatility goals. • Dynamic cap reduction could undo the “green promotes the dirtiest” effect. - Abstract: The low prices in the European Emission Trading System (EU ETS) have triggered discussions of various possible reforms. One option is to decouple the CO 2 prices from renewable energy policy by adjusting the emission cap to renewable energy investment overshoots. We introduce two ways of reducing the CO 2 cap in response to overshoots of renewable policy investment over previously announced targets. We investigate these options with the agent-based model EMLab-generation. We find that both policy implementations are successful in restoring prices. They also ensure that making public investments that exceed policy targets contribute to carbon emission reduction, and that renewable policy does not benefit the most emission-intensive power plants. However, neither policy is suitable for achieving specifc levels of prices or price volatility

The Value of Renewable Energy as a Hedge Against Fuel Price Risk: Analytic Contributions from Economic and Finance Theory

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark A; Wiser, Ryan

2008-09-15

natural gas in the United States over a relatively brief period. Perhaps of most concern is that this dramatic price increase was largely unforeseen. Figure 2 compares the EIA's natural gas wellhead price forecast from each year's Annual Energy Outlook (AEO) going back to 1985 against the average US wellhead price that actually transpired. As shown, our forecasting abilities have proven rather dismal over time, as over-forecasts made in the late 1980's eventually yielded to under-forecasts that have persisted to this day. This historical experience demonstrates that little weight should be placed on any one forecast of future natural gas prices, and that a broad range of future price conditions ought to be considered in planning and investment decisions. Against this backdrop of high, volatile, and unpredictable natural gas prices, increasing the market penetration of renewable generation such as wind, solar, and geothermal power may provide economic benefits to ratepayers by displacing gas-fired generation. These benefits may manifest themselves in several ways. First, the displacement of natural gas-fired generation by increased renewable generation reduces ratepayer exposure to natural gas price risk--i.e., the risk that future gas prices (and by extension future electricity prices) may end up markedly different than expected. Second, this displacement reduces demand for natural gas among gas-fired generators, which, all else equal, will put downward pressure on natural gas prices. Lower natural gas prices in turn benefit both electric ratepayers and other end-users of natural gas. Using analytic approaches that build upon, yet differ from, the past work of others, including Awerbuch (1993, 1994, 2003), Kahn and Stoft (1993), and Humphreys and McClain (1998), this chapter explores each of these two potential 'hedging' benefits of renewable electricity. Though we do not seek to judge whether these two specific benefits outweigh any incremental

Renewable energy - an attractive marketing proposition

International Nuclear Information System (INIS)

Anon

2001-01-01

The Global Utilities arm of international business consultants PriceWaterhouseCoopers (PWC) has provided a unique insight into the investment plans of Australian utilities regarding renewable energy. PWC has released the findings of a survey of electricity generators and retailers that neatly illustrates the risks and opportunities facing corporations liable under the mandatory renewable energy targets (MRET). Probably the most revealing finding of the PWC report- 'The Future of Australian Renewable Energy' was that the majority of respondents have not yet formulated a comprehensive renewable energy strategy aimed at meeting their obligations under MRET, or maximising the benefit of renewable energy certificates (RECs) produced. Notably, the majority of those surveyed believed that the strongest incentives for investing in new renewable energy generation was the company's 'green image'. In contrast investment characteristics such as low risk returns, the achievement of cost efficiencies or attractive revenue streams were not critical reasons for investing in renewable generation

Renewable energy consumption and income in emerging economies

International Nuclear Information System (INIS)

Sadorsky, Perry

2009-01-01

Increased economic growth and demand for energy in emerging economies is creating an opportunity for these countries to increase their usage of renewable energy. This paper presents and estimates two empirical models of renewable energy consumption and income for a panel of emerging economies. Panel cointegration estimates show that increases in real per capita income have a positive and statistically significant impact on per capita renewable energy consumption. In the long term, a 1% increase in real income per capita increases the consumption of renewable energy per capita in emerging economies by approximately 3.5%. Long-term renewable energy per capita consumption price elasticity estimates are approximately equal to -0.70.

Renewable energies and energy transition in Germany

International Nuclear Information System (INIS)

Persem, Melanie

2014-01-01

This document presents some key figures about the German national energy plan: the 2013 coalition contract and the 2014-2017 government priorities, the security of energy supplies and the reflections about an evolution of the existing mechanism, the legal aspects of the renewable energies support mechanism (EEG law and its amendments, 2014 law reform, goals, direct selling, bids solicitation, self-consumer EEG contribution, exemptions redesigning), the energy-mix comparison between Germany and France, the 2003-2013 evolution of the renewable power generation, the German photovoltaic and wind power parks (installed power, geographical distribution, capacity), and the evolution of electricity prices for the industry and for households between 1998 and 2013

Electricity market auction settings in a future Danish electricity system with a high penetration of renewable energy sources - A comparison of marginal pricing and pay-as-bid

International Nuclear Information System (INIS)

Nielsen, Steffen; Sorknaes, Peter; Ostergaard, Poul Alberg

2011-01-01

The long-term goal for Danish energy policy is to be free of fossil fuels through the increasing use of renewable energy sources (RES) including fluctuating renewable electricity (FRE). The Danish electricity market is part of the Nordic power exchange, which uses a Marginal Price auction system (MPS) for the day-ahead auctions. The market price is thus equal to the bidding price of the most expensive auction winning unit. In the MPS, the FRE bid at prices of or close to zero resulting in reduced market prices during hours of FRE production. In turn, this reduces the FRE sources' income from market sales. As more FRE is implemented, this effect will only become greater, thereby reducing the income for FRE producers. Other auction settings could potentially help to reduce this problem. One candidate is the pay-as-bid auction setting (PAB), where winning units are paid their own bidding price. This article investigates the two auction settings, to find whether a change of auction setting would provide a more suitable frame for large shares of FRE. This has been done with two energy system scenarios with different shares of FRE. From the analysis, it is found that MPS is generally better for the FRE sources. The result is, however, very sensitive to the base assumptions used for the calculations. -- Highlights: → In this study two different auction settings for the Danish electricity market are compared. → Two scenarios are used in the analyses, one representing the present system and one representing a future 100% renewable energy system. → We find that marginal price auction system is most suitable for supporting fluctuating renewable energy in both scenarios. → The results are very sensitive to the assumptions about bidding prices for each technology.

Photovoltaics and renewable energies in Europe

International Nuclear Information System (INIS)

Jaeger-Waldau, Arnulf

2007-01-01

Photovoltaics and renewable energies are growing at a much faster pace than the rest of the economy in Europe and worldwide. This and the dramatic oil price increases in 2005 have led to a remarkable re-evaluation of the renewable energy sector by politics and financing institutions. Despite the fact that there are still discrepancies between the European Union and the USA, as to how to deal with climate change, renewable energies will play an important role for the implementation of the Kyoto Protocol and the worldwide introduction of tradable Green Certificates. Apart from the electricity sector, renewable energy sources for the generation of heat and the use of environment friendly biofuels for the transport sector will become more and more important in the future. (author)

Stabilization of microgrid with intermittent renewable energy sources by SMES with optimal coil size

International Nuclear Information System (INIS)

Saejia, M.; Ngamroo, I.

2011-01-01

A controller design of a superconducting magnetic energy storage unit is proposed. The structure of a power controller is the practical proportional-integral (PI). The PI parameters and coil size are tuned by a particle swarm optimization. The proposed method is able to effectively alleviate power fluctuations. It is well known that the superconducting coil is the vital part of a superconducting magnetic energy storage (SMES) unit. This paper deals with the power controller design of a SMES unit with an optimal coil size for stabilization of an isolated microgrid. The study microgrid consists of renewable energy sources with intermittent power outputs i.e., wind and photovoltaic. Since power generations from such renewable sources are unpredictable and variable, these result in power fluctuations in a microgrid. To stabilize power fluctuations, a SMES unit with a fast control of active and reactive power can be applied. The structure of a power controller is the practical proportional-integral (PI). Based on the minimization of the variance of power fluctuations from renewable sources as well as the initial stored energy of SMES, the optimal PI parameters and coil size are automatically and simultaneously tuned by a particle swarm optimization. Simulation studies show that the proposed SMES controller with an optimal coil size is able to effectively alleviate power fluctuations under various power patterns from intermittent renewable sources.

Stabilization of microgrid with intermittent renewable energy sources by SMES with optimal coil size

Energy Technology Data Exchange (ETDEWEB)

Saejia, M., E-mail: samongkol@gmail.com [School of Electrical Engineering, Faculty of Engineering, King Mongkut' s Institute of Technology Ladkrabang, Bangkok 10520 (Thailand); Ngamroo, I. [School of Electrical Engineering, Faculty of Engineering, King Mongkut' s Institute of Technology Ladkrabang, Bangkok 10520 (Thailand)

2011-11-15

A controller design of a superconducting magnetic energy storage unit is proposed. The structure of a power controller is the practical proportional-integral (PI). The PI parameters and coil size are tuned by a particle swarm optimization. The proposed method is able to effectively alleviate power fluctuations. It is well known that the superconducting coil is the vital part of a superconducting magnetic energy storage (SMES) unit. This paper deals with the power controller design of a SMES unit with an optimal coil size for stabilization of an isolated microgrid. The study microgrid consists of renewable energy sources with intermittent power outputs i.e., wind and photovoltaic. Since power generations from such renewable sources are unpredictable and variable, these result in power fluctuations in a microgrid. To stabilize power fluctuations, a SMES unit with a fast control of active and reactive power can be applied. The structure of a power controller is the practical proportional-integral (PI). Based on the minimization of the variance of power fluctuations from renewable sources as well as the initial stored energy of SMES, the optimal PI parameters and coil size are automatically and simultaneously tuned by a particle swarm optimization. Simulation studies show that the proposed SMES controller with an optimal coil size is able to effectively alleviate power fluctuations under various power patterns from intermittent renewable sources.

Opportunities for renewable energy sources in Central Asia countries

Energy Technology Data Exchange (ETDEWEB)

Obozov, A.J. [Project KUN (Kyrgyzstan); Loscutoff, W.V. [National Renewable Energy Lab., Golden, CO (United States)

1998-07-01

This report presents an overview of the state of conventional energy sources and the potential for development of renewable energy sources in the Central Asia countries of Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan, and Tajikistan. The region has a population of about 50 million in an area of more than four million square kilometers. The per capita gross internal product is more than $2,500, although the economy has been declining the past five years. The area has substantial coal, oil, uranium, and natural gas reserves, although they are not distributed equally among the five countries. Energy production is such that the countries do not have to rely heavily on imports. One of the problems in Central Asia is that the energy prices are substantially below the world prices. This is a factor in development of renewable energy sources. The primary renewable energy resources available are wind in Kazakhstan, solar in the entire region, biomass in Kyrgyzstan, and micro-hydropower stations in Kazakhstan and Kyrgyzstan. All of these have the potential to provide a significant amount of the required energy for the region. However, all of the countries have an abundance of various renewable energy resources. To effectively use these resources, however, a number of barriers to their development and commercialization must be overcome. These include low prices of conventional energy sources, absence of legislative support, lack of financing for new technologies, and lack of awareness of renewable energy sources by the population. A number of specific actions are proposed to overcome these barriers. These include establishment of a Central Asia coordinating council for renewable energy, development of a regional renewable energy program, and setting up a number of large demonstration projects. 16 figs.

Wind, hydro or mixed renewable energy source: Preference for electricity products when the share of renewable energy increases

International Nuclear Information System (INIS)

Yang, Yingkui; Solgaard, Hans Stubbe; Haider, Wolfgang

2016-01-01

While the share of renewable energy, especially wind power, increases in the energy mix, the risk of temporary energy shortage increases as well. Thus, it is important to understand consumers' preference for the renewable energy towards the continuous growing renewable energy society. We use a discrete choice experiment to infer consumers' preferences when the share of renewable energy increases. The study results indicate that consumers are generally willing to pay extra for an increasing share of renewable energy, but the renewable energy should come from a mixture of renewable energy sources. We also found that consumers prefer to trade with their current supplier rather than another well-known supplier. This study contributes to the energy portfolio theories and the theory of energy diversification in a consumer perspective. The managerial implications of this study are also discussed. - Highlights: • This paper investigates consumer preference for electricity when the share of renewable energy increases in the energy mix. • A total of 7084 choice sets were completed in the survey. • Consumer prefers a high percentage of mixed renewable energy at an affordable price level when the share of renewable increases. • Current electricity supplier was found to be the most favorable supplier for consumers. • Results had implications on energy regulators/policy makers, electricity retailers and renewable energy investors.

The effect of state renewable portfolio standards on consumer participation in green pricing programs

Science.gov (United States)

Maltese, James L.

In the last several years, two mechanisms for increasing the supply of renewable electricity have become increasingly popular: renewable portfolio standards, a state policy of mandating increased production of green power; and green pricing programs, which allow customers to purchase green power through their utilities. These mechanisms have been effective in increasing the adoption of renewable energy; however, it is unclear whether they interact in a way that is mutually beneficial or counterproductive. It is important to understand the effect of renewable portfolio standards on the voluntary market for green energy, especially as Congress considers a nationwide portfolio standard. The effectiveness of a renewable portfolio standard may be undercut if it leads customers to purchase less green power. This study analyzes the relationship between the passage and implementation of a renewable portfolio standard and two measures of enrollment in utility green pricing programs. Using eight years of data for all fifty states, the study utilizes multiple regression analysis with fixed-effects estimation. The results indicate that the passage of a renewable portfolio standard has a positive and statistically significant effect on green pricing enrollment within the state. At the same time, the rate at which states increase the stringency of the renewable portfolio standard is found to have no effect on enrollment. Although further study is needed to determine if additional factors are responsible for the observed increase in green pricing enrollment, this study provides evidence that such programs do not harm, and may in fact encourage, voluntary purchases of green power.

Barriers to retail marketing of renewable energy products in an energy-rich province

International Nuclear Information System (INIS)

Haner, S.A.

1999-01-01

Personal experiences in attempting to market photovoltaics and other renewable energy products in Alberta, a province rich in energy sources, are recounted as part of an exploration of ways to help industry to develop strategies that will advance the acceptance of renewable energy products, particularly in areas of the world that are not concerned about energy supply. Social acceptability, emphasis on a healthy and convenient lifestyle associated with renewable energy products, practical, user-friendly products, and competitive prices, are some of the key elements in successfully marketing renewable energy products

Interregional power transmission: a component in planning for renewable energy technologies

International Nuclear Information System (INIS)

Krueger Nielsen, S.; Soerensen, B.

2000-01-01

We discuss the role played by interregional power transmission on the basis of recent scenario work. In a project dealing with long-term planning for energy efficiency and renewable energy in Europe we modelled a scenario for the present 15 EU countries' energy system in 2050. The basis for the scenario is the concept of 'fair pricing' for energy services, meaning that the price of energy should reflect all externalities, but not otherwise be taxed or subsidized. The project assessed resource availability and expected technology price developments over time for a number of energy-related technologies, both on the supply side, the intermediate conversion chain and on the demand side. Among these, transmission technologies play an important role, both in smoothing out renewable energy supplies within the European Union region, and also allowing substantial import of energy from countries outside the EU having a surplus of renewable energy based power. (orig.)

Renewable energies development: what contribution of the carbon market?

International Nuclear Information System (INIS)

Bordier, Cecile

2008-12-01

In the climate-energy package, the European Union has committed to achieve objectives differentiated by countries to reduce greenhouse gas emissions and developing renewable energies. Part of the emissions reduction must be achieved through a common mechanism to all Member States: the European CO 2 trading market (EU ETS) covers about 40% of emissions of gas European greenhouse from five major industrial sectors, including power generation. The development of renewable energy is the responsibility of each member state. To meet its commitments in terms of renewable energy, each Member State may adopt economic incentives: tendering, purchase prices or green certificates. This Climate Report describes two national policies with different instruments: aid mechanism by prices in France and definition of quantitative targets in the UK. The author attempts to evaluate these policies for the production of renewable electricity in terms of cost per ton of carbon avoided to compare with the price of carbon quotas in the EU ETS. The results show that the cost of national incentive policies for renewable energy per ton of CO 2 avoided varies significantly from one country to another, but in both cases higher than the quota price on the European market. It is difficult to draw definitive conclusions on economic effectiveness of different policy instruments. The first phase of the European exchange of CO 2 quotas market has induced a stress relatively low, weighing mainly on the electricity generation sector. The allocations to the electricity sector have been reduced from 2008 and quotas will be auctioned from 2013 within the limits of an overall ceiling will decrease year by year. This increase in stress on emissions should play a key role in the deployment of CO 2 emission reduction solutions in this sector, including the development of renewable energies. The incentive mechanisms at the national level could complement the impact of the European carbon market by accelerating

Fueling Wisconsin's economy with renewable energy

International Nuclear Information System (INIS)

Clemmer, S.

1995-01-01

A dynamic macroeconomic model of the Wisconsin economy is used to estimate the economic impacts of displacing a portion of future investment in fossil fuel power plants (coal and natural gas) with renewable energy resources (biomass, wind, solar and hydro). The results show that renewable energy investments produce over three times more jobs, income and economic activity than the same amount of electricity generated from coal and natural gas power plants. Between 1995 and 2020, a 75% increase in renewable energy use generates approximately 65,000 more job-years of employment, $1.6 billion in higher disposable income and a $3.1 billion increase in gross regional product than conventional power plant investments. This includes the effects of a 0.3% average annual increase in electricity prices from renewable energy investments

The merit-order effect: A detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany

International Nuclear Information System (INIS)

Sensfuss, Frank; Ragwitz, Mario; Genoese, Massimo

2008-01-01

The German feed-in support of electricity generation from renewable energy sources has led to high growth rates of the supported technologies. Critics state that the costs for consumers are too high. An important aspect to be considered in the discussion is the price effect created by renewable electricity generation. This paper seeks to analyse the impact of privileged renewable electricity generation on the electricity market in Germany. The central aspect to be analysed is the impact of renewable electricity generation on spot market prices. The results generated by an agent-based simulation platform indicate that the financial volume of the price reduction is considerable. In the short run, this gives rise to a distributional effect which creates savings for the demand side by reducing generator profits. In the case of the year 2006, the volume of the merit-order effect exceeds the volume of the net support payments for renewable electricity generation which have to be paid by consumers. (author)

Renewable Energy in China

Directory of Open Access Journals (Sweden)

Valery I. Salygin

2015-01-01

Full Text Available China is the most densely populated country in the world with high rate of economic growth resulting in higher demand for energy resources and in strive to guarantee stable supply of these resources. Chinese annual GDP growth in 2012 and 2013 was down to 7.7% comparing to 10% in 2000-2011 [7]. In 2012 and 2013 economic growth stumbled because of slowdown in manufacturing and exports, taking into account that Chinese government was eager to cut inflation and excessive investments in some segments of the market. Speaking about energy sector Chinese government is aimed at promotion of market-based pricing systems, activities for advanced energy efficiency and higher competition between energy companies, and increased investment in renewable energy resources. Considering renewables as one of many ways to diversify energy supplies, lower dependence on coal and improve environmental situation Chinese government actively supports and develops programs aimed at support of renewable energy industry in China. Chinese economic development is tightly attached to five-year plans. It seems important to mention the fact that main energy goals for current 12-th "five-year plan" are to achieve 15% renewables consumption and CO2 sequestration up to 40-45% by2020 in order to lower dependency on coal and improve environmental situation. As a result of Chinese state policy to develop renewables China achieved certain results in wind energy, helioenergetics, hydroenergetics and energy from waste recycling.

Renewable Energy Policy Fact sheet - Bulgaria

International Nuclear Information System (INIS)

2017-07-01

The EurObserv'ER policy profiles give a snapshot of the renewable energy policy in the EU Member States. Main support policy: Renewable electricity in Bulgaria is promoted primarily through a feed-in tariff scheme. For new projects this scheme is only open for installations up to 30 kW. The grid operator is mandated to the purchase and dispatch electricity at a guaranteed price for eligible generators. The use of renewable energy for heating and cooling is promoted through a subsidy from the European Regional Development Fund and through an exemption for building owners from property tax. Main Bulgarian support scheme for renewable energy in transport is a quota system. There is a professional training programme for RES-installers as well as a building obligation for the use of renewable heating and for the exemplary role of public authorities

Renewable energy - its potential and limitations

International Nuclear Information System (INIS)

Read, W.R.

1990-01-01

Several renewable energy options are discussed, namely solar energy, passive solar systems, photovoltaics, wind energy and biomass. Although technical feasibility has been shown for various systems, there has been slow growth in their implementation. Some aspects of this slow growth are in the domains of economic viability, long term reliability, the training of operators and installers, public perception and education and govenmental attitudes. It is estimated that the increased use of renewable energy depends on several factors which include government policies, funding, energy conservation, pricing policies, reliable commercial products, public education and adequate training. 11 refs

Renewable Energy in Latvia

Energy Technology Data Exchange (ETDEWEB)

Shipkovs, P.; Kashkarova, G. [Latvian Energy Agency, Riga (Latvia); Shipkovs, M. [Energy-R Ltd., Riga (Latvia)

1997-12-31

Latvia is among those countries that do not have gas, coal and, for the time being, also oil resources of its own. The amount of power produced in Latvia does not meet the demand, consequently a part of the power has to be purchased from neighbouring countries. Firewood, peat and hydro resources are the only significant domestic energy resources. Massive decrease of energy consumption has been observed since Latvia regained independence. Domestic and renewable energy resources have been examined and estimated. There are already 13 modern boiler houses operating in Latvia with total installed capacity 45 MW that are fired with wood chips. Latvian companies are involved in the production of equipment. 7 small HPPs have been renewed with the installed capacity 1.85 MW. Wind plant in Ainazi has started its operation, where two modern wind turbines with the capacity of 0.6 MW each have been installed. Mechanism of tariff setting is aligned. Favourable power energy purchasing prices are set for renewable energy sources and small cogeneration plants

Renewable Energy in Latvia

Energy Technology Data Exchange (ETDEWEB)

Shipkovs, P; Kashkarova, G [Latvian Energy Agency, Riga (Latvia); Shipkovs, M [Energy-R Ltd., Riga (Latvia)

1998-12-31

Latvia is among those countries that do not have gas, coal and, for the time being, also oil resources of its own. The amount of power produced in Latvia does not meet the demand, consequently a part of the power has to be purchased from neighbouring countries. Firewood, peat and hydro resources are the only significant domestic energy resources. Massive decrease of energy consumption has been observed since Latvia regained independence. Domestic and renewable energy resources have been examined and estimated. There are already 13 modern boiler houses operating in Latvia with total installed capacity 45 MW that are fired with wood chips. Latvian companies are involved in the production of equipment. 7 small HPPs have been renewed with the installed capacity 1.85 MW. Wind plant in Ainazi has started its operation, where two modern wind turbines with the capacity of 0.6 MW each have been installed. Mechanism of tariff setting is aligned. Favourable power energy purchasing prices are set for renewable energy sources and small cogeneration plants

Renewable energy promotion in competitive electricity markets

International Nuclear Information System (INIS)

Wohlgemuth, Norbert

1999-01-01

The opening of electricity markets to competition involves fundamental structural changes in the electricity supply industry. There is, however, doubt that the new industrial organisation will provide the right price signals that will ensure that renewable energy options will be adopted. Therefore, one of the numerous challenges in the energy industry restructuring process is to ensure that renewable energy has a fair opportunity to compete with other supply resources. This paper presents mechanisms to promote the use of renewable energy in competitive electricity markets. These mechanisms include the Non Fossil Fuel Obligation (NFFO), the Renewables Portfolio Standard (RPS) and the Systems Benefit Charge (SBC). The paper discusses merits and disadvantages of these mechanisms, given the experience made in the United States and the United Kingdom. (author)

Energy policies. United Kingdom: the renewable energies demystified

International Nuclear Information System (INIS)

Pautrat Jr, R.

2005-01-01

In most European countries, the renewable energies encounter success and gain ground. Denmark, Germany and Spain are in the pole position of this race. However, the situation in UK is different, surprising and paradoxical as revealed by the analysis made in this paper: implementation of an ambitious energy policy based on renewable obligations (RO) and renewables obligation certificates (ROCS) and on the massive development of wind energy, fuel cells and wave power but a lack of clarity, stability and efficiency in the programs of development of these energy sources. (J.S.)

The contribution of renewable energy in the Netherlands to 2020

International Nuclear Information System (INIS)

Ybema, J.R.; Kroon, P.; De Lange, T.J.; Ruijg, G.J.

1999-09-01

The Dutch Government aims to increase the contribution of renewable energy from a current share of slightly more than 1% of total energy use to 10% by the year 2020. Several policy measures have already been implemented in order to achieve this ambitious target. Currently, the Government wishes an updated insight whether the 10% target is within reach with the existing mix of policy instruments or not. The present analysis of the future contribution of renewables took into account the latest developments with respect to technological innovation, cost reduction, fuel price developments and liberalisation of energy markets. In this study a scenario-based approach is applied to analyse these questions. An existing energy scenario was taken for which the fossil energy price projections have been adjusted downward in accordance with recent insight. All renewable options have been analysed and for several renewable technologies new cost projections have been made based on learning curve analysis. In a scenario with a best estimate for the future cost of renewables and at a constant 15$/bbl (30 Dutch guilder per barrel) oil price, the share of renewables reaches 3.7% of projected total energy use in 2010 and 5.4% in 2020. Relatively large contributions are projected for wind energy, waste and biomass and import of renewable energy. A second request of the Government was to give insight in the approximate additional societal cost to achieve 10% renewable energy. The societal cost of renewables contribution in the 'best guess' is estimated at 1.2 billion Dutch guilders in the year 2020. A mix of policy measures to reach the 10% renewables target in 2020, mainly consisting of more financial incentives, will result in societal cost amounting to 2.5 billion guilders in 2020. Thus, the additional societal cost to meet the 10% target will amount to approximately 1.3 billion guilders in the year 2020. 114 refs

An evaluation of the impact of state Renewable Portfolio Standards (RPS) on retail, commercial, and industrial electricity prices

Science.gov (United States)

Puram, Rakesh

The Renewable Portfolio Standard (RPS) has become a popular mechanism for states to promote renewable energy and its popularity has spurred a potential bill within Congress for a nationwide Federal RPS. While RPS benefits have been touted by several groups, it also has detractors. Among the concerns is that RPS standards could raise electricity rates, given that renewable energy is costlier than traditional fossil fuels. The evidence on the impact of RPS on electricity prices is murky at best: Complex models by NREL and USEIA utilize computer programs with several assumptions which make empirical studies difficult and only predict slight increases in electricity rates associated with RPS standards. Recent theoretical models and empirical studies have found price increases, but often fail to comprehensively include several sets of variables, which in fact could confound results. Utilizing a combination of past papers and studies to triangulate variables this study aims to develop both a rigorous fixed effects regression model as well as a theoretical framework to explain the results. This study analyzes state level panel data from 2002 to 2008 to analyze the effect of RPS on residential, commercial, and industrial electricity prices, controlling for several factors including amount of electricity generation from renewable and non-renewable sources, customer incentives for renewable energy, macroeconomic and demographic indicators, and fuel price mix. The study contrasts several regressions to illustrate important relationships and how inclusions as well as exclusion of various variables have an effect on electricity rates. Regression results indicate that the presence of RPS within a state increases the commercial and residential electricity rates, but have no discernable effect on the industrial electricity rate. Although RPS tends to increase electricity prices, the effect has a small impact on higher electricity prices. The models also indicate that jointly all

The impact of intermittent sources of energy on the market price of electricity

International Nuclear Information System (INIS)

Adigbli, Patrick; Mahuet, Audrey

2013-01-01

Parallel to liberalization of the electricity market, these past twenty years have been marked by a strong expansion of renewable energy in Europe. The increasing share of renewables in the energy mix - with a goal set by the European Commission at 20% by 2020 - has an impact on market prices. In the short run, subsidized intermittent energy may lead to lower prices or even to negative prices during certain periods of the year

The relationship between renewable energy assets and crude oil prices : an empirical analysis with emphasis on the effects of the financial crisis

OpenAIRE

Grøm, Halvdan Alexander

2013-01-01

In this thesis I have analysed the relationship between renewable energy stocks and the price of crude oil. As a part of my analysis I have provided a basic economic overview of the research period and how the value of renewable energy stocks and crude oil is determined. In order to analyse this relationship I have utilized a Vector Autoregressive Model (VAR) in addition to a Vector Error Correction Model (VECM). My findings indicate that the aforementioned assets follow a simi...

Renewable energies and energy choices. Summary of the colloquium

International Nuclear Information System (INIS)

2003-05-01

This document is an executive summary of the colloquium organized by the French syndicate of renewable energies (SER) which took place at the Maison de l'UNESCO in Paris during the national debate on energies organized by the French government in spring 2003. The colloquium was organized around 6 round tables dealing with: the world perspectives and the environmental context of the contribution of renewable energies to the sustainable development (respect of Kyoto protocol commitments, contribution to the security of energy supplies, lack of large scale program of development of decentralized power generation in developing countries, lack of market tools linked with CO 2 emissions, improvement of competitiveness); development of renewable energies in Europe (promotion and sustain in all European countries, obligation of supply and purchase, pricing regulation, European harmonization of practices); renewable electricity and its place in the new orientation law about energies (tariff/pluri-annual investment planing, administrative authorizations, connections to the grid, calls for offer, costs of the photovoltaic solar energy); contribution of renewable energies in the transportation sector (bio-fuels, low taxes, ethanol fuel cells, vegetal chemistry); renewable heat and integration of renewable energy sources in buildings (intelligent architecture, promotion, quality labels and standards, lack of CO 2 penalties linked with fossil fuels, tax reduction for solar and wood fuel appliances, acknowledgment of geothermal heat pumps as renewable energy source); and the presentation of the first proposals for the future orientation law (balance between nuclear and renewable energy sources, integration in the local environment, competitiveness, use of market mechanisms, R and D etc.). (J.S.)

Trade Disputes over Renewable Energy Supporting Policies: Recent Cases, WTO Rules, and Possible Solutions

DEFF Research Database (Denmark)

Zhu, Xianli

2011-01-01

Increasing concerns about climate change impacts and the high oil prices have made many countries include promoting renewable energy use their national sustainable development strategies. One frequently mentioned barrier to increasing the transition toward renewable energy in many countries is lack...... change mitigation actions under the principle of ‘common but differentiated responsibilities’. So it would be logic to assume that if a country helps lower the prices of renewable energy technologies and somehow subsidies the renewable energy use in other countries, such efforts will be more than welcome...

Cost-effectiveness and incidence of renewable energy promotion in Germany

Energy Technology Data Exchange (ETDEWEB)

Boehringer, Christoph [Oldenburg Univ. (Germany). Dept. of Economics; Landis, Florian [Eidgenoessische Technische Hochschule, Zurich (Switzerland); Tovar Reanos, Miguel Angel [Zentrum fuer Europaeische Wirtschaftsforschung GmbH (ZEW), Mannheim (Germany)

2017-08-01

Over the last decade Germany has boosted renewable energy in power production by means of massive subsidies. The flip side are very high electricity prices which raises concerns that the transition cost towards a renewable energy system will be mainly borne by poor households. In this paper, we combine computable general equilibrium and microsimulation analysis to investigate the cost-effectiveness and incidence of Germany's renewable energy promotion. We find that the regressive effects of renewable energy promotion could be ameliorated by alternative subsidy financing mechanisms which achieve the same level of electricity generation from renewable energy sources.

Economic aspects and potentials of renewable energy sources in Germany

International Nuclear Information System (INIS)

Mannsbart, W.; Reichert, J.

1992-01-01

While there is a high theoretical potential for renewable energy sources in Germany, assessing theoretical potentials is more or less like playing with numbers; severe technical shortcomings and economic factors prevent then from being fully achieved. Unsuitable azimuth and slope of roofs, shading, absence of central hot water systems limit the application of collectors. The present storage technology is not suitable for a solar share higher than 50%. Individual space heating is not feasible under local climatic conditions. The broad application of biomass fuels fails because of limited resources. Feeding high amounts of fluctuating electricity generated by wind and photovoltaic systems into utility grids causes stability and storage problems. Insufficient training of installation personnel, lack of incentives for multi-family housing owners and high investment costs hinder the market penetration of renewable energy sources. Drastic cost reductions can only be expected from mass production. Therefore, appropriate policy measures - raised energy prices, as well as, subsidies or tax reliefs are necessary for market breakthrough

Impacts of High Variable Renewable Energy Futures on Wholesale Electricity Prices, and on Electric-Sector Decision Making

Energy Technology Data Exchange (ETDEWEB)

Seel, Joachim [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Mills, Andrew D. [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Wiser, Ryan H. [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Deb, Sidart [LCG Consulting, Los Altos, CA (United States); Asokkumar, Aarthi [LCG Consulting, Los Altos, CA (United States); Hassanzadeh, Mohammad [LCG Consulting, Los Altos, CA (United States); Aarabali, Amirsaman [LCG Consulting, Los Altos, CA (United States)

2018-05-11

Increasing penetrations of variable renewable energy (VRE) can affect wholesale electricity price patterns and make them meaningfully different from past, traditional price patterns. Many long-lasting decisions for supply- and demand-side electricity infrastructure and programs are based on historical observations or assume a business-as-usual future with low shares of VRE. Our motivating question is whether certain electric-sector decisions that are made based on assumptions reflecting low VRE levels will still achieve their intended objective in a high VRE future. We qualitatively describe how various decisions may change with higher shares of VRE and outline an analytical framework for quantitatively evaluating the impacts of VRE on long-lasting decisions. We then present results from detailed electricity market simulations with capacity expansion and unit commitment models for multiple regions of the U.S. for low and high VRE futures. We find a general decrease in average annual hourly wholesale energy prices with more VRE penetration, increased price volatility and frequency of very low-priced hours, and changing diurnal price patterns. Ancillary service prices rise substantially and peak net-load hours with high capacity value are shifted increasingly into the evening, particularly for high solar futures. While in this report we only highlight qualitatively the possible impact of these altered price patterns on other demand- and supply-side electric sector decisions, the core set of electricity market prices derived here provides a foundation for later planned quantitative evaluations of these decisions in low and high VRE futures.

Renewable Energy versus Nuclear Power (Summary)

International Nuclear Information System (INIS)

Mraz, G.; Wallner, A.

2014-01-01

The European Union is divided on the issue of electricity production. While there is consensus that generation technologies need to be low on greenhouse gas- emissions, the question of whether to use renewables or nuclear to meet this power demand is highly controversial. Both options still require financial support and this is not going to change in the near future. This raises the question of where our money should be invested in order to achieve greater economic efficiency: into support for renewable energies (RE) or support for nuclear power plants? This paper sets out to answer this question. The detailed model-based prospective scenario assessment performed in this study provides the basis for estimating future cost developments. After discussing the existing support schemes for renewables, the paper compares these with a nuclear model. The recent state aid case for the construction of the nuclear power plant Hinkley Point in United Kingdom serves as the model for the nuclear option. New milestone in nuclear state aid: Hinkley Point It is planned to construct two additional reactors at Hinkley Point. The EU estimates the total capital needed for construction at € 43 billion. The UK government intends to grant state aid for this project; in accordance with EU state aid rules, the suggested state aid scheme was submitted to the EU Commission for approval as public funds would be used for a company. A central part of the state aid scheme is the Contract for Difference which runs for 35 years. According to this contract, the state commits to compensating any difference between the electricity market price (reference price) and the negotiated Strike Price. Consequently, the plant operator, NNB Generation Company Limited (NNBG), has received a long term price guarantee which, in principle, is analogous to the feed-in tariffs commonly used to support renewable energies. The Strike Price for the first unit to be constructed has been set at € 108 per MWh (with

Demand response with locational dynamic pricing to support the integration of renewables

International Nuclear Information System (INIS)

Dupont, B.; De Jonghe, C.; Olmos, L.; Belmans, R.

2014-01-01

Electricity production from centralised and decentralised renewable energy resources in Europe is gaining significance, resulting in operational challenges in the electricity system. Although these challenges add to the locational and time dependency of the underlying cost of operating the system, this variability in time and location is not reflected in residential tariff schemes. Consequently, residential users are not incentivised to react to varying system conditions and to help the integration of renewable energy resources. Therefore, this paper provides a theoretical framework for designing a locational dynamic pricing scheme. This can be used to assess existing tariff structures for consumption and injection, and can serve as a theoretical background for developing new tariff schemes. Starting from the underlying costs, this paper shows that the potential for locational dynamic pricing depends on the locational and time dependency of its cost drivers. When converting costs into tariffs, the tariff design should be determined. This includes the advance notice of sending tariffs to users, and the length of price blocks and price patterns. This tariff design should find a balance between tariff principles related to costs, practicality and social acceptability on the one hand, and the resulting demand response incentive on the other. - Highlights: • The integration of renewables affects the locational and time dependency of costs. • Locational dynamic pricing reflects cost variability and allows demand response. • A theoretical framework for designing and assessing tariff schemes is proposed. • Tariff variability depends on the locational and time dependency of its cost drivers. • The tariff design should consider the resulting demand response incentive

Legislation on renewable energy sources in Central America

International Nuclear Information System (INIS)

Rebollo, Jose

2000-01-01

This paper presents the development of renewable energy in Central America and the cooperation given by the European Comission in the promotion of renewable energy sources. Also discuss the current situation in energy demand in Central America and possible solutions linked to legislation that promotes the inversion of the private sector. The legal framework in each country of Central America is presented and its impact in the increasing of generation of energy through tax reductions, trading and prices

New Solutions for Renewable Energy Trading

Directory of Open Access Journals (Sweden)

Władysław Mielczarski

2014-09-01

Full Text Available The paper presents one of the key problems in renewable energy trading. The support system for RES is operating on financial levels leaving to the RES producers decisions on the energy trade. However, the flawed legal regulations impose the obligations on Default Electricity Supplier (SzU1 to buy all RES production from the installations located in the areas of the SzU operation. Such legal provisions result in the additional burden on the SzU, which main duty is to provide electric energy to customers who do not want to enter competitive electricity markets. Additionally, over interpretation of the Energy Law provisions by the Energy Regulatory Authority (URE2, allowing the RES producers to trade a part of their production on electricity markets leaving the obligation on SzUs, has led to the speculative trade of renewable energy. Some RES producers sell the electricity produced in competitive markets during peak demand hours – usually working days from 7 a.m. to 8 p.m. – when the Power Exchange prices are significantly higher than the obligatory purchase price. When during off peak demand hours electricity prices in the Power Exchange are lower than the obligatory level, RES producers sell the electric energy to SzUs at the obligatory price, determined by the URE. Such an abuse of fair trade results in the additional income for the RES producers being burden on SzUs, which have to transfer such costs to energy endusers. The simulations, carried out for Poland indicate that the additional costs can count for about 200 mln zł per year.

Renewable Energy and Proven Oil Reserves Relation: Evidence from OPEC Members

Directory of Open Access Journals (Sweden)

Mehmet Arcan TUZCU

2014-12-01

Full Text Available The well documented literature on the relation between energy consumption and climate change has been extended by the addition of renewable energy consumption. Several studies show its impact on technical efficiency, per capita income or carbon dioxide (CO2 emission levels for developed and developing countries. However, to the extent of our knowledge, very few of them state the importance of renewable energy for the countries where the main type of fossil fuels, oil, is exported. This study aims to explore the association between renewable energy, real gross domestic product (GDP, CO2 emission level, real oil prices as well as the proven oil reserves for seven members of Organization of the Petroleum Exporting Countries (OPEC. The analyses are conducted using panel data techniques, namely fixed effect – random effect tests. Our results show a positive and significant relation between renewable energy consumption, and real GDP and CO2 emission level. A statistically not significant coefficient is found for the relation between renewable energy and the proven oil reserves. The relation between energy and real oil prices is also insignificant.

Quantifying the value that wind power provides as a hedge against volatile natural gas prices

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Wiser, Ryan; Golove, William

2002-05-31

Advocates of renewable energy have long argued that wind power and other renewable technologies can mitigate fuel price risk within a resource portfolio. Such arguments--made with renewed vigor in the wake of unprecedented natural gas price volatility during the winter of 2000/2001--have mostly been qualitative in nature, however, with few attempts to actually quantify the price stability benefit that wind and other renewables provide. This paper attempts to quantify this benefit by equating it with the cost of achieving price stability through other means, particularly gas-based financial derivatives (futures and swaps). We find that over the past two years, natural gas consumers have had to pay a premium of roughly 0.50 cents/kWh over expected spot prices to lock in natural gas prices for the next 10 years. This incremental cost is potentially large enough to tip the scales away from new investments in natural gasfired generation and in favor of investments in wind power and other renewable technologies.

Where is Australian renewable energy heading?

International Nuclear Information System (INIS)

Luntz, S.

2002-01-01

The race is on in earnest for the Holy Grail of renewable energy: electricity production at prices that are competitive with coal-fired power stations, but without coal's pollution and greenhouse emissions. The proponents of some new technologies are aiming to be the first to push coal from its position as Australia's chief source of electricity, while others have more modest goals in filling niche markets. This article examines progress in renewable energy research in Australia, from wind turbines, photovoltaic cells and biofuels to using the heat from radioactive rocks

Renewable Energy in Reunion: Potentials and Outlook

International Nuclear Information System (INIS)

Baddour, Julien; Percebois, Jacques

2011-01-01

Renewable, environmentally friendly and evenly distributed across the globe, renewable energy (RES for Renewable Energy Resources) is an excellent means of taking up the global energy challenge, i.e. enabling developing countries in the south to make progress without harming the environment. Since it is particularly well suited to an island territory's character and local needs, RE is also an excellent tool that could enable France's overseas Departments and Territories to reduce their energy dependence, preserve their environment and ensure their sustainable development. In Reunion, RES benefit from marked political support and from a very favourable financial and institutional environment, which has allowed the Reunion region to become a national pioneer in the realm of thermal energy and photovoltaics. Nonetheless, RES are not a panacea as they are subject to a number of flaws. It is currently expensive and uncompetitive, intermittent and insufficiently powerful, and not always available to keep up with demand. This explains why RES cannot aspire to be a complete substitute for fossil fuels. The two energy systems complement one another to meet the region's total energy needs. This article also highlights the negative consequences of the support measures for RES (inflated costs and negative prices on the electricity markets) and underscores the need for a complementary energy policy in pricing electricity, as well as effecting energy savings, which must remain our priority. (authors)

Strategy for the expansion of renewable energies. An investigation of the pricing strategy of the Renewable Energy Law from the viewpoint of an evolutionary cybernetic theory of economic policy; Die Strategie des Ausbaus erneuerbarer Energien. Eine Untersuchung der Preissetzungsstrategie des EEGs aus Sicht einer evolutorisch-kybernetischen Theorie der Wirtschaftspolitik

Energy Technology Data Exchange (ETDEWEB)

Schlueter, Fabian

2015-11-01

This publication reports on how the steadily increasing costs caused by the Renewable Energy Law (EEG) have brought the German strategy for the expansion of renewable energies under criticism. According to theories of regulatory economic policy, which state that politico-economic incentives of this kind must necessarily result in an inefficient allocation of scarce resources, this cost increase can be interpreted as a direct consequence of the price intervention. The present publication takes a critical stance on this viewpoint, developing for its purpose a new position on regulatory policy referred to as the evolutionary cybernetic theory of economic policy. It starts out from the works of F.A. von Hayek, which it then takes a significant step further however. The author argues that price interventions can be meaningful strategies of economic policy as long as they are aimed at a temporary initiation of market development towards sustainability and efficiency. Based on this model conception of a shrewd pricing strategy the publication undertakes an analysis from the perspective of regulatory policy of the German subsidisation of renewable energies. In the process it not only reveals errors in design of the EEG but also makes a proposal for an amendment that could be effective in cutting through the present price dynamics. In presenting its recommendation of a self-steering expansion policy the publication not only contributes to the further development of an evolutionary cybernetic theory of economic policy but addresses the urgent problem of how to wisely use regulatory policy to create pricing strategies which serve the expansion of renewable energies.

Cost-effectiveness and incidence of renewable energy promotion in Germany

OpenAIRE

Böhringer, Christoph; Landis, Florian; Tovar Reaños, Miguel Angel

2017-01-01

Over the last decade Germany has boosted renewable energy in power production by means of massive subsidies. The flip side are very high electricity prices which raises concerns that the transition cost towards a renewable energy system will be mainly borne by poor households. In this paper, we combine computable general equilibrium and microsimulation analysis to investigate the cost-effectiveness and incidence of Germany's renewable energy promotion. We find that the regressive effects of r...

Real Options Analysis of Renewable Energy Investment Scenarios in the Philippines

OpenAIRE

Agaton, Casper

2017-01-01

Abstract - With the continuously rising energy demand and much dependence on imported fossil fuels, the Philippines is developing more sustainable sources of energy. Renewable energy seems to be a better alternative solution to meet the country’s energy supply and security concerns. Despite its huge potential, investment in renewable energy sources is challenged with competitive prices of fossil fuels, high start-up cost and lower feed-in tariff rates for renewables. To address these probl...

Advanced mechanisms for the promotion of renewable energy-Models for the future evolution of the German Renewable Energy Act

International Nuclear Information System (INIS)

Langniss, Ole; Diekmann, Jochen; Lehr, Ulrike

2009-01-01

The German Renewable Energy Act (EEG) has been very successful in promoting the deployment of renewable electricity technologies in Germany. The increasing share of EEG power in the generation portfolio, increasing amounts of fluctuating power generation, and the growing European integration of power markets governed by competition calls for a re-design of the EEG. In particular, a more efficient system integration and commercial integration of the EEG power is needed to, e.g. better matching feed-in to demand and avoiding stress on electricity grids. This article describes three different options to improve the EEG by providing appropriate incentives and more flexibility to the promotion mechanism and the quantitative compensation scheme without jeopardising the fast deployment of renewable energy technologies. In the 'Retailer Model', it becomes the responsibility of the end-use retailers to adapt the EEG power to the actual demand of their respective customers. The 'Market Mediator Model' establishes an independent market mediator responsible to market the renewable electricity. This model is the primary choice when new market entrants are regarded as crucial for the better integration of renewable energy and enhanced competition. The 'Optional Bonus Model' relies more on functioning markets since power plant operators can alternatively choose to market the generated electricity themselves with a premium on top of the market price instead of a fixed price

Impacts of renewable fuel regulation and production on agriculture, energy, and welfare

Science.gov (United States)

McPhail, Lihong Lu

The purpose of this dissertation is to study the impact of U.S. federal renewable fuel regulations on energy and agriculture commodity markets and welfare. We consider two federal ethanol policies: the Renewable Fuel Standard (RFS) contained in the Energy Security and Independence Act of 2007 and tax credits to ethanol blenders contained in the Food, Conservation, and Energy Act of 2008. My first essay estimates the distribution of short-run impacts of changing federal ethanol policies on U.S. energy prices, agricultural commodity prices, and welfare through a stochastic partial equilibrium model of U.S. corn, ethanol, and gasoline markets. My second essay focuses on studying the price behavior of the renewable fuel credit (RFC) market, which is the mechanism developed by the Environmental Protection Agency (EPA) to meet the RFS. RFCs are a tradable, bankable, and borrowable accounting mechanism to ensure that all obligated parties use a mandated level of renewable fuel. I first develop a conceptual framework to understand how the market works and then apply stochastic dynamic programming to simulate prices for RFCs, examine the sensitivity of prices to relevant shocks, and estimate RFC option premiums. My third essay assesses the impact of policy led U.S. ethanol on the markets of global crude oil and U.S. gasoline using a structural Vector Auto Regression model of global crude oil, U.S. gasoline and ethanol markets.

Consumers' preference for renewable energy in the southwest USA

International Nuclear Information System (INIS)

Mozumder, Pallab; Vásquez, William F.; Marathe, Achla

2011-01-01

The southwestern part of the US has abundant supply of renewable energy resources but little is known about the consumers' preferences for renewable energy in this region. This paper investigates households' willingness to pay for a renewable energy program in a southwestern state, New Mexico (NM). Using the contingent valuation method, we provide different scenarios that include provision of 10% and 20% of renewable energy supply, to elicit households' willingness to pay (WTP) for the renewable energy. We estimate the WTP for specific shares of renewable energy in the total energy mix as it is a key factor in affecting the price of the energy portfolio in the market. The survey design also allows us to check the scope sensitivity of renewable energy which can help guide the future renewable energy policy. We hope results from this study will offer useful insights to energy regulators and utility companies and help them increase the share of renewable energy supply. - Highlights: ► We estimate willingness to pay (WTP) for renewable energy in the southwestern US. ► Households' WTP in New Mexico is estimated using the contingent valuation method. ► WTP is estimated for 10% - 20% shares of renewable energy in the total energy mix. ► WTP estimates indicate scope sensitivity for a larger share of renewable energy.

Barometer 2015: French people and renewable energies

International Nuclear Information System (INIS)

Micheau, Frederic; Bonnesoeur, Cecil; Ciangura, Claire; Broun, Jerome

2015-01-01

This document presents and comments results of a survey on the relationship between French people and renewable energies. After a discussion of the context (low oil prices, opportunity to invest the induced saving in renewable energies) and of some key figures of the survey, some methodological aspects are briefly indicated, and results are graphically presented. A first set of issues addresses the energy context as it is perceived by French people: will to see a development of different energy sectors (renewable, natural gas, nuclear, shale gas, coal, oil) in France, opinions on renewable energies, opinion on household energy bill, use of the home-produced photovoltaic energy. The second set concerns how French people are equipped in terms of renewable energies: type of equipment in primary residence, comparison between owners and renters, intention to equip the primary residence with such apparatuses within a more or less short period of time. The third set of issues addresses renovation projects and the RGE quality label: knowledge of this label and of financial supports, perceived complexity of the sector, preference for labelled professionals, will to install a renewable energy device. The last set addresses the confidence in equipment and installers. All these results are graphically compared with those obtained by the four previous surveys

Emerging Markets for Renewable Energy Certificates: Opportunities and Challenges

Energy Technology Data Exchange (ETDEWEB)

Holt, E.; Bird, L.

2005-01-01

Renewable energy certificates (RECs) represent the attributes of electricity generated from renewable energy sources. These attributes are unbundled from the physical electricity, and the two products-the attributes embodied in the certificates and the commodity electricity-may be sold or traded separately. RECs are quickly becoming the currency of renewable energy markets because of their flexibility and the fact that they are not subject to the geographic and physical limitations of commodity electricity. RECs are currently used by utilities and marketers to supply renewable energy products to end-use customers as well as to demonstrate compliance with regulatory requirements, such as renewable energy mandates. The purpose of this report is to describe and analyze the emerging market for renewable energy certificates. It describes how RECs are marketed, examines RECs markets including scope and prices, and identifies and describes the key challenges facing the growth and success of RECs markets.

Role of Renewable Energy Certificates in Developing New Renewable Energy Projects

Energy Technology Data Exchange (ETDEWEB)

Holt, E.; Sumner, J.; Bird, L.

2011-06-01

For more than a decade, renewable energy certificates (RECs) have grown in use, becoming a common way to track ownership of the renewable and environmental attributes of renewable electricity generation. In recent years, however, questions have risen about the role RECs play in the decision to build new renewable energy projects. Information from a variety of market participants suggests that the importance of RECs in building new projects varies depending on a number of factors, including electricity market prices, the cost-competitiveness of the project, the presence or absence of public policies supportive of new projects, contract duration, and the perspective of different market participants. While there is no single answer to the role that RECs play, there are situations in which REC revenues are essential to project economics, as well as some where REC revenues may have little impact. To strengthen the role RECs play in both compliance and voluntary markets, there are a number of options that could be considered. In compliance markets, lawmakers or regulators would have to adopt measures that strengthen the role of RECs in the development of new projects, while in voluntary markets, it would be up to program leaders and market participants themselves to implement measures.

Renewable energy as a natural gas price hedge: the case of wind

International Nuclear Information System (INIS)

Berry, David

2005-01-01

Electric utilities use natural gas to fuel many of their power plants, especially those plants which provide electricity at peak and intermediate hours. Natural gas prices are highly volatile and have shown a general upward trend. Wind energy can provide a cost-effective hedge against natural gas price volatility or price increases. This conclusion is based on analysis of the costs of marginal conventional generation given the historical probability distribution of natural gas prices, the cost of wind energy, wind integration costs, transmission costs for wind energy, the capacity value of wind, and environmental benefits of wind energy for a hypothetical utility in the Southwestern United States. The efficacy of using wind energy as a hedge at a particular utility will depend on site specific conditions

Price sensitivity of residential energy consumption in Norway

International Nuclear Information System (INIS)

Nesbakken, R.

1999-01-01

The main aim of this paper is to test the stability of the results of a model which focus on the relationship between the choice of heating equipment and the residential energy consumption. The results for the income and energy price variables are of special interest. Stability in the time dimension is tested by applying the model on micro data for each of the years 1993-1995. The parameter estimates are stable within a 95% confidence interval. However, the estimated impact of the energy price variable on energy consumption was considerably weaker in 1994 than in 1993 and 1995. The results for two different income groups in the pooled data set are also subject to stability testing. The energy price sensitivity in residential energy consumption is found to be higher for high-income households than for low-income households. 19 refs

The European market of renewable energies

International Nuclear Information System (INIS)

Anon.

2011-09-01

This market study on renewable energies presents: 1 - the different renewable energy industries for power generation: the field of renewable energies (hydropower, wind power, solar energy, geothermal energy and biomass power plants) and their common points, their characteristics, advantages and constraints; 2 - the political and regulatory context with its ambitious goals: main steps of worldwide negotiations, Europe and the management of CO 2 emissions, stiffening of the environmental regulation, the energy/climate package and the efforts to be borne by the different member states; 3 - Economy of the sector and the necessary public support: investment and production costs by industry, wholesale prices and competitiveness of the different power generation means, government's incentives for projects profitability; 4 - dynamics of the European market of renewable energies: energy-mix and evolution of the renewable energies contribution in the world and in the European Union, key-figures by country and by industry (installed capacity, production, turnover, employment); 5 - medium-term development perspectives: 2020 prospect scenarios, evolution of the energy mix, perspectives of development for each industry; 6 - the strengths in presence in the domain of facilities: main manufacturers, market shares, innovations, vertical integration, external growth; 7 - the strengths in presence in the domain of power facilities operation: main European operators, position and ranking, installed capacities, projects portfolio; 8 - medium-term perspectives of reconfiguration: best-positioned operators in a developing market, future of European manufacturers with respect to Asian ones, inevitable concentration in the operation sector. (J.S.)

Spatiotemporal variability of marine renewable energy resources in Norway

NARCIS (Netherlands)

Varlas, George; Christakos, Konstantinos; Cheliotis, Ioannis; Papadopoulos, A.; Steeneveld, G.J.

2017-01-01

Marine Renewable Energy (MRE) resources such as wind and wave energy depend on the complex behaviour of weather and climatic conditions which determine the development of MRE technologies, energy grid, supply and prices. This study investigates the spatiotemporal variability of MRE resources along

Impacts of high energy prices on long-term energy-economic scenarios for Germany

Energy Technology Data Exchange (ETDEWEB)

Krey, V.; Markewitz, P. [Research Center Juelich, Inst. of Energy Res., Systems Analysis and Technology Evaluation, Juelich (Germany); Horn, M. [DIW Berlin, Berlin (Germany); Matthes, C.; Graichen, V.; Harthan, R.O.; Repenning, J. [Oeko-Institut, Berlin (Germany)

2007-05-15

Prices of oil and other fossil fuels on global markets have reached a high level in recent years. These levels were not able to be reproduced on the basis of scenarios and prognoses that were published in the past. New scenarios, based on higher energy price trajectories, have appeared only recently. The future role of various energy carriers and technologies in energy-economic scenarios will greatly depend on the level of energy prices. Therefore, an analysis of the impact of high energy prices on long-term scenarios for Germany was undertaken. Based on a reference scenario with moderate prices, a series of consistent high price scenarios for primary and secondary energy carriers were developed. Two scenarios with (i) continuously rising price trajectories and (ii) a price shock with a price peak during the period 2010-15 and a subsequent decline to the reference level are analysed. Two types of models have been applied in the analysis. The IKARUS energy systems optimisation model covers the whole of the German energy system from primary energy supply down to the end-use sectors. Key results in both high price scenarios include a replacement of natural gas by hard coal and renewable energy sources in electricity and heat generation. Backstop technologies like coal liquefaction begin to play a role under such conditions. Up to 10% of final energy consumption is saved in the end-use sectors, with the residential and transport sector being the greatest contributors. Even without additional restrictions, CO{sub 2} emissions significantly drop in comparison to the reference scenario. The ELIAS electricity investment analysis model focuses on the power sector. In the reference scenario with current allocation rules in the emissions trading scheme, the CO{sub 2} emissions decrease relatively steadily. The development is characterised by the phaseout of nuclear energy which is counterweighted by the increase of renewable. In the high price scenario, the CO{sub 2

Drivers for renewable energy: A comparison among OECD countries

International Nuclear Information System (INIS)

Gan, Jianbang; Smith, C.T.

2011-01-01

The difference in the shares of renewable energy in total primary energy supply among OECD countries is immense. We attempt to identify some key factors that may have driven this difference for renewable energy in general and bioenergy in particular. We found that besides country-specific factors, gross national product (GDP) and renewable energy and bioenergy market deployment policies have significant and positive impacts on the per capita supply of both renewable energy and bioenergy in OECD countries. R and D expenditures, energy prices, CO 2 emissions, and other energy policies are statistically insignificant in terms of their impact on renewable energy and bioenergy supply. However, this does not necessarily mean that they are not potential drivers for renewable energy and bioenergy, but rather suggests that their magnitudes have not been big enough to significantly influence energy supply based on the historical data from 1994 to 2003. These findings lead to useful policy implications for countries attempting to promote renewable energy and bioenergy development. -- Highlights: ► We identify the drivers of renewable energy development in OECD countries. ► Common drivers include GDP per capita and market deployment policies. ► Country-specific drivers reveal different pathways for bioenergy development.

Renewable Energy Investment in Emerging Markets: Evaluating Improvements to the Clean Development Mechanism

Directory of Open Access Journals (Sweden)

Amy Tang

2014-06-01

Full Text Available In the past, industrialized countries have invested in or financed numerous renewable energy projects in developing countries, primarily through the Clean Development Mechanism (CDM of the Kyoto Protocol. However, critics have pointed to its bureaucratic structure, problems with additionality and distorted credit prices as ill-equipped to streamline renewable energy investment. In this paper, we simulate the impact of policy on investment decisions on whether or not to invest in wind energy infrastructure in India, Brazil and China. Data from 2,578 past projects as well as literature on investor behaviour is used to inform the model structure and parameters. Our results show that the CDM acts differently in each country and reveal that while streamlining the approval process and reconsidering additionality can lead to non-trivial increase in total investment, stabilizing policy and decreasing investment risk will do the most to spur investment.

Promoting nuclear energy: market price or regulated tariffs? - 5042

International Nuclear Information System (INIS)

Percebois, J.

2015-01-01

Because of its negative effects, the scheme for aiding renewable energies presently in force in Europe is likely to penalise investments in nuclear energy. The F.I.T. system is a costly mechanism and a source of perverse effects as a switching of the merit order curve on the spot electricity market (with sometimes negative prices). Restoring an equity and 'equal opportunity' for nuclear energy in Europe needs to implement a 'Contract for Differences' scheme for nuclear energy, like the model now gaining favour in the U.K. The contract for differences signed between EDF and the UK government means that if the wholesale price that EDF secures for Hinckley's power falls below the index-linked preset value, the difference will be covered by payments from the UK government. It appears that nuclear power has weakened in Europe by the system of guaranteed purchase prices for renewable energies. Moreover this system is costly. New fairer rules must be implemented in the market. Either the market is left on its own to send the signals to all investors (including renewable energies), or a minimum of regulation is introduced in order to limit the costly surges of under and over capacity. But in the latter case it is necessary to treat all the energy sources in an equal way and guarantee the nuclear industry that it will also recover its fixed costs over the long term)

Wood-energy: success depends on the price of fossil energies and on the carbon tax level

International Nuclear Information System (INIS)

Defaye, Serge; Maindrault, Marc

2016-01-01

Illustrated by several graphs indicating the structure of fossil energy prices, the comparison between domestic fuel and wood-energy for public network exploitation, the levels of fossil prices and carbon tax for non-subsidised projects, this article analyses the development of biomass (and more particularly wood-energy), the success of which depends on the price of fossil energies and on the carbon tax level. It outlines the differences of price-building elements between fossil and renewable heat, that subsidies are necessary if reference prices are low. It discusses the influence of carbon tax level and of fossil prices. It finally identifies conditions to be met (reduction of fossil energy supply and therefore higher fossil prices, introduction of a carbon tax) to reach COP objectives

Cost and benefit of renewable energy in the European Union

NARCIS (Netherlands)

Krozer, Yoram

2013-01-01

An assessment is made as to whether renewable energy use for electricity generation in the EU was beneficial throughout the cycle of high and low oil prices. Costs and benefits are calculated with the EU statistics for the period of low oil prices 1998–2002 and high oil prices 2003–2009. The share

Renewable electricity generation: supporting documentation for the Renewables Advisory Board submission to the 2006 UK energy review

International Nuclear Information System (INIS)

2006-01-01

The Renewables Advisory Board (RAB) is an independent, non-departmental public body, sponsored by the DTI, which brings together representatives of the renewable sector and the unions. Electricity generation from renewable energy sources offers a range of advantages to the UK electricity-generating sector. This document, prepared as supporting documentation for the RAB submission to the 2006 Energy Review, examines the role of renewable energy in improving security of supply, lowering financial risk for energy portfolios, and reducing electricity cost volatility and fuel costs for the UK. Key topics addressed in this report include: resource security; security of supply; price security; and operational security. Also covered are variability patterns, financial costs and benefits of renewable generation. Maintaining the option and flexibility of future renewables development has a real option value, with overseas evidence showing that this can be significant

Renewable energies enter the stock market

International Nuclear Information System (INIS)

Boulanger, Vincent

2016-01-01

This article describes the new context created by the obligation for renewable energy installations to sell their electricity directly on the market. Thus, new practices and new actors appear like aggregators which belong to three categories: trading departments or subsidiary companies of national operators, trading departments or subsidiary companies of developers and producers of renewable energy, or independent market operators. The author describes the different cases in which renewable electricity producers will need aggregators (the mandatory purchase contract reaches its end, an additional income in the case of bidding or outside this case). The author also describes the role and responsibilities of aggregators, notably with respect to RTE. Such a market operation of course results in the taking of the electricity price on the stock market into account, and in the associated risks for aggregators

The renewable and nuclear energies in the basquet of energy supply

International Nuclear Information System (INIS)

Martinez Corcoles, F.

2008-01-01

The share of nuclear and renewable sources in the energy portfolio yields great benefits to all stake holders and that both sources are not exclusive each other but offer multiple complementary features and synergy's, therefore both technologies should be part of the present and future energy mix. This portfolio should be enough and reliable all the time, guarantee the security of supply, protect the environment and give competitive prices. All these features are to a great extent met by nuclear and renewable technologies and therefore they should play an important role on world and national energy supply. (Author)

Energy Efficiency and Importance of Renewable Energy Sources in Latvia

Science.gov (United States)

Skapare, I.; Kreslins, A.

2007-10-01

The main goal of Latvian energy policy is to ensure safe and environmentally friendly long-term energy supply at cost-effective prices, contributing to enhance competitiveness, and to ensure safe energy transit. The Latvian Parliament approved an Energy Efficiency Strategy in 2000. Its objective is to decrease energy consumption per unit of GDP by 25% by 2010. Awareness raising, implementation of standards and economic incentives for self financing are the main instruments to increase energy efficiency, mentioned in the strategy. Latvia, as many other European Union member states, is dependent on the import of primary energy resources. The Latvian Renewable Energy strategy is still under development. The only recent study on RES was developed in the framework of a PHARE program in year 2000: "Renewable energy resource program", where three main objectives for a future RES strategy were proposed: 1. To increase the use of wood waste and low value wood and forest residues. 2. To improve efficiency of combustion technologies and to replace outdated plants. 3. To increase the use of renewables in Combined Heat and Power plants (CHP). Through the Renewable Energy and Energy Efficiency Partnership, partners will develop a set of new shared activities, and coordinate and strengthen existing efforts in this area.

Apples with apples: accounting for fuel price risk in comparisons of gas-fired and renewable generation

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Wiser, Ryan

2003-12-18

For better or worse, natural gas has become the fuel of choice for new power plants being built across the United States. According to the US Energy Information Administration (EIA), natural gas combined-cycle and combustion turbine power plants accounted for 96% of the total generating capacity added in the US between 1999 and 2002--138 GW out of a total of 144 GW. Looking ahead, the EIA expects that gas-fired technology will account for 61% of the 355 GW new generating capacity projected to come on-line in the US up to 2025, increasing the nationwide market share of gas-fired generation from 18% in 2002 to 22% in 2025. While the data are specific to the US, natural gas-fired generation is making similar advances in other countries as well. Regardless of the explanation for (or interpretation of) the empirical findings, however, the basic implications remain the same: one should not blindly rely on gas price forecasts when comparing fixed-price renewable with variable-price gas-fired generation contracts. If there is a cost to hedging, gas price forecasts do not capture and account for it. Alternatively, if the forecasts are at risk of being biased or out of tune with the market, then one certainly would not want to use them as the basis for resource comparisons or investment decisions if a more certain source of data (forwards) existed. Accordingly, assuming that long-term price stability is valued, the most appropriate way to compare the levelized cost of these resources in both cases would be to use forward natural gas price data--i.e. prices that can be locked in to create price certainty--as opposed to uncertain natural gas price forecasts. This article suggests that had utilities and analysts in the US done so over the sample period from November 2000 to November 2003, they would have found gas-fired generation to be at least 0.3-0.6 cents/kWh more expensive (on a levelized cost basis) than otherwise thought. With some renewable resources, in particular wind

Development of alternative/renewable sources of energy in Pakistan

International Nuclear Information System (INIS)

Sharif, M.

2005-01-01

The depleting Conventional Energy Resources and highly raised prices of fuel oil, coal, firewood and such other fossil fuels, have forced the mankind to think about the utilization of Alternative / Renewable Sources of Energy. Alternative / Renewable Energy is very attractive, reliable and cost competitive energy. Sun is readily available to provide a clean, abundant and virtually infinite energy to meet the significant portion of mankind's energy-needs. The possible use of renewable-energy sources is discussed in this paper, in order to fill the estimated gap between the available energy-sources and energy-needs of our country in the near future. Designing, Fabrication and Installation of different renewable-energy devices by PCSIR are also discussed in this paper. Different renewable-energy devices such as, solar water heaters, solar cookers, solar dehydrators, solar water-desalination plants, solar heating and cooling of buildings, solar operated absorption-type chiller, solar furnace, solar architecture, developed by PCSIR are discussed in some detail so that the role of renewable-energy sources for their direct use (as heat and power) can be determined. Various technical aspects are discussed to reduce the unit cost with improved efficiency. (author)

Essays in energy economics: An inquiry into Renewable Portfolio Standards

Science.gov (United States)

Lamontagne, Laura Marie

In an attempt to motivate the transition away from fossil fuels, reduce carbon emissions and diversify electricity supply, twenty-nine states and the District of Columbia have adopted a Renewable Portfolio Standard (RPS). An RPS is a form of regulation that requires increased electricity production from renewable energy sources. These standards vary by state but generally require a minimum percentage of electricity generation to come from renewable technologies by a predetermined date. In the first chapter I examine the effect of the adoption of an RPS on electricity rates, making use of the increased availability of data since several policies' adoption. Using a fifty state panel over the years 1990-2010, this study uses a difference-in-difference and a fixed effects estimation to measure how the adoption of an RPS affects the price of electricity in state markets. Empirical findings show that states that have adopted an RPS have approximately a 20% higher all-retail electricity price than states that do not have RPS. Following the adoption of this regulation, a state can expect to see electricity prices rise by roughly 5% on average per year relative to states with no RPS. Once the legislation has been in place for almost a decade, electricity rates begin to dramatically increase upwards of 10% per year. In the second chapter, I observe the economic, social and political factors that prompt a state to adopt a Renewable Portfolio Standard. I estimate a probit model to determine the probability a state will adopt an RPS in a year given its present political and economic climate. Results show that a deregulated electricity market, a high per-capita GDP, a strong democratic presence in the state legislature, high renewable capacity, and a strong incidence of natural gas are indicators a state will pass an RPS. Whether or not a state is a net importer or exporter of electricity is not a significant indicator of adoption of an RPS within a state. The third chapter

Using net energy output as the base to develop renewable energy

International Nuclear Information System (INIS)

Shaw Daigee; Hung Mingfeng; Lin Yihao

2010-01-01

In order to increase energy security, production of renewable energies has been highly promoted by governments around the world in recent years. The typical base of various policy instruments used for this purpose is gross energy output of renewable energy. However, we show that basing policy instruments on gross energy output will result in problems associated with energy waste, economic inefficiency, and negative environmental effects. We recommend using net energy output as the base to apply price or quantity measures because it is net energy output, not gross energy output, which contributes to energy security. The promotion of gross energy output does not guarantee a positive amount of net energy output. By basing policy instruments on net energy output, energy security can be enhanced and the above mentioned problems can be avoided.

Are renewable energies too expensive?

International Nuclear Information System (INIS)

2015-01-01

As hydroelectricity is known to be profitable, and as biomass displayed good results when used for heating buildings, the issue of the cost of electricity produced by wind and photovoltaic energies is still a matter of debate. This article outlines how to take different factors into account to assess a discount rate. These factors are location which determines wind and sun resource, the future prices of fossil energies, rates of interest, and so on. It indicates that ground based wind and solar farms now have a kWh cost which is close to that of fossil energies, and lower than that of nuclear energy when taking investment and operation cost into account. The production cost of renewable energies has been dramatically reduced during the last years and this trend will probably continue during the years to come. Thus, the article states that a 100 per cent renewable mix seems possible for France by 2050 without significant over-costs

Forecasting US renewables in the national energy modelling system

International Nuclear Information System (INIS)

Diedrich, R.; Petersik, T.W.

2001-01-01

The Energy information Administration (EIA) of the US Department of Energy (DOE) forecasts US renewable energy supply and demand in the context of overall energy markets using the National Energy Modelling System (NEMS). Renewables compete with other supply and demand options within the residential, commercial, industrial, transportation, and electricity sectors of the US economy. NEMS forecasts renewable energy for grid-connected electricity production within the Electricity Market Module (EM), and characterizes central station biomass, geothermal, conventional hydroelectric, municipal solid waste, solar thermal, solar photovoltaic, and wind-powered electricity generating technologies. EIA's Annual Energy Outlook 1998, projecting US energy markets, forecasts marketed renewables to remain a minor part of US energy production and consumption through to 2020. The USA is expected to remain primarily a fossil energy producer and consumer throughout the period. An alternative case indicates that biomass, wind, and to some extent geothermal power would likely increase most rapidly if the US were to require greater use of renewables for power supply, though electricity prices would increase somewhat. (author)

Exploration can cause falling non-renewable resource prices

International Nuclear Information System (INIS)

Boyce, John R.

2003-01-01

This note shows that when marginal exploration costs are increasing in the rate of exploration that it is possible to observe non-renewable resource prices falling over a portion of the extraction profile. Thus, while the model of Pindyck (J. Polit. Econ. 86 (1978) 841) was based on an incorrect specification of the aggregate extraction cost function, its general conclusion that exploration can cause falling non-renewable resource prices is upheld. This result is in contrast to Mendelsohn and Swierzbinski (Int. Econ. Rev. 30 (1989) 175), who assumed that marginal extraction costs were constant

Managing Interactions Between Carbon Pricing and Existing Energy Policies. Guidance for Policymakers

Energy Technology Data Exchange (ETDEWEB)

Hood, Christina

2013-07-01

Carbon pricing can be a key policy tool to help countries move their energy sectors onto a cleaner development path. One important issue to consider when introducing carbon pricing is how it will integrate with other energy policies that also reduce greenhouse gas emissions, including policies to support low-carbon technologies (such as renewable energy) and energy efficiency programmes. Poor policy integration can undermine energy security and affordability, and affect the performance of renewable energy policies and energy markets. Climate objectives can also be undermined, through low and uncertain carbon prices and the risk of stop-start policy. Understanding how to manage policy interactions can improve the climate and energy policy package, reducing the trade-offs and advancing the synergies between energy and climate objectives. This will benefit the country in terms of a more effective and lower-cost low-carbon development path, as well as supporting a more energy-secure future.

Management of development of renewable energy sources

Directory of Open Access Journals (Sweden)

Inić Branimir P.

2014-01-01

Full Text Available The aim of the paper: 'Management of development of renewable energy sources is to point out the possible solutions for neutralizing the threat of energy shortages. The paper outlines major short and long term energy problems facing humanity. The increase of world human population is, inevitably, accompanied by higher energy consumption. Reserves decrease of nonrenewable energy sources like oil, gas, and coal is a major threat to maintaining current living conditions, and thus requires solutions in order to neutralize the threat. This is why the management of development of renewable energy sources is an imperative for Serbia. The paper emphasizes the use of solar energy, because the annual average of solar radiation in Serbia is about 40% higher than the European average, however, the actual use of the sun's energy to generate electricity in Serbia is far behind the countries of the European Union. Solar energy is clean, renewable, and the fact that 4.2 kilowatt-hours are received daily per square meter averaged over the entire surface of the planet, makes it an almost unused energy source, Compared to EU countries, the price of non-renewable derived energy is, on average, higher in Serbia. Taking this into consideration, the use of solar energy, as an unused resource, imposes itself as indispensable.

Improving cost-effectiveness and mitigating risks of renewable energy requirements

Science.gov (United States)

Griffin, James P.

Policy makers at the federal and state levels of government are debating actions to reduce U.S. greenhouse gas emissions and dependence on oil as an energy source. Several concerns drive this debate: sharp rises in energy prices, increasing unease about the risks of climate change, energy security, and interest in expanding the domestic renewable energy industry. Renewable energy requirements are frequently proposed to address these concerns, and are currently in place, in various forms, at the federal and state levels of government. These policies specify that a certain portion of the energy supply come from renewable energy sources. This dissertation focuses on a specific proposal, known as 25 X 25, which requires 25% of electricity and motor vehicle transportation fuels supplied to U.S. consumers to come from renewable energy sources, such as wind power and ethanol, by 2025. This dissertation builds on prior energy policy analysis, and more specifically analyses of renewable energy requirements, by assessing the social welfare implications of a 25 x 25 policy and applying new methods of uncertainty analysis to multiple policy options decision makers can use to implement the policy. These methods identify policy options that can improve the cost-effectiveness and reduce the risks of renewable energy requirements. While the dissertation focuses on a specific policy, the research methods and findings are applicable to other renewable energy requirement policies. In the dissertation, I analyze six strategies for implementing a 25 x 25 policy across several hundred scenarios that represent plausible futures for uncertainties in energy markets, such as renewable energy costs, energy demand, and fossil fuel prices. The strategies vary in the availability of resources that qualify towards the policy requirement and the use of a "safety valve" that allows refiners and utilities to pay a constant fee after renewable energy costs reach a predetermined threshold. I test

Valuing the attributes of renewable energy investments

International Nuclear Information System (INIS)

Bergmann, Ariel; Hanley, Nick; Wright, Robert

2006-01-01

Increasing the proportion of power derived from renewable energy sources is becoming an increasingly important part of many countries' strategies to achieve reductions in greenhouse gas emissions. However, renewable energy investments can often have external costs and benefits, which need to be taken into account if socially optimal investments are to be made. This paper attempts to estimate the magnitude of these external costs and benefits for the case of renewable technologies in Scotland, a country which has set particularly ambitious targets for expanding renewable energy. The external effects we consider are those on landscape quality, wildlife and air quality. We also consider the welfare implications of different investment strategies for employment and electricity prices. The methodology used to do this is the choice experiment technique. Renewable technologies considered include hydro, on-shore and off-shore wind power and biomass. Welfare changes for different combinations of impacts associated with different investment strategies are estimated. We also test for differences in preferences towards these impacts between urban and rural communities, and between high- and low-income households. (author)

Valuing the attributes of renewable energy investments

Energy Technology Data Exchange (ETDEWEB)

Bergmann, Ariel [Economics Department, University of Glasgow, Adam Smith Building, Glasgow G12 8RT (United Kingdom); Hanley, Nick; Wright, Robert [Economics Department, University of Stirling, Stirling FK9 4LA, Scotland (United Kingdom)

2006-06-15

Increasing the proportion of power derived from renewable energy sources is becoming an increasingly important part of many countries' strategies to achieve reductions in greenhouse gas emissions. However, renewable energy investments can often have external costs and benefits, which need to be taken into account if socially optimal investments are to be made. This paper attempts to estimate the magnitude of these external costs and benefits for the case of renewable technologies in Scotland, a country which has set particularly ambitious targets for expanding renewable energy. The external effects we consider are those on landscape quality, wildlife and air quality. We also consider the welfare implications of different investment strategies for employment and electricity prices. The methodology used to do this is the choice experiment technique. Renewable technologies considered include hydro, on-shore and off-shore wind power and biomass. Welfare changes for different combinations of impacts associated with different investment strategies are estimated. We also test for differences in preferences towards these impacts between urban and rural communities, and between high- and low-income households. (author)

RUSTEC: Greening Europe's energy supply by developing Russia's renewable energy potential

International Nuclear Information System (INIS)

Boute, Anatole; Willems, Patrick

2012-01-01

The North-West of Russia is characterized by a large renewable energy resource base in geographic proximity to the EU. At the same time, EU Member States are bound by mandatory renewable energy targets which could prove to be costly to achieve in the current budgetary context and which often face strong local opposition. Directive 2009/28/EC on Renewable Energy makes it possible for Member States to achieve their targets by importing electricity produced from renewable energy sources from non-EU countries. So far, most attention has been on the Mediterranean Solar Plan or Desertec. An EU–Russia Renewable Energy Plan or RUSTEC – being based on onshore wind/biomass/hydro energy and on-land interconnection, rather than solar power and subsea lines – could present a cost-efficient and short-term complement to Desertec. This article examines the political, geopolitical, economic, social and legal challenges and opportunities of exporting “green” energy from Russia to the EU. It argues that EU–Russian cooperation in the renewable energy field would present a win-win situation: Member States could achieve their targets on the basis of Russia's renewable energy potential, while Russia could begin to develop a national renewable energy industry without risking potential price increases for domestic consumers—a concern of great political sensitivity in Russia. - Highlights: ► Russia has a huge renewable energy potential in geographic proximity to the EU. ► This potential could help the EU decarbonize its electricity supply at least cost.► EU–Russia green energy export is a win-win situation but lacks political attention.► RUSTEC could be a short-term and cost-efficient complement to Desertec. ► RUSTEC would diversify EU energy imports/Russian exports and stimulate innovation.

Constraints of intermittent renewable energies on the management of the energy mix

International Nuclear Information System (INIS)

Percebois, J.

2017-01-01

It appears that variable renewable energies like wind energy or solar energy will have to play an important role in future energy mixes but today their place is limited by the impossibility of storing energy in great scale. In Europe wind energy and solar energy have been developed through incentive policies that have proposed guaranteed tariffs far higher than prices fixed by the energy market, the difference being paid by consumers through taxes. Now the growing importance of renewable energies implies reforming the electricity market. In France the reduction of the share of nuclear energy in power production to give more room for renewable energies is a nonsense because it means replacing a low-cost low-carbon energy by expensive low-carbon energies. Nuclear technologies are not frozen and will evolve over time in terms of more safety, more flexibility to meet the power demand and becoming less centralized to be used in new fields like urban heating or hydrogen production. (A.C.)

The Investment Environment for Renewable Energy Development in Lithuania: The Electricity Sector

Directory of Open Access Journals (Sweden)

Milčiuvienė Saulė

2014-06-01

Full Text Available The article analyzes the investment environment in renewable electricity generation capacities, evaluating the credibility of long term renewable energy targets, the stability of promotion schemes and the impartiality of national administrative procedure. The article explores two main questions: (i are the EU and Lithuanian energy policy targets and promotion schemes credible enough to convince private investors to put their money in renewable energy development; (ii does national administrative procedure put a disproportional burden on renewable energy investors or on certain group of investors? The assessment of the investment environment includes a large number of criteria, but we analyze three of them: the stability of long term strategy; the attractiveness of promotionmeasures; and the simplicity and transparency of administrative procedure. Two further criteria are investigated: the stability of targets in renewable energy and the stability of promotional measures. The greatest uncertainty for investors occurs because of constantly changing support schemes of renewable energy sources-schemes that are not harmonized among the member States. At the national level the main driver in the development of small generators is the feed-in tariff. However, the high feed-in tariff does not always guarantee the smooth development of small scale generators of renewable energy.

Action plan for renewable energy sources

International Nuclear Information System (INIS)

2000-03-01

In the Finnish Energy Strategy, approved by the Finnish Government in 1997, the emphasis is laid on the importance of bioenergy and other renewable energy sources for the creation of such prerequisites for the Finnish energy economy that the supply of energy can be secured, the price on energy is competitive and the emissions from energy generation are within the limits set by the international commitments made by Finland. In 1998, the European Union Meeting of the Ministers of Energy adopted a resolution taking a positive attitude to the Communication from the Commission 'Energy for the future: Renewable sources of energy' - White Paper for a Community Strategy and Action Plan. National measures play a key role in the achievement of the objectives set in the White Paper. This Action Plan for Renewable Energy Sources is a national programme in line with the EU's White Paper. It comprises all renewable sources of energy available in Finland. It encompasses even peat, which in Finland has traditionally been considered to be a solid biofuel but is internationally classified as one of the non-renewable sources of energy. In the Action Plan, objectives are set for the volume of renewable energy sources used in the year 2010 including a prognosis on the development by the year 2025. The goal is that by the year 2010 the volume of energy generated using renewable energy sources has increased by 50% compared with the year 1995. This would mean an increase by 3 Mtoe, which is about 1 Mtoe more than anticipated in the outlook based on the Finnish Energy Strategy. A further goal is to double the use of renewable energy sources by the year 2025. The aggregate use of renewable energy sources depends to a large extent both on the development of the price on energy produced using other energy sources and on possible changes in the production volume of the Finnish forest industry. The most important objective stated in the Action Plan is to improve the competitiveness of renewable

Analysis of public policies for new renewable energy in Brazil; Analise de politicas publicas para novas energias renovaveis no Brasil

Energy Technology Data Exchange (ETDEWEB)

Furtado, M.C.; Fadigas, E.A.F.A.; Baitelo, R.L. [Universidade de Sao Paulo (USP), SP (Brazil). Escola Politecnica

2010-07-01

Renewable energy have a prominent place among the solutions to combat global warming, but its potential is still untapped in Brazil. Without long-term policies with clear rules, you can not attract entrepreneurs and ensure stability of operation of this market. The main tools of government to promote renewable energy generation have not been efficient - the Incentive Program for Alternative Sources of Energy (Proinfa) was implemented in 2002 but put into operation just over two thirds of the energy proposal. The low success rate in repeated auctions focused on renewable energy. The objective of this paper is to discuss the prospects of the expansion of electricity generation by renewable energies in Brazil and some fundamental requirements for effective structuring of this market in the country. This argument is supported by the analysis of the proposed mechanisms used internationally and in the country, under a new law for renewable energies. As a practical demonstration of the analysis, we present a simulation of conditions of formation of the final price of renewable resources in different conditions as varied market rate of return, cost of transmission, and sale of carbon credits.

Cleaning the air with renewable energy : briefing note

International Nuclear Information System (INIS)

2002-09-01

The Clean Air Renewable Energy Coalition promotes the development of the renewable energy industry in Canada. It acknowledges the effort that the Canadian government has taken to advance investment in renewable energy, but the Coalition is concerned that these investments alone will not achieve the desired objectives without additional policy development by federal, provincial and territorial governments. This report presents an overview of 7 proposals designed to promote and advance renewable energy in Canada. The benefits of these proposals include cleaner air, improved health, engaging public and industry participation in climate change initiatives, and fostering innovation and entrepreneurship in the sector. Brief details were presented for the following 7 proposals: (1) establish a national low-impact renewable energy target for Canada, (2) increase the Wind Power Production Incentive (WPPI) to 2.7 cent per kilowatt hour to ensure appropriate investment in wind energy and harmonization with the United States, (3) extend incentive programs similar to the WPPI to other renewable energy technologies, (4) work with other levels of government to implement policy mechanisms to meet the recommended national renewable energy target, (5) expand the Market Incentive Program (MIP) funding to 30 million dollars per year to 2012 and consult with the provinces and territories to develop a broad-based consumer green energy rebate and education program, (6) identify mechanisms to ensure a meaningful role for renewable energy to contribute to the country's climate change strategy, and (7) develop a Wind Energy Mapping and Wind Measurement Initiative. In a recent update, the Coalition states that low environmental impact renewable energy needs market recognition for its environmental and social benefits. In general, these benefits are not financially valued in energy market pricing. In addition, energy sources that impact significantly on the environment are not financially

Cleaning the air with renewable energy : briefing note

Energy Technology Data Exchange (ETDEWEB)

NONE

2002-09-01

The Clean Air Renewable Energy Coalition promotes the development of the renewable energy industry in Canada. It acknowledges the effort that the Canadian government has taken to advance investment in renewable energy, but the Coalition is concerned that these investments alone will not achieve the desired objectives without additional policy development by federal, provincial and territorial governments. This report presents an overview of 7 proposals designed to promote and advance renewable energy in Canada. The benefits of these proposals include cleaner air, improved health, engaging public and industry participation in climate change initiatives, and fostering innovation and entrepreneurship in the sector. Brief details were presented for the following 7 proposals: (1) establish a national low-impact renewable energy target for Canada, (2) increase the Wind Power Production Incentive (WPPI) to 2.7 cent per kilowatt hour to ensure appropriate investment in wind energy and harmonization with the United States, (3) extend incentive programs similar to the WPPI to other renewable energy technologies, (4) work with other levels of government to implement policy mechanisms to meet the recommended national renewable energy target, (5) expand the Market Incentive Program (MIP) funding to 30 million dollars per year to 2012 and consult with the provinces and territories to develop a broad-based consumer green energy rebate and education program, (6) identify mechanisms to ensure a meaningful role for renewable energy to contribute to the country's climate change strategy, and (7) develop a Wind Energy Mapping and Wind Measurement Initiative. In a recent update, the Coalition states that low environmental impact renewable energy needs market recognition for its environmental and social benefits. In general, these benefits are not financially valued in energy market pricing. In addition, energy sources that impact significantly on the environment are not

West African Power Pool: Planning and Prospects for Renewable Energy

Energy Technology Data Exchange (ETDEWEB)

Miketa, Asami [IRENA, Bonn (Germany); Merven, Bruno [Energy Research Centre, Univ. of Cape Town (South Africa)

2013-06-25

With the energy systems of many African countries dominated by fossil-fuel sources that are vulnerable to global price volatility, regional and intra-continental power systems with high shares of renewable energy can provide least-cost option to support continued economic growth and address the continent’s acute energy access problem. Unlocking Africa’s huge renewable energy potential could help to take many people out of poverty, while ensuring the uptake of sustainable technologies for the continent’s long-term development. The report examines a ''renewable scenario'' based on a modelling tool developed by IRENA and tested with assistance from the Economic Community of West African States (ECOWAS). Initial results from the ECOWAS Renewable Energy Planning (EREP) model for continental ECOWAS countries show that the share of renewable technologies in the region could increase from the current 22% of electricity generation to as much as 52% in 2030, provided that the cost of these technologies continues to fall and fossil fuel prices continue to rise. In this scenario, nearly half of the envisaged capacity additions between 2010 and 2030 would be with renewable technologies. Analysis using EREP – along with a similar model developed for Southern Africa – can provide valuable input for regional dialogue and energy projects such as the East and Southern Africa Clean Energy Corridor and the Programme for Infrastructure and Development in Africa (PIDA). IRENA, together with partner organisations, has started plans to set up capacity building and development support for energy system modelling and planning for greater integration of renewables in Africa. IRENA is also completing a similar model and study for East Africa and intends to extend this work to Central and North Africa.

Collateral effects of renewable energies deployment in Spain: Impact on thermal power plants performance and management

International Nuclear Information System (INIS)

Moreno, Fermin; Martinez-Val, Jose M.

2011-01-01

The quest for renewable energy sources has been strong in Spain for a couple of decades, and has produced outstanding results, notably in windpower. Solar technologies also had a prompt response to the promoting legislation of 2007. This evolution has generated side effects in the electricity generation system as a whole, and all this phenomenology is analysed in this paper under the consideration of the three objectives theoretically guiding electricity policy nowadays: security of supply (at macro and micro level), environmental quality, and economic competitiveness. The analysis points out some unbalance among the objectives, which can evolve to a scenario where back-up power is going to be a critical point for the stability of the system. Such a back-up service will surely be provided by gas-fired combined cycles (GFCC). The estimated projections of the generation system show that the required back-up power will grow about 8-9 GW by year 2020, for complying with the objective of attaining a share of 40% renewable electricity. However, collateral effects as the decline in the load factor of GFCC, as well as a reduction in spot price of electricity, can cast many doubts about the feasibility to reach that back-up power level. - Highlights: → Renewable energy will not match power peaks with high level of confidence. → Fossil thermal plants have become back-up systems to substitute for renewable energy. → Estimations show that 8-9 GW of additional combined cycles will be needed by 2020. → Electricity from renewable energy will provoke long periods of low spot prices. → Lack of economic feasibility of thermal plants threatens long term security of supply.

The Landscape of Renewable Energies in Europe in 2030

International Nuclear Information System (INIS)

Cruciani, Michel

2017-06-01

The study analyses the European rules designed to promote renewable energy, highlighting their innovations and the difficulties they will raise. The study highlights the consequences of some of the measures envisaged and pays particular attention to the electricity market. On 30 November 2016, the European Commission issued a new set of proposals, the 'Clean Energy Package', covering a wide spectrum of activities. This study analyses the provisions of this package which aim at improving energy efficiency by 30% and giving renewable energy a share of 27% of consumption by 2030. In 2014, Member States had called for these objectives to be assessed for the entire European Union. Nevertheless the Commission wishes to obtain a mandate to check that each State makes an honest contribution to the collective effort. The study stresses that the 30% target for energy efficiency weakens the role of the CO_2 market. The simulations reveal that this weakness will benefit coal, which keeps in 2030 a higher share than it would have occupied with a target of 27%, whereas natural gas is penalized by a low CO_2 price. It also appears that by remaining too low, the price of CO_2 will discourage certain investments in favour of renewable energies that would have naturally emerged with a high price. Therefore it will be necessary to roll out costly public policies to trigger these investments, so that the share of these energies totals 27% by 2030. The simulations also show that the renewable energy target will be largely achieved through very rapid growth of wind and solar power. The proposals of 30 November 2016 hence are drafted to encourage the development of these two sectors by reforming the electricity market so that it establishes a price that is remunerative and reduces the need for public aid, while clearly reflecting the burdens generated by the different actors. It seems unlikely that the Member States will accept such a profound market reform as the Commission envisages

Efficient integration of renewable energies in the German electricity market

International Nuclear Information System (INIS)

Nabe, C.A.

2006-01-01

Liberalisation of the electricity sector aims to carry out coordination tasks within the system by markets and market prices. This study examines how markets need to be designed to carry out coordination tasks caused by integration of renewable energies in an efficient way. This question is applied to the German electricity system and recommendations are derived from identified deficits. The examination uses the structure-conduct-performance approach of industrial organisation economics. Integration of renewable energies does not result in entirely new coordination tasks but complicates those that exist in any electricity supply system. Within the short-term coordination tasks provision and operation of reserve capacity is affected by renewable energies. Long-term coordination means that the relation between fixed and variable costs of generators as well as generator flexibility has to be adjusted to the characteristics of renewable energies. The relevant short-term coordination task with the network is congestion management. In the long run costs of grid expansion and permanent congestion management have to be balanced. For the execution of short-run coordination tasks integrated and centralised market architectures are superior to decentralised architectures. The increase of short-term coordination tasks due to renewable energies caused by inflexibilities of consumers and conventional generators results in more information that has to be considered. By centralising that information in one market, an increase in productive efficiency can be obtained. In Germany the increased coordination tasks are determined by the integration of wind generators into the electricity system. The present German market architecture results in inefficiencies in short-term coordination. This is demonstrated by an analysis of procedural rules and prices of the ancillary service markets. They demonstrate that market performance is low and significant deviations from competitive prices

Demand Uncertainty and Price Stabilization

OpenAIRE

E. Kwan Choi; Stanley R. Johnson

1987-01-01

Price stabilization is an important policy goal of government intervention in competitive markets. These policies are primarily directed at raising producer income and stabilizing market prices at levels acceptable to consumers and producers (Fox 1956, Turnovsky 1978, Newbery and Stiglitz 1979). Many of the stabilization policy results have been developed from the study of agricultural commodity markets. In these markets, prices tend to be highly variable due to uncertain and inelastic supply...

Renewable Energy for Electric Vehicles : Price Based Charging Coordination

NARCIS (Netherlands)

Richstein, J.C.; Schuller, A.; Dinther, C.; Ketter, W.; Weinhardt, C.

2012-01-01

In this paper we investigate the charging coordination of battery electric vehicles (BEV) with respect to the availability of intermittent renewable energy generation considering individual real world driving profiles in a deterministic simulation based analysis, mapping a part of the German power

Renewable energy resources; Erneuerbare Energien

Energy Technology Data Exchange (ETDEWEB)

Lenz, Volker; Naumann, Karin [DBFZ Deutsches Biomasseforschungszentrum gemeinnuetzige GmbH, Leipzig (Germany); Kaltschmitt, Martin; Janczik, Sebastian [Technische Univ. Hamburg-Harburg (Germany). Inst. fuer Umwelttechnik und Energiewirtschaft

2015-07-01

Although the need to decarbonise our global economy and thus in particular the supply of energy to limit the global temperature increase is internationally undisputed the German politics in 2014 has significantly contributed less compared to previous years in order to attain this objective. The expansion of renewable energies in the electricity sector has decelerated significantly; and in the heating and mobility area no new impulses were set in relation to renewable energies. In addition, a dramatic fallen oil price makes it difficult to increase the use of renewable energy supply. Based on these deteriorated framework conditions compared to conditions of the previous years, the developments in Germany of 2014 are shown in the electricity, heat and transport sector in the field of renewable energy. For this purpose - in addition to a discussion of the current energy economic framework - for each option to use renewable energies the state and looming trends are analyzed. [German] Obwohl die Notwendigkeit zur Dekarbonisierung unserer globalen Wirtschaft und damit insbesondere der Energiebereitstellung zur Begrenzung des globalen Temperaturanstiegs international unstrittig ist, hat die deutsche Politik im Jahr 2014 im Vergleich zu den Vorjahren deutlich weniger zur Erreichung dieses Zieles beigetragen. Der Ausbau der Stromerzeugung aus erneuerbaren Energien im Stromsektor wurde deutlich verlangsamt; und im Waerme- und Mobilitaetsbereich wurden keine neuen Impulse in Bezug auf regenerative Energien gesetzt. Zusaetzlich erschwert ein drastisch gefallener Rohoelpreis die verstaerkte Nutzung des erneuerbaren Energieangebots. Ausgehend von diesen im Vergleich zu den Vorjahren verschlechterten Rahmenbedingungen werden nachfolgend die Entwicklungen in Deutschland des Jahres 2014 im Strom-, Waerme- und Transportsektor fuer den Bereich der erneuerbaren Energien aufgezeigt. Dazu werden - neben einer Diskussion des derzeitigen energiewirtschaftlichen Rahmens - fuer die

Potential cooperation in renewable energy between China and the United States of America

International Nuclear Information System (INIS)

Zhang, Wei; Yang, Jun; Sheng, Pengfei; Li, Xuesong; Wang, Xingwu

2014-01-01

China and the United States of America (US) are developing renewable energy concurrently. In this paper, we seek the opportunities for potential cooperation between these two countries based on the analysis of annual economic data. A mathematical model has been established to characterize correlations among GDP, carbon dioxide emissions, energy prices and the renewable energy cooperation index. Based on statistical analyses, such cooperation can promote economic development, reduce carbon dioxide emissions, improve the environment and realize green growth. If US monetary and technology resources and Chinese markets are combined, benefits can be mutually gained. - Highlights: • An indicator called “renewable energy cooperation index” is introduced. • A model correlates GDP, CO 2 emission, energy price and the cooperation index. • The cooperation can stimulate economy and reduce CO 2 emission. • Combining US and Chinese resources will be mutually beneficial

Energy consumption and energy R and D in OECD: Perspectives from oil prices and economic growth

International Nuclear Information System (INIS)

Leng Wong, Siang; Chia, Wai-Mun; Chang, Youngho

2013-01-01

We estimate the short-run and long-run elasticities of various types of energy consumption and energy R and D to changes in oil prices and income of the 20 OECD countries over the period of 1980–2010 using the Nerlove partial adjustment model (NPAM). We find negative income elasticity for coal consumption but positive income elasticity for oil and gas consumption suggesting the importance of economic growth in encouraging the usage of cleaner energy from coal to oil and gas. By introducing time dummies into the regressions, we show that climatic mitigation policies are able to promote the usage of cleaner energies. Through the dynamic linkages between energy consumption and energy R and D, we find that fossil fuel consumption promotes fossil fuel R and D and fossil fuel R and D in turn drives its own consumption. Renewable energy R and D which is more responsive to economic growth reduces fossil fuel consumption and hence fossil fuel R and D. - Highlights: • Economic growth encourages the use of cleaner forms of energy. • Economic growth promotes renewable energy R and D. • Subsidies for renewable energy R and D promote renewable energy consumption. • Fossil fuel R and D promotes fossil fuel consumption in countries with oil reserves. • Oil consumption reduces significantly with higher oil prices

Reimagining Energy in the North: Developing Solutions for Improving Renewable Energy Security in Northern Communities

Science.gov (United States)

Creed, I. F.; Poelzer, G.; Noble, B.; Beatty, B.; Belcher, K.; Chung, T.; Loring, P. A.

2017-12-01

The global energy sector is at a crossroads. Efforts to reduce greenhouse gas emissions, volatile fossil fuel prices, the emergence of sustainability markets, and advances in renewable energy technologies are setting the foundation for what could be one of the most significant societal transitions since the industrial revolution. There is a growing movement to "re-energize" Canada, through embracing pathways to facilitate a societal transition a low-carbon future. For example, circumpolar jurisdictions are poised for a transition to renewable energy. There are more than 250 remote, off-grid communities across Canada's North, of which approximately 170 are Indigenous, that rely largely on diesel-fueled generators. Diesel-fueled generation is generally reliable when properly maintained; however, supply is limited, infrastructure is at capacity or in need of major upgrading, and the volatile price of fuel can mean significant social, community and economic opportunity loss. Renewable energy projects offer one possible opportunity to address these challenges. But, given the challenges of human capacity, limited fiscal resources, and regulatory barriers, how can Northern communities participate in the global energy transition and not be left behind? To answer this question, the University of Saskatchewan, together with partners from the circumpolar North, are leading an initiative to develop a cross-sectoral and multi-national consortium of communities, utilities, industries, governments, and academics engaged in renewable energy in the North. This consortium will reimagine energy security in the North by co-creating and brokering the knowledge and understanding to design renewable energy systems that enhance social and economic value. Northern communities and utilities will learn directly from other northern communities and utilities across Canada and internationally about what can be achieved in renewable energy development and the solutions to current and future

Achieving the Renewable Energy Target for Jamaica

Directory of Open Access Journals (Sweden)

Abdullahi Olabode ABDULKADRI

2014-05-01

Full Text Available ieving the Renewable Energy Target for Jamaica Abstract: The high cost of energy in Jamaica, one of the highest in the Caribbean region, is usually cited as a hindrance to industrial development and efficiency, especially in the manufacturing sector. High energy cost is also considered to be a national energy security issue and the government is taking steps to ensure adequate supply of energy at affordable prices. In the current National Development Plan, the government has set a target for renewable energy sources to supply 20% of the country's energy need by the year 2030. Using a linear programing model of energy planning, we examine how realistically this target could be achieved. Our findings indicate that the 20% renewable energy target is technically achievable with the optimal plan showing a mixture of wind power, hydropower and bagasse power but no solar power. However, when the timeline for investment in new generating capacities that will ensure the attainment of the target is considered, it becomes highly improbable that the target will be met. This study fills the gap that exists in evidence-based analysis of energy policy in Jamaica.

The impact of competitive bidding on the market prospects for renewable electric technologies

Energy Technology Data Exchange (ETDEWEB)

Swezey, B G

1993-09-01

This report examines issues regarding the ability of renewable-energy-based generation projects to compete fossil-fuel-based projects in competitive bidding solicitations. State and utility bidding results revealed that on a relative basis, utilities contract for less renewable-energy-based capacity under competitive bidding than under past methods of qualifying facility contracting. It was concluded that renewables are not being chosen more often under competitive bidding because it emphasizes price and operating considerations over other attributes of renewables, such as environmental considerations, fuel diversity, and fuel price stability. Examples are given of bidding approaches used by some states and utilities that have resulted in renewables-based projects winning generation bids. In addition, the appendix summarizes, by state, competitive bidding activities and results for supply-side solicitations that were open to all fuels and technologies.

Evaluation of renewable energy policies

International Nuclear Information System (INIS)

Kancs, D.

2006-01-01

Energy efficiency in Poland is driven primarily by price signals. Due to Poland's recent international obligations towards addressing climate change, various sustainable energy policies have been established to foster energy efficiency as well as to define the conditions of conducting economic activities in the energy sector. This paper presented the results of an empirical ex-ante analysis which examined the effects of various potential energy policies in the Polish bioenergy sector. An applied general equilibrium model was used in which producers responded to changes in market prices of different energy products by adjusting their output and input levels. The model consisted of 3 major sections, namely production, consumption, and equilibrium conditions. The model used a set of simultaneous linear and non-linear equations to define the behaviour of economic agents. Each solution provided a full set of economic indicators, including household incomes, prices, supply and demand quantities for factors and commodities, and welfare indicators. Consumers in the model responded to changes in energy product prices with a reduced demand of certain goods and services, as well as by increasing demand for other services. Results of the simulation showed that a uniform subsidy led to the same increase of renewable energy supply as an equivalent uniform fossil energy tax. Results also indicated that reductions in the output of fossil fuel energy sectors below the reference case did not impact all fossil energy sectors equally. A subsidy was found to lower the average cost of production, while taxation was found to increase the average cost of production. It was concluded that the bioenergy sector will benefit more from an indirect tax reduction than from a removal of fossil energy sector subsidies. 25 refs., 3 tabs., 3 figs

Innovation management in renewable energy sector

Science.gov (United States)

Ignat, V.

2017-08-01

As a result of the globalization of knowledge, shortening of the innovation cycle and the aggravation of the price situation, the diffusion of innovation has accelerated. The protection of innovation has become even more important for companies in technologyintensive industries. Legal and actual patent right strategies complement one another, in order to amortize the investment in product development. Climate change is one of today’s truly global challenges, affecting all aspects of socio-economic development in every region of the world. Technology development and its rapid diffusion are considered crucial for tackling the climate change challenge. At the global level, the last decades have seen a continuous expansion of inventive activity in renewable energy technologies. The growth in Renewable Energy (RE) inventions has been much faster than in other technologies, and RE today represents nearly 6% of global invention activity, up from 1.5% in 1990. This paper discusses about global innovation activity in the last five years in the renewable energy sector and describes the Innovation and Technology Management process for supporting managerial decision making.

The first step towards a 100% renewable energy-system for Ireland

International Nuclear Information System (INIS)

Connolly, D.; Leahy, M.; Lund, H.; Mathiesen, B.V.

2011-01-01

In 2007 Ireland supplied 96% of the total energy demand with fossil fuels (7% domestic and 89% imported) and 3% with renewable energy, even though there are enough renewable resources to supply all the energy required. As energy prices increase and the effects of global warming worsen, it is essential that Ireland begins to utilise its renewable resources more effectively. Therefore, this study presents the first step towards a 100% renewable energy-system for Ireland. The energy-system analysis tool used was EnergyPLAN, as it accounts for all sectors of the energy-system that need to be considered when integrating large penetrations of renewable energy: the electricity, heat, and transport sectors. Initially, a reference model of the existing Irish energy-system was constructed, and subsequently three different 100% renewable energy-systems were created with each focusing on a different resource: biomass, hydrogen, and electricity. These energy-systems were compared so that the benefits from each could be used to create an 'optimum' scenario called combination. Although the results illustrate a potential 100% renewable energy-system for Ireland, they have been obtained based on numerous assumptions. Therefore, these will need to be improved in the future before a serious roadmap can be defined for Ireland's renewable energy transition. (author)

A hybrid renewable energy system for a North American off-grid community

International Nuclear Information System (INIS)

Rahman, Md. Mustafizur; Khan, Md. Mohib-Ul-Haque; Ullah, Mohammad Ahsan; Zhang, Xiaolei; Kumar, Amit

2016-01-01

Canada has many isolated communities that are not connected to the electrical grid. Most of these communities meet their electricity demand through stand-alone diesel generators. Diesel generators have economic and environmental concerns that can be minimized by using hybrid renewable energy technologies. This study aims to assess the implementation of a hybrid energy system for an off-grid community in Canada and to propose the best hybrid energy combination to reliably satisfy electricity demand. Seven scenarios were developed: 1) 100% renewable resources, 2) 80% renewable resources, 3) 65% renewable resources, 4) 50% renewable resources, 5) 35% renewable resources, 6) 21% renewable resources, and 7) battery-diesel generators (0% renewable resources). A case study for the remote community of Sandy Lake, Ontario, was conducted. Hybrid systems were chosen to meet the requirements of a 4.4 MWh/day primary load with a 772 kW peak load. Sensitivity analyses were carried out to assess the impact of solar radiation, wind speed, diesel price, CO 2 penalty cost, and project interest rate on optimum results. A GHG (greenhouse gas) abatement cost was assessed for each scenario. Considering GHG emission penalty cost, the costs of electricity for the seven scenarios are $1.48/kWh, $0.62/kWh, $0.54/kWh, $0.42/kWh, $0.39/kWh, $0.37/kWh, and $0.36/kWh. - Highlights: • Modeling of hybrid renewable energy systems for an off-grid community. • Seven scenarios were developed based on various renewable energy fractions. • Cost of electricity is the highest for 100% renewable fraction scenario. • CO 2 emissions are reduced by 1232 tonnes/yr by switching from diesel to renewables. • The electricity cost is most sensitive to diesel price based on sensitivity analysis.

Current State of the Voluntary Renewable Energy Market (Presentation)

Energy Technology Data Exchange (ETDEWEB)

Heeter, J.

2013-09-01

This presentation highlights the status of the voluntary green power market in 2012. The voluntary green power market totaled more than 48 million MWh in 2012, with about 1.9 million customers participating. The supply continues to be dominated by wind, though solar is increasing its share of utility green pricing programs. Prices for voluntary renewable energy certificates (RECs) increased to above $1/MWh.

Renewable energy and low carbon economy transition in India

DEFF Research Database (Denmark)

Shukla, P.R.; Dhar, Subash; Fujino, Junichi

2010-01-01

that aligns India’s emissions to an optimal 450 ppmv CO2-eq. stabilization global response. The second emissions pathway assumes an underlying sustainable development pattern. A low carbon future will be good for renewable energy under both the development pathways, though the share of renewable energy...

Financing renewable energy for Village Power application

Energy Technology Data Exchange (ETDEWEB)

Santibanez-Yeneza, G.

1997-12-01

When one talks of rural development, no doubt, the issue of rural energy is not far behind. As a significant component of any development strategy, rural energy is seen as the engine for growth that can bring about economic upliftment in the countryside. Many approaches to rural energy development have been tried. These approaches differ from country to country. But regardless of structure and approach, the goal remain essentially the same: to provide rural communities access to reliable energy services at affordable prices. In recent years, as global concern for the environment has increased, many governments have turned to renewable energy as a more environment friendly alternative to rural electrification. Technological advances in renewable energy application has helped to encourage this use. System reliability has improved, development costs have, to some extent been brought down and varied application approaches have been tried and tested in many areas. Indeed, there is huge potential for the development of renewable energy in the rural areas of most developing countries. At the rural level, renewable energy resources are almost always abundantly available: woodwaste, agricultural residues, animal waste, small-scale hydro, wind, solar and even sometimes geothermal resources. Since smaller scale systems are usually expected in these areas, renewable energy technologies can very well serve as decentralized energy systems for rural application. And not only for rural applications, new expansion planning paradigms have likewise led to the emergence of decentralized energy systems not only as supply options but also as corrective measures for maintaining end of line voltage levels. On the other hand, where renewable energy resource can provide significant blocks of power, they can be relied upon to provide indigenous power to the grids.

Renewable Energy Prices in State-Level Feed-in Tariffs: Federal Law Constraints and Possible Solutions

Energy Technology Data Exchange (ETDEWEB)

Hempling, S.; Elefant, C.; Cory, K.; Porter, K.

2010-01-01

State legislatures and state utility commissions trying to attract renewable energy projects are considering feed-in tariffs, which obligate retail utilities to purchase electricity from renewable producers under standard arrangements specifying prices, terms, and conditions. The use of feed-in tariffs simplifies the purchase process, provides revenue certainty to generators, and reduces the cost of financing generating projects. However, some argue that federal law--including the Public Utility Regulatory Policies Act of 1978 (PURPA) and the Federal Power Act of 1935 (FPA)--constrain state-level feed-in tariffs. This report seeks to reduce the legal uncertainties for states contemplating feed-in tariffs by explaining the constraints imposed by federal statutes. It describes the federal constraints, identifies transaction categories that are free of those constraints, and offers ways for state and federal policymakers to interpret or modify existing law to remove or reduce these constraints. This report proposes ways to revise these federal statutes. It creates a broad working definition of a state-level feed-in tariff. Given this definition, this report concludes there are paths to non-preempted, state-level feed-in tariffs under current federal law.

Interactions between renewable energy policy and renewable energy industrial policy: A critical analysis of China's policy approach to renewable energies

International Nuclear Information System (INIS)

Zhang, Sufang; Andrews-Speed, Philip; Zhao, Xiaoli; He, Yongxiu

2013-01-01

This paper analyzes China's policy approach to renewable energies and assesses how effectively China has met the ideal of appropriate interactions between renewable energy policy and renewable energy industrial policy. First we briefly discuss the interactions between these two policies. Then we outline China's key renewable energy and renewable industrial policies and find that China's government has well recognized the need for this policy interaction. After that, we study the achievements and problems in China's wind and solar PV sector during 2005–2012 and argue that China's policy approach to renewable energies has placed priority first on developing a renewable energy manufacturing industry and only second on renewable energy itself, and it has not effectively met the ideal of appropriate interactions between renewable energy policy and renewable energy industrial policy. Lastly, we make an in-depth analysis of the three ideas underlying this policy approach, that is, the green development idea, the low-carbon leadership idea and indigenous innovation idea. We conclude that Chinas' policy approach to renewable energies needs to enhance the interactions between renewable energy policy and renewable energy industrial policy. The paper contributes to a deeper understanding of China's policy strategy toward renewable energies. -- Highlights: •Interactions between renewable energy policy and renewable energy industrial policy are discussed. •China's key renewable energy and renewable energy industrial policies are outlined. •Two empirical cases illustrate China's policy approach to renewable energies. •We argue that China needs to enhance the interactions between the two policies. •Three ideas underlie China's policy approach to renewable energies

Contribution of the syndicate for renewable energies to the Government Climate Plan - Paris, June 2017. Position note of the syndicate for renewable energies on the clean energy package - Paris, 22 June 2017

International Nuclear Information System (INIS)

2017-06-01

After a synthetic presentation of proposals (to increase the 27 per cent European objective for renewable energies to 35 pc at 2030, to emit a stronger price signal on the ETS European market, to give up the principle of technological neutrality bidding, to maintain a strong ambition for biofuels, and consolidation of actions aiming at increasing the share of renewable energies in the heat and cold production sectors), this report discusses various aspects of the recast of the European directive for the promotion of renewable energies: recall of European objectives for renewable energies, aspects related to renewable gas, to renewable cold, and to recovery heat and cold, aspects related to the support to renewable energies, aspects related to an opening of support mechanisms to other member States, aspects related to authorization procedures, aspects related to guarantees of origin, aspects related to self-consumption and communities of renewable energy, aspects related to integration of heat and cold renewable energies, aspects related to heat and cold networks (notably connection issues), aspects related to the development of renewable energies in transports, aspects related to sustainability and to greenhouse gases. The last part discusses the recast of the regulation and of the directive on the electricity domestic market, and more particularly arrangements related to renewable energies, and to storage and flexibility

Design of an economically efficient feed-in tariff structure for renewable energy development

International Nuclear Information System (INIS)

Lesser, Jonathan A.; Su Xuejuan

2008-01-01

Evidence suggests, albeit tentatively, that feed-in tariffs (FITs) are more effective than alternative support schemes in promoting renewable energy technologies (RETs). FITs provide long-term financial stability for investors in RETs, which, at the prevailing market price of electricity, are not currently cost-efficient enough to compete with traditional fossil fuel technologies. On the other hand, if not properly designed, FITs can be economically inefficient, as is widely regarded to have been the case under the Public Utility Regulatory Policies Act of 1978 (PURPA). Under PURPA, too high a guaranteed price led to the creation of so-called 'PURPA machines'-poorly performing generating units that could survive financially only because of heavy subsidies that came at the expense of retail customers. Similarly, because of their adverse impacts on retail electricity rates, German FITs have been subject to increasing political pressure from utilities and customers. In this paper, we propose an innovative two-part FIT, consisting of both a capacity payment and a market-based energy payment, which can be used to meet the renewables policy goals of regulators. Our two-part tariff design draws on the strengths of traditional FITs, relies on market mechanisms, is easy to implement, and avoids the problems caused by distorting wholesale energy markets through above-market energy payments. The approach is modeled on forward capacity market designs that have been recently implemented by several regional transmission organizations in the USA to address needs for new generating capacity to ensure system reliability

Successful renewable energy development in a competitive electricity market: A Texas case study

International Nuclear Information System (INIS)

Zarnikau, Jay

2011-01-01

The development of renewable energy in markets with competition at wholesale and retail levels poses challenges not present in areas served by vertically-integrated utilities. The intermittent nature of some renewable energy resources impact reliability, operations, and market prices, in turn affecting all market participants. Meeting renewable energy goals may require coordination among many market players. These challenges may be successfully overcome by imposing goals, establishing trading mechanisms, and implementing operational changes in competitive markets. This strategy has contributed to Texas' leadership among all US states in non-hydro renewable energy production. While Texas has been largely successful in accommodating over 9000 MW of wind power capacity, this extensive reliance upon wind power has also created numerous problems. Higher levels of operating reserves must now be procured. Market prices often go negative in the proximity of wind farms. Inaccurate wind forecasts have led to reliability problems. Five billion dollars in transmission investment will be necessary to facilitate further wind farm projects. Despite these costs, wind power is generally viewed as a net benefit. - Research Highlights: → Texas rapidly emerged as a leader in renewable energy development. → This state's experiences demonstrate that the right combination of policies to lead to rapid renewable energy development in a region with a very competitive electricity market. → Wind power development has lead to various operational challenges.

Renewable energies in Germany, a national commitment... at the local scale

International Nuclear Information System (INIS)

Persem, Melanie

2012-01-01

This document presents some key information and figures about the development of renewable energies in Germany: share in the national energy mix, the central role of municipalities, economical fallouts and added-value at the local scale (example of a 2 MW wind farm), key-role of the citizen in the development of renewable energies, cooperative companies: an appreciated model, citizen's solar facilities: when municipalities and citizens work side by side, citizen's wind farms: a model supported by citizens, French-German comparison of wind farms development, wind energy and photovoltaic development in Germany, French-German comparison of employment in the renewable energies industry, German consumers' contribution and electricity prices

A contribution of the FVEE to the 6th German energy research program. Research projects in the area of renewable energy sources, energy efficiency and system integration; Beitrag des FVEE zum 6. Energieforschungsprogramm der Bundesregierung. Forschungsaufgaben in den Bereichen erneuerbare Energien, Energieeffizienz und Systemintegration

Energy Technology Data Exchange (ETDEWEB)

Stryi-Hipp, Gerhard; Stadermann, Gerd (comps.)

2010-10-15

Due to the increasing climate change, increasing dependence of imports from constant scarce fossil and nuclear energy resources and due to the strongly fluctuating energy prices, fundamental settings of the agenda for the power supply are placed at present in Germany and Europe. In the contribution under consideration, the Renewable Energy Research Association (Berlin, Federal Republic of Germany) recommends ways to the research and development of a power system in which renewable energies and energy efficiency play a central role. For the 6th energy research program of the Federal Government two principles can be derived: (a) The energy research must be intensified clearly and permanently; (b) In the energy research a clear stabilization of the renewable energies and the energy efficiency have to be performed, since they are the most important contributions to the future energy system.

Renewable energy

International Nuclear Information System (INIS)

Yoon, Cheon Seok

2009-09-01

This book tells of renewable energy giving description of environment problem, market of renewable energy and vision and economics of renewable energy. It also deals with solar light like solar cell, materials performance, system and merit of solar cell, solar thermal power such as solar cooker and solar collector, wind energy, geothermal energy, ocean energy like tidal power and ocean thermal energy conversion, fuel cell and biomass.

Determinants of Renewable Energy Resources and Their Relationship Between Economic Growth: The Case of Developing Countries

OpenAIRE

Serkan Çınar; Mine Yılmazer

2015-01-01

Literature on the relationship between energy consumption and economic growth is based on two different approaches that are supply-side and demand-side. The impact of renewable and non-renewable energy consumption on economic growth is investigated with traditional production function on supply-side approach. The relationship between renewable energy consumption, economic growth, CO2 and energy prices is analyzed on demand-side approach. In this study, the impact of renewable resources on eco...

Renewable Energy Policy Fact sheet - United Kingdom

International Nuclear Information System (INIS)

2017-07-01

The EurObserv'ER policy profiles give a snapshot of the renewable energy policy in the EU Member States. In the United Kingdom RES-E are supported through a feed-in tariff, Contracts for Difference scheme, a quota system and tax regulation mechanism. For RES-H and C a subsidy and price-based mechanisms are available for supporting RES-H installations. Furthermore, a quota system for biofuels and a grant scheme for transport is in place. A training programme for RES-E plant installers is in place, as well as a certification programme for RES-E installations. An overarching Renewable Energy Roadmap relating to RES-E has been laid down and implemented

Petroleum’s Price Transmission and Imported Demand for Crude Oil in Thailand

OpenAIRE

Papusson Chaiwat; Nantarat Tangvitoontham

2014-01-01

The study of the petroleum price structures in Thailand reveals that diesel is the important fuel because it influences inflation and productions’ costs. Government wants to keep diesel’s price stability; meanwhile, it is less control in gasohol and petrol prices. These prices are normally higher than diesel’s price in order to support the renewable energy and reduce the consumption behaviors. Real price elasticity of imported crude oil in short run is insignificant but in long run is about 0...

The long-run equilibrium impact of intermittent renewables on wholesale electricity prices

OpenAIRE

Newbery, D.

2016-01-01

High levels of low variable cost intermittent renewables lower wholesale electricity prices, and the depression of these prices could legitimately be recovered from consumers, preferably through capacity payments. Given that renewables are frequently subsidized for their learning benefits and carbon reduction, this paper asks what part of these subsidies should be recovered from final consumers. In long-run equilibrium, renewables have no impact on the number of hours peaking capacity runs, a...

On market integration of renewable energies

Energy Technology Data Exchange (ETDEWEB)

Schroeer, Sebastian

2014-12-05

Since the liberalization of electricity and gas markets in Europe, the energy sector has changed in every respect with one constant: most actors have underestimated renewable energies with regard to their growth, their economies of scale and their impact on existing energy markets. If that trend continues, the urgency for policy measures will increase. Given the security of supply, integration of renewables into energy markets is necessary to replace fossil and nuclear capacities. However, the further development of renewable energies plays a crucial role in the ability to meet the energy and climate policy targets. Thus, it increases the need for regulation to achieve societally desirable outcomes. This thesis has examined the effects of renewable energies on existing energy markets. It has also investigated the various other cost-efficient options that policy makers have in striving to reach energy and climate policy targets. We assumed that cost efficiency is a relevant side condition. In the past, this has not always been the case. Today, cost efficiency is definitely relevant and might also be an essential target in the future (see Bundesregierung 2013, p. 50). We contributed to the analysis of power prices as a result of increasing shares of renewables by showing that shutting down conventional capacities will have a merit order effect. This is necessary if renewable energies are to replace fossil and nuclear capacities. Any discussion of a change of market design should make mention of this effect, since spot market revenues impact a company's behaviour within potential capacity markets. From a consumer perspective, we have shown that there is a substantial need for secured capacity with low marginal costs to keep spot prices stable. This outcome has important implications for policy makers if they are to provide consumers with low-cost renewable market integration. Policy makers have numerous ways to reach policy targets than rapidly expanding

On market integration of renewable energies

International Nuclear Information System (INIS)

Schroeer, Sebastian

2014-01-01

Since the liberalization of electricity and gas markets in Europe, the energy sector has changed in every respect with one constant: most actors have underestimated renewable energies with regard to their growth, their economies of scale and their impact on existing energy markets. If that trend continues, the urgency for policy measures will increase. Given the security of supply, integration of renewables into energy markets is necessary to replace fossil and nuclear capacities. However, the further development of renewable energies plays a crucial role in the ability to meet the energy and climate policy targets. Thus, it increases the need for regulation to achieve societally desirable outcomes. This thesis has examined the effects of renewable energies on existing energy markets. It has also investigated the various other cost-efficient options that policy makers have in striving to reach energy and climate policy targets. We assumed that cost efficiency is a relevant side condition. In the past, this has not always been the case. Today, cost efficiency is definitely relevant and might also be an essential target in the future (see Bundesregierung 2013, p. 50). We contributed to the analysis of power prices as a result of increasing shares of renewables by showing that shutting down conventional capacities will have a merit order effect. This is necessary if renewable energies are to replace fossil and nuclear capacities. Any discussion of a change of market design should make mention of this effect, since spot market revenues impact a company's behaviour within potential capacity markets. From a consumer perspective, we have shown that there is a substantial need for secured capacity with low marginal costs to keep spot prices stable. This outcome has important implications for policy makers if they are to provide consumers with low-cost renewable market integration. Policy makers have numerous ways to reach policy targets than rapidly expanding

Renewable energy.

Science.gov (United States)

Destouni, Georgia; Frank, Harry

2010-01-01

The Energy Committee of the Royal Swedish Academy of Sciences has in a series of projects gathered information and knowledge on renewable energy from various sources, both within and outside the academic world. In this article, we synthesize and summarize some of the main points on renewable energy from the various Energy Committee projects and the Committee's Energy 2050 symposium, regarding energy from water and wind, bioenergy, and solar energy. We further summarize the Energy Committee's scenario estimates of future renewable energy contributions to the global energy system, and other presentations given at the Energy 2050 symposium. In general, international coordination and investment in energy research and development is crucial to enable future reliance on renewable energy sources with minimal fossil fuel use.

An analysis of the impact of Renewable Portfolio Standards on residential electricity prices

Science.gov (United States)

Larson, Andrew James

A Renewable Portfolio Standard (RPS) has become a popular policy for states seeking to increase the amount of renewable energy generated for consumers of electricity. The success of these state programs has prompted debate about the viability of a national RPS. The impact that these state level policies have had on the price consumers pay for electricity is the subject of some debate. Several federal organizations have conducted studies of the impact that a national RPS would have on electricity prices paid by consumers. NREL and US EIA utilize models that analyze the inputs in electricity generation to examine the future price impact of changes to electricity generation and show marginal increases in prices paid by end users. Other empirical research has produced similar results, showing that the existence of an RPS increases the price of electricity. These studies miss important aspects of RPS policies that may change how we view these price increases from RPS policies. By examining the previous empirical research on RPS policies, this study seeks to identify the controls necessary to build an effective model. These controls are utilized in a fixed effects model that seeks to show how the controls and variables of interest impact electricity prices paid by residential consumers of electricity. This study utilizes a panel data set from 1990 to 2014 to analyze the impact of these policies controlling for generating capacity, the regulatory status of utilities in each state, demographic characteristics of the states, and fuel prices. The results of the regressions indicate that prices are likely to be higher in states that have an RPS compared to states that do not have such a policy. Several of the characteristics mentioned above have price impacts, and so discussing RPS policies in the context of other factors that contribute to electricity prices is essential. In particular, the regulatory status of utilities in each state is an important determinate of price as

Overlapping carbon pricing and renewable support schemes under political uncertainty: Global lessons from an Australian case study

International Nuclear Information System (INIS)

Shahnazari, Mahdi; McHugh, Adam; Maybee, Bryan; Whale, Jonathan

2017-01-01

Highlights: •Uncertainty over overlapping energy and climate policies affects investment choices. •An integrated real options and portfolio optimisation model is used in a case study. •Interacting carbon pricing and renewable supports can create private and social hedge. •Political uncertainty may justify overlapping carbon pricing and renewable supports. -- Abstract: The translation of a greenhouse gas (GHG) emissions reduction policy objective to the required investment in low emissions technologies may be hindered by political contest over the policy instruments employed to achieve it. Political contest may also result in enactment of overlapping policy instruments which, from a ‘policy purist’ perspective, may not appear well calibrated to a shared GHG emissions reduction objective. This paper reports insights gained from an integrated real options and portfolio optimisation model of electricity generation investment behaviour under political uncertainty over the futures of interacting carbon pricing and renewable portfolio standard (RPS) instruments. We compare modelling results and actual outcomes in Australia, where an emission reduction target has had bipartisan support but the means to achieve it has not, to test the assertion that overlapping policy instruments must always increase the social costs of GHG abatement. Results suggest that overlapping a politically contested carbon pricing policy with an RPS may result in a lower risk, renewable energy (RE) investment environment, as the overlap allows investors to hedge their portfolio against political uncertainty through RE additions. Consequently, GHG abatement objectives may be achieved at lower cost than would be the case without the policy interaction. The policies overlap can provide a ‘safety valve’ or ‘hedge’ to both private investors and policymakers when deep uncertainties over the future of energy and climate policies influence investment strategies.

Collaborative market approaches to stimulate sustained renewable energy deployment

International Nuclear Information System (INIS)

Weissman, J.M.

1996-01-01

New market opportunities for renewable energy technologies are emerging in response to lower costs, greater possibilities for distributed products and services, strong customer preference for cleaner electricity, and the anticipation of deregulation of the electric power industry. In response, a series of innovative programs and market-based mechanisms are supporting accelerated, commercialization efforts. This paper reviews two different but complementary national collaborative initiatives. The PV-COMPACT, through its major program components, focuses on a number of market mechanisms and policy tools that support sustainable deployment of photovoltaic (PV) systems for utility markets. The Workshop In A Box Program, a collaborative effort managed by the Interstate Renewable Energy Council, supplies the right information to key state government agencies to assist them in evaluating decisions to purchase renewable energy products. This paper also addresses how distributed applications can open new markets for renewable energy systems including the evolution of customer choice programs like green pricing. The programs discussed in this paper demonstrate that no singular mechanism drives new and sustainable markets: it is the symbiotic relationship among many innovative and enterprising efforts and investments that leads to emerging renewable energy markets

The impact of future energy demand on renewable energy production – Case of Norway

International Nuclear Information System (INIS)

Rosenberg, Eva; Lind, Arne; Espegren, Kari Aamodt

2013-01-01

Projections of energy demand are an important part of analyses of policies to promote conservation, efficiency, technology implementation and renewable energy production. The development of energy demand is a key driver of the future energy system. This paper presents long-term projections of the Norwegian energy demand as a two-step methodology of first using activities and intensities to calculate a demand of energy services, and secondly use this as input to the energy system model TIMES-Norway to optimize the Norwegian energy system. Long-term energy demand projections are uncertain and the purpose of this paper is to illustrate the impact of different projections on the energy system. The results of the analyses show that decreased energy demand results in a higher renewable fraction compared to an increased demand, and the renewable energy production increases with increased energy demand. The most profitable solution to cover increased demand is to increase the use of bio energy and to implement energy efficiency measures. To increase the wind power production, an increased renewable target or higher electricity export prices have to be fulfilled, in combination with more electricity export. - Highlights: • Projections to 2050 of Norwegian energy demand services, carriers and technologies. • Energy demand services calculated based on intensities and activities. • Energy carriers and technologies analysed by TIMES-Norway. • High renewable target results in more wind power production and electricity export. • Increased energy efficiency is important for a high renewable fraction

The impact of renewables and energy efficiency on greenhouse gas emissions

International Nuclear Information System (INIS)

2007-01-01

This report analyses the impact of renewables, CO2 pricing and energy efficiency improvements on CO2 emissions from stationary energy use in the Nordic countries except Iceland. Electricity and heat production (and use) account for the largest emissions from the Nordic economies. The analysis shows that CO2 emissions from 1990 to 2005 could have been as much as 3050% higher without the penetration of renewables in the energy system and the improvement in the energy intensity of GDP. Looking ahead, it is clear that both the EU ETS and renewables policies may have a significant impact on CO2 emissions. For moderate CO2 prices, the overlap between the two types of measures is not found to be substantial, although both yield significant CO2 emission reductions applied separately. This is because the measures to some extent apply to different sectors and uses. The effectiveness of energy efficiency improvements is also found to have a significant effect on emissions. Measures leading to a reduction in electricity consumption are found to be more effective than measures leading to a reduction in heat consumption. (au)

THEORETICAL CONSIDERATIONS OF PRICE STABILITY AS PART OF THE FINANCIAL STABILITY

Directory of Open Access Journals (Sweden)

Magdalena RĂDULESCU

2012-09-01

Full Text Available Currently there are many authors who consider that the only objective of the central bank should be the price stability and between the respective objective and financial stability there is incompatibility. As far we are concerned, we subscribe the idea that between price stability and financial stability there are complementarities. And a strong argument in the favour of this position is also historical. Actually, many older or newer facts show that banking crises were often caused by the unfavourable macroeconomic situation coupled with the bad macroeconomic policies carried by the authorities. But, a monetary policy that aims the price stability reduces this risk. The truth is that the central banks have a series of tools that allow them to act for achieving both the objective of price stability, and that of the stability of financial sector. Although the financial stability is not, usually, an explicit objective for the modern central bank, the systematic financial instability can cancel their performances in achieving their major final objective: the price stability. Being that, because of the need that it creates to inject additional liquidity into the banking system, a crisis of the banking sector may directly affect the monetary stability. Here the mentioned complementarities arise between price stability and financial stability, although the achievement of the first does not necessarily involve the assurance of the last.

The European market of renewable energies; Le marche europeen des energies renouvelables

Energy Technology Data Exchange (ETDEWEB)

Anon.

2011-09-15

This market study on renewable energies presents: 1 - the different renewable energy industries for power generation: the field of renewable energies (hydropower, wind power, solar energy, geothermal energy and biomass power plants) and their common points, their characteristics, advantages and constraints; 2 - the political and regulatory context with its ambitious goals: main steps of worldwide negotiations, Europe and the management of CO{sub 2} emissions, stiffening of the environmental regulation, the energy/climate package and the efforts to be borne by the different member states; 3 - Economy of the sector and the necessary public support: investment and production costs by industry, wholesale prices and competitiveness of the different power generation means, government's incentives for projects profitability; 4 - dynamics of the European market of renewable energies: energy-mix and evolution of the renewable energies contribution in the world and in the European Union, key-figures by country and by industry (installed capacity, production, turnover, employment); 5 - medium-term development perspectives: 2020 prospect scenarios, evolution of the energy mix, perspectives of development for each industry; 6 - the strengths in presence in the domain of facilities: main manufacturers, market shares, innovations, vertical integration, external growth; 7 - the strengths in presence in the domain of power facilities operation: main European operators, position and ranking, installed capacities, projects portfolio; 8 - medium-term perspectives of reconfiguration: best-positioned operators in a developing market, future of European manufacturers with respect to Asian ones, inevitable concentration in the operation sector. (J.S.)

Energy Aware Pricing in a Three-Tiered Cloud Service Market

Directory of Open Access Journals (Sweden)

Debdeep Paul

2016-09-01

Full Text Available We consider a three-tiered cloud service market and propose an energy efficient pricing strategy in this market. Here, the end customers are served by the Software-as-a-Service (SaaS providers, who implement customized services for their customers. To host these services, these SaaS providers, in turn, lease the infrastructure related resources from the Infrastructure-as-a-Service (IaaS or Platform-as-a-Service (PaaS providers. In this paper, we propose and evaluate a mechanism for pricing between SaaS providers and Iaas/PaaS providers and between SaaS providers and the end customers. The pricing scheme is designed in a way such that the integration of renewable energy is promoted, which is a very crucial aspect of energy efficiency. Thereafter, we propose a technique to strategically provide an improved Quality of Service (QoS by deploying more resources than what is computed by the optimization procedure. This technique is based on the square root staffing law in queueing theory. We carry out numerical evaluations with real data traces on electricity price, renewable energy generation, workload, etc., in order to emulate the real dynamics of the cloud service market. We demonstrate that, under practical assumptions, the proposed technique can generate more profit for the service providers operating in the cloud service market.

RE-COST: Cost and Business Comparisons of Renewable vs. Non-renewable Technologies

Energy Technology Data Exchange (ETDEWEB)

Mostajo Veiga, Mercedes; Farina Alvarez, Pablo; Fernandez-Montes Moraleda, Manuel; Kleinsorge, Anne

2012-07-15

Based on real plant data, the RE-COST project concludes that in many OECD energy markets, new renewable energy technologies (RET) are close to be competitive with non-RET electricity plants. RET costs are decreasing rapidly, while conventional power plants are affected by lower utilisation rates, volatile coal and gas prices, CO2 pricing, and lower electricity demand than expected. If energy prices would account for air pollution and climate change, renewables would already be the most beneficial for society and business.

Renewable Energy

DEFF Research Database (Denmark)

Sørensen, Bent Erik

Bent Sorensen’s Renewable Energy: Physics, Engineering, Environmental Impacts, Economics and Planning, Fifth Edition, continues the tradition by providing a thorough and current overview of the entire renewable energy sphere. Since its first edition, this standard reference source helped put...... renewable energy on the map of scientific agendas. Several renewable energy solutions no longer form just a marginal addition to energy supply, but have become major players, with the promise to become the backbone of an energy system suitable for life in the sustainability lane. This volume is a problem...... structured around three parts in order to assist readers in focusing on the issues that impact them the most for a given project or question. PART I covers the basic scientific principles behind all major renewable energy resources, such as solar, wind, and biomass. PART II provides in-depth information...

Solutions for wood-based bio-energy price discovery

Energy Technology Data Exchange (ETDEWEB)

Teraes, Timo [FOEX Indexes Ltd., Helsinki (Finland)], e-mail: timo@foex.fi

2012-11-01

Energy prices are highly volatile. This volatility can have serious ill-effects on the profitability of companies engaged in the energy business. There are, however, a number of price risk management tools which can be used to reduce the problems caused by price volatility. International trade of wood pellets and wood chips is rapidly growing. A good price transparency helps in developing the trade further. In order to meet the renewable energy targets within the EU, further growth of volumes is needed, at least within Europe and from overseas supply sources to the European markets. Reliable price indices are a central element in price risk management and in general price discovery. Exchanges have provided, in the past, the most widely known price discovery systems. Since 1990's, an increasing number of price risk management tools has been based on cash settlement concept. Cash settlement requires high quality benchmark price indices. These have been developed by the exchanges themselves, by trade press and by independent price benchmark provider companies. The best known of these benchmarks in forest industry and now also in wood-based bioenergy products are the PIX indices, provided by FOEX Indexes Ltd. This presentation discusses the key requirements for a good price index and the different ways of using the indices. Price relationships between wood chip prices and pellet prices are also discussed as will be the outlook for the future volume growth and trade flows in woodchips and pellets mainly from the European perspective.

From hero to zero: Evidence of performance reversal and speculative bubbles in German renewable energy stocks

International Nuclear Information System (INIS)

Bohl, Martin T.; Kaufmann, Philipp; Stephan, Patrick M.

2013-01-01

Stocks of German renewable energy companies have commonly been regarded as lucrative investment opportunities. Their innovative line of business initially seemed to promise considerable future earnings. As shown by two powerful bubble tests, the positive sentiment for renewable energy stocks even led to explosive price behavior in the mid-2000s. However, intense sector competition and the economic downturn following the global financial crisis erased profit margins to a large extent. As a result, the former fad stocks have recently turned into losers, loading negatively on price momentum and delivering significantly negative Carhart four-factor alphas. The radical shift in Germany's energy policy following the 2011 Fukushima nuclear disaster in Japan could thus only temporarily halt the continuing decline in alternative energy stock prices. - Highlights: ► We examine the return behavior of German renewable energy stocks between 2004 and 2011. ► The former fad stocks have recently turned into loser stocks. ► They produced significantly negative Carhart four-factor alphas since 2008. ► The price behavior before 2008 was considerably driven by explosiveness. ► Upbeat sector sentiment in the mid-2000s might have caused this speculative bubble

A unified REC market and composite RPO scheme for promotion of renewable energy in India

Science.gov (United States)

Shereef, R. M.; Khaparde, S. A.

2017-07-01

In India, uniform price was assigned to renewable energy certificate (REC) irrespective of renewable energy (RE) type, technology, and location. Moreover REC price bands are higher than existing preferential tariff. There are distinct renewable purchase obligations (RPOs) specified for various RE types, whereas there is lack of efficient tools to check RPO compliance. Because of these reasons, REC market stabilisation is getting delayed. This paper proposes a method using plant performance multiplier to convert non-solar and solar REC to single equivalent REC with competitive REC pricing, which can be traded on unified REC market. The method combines solar and non-solar RPOs into a single composite RPO, to make RPO compliance and its checking simple and efficient. A sample illustration of the proposed method is given. The benefits offered by the proposed method in REC pricing, REC trading and RPO compliance are discussed. A comparative economic analysis of present and proposed method is reported.

Energy Trading and Pricing in Microgrids with Uncertain Energy Supply: A Three-Stage Hierarchical Game Approach

Directory of Open Access Journals (Sweden)

Kai Ma

2017-05-01

Full Text Available This paper studies an energy trading and pricing problem for microgrids with uncertain energy supply. The energy provider with the renewable energy (RE generation (wind power determines the energy purchase from the electricity markets and the pricing strategy for consumers to maximize its profit, and then the consumers determine their energy demands to maximize their payoffs. The hierarchical game is established between the energy provider and the consumers. The energy provider is the leader and the consumers are the followers in the hierarchical game. We consider two types of consumers according to their response to the price, i.e., the price-taking consumers and the price-anticipating consumers. We derive the equilibrium point of the hierarchical game through the backward induction method. Comparing the two types of consumers, we study the influence of the types of consumers on the equilibrium point. In particular, the uncertainty of the energy supply from the energy provider is considered. Simulation results show that the energy provider can obtain more profit using the proposed decision-making scheme.

Indicators to determine winning renewable energy technologies with an application to photovoltaics.

Science.gov (United States)

Grossmann, Wolf D; Grossmann, Iris; Steininger, Karl

2010-07-01

Several forms of renewable energy compete for supremacy or for an appropriate role in global energy supply. A form of renewable energy can only play an important role in global energy supply if it fulfills several basic requirements. Its capacity must allow supplying a considerable fraction of present and future energy demand, all materials for its production must be readily available, land demand must not be prohibitive, and prices must reach grid parity in the nearer future. Moreover, a renewable energy technology can only be acceptable if it is politically safe. We supply a collection of indicators which allow assessing competing forms of renewable energy and elucidate why surprise is still a major factor in this field, calling for adaptive management. Photovoltaics (PV) are used as an example of a renewable energy source that looks highly promising, possibly supplemented by solar thermal electricity production (ST). We also show why energy use will contribute to land use problems and discuss ways in which the right choice of renewables may be indispensible in solving these problems.

Renewable energies and energy choices. Summary of the colloquium; Energies renouvelables et choix energetiques. Compte rendu du colloque

Energy Technology Data Exchange (ETDEWEB)

NONE

2003-05-01

This document is an executive summary of the colloquium organized by the French syndicate of renewable energies (SER) which took place at the Maison de l'UNESCO in Paris during the national debate on energies organized by the French government in spring 2003. The colloquium was organized around 6 round tables dealing with: the world perspectives and the environmental context of the contribution of renewable energies to the sustainable development (respect of Kyoto protocol commitments, contribution to the security of energy supplies, lack of large scale program of development of decentralized power generation in developing countries, lack of market tools linked with CO{sub 2} emissions, improvement of competitiveness); development of renewable energies in Europe (promotion and sustain in all European countries, obligation of supply and purchase, pricing regulation, European harmonization of practices); renewable electricity and its place in the new orientation law about energies (tariff/pluri-annual investment planing, administrative authorizations, connections to the grid, calls for offer, costs of the photovoltaic solar energy); contribution of renewable energies in the transportation sector (bio-fuels, low taxes, ethanol fuel cells, vegetal chemistry); renewable heat and integration of renewable energy sources in buildings (intelligent architecture, promotion, quality labels and standards, lack of CO{sub 2} penalties linked with fossil fuels, tax reduction for solar and wood fuel appliances, acknowledgment of geothermal heat pumps as renewable energy source); and the presentation of the first proposals for the future orientation law (balance between nuclear and renewable energy sources, integration in the local environment, competitiveness, use of market mechanisms, R and D etc.). (J.S.)

Renewable energies and energy choices. Summary of the colloquium; Energies renouvelables et choix energetiques. Compte rendu du colloque

Energy Technology Data Exchange (ETDEWEB)

NONE

2003-05-01

This document is an executive summary of the colloquium organized by the French syndicate of renewable energies (SER) which took place at the Maison de l'UNESCO in Paris during the national debate on energies organized by the French government in spring 2003. The colloquium was organized around 6 round tables dealing with: the world perspectives and the environmental context of the contribution of renewable energies to the sustainable development (respect of Kyoto protocol commitments, contribution to the security of energy supplies, lack of large scale program of development of decentralized power generation in developing countries, lack of market tools linked with CO{sub 2} emissions, improvement of competitiveness); development of renewable energies in Europe (promotion and sustain in all European countries, obligation of supply and purchase, pricing regulation, European harmonization of practices); renewable electricity and its place in the new orientation law about energies (tariff/pluri-annual investment planing, administrative authorizations, connections to the grid, calls for offer, costs of the photovoltaic solar energy); contribution of renewable energies in the transportation sector (bio-fuels, low taxes, ethanol fuel cells, vegetal chemistry); renewable heat and integration of renewable energy sources in buildings (intelligent architecture, promotion, quality labels and standards, lack of CO{sub 2} penalties linked with fossil fuels, tax reduction for solar and wood fuel appliances, acknowledgment of geothermal heat pumps as renewable energy source); and the presentation of the first proposals for the future orientation law (balance between nuclear and renewable energy sources, integration in the local environment, competitiveness, use of market mechanisms, R and D etc.). (J.S.)

Can renewable energy be financed with higher electricity prices? evidence from Spain

OpenAIRE

Barreiro Hurlé, Jesús; Gracia Royo, Azucena; Pérez y Pérez, Luis

2011-01-01

The aim of this paper is to assess willingness to pay for renewable energy electricity. We used a choice experiment to elicit willingness-to-pay for different electricity service attributes: renewable sources (wind, solar and biomass) and the regional origin of the electricity with data from a survey conducted in Spain in 2010. Findings indicate that a majority of consumers are not willing to pay a premium for increases in the renewable component of their electricity mix. Moreover, they would...

Determinants of Price Stabilization in IPOs

Directory of Open Access Journals (Sweden)

Antonio Gledson de Carvalho

2010-12-01

Full Text Available In the most common mechanism for price stabilization in IPOs, the underwriter distributes stocks in excess of what was contracted (overallotment and eventually covers this short naked position by purchasing stocks in the secondary market (Aftermarket short covering , ASC. This mechanism can be used to avoid price drop or price volatility. This article provides a description of such activity in Brazil. We investigate the determinants of price stabilization in three aspects: amount overallotted, occurrence of ASC and its intensity. Our results indicate that price stabilization is an important activity in Brazilian IPOs and quite similar to that occurring in the US. The three different aspects of price stabilization have different determinants. The amount overallotted depends only on the ex-ante demand conditions. ASC occurs mostly on IPOs characterized by high risk, low ex-ante demand and carried by reputable underwriters. The intensity of the ASC increases with the riskiness and decreases with the ex-ante demand. None of the existing models fully explain these results.

Renewable Energy Development in Small Island Developing States of the Pacific

Directory of Open Access Journals (Sweden)

Matthew Dornan

2015-07-01

Full Text Available Small Island Developing States (SIDS of the Pacific over the last decade have established some of the most ambitious renewable energy targets in the world. The promotion of renewable energy has been motivated by a desire to lessen dependence on fossil fuels, given the adverse economic impacts of high oil prices on these countries. Efforts to attract development assistance and to strengthen the position of Pacific SIDS in climate change negotiations have likely also played a role. This paper explores the development of renewable energy resources in the Pacific through a public policy lens. The ambitious renewable energy targets established by Pacific SIDS are argued to be appropriate in some cases, but in other cases are criticised on economic grounds. A potential trade-off is identified between the risk mitigation benefits and poverty alleviation benefits of different renewable technology investments, with questions raised about whether support for the former rather than the latter by development partners is appropriate. A number of institutional and financial challenges to the development of renewable energy resources in Pacific SIDS are also discussed.

Renewable energy technologies and policies - experience in other countries and possibilities for Croatia

International Nuclear Information System (INIS)

Renner, F. P.

2000-01-01

As Croatia begins the task of restructuring its energy sector, it has the opportunity to design programs and policies which will create the framework for a viable renewable energy contribution to overall energy supply. Croatia has many of the resources required for renewable energy, including good solar insolation, wind resources, small hydro and biomass. Implementing renewable energy projects is still a challenging prospect, mainly because of competition from fossil fuel sources of energy and because of the small scale and intermittent nature of renewable energy sources. However, there are many benefits, the most important of which are sustainability and reduced or zero air emission. in the most cases these benefits are not quantified or internalized into the project costs. As a result, most renewable energy projects are more costly than conventional projects on a purely financial basis. Overcoming the barriers to implementing renewable energy has been focus of many environmental groups as well as governments, especially in the last decade. Several countries, notably Denmark, have aggressively targeted increase use of renewable energy in the energy mix of the countries, and have implemented policies and regulations to encourage private and public sector use of renewables. policies in place include fiscal incentives, such as tax breaks, regulations such as guaranteed market share and pricing, or more market-based approaches such as green pricing, where consumers decide the premium they will pay for energy. Some of these policies have been quite successful in providing the right incentives to developers and utilities in adding more renewable energy to the national generation mix. Additionally, the area of emissions trading can be thought of as a policy initiative for a market-based approach to promoting increased renewable energy use. While the uncertainties of climate change and the politics of climate change make this a difficult area to count on, it should be

Diffusion of renewable energy technologies in South Korea on incorporating their competitive interrelationships

International Nuclear Information System (INIS)

Huh, Sung-Yoon; Lee, Chul-Yong

2014-01-01

Renewable energy technologies (RETs) have attracted significant public attention for several reasons, the most important being that they are clean alternative energy sources that help reduce greenhouse gas emissions. To increase the probability that RETs will be successful, it is essential to reduce the uncertainty about its adoption with accurate long-term demand forecasting. This study develops a diffusion model that incorporates the effect of competitive interrelationships among renewable sources to forecast the growth pattern of five RETs: solar photovoltaic, wind power, and fuel cell in the electric power sector, and solar thermal and geothermal energy in the heating sector. The 2-step forecasting procedure is based on the Bayus, (1993. Manage. Sci. 39, 11, 1319–1333) price function and a diffusion model suggested by Hahn et al. (1994. Marketing Sci. 13, 3, 224–247). In an empirical analysis, the model is applied to the South Korean renewable energy market. - Highlights: • We develop a diffusion model incorporating the competition among renewables. • A price function and a diffusion model are used in 2-step forecasting procedure. • The annual demand through 2035 for five renewables in South Korea is forecasted. • Wind power will maintain the largest market share in the electric power sector. • The supply of geothermal energy will be larger than that of solar thermal energy

Comprehensive optimisation of China’s energy prices, taxes and subsidy policies based on the dynamic computable general equilibrium model

International Nuclear Information System (INIS)

He, Y.X.; Liu, Y.Y.; Du, M.; Zhang, J.X.; Pang, Y.X.

2015-01-01

Highlights: • Energy policy is defined as a complication of energy price, tax and subsidy policies. • The maximisation of total social benefit is the optimised objective. • A more rational carbon tax ranges from 10 to 20 Yuan/ton under the current situation. • The optimal coefficient pricing is more conducive to maximise total social benefit. - Abstract: Under the condition of increasingly serious environmental pollution, rational energy policy plays an important role in the practical significance of energy conservation and emission reduction. This paper defines energy policies as the compilation of energy prices, taxes and subsidy policies. Moreover, it establishes the optimisation model of China’s energy policy based on the dynamic computable general equilibrium model, which maximises the total social benefit, in order to explore the comprehensive influences of a carbon tax, the sales pricing mechanism and the renewable energy fund policy. The results show that when the change rates of gross domestic product and consumer price index are ±2%, ±5% and the renewable energy supply structure ratio is 7%, the more reasonable carbon tax ranges from 10 to 20 Yuan/ton, and the optimal coefficient pricing mechanism is more conducive to the objective of maximising the total social benefit. From the perspective of optimising the overall energy policies, if the upper limit of change rate in consumer price index is 2.2%, the existing renewable energy fund should be improved

Energy prices and substitution in United States manufacturing plants

Science.gov (United States)

Grim, Cheryl

Persistent regional disparities in electricity prices, growth in wholesale power markets, and recent deregulation attempts have intensified interest in the performance of the U.S. electric power industry, while skyrocketing fuel prices have brought renewed interest in the effect of changes in prices of all energy types on the U.S. economy. This dissertation examines energy prices and substitution between energy types in U.S. manufacturing. I use a newly constructed database that includes information on purchased electricity and electricity expenditures for more than 48,000 plants per year and additional data on the utilities that supply electricity to study the distribution of electricity prices paid by U.S. manufacturing plants from 1963 to 2000. I find a large compression in the dispersion of electricity prices from 1963 to 1978 due primarily to a decrease in quantity discounts for large electricity purchasers. I also find that spatial dispersion in retail electricity prices among states, counties and utility service territories is large, rises over time for smaller purchasers, and does not diminish as wholesale power markets expand in the 1990s. In addition, I examine energy type consumption patterns, prices, and substitution in U.S. manufacturing plants. I develop a plant-level dataset for 1998 with data on consumption and expenditures on energy and non-energy production inputs, output, and other plant characteristics. I find energy type consumption patterns vary widely across manufacturing plants. Further, I find a large amount of dispersion across plants in the prices paid for electricity, oil, natural gas, and coal. These high levels of dispersion are accounted for by the plant's location, industry, and purchase quantity. Finally, I present estimates of own- and cross-price elasticities of demand for both the energy and non-energy production inputs.

Renewable energy

DEFF Research Database (Denmark)

Olsen, Birgitte Egelund

2016-01-01

Renewable energy projects are increasingly confronted by local opposition, which delays and sometimes even prevents their implementation. This reflects the frequent gap between support for the general idea of renewables as a strategy for reducing carbon emissions, and acceptance of renewable energy...

Has renewable energy induced competitive behavior in the Spanish electricity market?

International Nuclear Information System (INIS)

Ciarreta, Aitor; Espinosa, Maria Paz; Pizarro-Irizar, Cristina

2017-01-01

Recent energy policy has favored a massive introduction of Renewable Energy Sources on electricity markets, which has greatly impacted their performance. First, the electricity price has decreased as a consequence of the so-called merit-order effect. Another relevant effect is associated to the intermittent nature of Renewable Energy, which has increased the cost of ancillary services. A third and important aspect, less addressed in the literature, is the induced change in the strategic behavior of the conventional electricity producers. In principle, the entry of new generators in a concentrated market would make it more competitive and change the strategic behavior of the incumbents. We test this hypothesis for the Spanish wholesale market. While we find no significant change in behavior for Nuclear, Hydropower and Coal, a change is observed in Combined Cycle bidding strategies after the entry of renewable generators. Our analysis shows that the massive entry of Renewable Energy Sources made other generators' behavior more competitive in the short run, but the effect was not persistent. - Highlights: • The indirect effects of RES affect prices in electricity markets. • RES induced little change in Nuclear, Coal and Hydropower generation. • Combined Cycle bidding strategies have evolved to adapt to the introduction of RES. • RES made Combined Cycle's behavior more competitive in the short run. • The competitive effect induced by RES is not persistent in the long run.

Equilibrium Transitions from Non Renewable Energy to Renewable Energy under Capacity Constraints

OpenAIRE

Amigues, Jean-Pierre; Ayong Le Kama, Alain; Moreaux, Michel

2013-01-01

We study the transition between non-renewable and renewable energy sources with adjustment costs over the production capacity of renewable energy. Assuming constant variable marginal costs for both energy sources, convex adjustment costs and a more expensive renewable energy, we show the following. With sufficiently abundant non-renewable energy endowments, the dynamic equilibrium path is composed of a first time phase of only non-renewable energy use followed by a transition phase substituti...

Status and Trends in U.S. Compliance and Voluntary Renewable Energy Certificate Markets (2010 Data)

Energy Technology Data Exchange (ETDEWEB)

Heeter, Jenny [National Renewable Energy Lab. (NREL), Golden, CO (United States); Bird, Lori [National Renewable Energy Lab. (NREL), Golden, CO (United States)

2011-10-01

The "voluntary" or "green power" market is that in which consumers and institutions voluntarily purchase renewable energy to match all or part of their electricity needs. Voluntary action provides a revenue stream for renewable energy projects and raises consumer awareness of the benefits of renewable energy. There are numerous ways consumers and institutions can purchase renewable energy. Historically, the voluntary market has consisted of three market sectors: (1) utility green pricing programs (in states with regulated electricity markets), (2) competitive suppliers (in states with restructured electricity markets), and (3) unbundled renewable electricity certificate (REC) markets, where RECs are purchased by consumers separately from electricity ("unbundled").

Developing Renewable Energy: Comparative Scenarios and Public Policy Perspectives from some Latin American Countries

Directory of Open Access Journals (Sweden)

Claudia Cecilia Lardizabal

2014-07-01

Full Text Available The energy matrix of Latin American and the Caribbean countries has one of the largest renewable energy components when compared to other regions of the world. Nonetheless, by 2009 nearly three-quarters of its structure corresponded to fossil fuels, with most of the countries being net importers of these fuels. This situation marks the region´s dependence on the effects of changes in energy commodities. Therefore, the opportunity lies in higher use of renewable energy sources that contribute to the country´s energy security and represent significant environmental benefits. The purpose of this paper is to provide a comparative analysis of current energy scenarios of six Latin American countries (Mexico, Honduras, Nicaragua, Brazil, Ecuador and Chile in order to evaluate the policies, programs and strategies implemented in the search for greater participation of renewable energy. Considering the importance of the water-energy nexus that could serve to promote renewables under conditions of water scarcity, a qualitative data comparison was accomplished, considering energy consumption, CO2 emissions, GDP and water withdrawals per country. The authors conclude that, despite technological and financial constraints, all the involved countries are moving towards the substitution of a fossil fuel based matrix to a renewable one. This process could be seen as a result of clear policies and strategies that have been set, which include (but are not limited to price regulations setting, preferential prices to electricity generated through renewable energy technologies and incentives formulated to encourage the production of biofuels.

Mathematical modelling of electricity market with renewable energy sources

International Nuclear Information System (INIS)

Marchenko, O.V.

2007-01-01

The paper addresses the electricity market with conventional energy sources on fossil fuel and non-conventional renewable energy sources (RESs) with stochastic operating conditions. A mathematical model of long-run (accounting for development of generation capacities) equilibrium in the market is constructed. The problem of determining optimal parameters providing the maximum social criterion of efficiency is also formulated. The calculations performed have shown that the adequate choice of price cap, environmental tax, subsidies to RESs and consumption tax make it possible to take into account external effects (environmental damage) and to create incentives for investors to construct conventional and renewable energy sources in an optimal (from the society view point) mix. (author)

Impacts of subsidized renewable electricity generation on spot market prices in Germany: evidence from a Garch model with panel data

International Nuclear Information System (INIS)

Pham, Thao; Lemoine, Killian

2015-01-01

Electricity generated by renewable energy sources creates a downward pressure on wholesale prices through - the so-called 'merit order effect'. This effect tends to lower average power prices and average market revenue that renewables producers should have received, making integration costs of renewables very high at large penetration rate. It is therefore crucial to determine the amplitude of this merit order effect particularly in the context of increasing burden of renewable support policies borne by final consumers. Using hourly data for the period 2009-2012 in German electricity wholesale market for GARCH model under panel data framework, we find that wind and solar power generation injected into German electricity network during this period induces a decrease of electricity spot prices and a slight increase of their volatility. The model-based results suggest that the merit-order effect created by renewable production ranges from 3.86 to 8.34 euro/MWh which implies to the annual volume of consumers' surplus from 1.89 to 3.92 billion euros. However this surplus has not been re-distributed equally among different types of electricity consumers. (authors)

BIPV design study for Renewable Energy Centre and Eco-Energy House

Energy Technology Data Exchange (ETDEWEB)

Riffat, S.B.; Wilson, R.; Omer, S. [University of Nottingham (United Kingdom). School of the Built Environment

2000-07-01

The aim of this project was to monitor performance of PV systems on the Renewable Energy Centre and the Eco-Energy House at the School of Built Environment, University of Nottingham. The Renewable Energy Centre was constructed using a cash donation from Beacon Energy Limited, while construction of the Eco-Energy House was funded by David Wilson Homes Ltd. The primary role of these facilities is to assist in renewable energy technology transfer. Both buildings were designed to be thermally efficient and utilize a range of renewable energy systems. They will be used to attract and educate visitors from local government, schools and collages, and the general public. This report documents the design process for Building Integrated Photovoltaic (BIPV) systems on the two buildings. The buildings are significantly different in both construction and occupancy but are sited close to each other and share similar weather conditions. The rationale behind the BIPV designs is explained and detail is provided on the final solutions for each building. A number of methods were used to assist in the selection of appropriate PV systems to integrate into each building. These included energy analysis using PVSYST3 software, CAD modelling for aesthetics assessment, architectural and construction considerations and economic justification. The design chosen for Renewable Energy Centre was a vertical wall PV facade system using thin film technology, while a roof integrated system using monocrystalline PV roofing slates was chosen for the Eco-Energy House. In terms of economic justification, both systems cannot be said to be cost effective at the current market price for energy, however, the aim was to bring the technology to the attention of a wide audience and demonstrate the potential of the systems for reducing CO{sub 2} emission to the environment.

Introduction of Renewable Energy Certificate in the Indian scenario

International Nuclear Information System (INIS)

Goyal, Mohit; Jha, Rakesh

2009-01-01

Generation deficit in India is in the range of 9% and the scenario is expected to get grimmer in the context of high growth rate of the country. With peak power shortage as high as 15.2% (Source: Annual report FY08, MoP) the nation needs to harness all forms of generation including renewables, which currently has a meager share of 8% of the total generation in the country at present. Shooting price of crude oil reaching up to $135 (May 2008) per barrel along with increasing awareness and concerns about environment, the stage seems to be set for an increased mix of Renewable Energy (RE) into the overall energy requirement in the country. Keeping the concern for environment and energy security for the country in mind, government of India has been putting emphasis on promotion of renewable energy sources. Central and state government policies have always been instrumental in the propagation of capacity additions in renewable energy power. One of the main aims of these policies has been on increasing the private sector participation in this sector. In the pre-reform period, the state governments took policy decisions regarding financial incentives, buy-back tariff and other measures targeting investment in renewable energy. However, the State Electricity Regulatory Commissions (SERCs) are now responsible for many of these tasks. SERCs have come up with a host of initiatives, inline with their functions laid down in the Electricity Act 2003, to increase the share of renewable energy inside their respective States. Despite the efforts of SERCs, large potential of renewable energy generation remains untapped. There is lack of clarity on how to promote renewable energy generation inside states which are not having significant renewable energy generation potential. This paper explores the way in which SERCs can introduce measures to further promote renewable energy generation inside the country. We discuss in detail the framework to promote renewable energy through a

Capacity Payments in Restructured Markets under Low and High Penetration Levels of Renewable Energy

Energy Technology Data Exchange (ETDEWEB)

Thomas Jenkin, Philipp Beiter, and Robert Margolis

2016-02-01

Growing levels of variable renewable energy resources arguably create new challenges for capacity market designs, because variable renewable energy suppresses wholesale energy prices while providing relatively little capacity. This effect becomes more pronounced the higher the variable renewable energy penetration in a market. The purpose of this report is threefold. First, we provide a brief outline of the purpose and design of various capacity markets using administratively determined capacity demand curves. Second, we discuss some of the main challenges raised in existing literature and a set of interviews that we conducted with market participants, regulators, and observers. Third, we consider some of the challenges to capacity markets that arise with higher variable renewable energy penetration.

Developing Demand-Response Based Solutions for Hawaii’s 100% Renewable Energy Target

OpenAIRE

Kansal, Rachit

2017-01-01

The State of Hawaii has set a target to achieve a 100% Renewables by 2045. Due to the State’s high electricity prices and dependence on imported oil, renewables are seen as an environmental and economic solution to the problem. While the state has seen substantial renewables growth in the last few years, a truly transformative system is needed to push for a fully renewable future. This system would be likely to include Demand Response (DR) capability, Distributed Energy Reso...

Price-based Energy Control for V2G Networks in the Industrial Smart Grid

Directory of Open Access Journals (Sweden)

Rong Yu

2015-08-01

Full Text Available The energy crisis and global warming call for a new industrial revolution in production and distribution of renewable energy. Distributed power generation will be well developed in the new smart electricity distribution grid, in which robust power distribution will be the key technology. In this paper, we present a new vehicle-to-grid (V2G network for energy transfer, in which distributed renewable energy helps the power grid balance demand and supply. Plug-in hybrid electric vehicles (PHEVs will act as transporters of electricity for distributed renewable energy dispatching. We formulate and analyze the V2G network within the theoretical framework of complex network. We also employ the generalized synchronization method to study the dynamic behavior of V2G networks. Furthermore, we develop a new price-based energy control method to stimulate the PHEV's behavior of charging and discharging. Simulation results indicate that the V2G network can achieve synchronization and each region is able to balance energy supply and demand through price-based control.

The Renewable Energy Data Explorer: Mapping Our Renewable Energy Future

Energy Technology Data Exchange (ETDEWEB)

2017-04-13

The Renewable Energy (RE) Data Explorer, developed by the National Renewable Energy Laboratory, is an innovative web-based platform that allows users to visualize and analyze renewable energy potential. The RE Data Explorer informs prospecting, integrated planning, and policymaking to enable low emission development.

The evolution of the support scheme for promoting renewable energy sources in Romania

Directory of Open Access Journals (Sweden)

Atănăsoae Pavel

2016-01-01

Full Text Available The paper presents an analysis of the evolution of the support scheme for promoting renewable energy sources in Romania, following: the annual mandatory quotas of green certificate purchase and those achieved; the price of green certificates; the evolution of the RES-E installed capacity and implicitly of the investments in renewable energy sources; the structure of the installed power in RES-E (wind power plants, photovoltaic power plants, hydroelectric power plants with an installed capacity that is not larger than 10 MW, biomass power plants; the contribution of the renewable energy sources to the production of electricity in Romania.

Role of energy policy in renewable energy accomplishment: The case of second-generation bioethanol

International Nuclear Information System (INIS)

Tan, Kok Tat; Lee, Keat Teong; Mohamed, Abdul Rahman

2008-01-01

Renewable energy has been in the limelight ever since the price of crude petroleum oil increases to the unprecedented height of US$96 per barrel recently. This is due to the diminishing oil reserves in the world and political instabilities in some oil-exporting countries. The advantages of renewable energy compared to fossil fuels are enormous in terms of environment and availability. Biofuels like bioethanol and biodiesel are currently being produced from agricultural products such as sugarcane and rapeseed oil, respectively. Collectively, these biofuels from food sources are known as first-generation biofuels. Although first-generation biofuels have the potential to replace fossil fuels as the main source of energy supply, its production is surrounded by certain issues like tropical forests' destruction. Instead, second-generation bioethanol, which utilizes non-edible sources such as lignocellulose biomass to produce ethanol, has been shown to be more suitable as the source of renewable energy. However, there are challenges and obstacles such as cost, technology and environmental issues that need to be overcome. Hence, the introduction of energy policy is crucial in promoting and implementing second-generation bioethanol effectively and subsequently become a major source of renewable energy

Limits and Prospects of Renewable Energy Sources in Italy

International Nuclear Information System (INIS)

Coiante, D.

2008-01-01

The Italian energy balance for year 2005 is discussed with particular attention on renewable energy production. The potentials of renewable sources are evaluated in terms of energy density that can be obtained from occupied plant area. About 20000 km 2 of sunny barren lands are present in South of Italy, particularly suitable for photovoltaic plants and that corresponds to a potential production of 144 Mtep of primary energy. Therefore, in theory, the photovoltaic energy potential is comparable with energy balance. The grid connection limit due to intermittent power generation of photovoltaic and wind energy systems is considered in relation with the stability of grid power level. Assuming a 25% maximum grid penetration of intermittent power with respect to capacity of active thermoelectric generators, the renewable energy contribution amounts to about 2% of annual energy balance. In front of expectations for a larger contribution, the practical result is the renewable energy production of present systems is marginal, unsuitable for counteracting the global climate crisis. The conclusion is that, for exploiting the large renewable energy potential, is necessary to implement the plants with an energy storage system able to overcome the source intermittency. Without this improvement, the expectations on renewable energy sources could be disappointed. [it

Capacity market design and renewable energy: Performance incentives, qualifying capacity, and demand curves

Energy Technology Data Exchange (ETDEWEB)

Botterud, Audun; Levin, Todd; Byers, Conleigh

2018-01-01

A review of capacity markets in the United States in the context of increasing levels of variable renewable energy finds substantial differences with respect to incentives for operational performance, methods to calculate qualifying capacity for variable renewable energy and energy storage, and demand curves for capacity. The review also reveals large differences in historical capacity market clearing prices. The authors conclude that electricity market design must continue to evolve to achieve cost-effective policies for resource adequacy.

Rise of oil prices and energy policy

International Nuclear Information System (INIS)

2005-01-01

This document reprints the talk of the press conference given by D. de Villepin, French prime minister, on August 16, 2005 about the alarming rise of oil prices. In his talk, the prime minister explains the reasons of the crisis (increase of worldwide consumption, political tensions in the Middle East..) and presents the strategy and main trends of the French energy policy: re-launching of energy investments in petroleum refining capacities and in the nuclear domain (new generation of power plants), development of renewable energy sources and in particular biofuels, re-launching of the energy saving policy thanks to financial incentives and to the development of clean vehicles and mass transportation systems. In a second part, the prime minister presents his policy of retro-cession of petroleum tax profits to low income workers, and of charge abatement to professionals having an occupation strongly penalized by the rise of oil prices (truckers, farmers, fishermen, taxi drivers). (J.S.)

Renewable energy resources

CERN Document Server

Twidell, John

2015-01-01

Renewable Energy Resources is a numerate and quantitative text covering the full range of renewable energy technologies and their implementation worldwide. Energy supplies from renewables (such as from biofuels, solar heat, photovoltaics, wind, hydro, wave, tidal, geothermal, and ocean-thermal) are essential components of every nation's energy strategy, not least because of concerns for the local and global environment, for energy security and for sustainability. Thus in the years between the first and this third edition, most renewable energy technologies have grown from fledgling impact to s

Regional Differences in the Price-Elasticity of Demand for Energy

Energy Technology Data Exchange (ETDEWEB)

Bernstein, M. A.; Griffin, J.

2006-02-01

At the request of the National Renewable Energy Laboratory (NREL), the RAND Corporation examined the relationship between energy demand and energy prices with the focus on whether the relationships between demand and price differ if these are examined at different levels of data resolution. In this case, RAND compares national, regional, state, and electric utility levels of data resolution. This study is intended as a first step in helping NREL understand the impact that spatial disaggregation of data can have on estimating the impacts of their programs. This report should be useful to analysts in NREL and other national laboratories, as well as to policy nationals at the national level. It may help them understand the complex relationships between demand and price and how these might vary across different locations in the United States.

Design and Realization of Online Monitoring System of Distributed New Energy and Renewable Energy

Science.gov (United States)

Tang, Yanfen; Zhou, Tao; Li, Mengwen; Zheng, Guotai; Li, Hao

2018-01-01

Aimed at difficult centralized monitoring and management of current distributed new energy and renewable energy generation projects due to great varieties, different communication protocols and large-scale difference, this paper designs a online monitoring system of new energy and renewable energy characterized by distributed deployment, tailorable functions, extendible applications and fault self-healing performance. This system is designed based on international general standard for grid information data model, formulates unified data acquisition and transmission standard for different types of new energy and renewable energy generation projects, and can realize unified data acquisition and real-time monitoring of new energy and renewable energy generation projects, such as solar energy, wind power, biomass energy, etc. within its jurisdiction. This system has applied in Beijing. At present, 576 projects are connected to the system. Good effect is achieved and stability and reliability of the system have been validated.

Development and commercialization of renewable energy technologies in Canada: An innovation system perspective

International Nuclear Information System (INIS)

Jagoda, Kalinga; Lonseth, Robert; Lonseth, Adam; Jackman, Tom

2011-01-01

The increased environmental awareness coupled with the recent changes in the oil prices triggered the necessity of focusing on effective management of energy systems. Global climate change has caused many people to consider ways of reducing greenhouse gases Renewable energy has become an essential feature in curtailing emission of Green House Gases, while meeting the demand for energy. This paper presents an innovation system framework for development and diffusion of renewable energy technologies. The framework is used to identify opportunities for small and medium enterprises in the renewable energy sector. A case study on a successful development, installation and implementation of solar thermal systems households in Calgary, Alberta, by an entrepreneurial firm, is also presented. (author)

Development and commercialization of renewable energy technologies in Canada: An innovation system perspective

Energy Technology Data Exchange (ETDEWEB)

Jagoda, Kalinga; Lonseth, Robert; Lonseth, Adam [Bissett School of Business, Mount Royal University, 4825 Mount Royal Gate SW, Calgary AB T3E 6K6 (Canada); Jackman, Tom [Simple Solar Heating Limited, P.O. Box 988, Okotoks AB T1S 1B1 (Canada)

2011-04-15

The increased environmental awareness coupled with the recent changes in the oil prices triggered the necessity of focusing on effective management of energy systems. Global climate change has caused many people to consider ways of reducing greenhouse gases Renewable energy has become an essential feature in curtailing emission of Green House Gases, while meeting the demand for energy. This paper presents an innovation system framework for development and diffusion of renewable energy technologies. The framework is used to identify opportunities for small and medium enterprises in the renewable energy sector. A case study on a successful development, installation and implementation of solar thermal systems households in Calgary, Alberta, by an entrepreneurial firm, is also presented. (author)

Is the depressive effect of renewables on power prices contagious? A cross border econometric analysis

International Nuclear Information System (INIS)

Phan, Sebastien; Roques, Fabien

2015-04-01

European power markets have become more integrated and the implementation of market coupling has reinforced the efficiency of cross-border trading. This paper investigates empirically the impact of renewables growth in Germany on German and French power price volatility. We find that renewables depress power prices on average and increase volatility not only domestically but also across borders. We also leverage market resiliency data to investigate the impact of increases in interconnection capacity. We find that power price volatility would decrease in France despite some contagion effects of volatility from German renewables production. Our findings have important policy implications as they demonstrate the need to coordinate cross-border support policies for renewables in order to mitigate the impact of volatility on power prices in coupled power markets. (authors)

Renewable energy resources

DEFF Research Database (Denmark)

Ellabban, Omar S.; Abu-Rub, Haitham A.; Blaabjerg, Frede

2014-01-01

Electric energy security is essential, yet the high cost and limited sources of fossil fuels, in addition to the need to reduce greenhouse gasses emission, have made renewable resources attractive in world energy-based economies. The potential for renewable energy resources is enormous because...... they can, in principle, exponentially exceed the world's energy demand; therefore, these types of resources will have a significant share in the future global energy portfolio, much of which is now concentrating on advancing their pool of renewable energy resources. Accordingly, this paper presents how...... renewable energy resources are currently being used, scientific developments to improve their use, their future prospects, and their deployment. Additionally, the paper represents the impact of power electronics and smart grid technologies that can enable the proportionate share of renewable energy...

Prices vs. quantities. Incentives for renewable power generation. Numerical analysis for the European power market

Energy Technology Data Exchange (ETDEWEB)

Nagl, Stephan

2013-02-15

In recent years, many countries have implemented policies to incentivize renewable power generation. This paper outlines the effects of weather uncertainty on investment and operation decisions of electricity producers under a feed-in tariff and renewable quota obligation. Furthermore, this paper tries to quantify the sectoral welfare and investments risks under the different policies. For this purpose, a spatial stochastic equilibrium model is introduced for the European electricity market. The numerical analysis suggests that including the electricity market price in renewable policies (wholesale price + x) reduces the loss of sectoral welfare due to a renewable policy by 11-20 %. Moreover, investors face an only slightly higher risk than under fixed price compensations. However, electricity producers face a substantially larger investment risk when introducing a renewable quota obligation without the option of banking and borrowing of green certificates. Given the scenario results, an integration of the hourly market price in renewable support mechanisms is mandatory to keep the financial burden to electricity consumers at a minimum. Additionally, following the discussion of a European renewable quota after 2020, the analysis indicates the importance of an appropriate banking and borrowing mechanism in light of stochastic wind and solar generation.

Levelized cost of electricity (LCOE) of renewable energies and required subsidies in China

International Nuclear Information System (INIS)

Ouyang, Xiaoling; Lin, Boqiang

2014-01-01

The development and utilization of renewable energy (RE), a strategic choice for energy structural adjustment, is an important measure of carbon emissions reduction in China. High cost is a main restriction element for large-scale development of RE, and accurate cost estimation of renewable power generation is urgently necessary. This is the first systemic study on the levelized cost of electricity (LCOE) of RE in China. Results indicate that feed-in-tariff (FIT) of RE should be improved and dynamically adjusted based on the LCOE to provide a better support of the development of RE. The current FIT in China can only cover the LCOE of wind (onshore) and solar photovoltaic energy (PV) at a discount rate of 5%. Subsidies to renewables-based electricity generation, except biomass energy, still need to be increased at higher discount rates. Main conclusions are drawn as follows: (1) Government policy should focus on solving the financing problem of RE projects because fixed capital investment exerts considerable influence over the LCOE; and (2) the problem of high cost could be solved by providing subsidies in the short term and more importantly, by reforming electricity price in the mid-and long-term to make the RE competitive. - Highlights: • Levelized cost of electricity (LCOE) of renewable energies is systemically studied. • Renewable power generation costs are estimated based on data of 17 power plants. • Required subsidies for renewable power generation are calculated. • Electricity price reform is the long-term strategy for solving problem of high cost

Energy transition. A complete view on costs, performance, flexibility and prices of energies - Journal nr 11

International Nuclear Information System (INIS)

Boncorps, Jean-Claude; Larzilliere, Marc; Bomo, Nicole; Bruder, Michel; Buscailhon, Jean-Marie; Cappe, Daniel; DobiaS, Georges; Fregere, Jean-Pierre; Garipuy, Yves; Hougueres, Gerard; Martin, Jean-Loup; Mollard, Dominique; Moncomble, Jean-Eudes; Wiltz, Bruno; Roudier, Jacques

2013-02-01

This publication aims at proposing information on the issues of energy prices, of energy production costs and of energy delivery costs, and at showing their complexity while clearing up some wrong ideas about them. After an introduction on the addressed problematic, on information sources and on uncertainties, the authors give a general overview of the definitions of a cost, of a price, of primary, secondary and final energies, of user diversity and energy demand variation in time, of energy production variations in time, and present energy taxing in France and in the European Union, the CO 2 market, and energy savings in France in various sectors (transports, buildings, industry). Then, they address the various primary energies (coal, oil, natural gas, biomass, geothermal heat, thermal solar) and secondary energies (nuclear, hydroelectricity, ground-based wind energy, renewable sea energies, geothermal electricity, electricity grids, heat networks and co-generation) and discuss for each or some of them issues like: world market, costs and pricing, perspectives, resources and constraints, technologies

Optimal portfolio selection between different kinds of Renewable energy sources

Energy Technology Data Exchange (ETDEWEB)

Zakerinia, MohammadSaleh; Piltan, Mehdi; Ghaderi, Farid

2010-09-15

In this paper, selection of the optimal energy supply system in an industrial unit is taken into consideration. This study takes environmental, economical and social parameters into consideration in modeling along with technical factors. Several alternatives which include renewable energy sources, micro-CHP systems and conventional system has been compared by means of an integrated model of linear programming and three multi-criteria approaches (AHP, TOPSIS and ELECTRE III). New parameters like availability of sources, fuels' price volatility, besides traditional factors are considered in different scenarios. Results show with environmental preferences, renewable sources and micro-CHP are good alternatives for conventional systems.

Evaluating investments in renewable energy under policy risks

International Nuclear Information System (INIS)

Gatzert, Nadine; Vogl, Nikolai

2016-01-01

The considerable amount of required infrastructure and renewable energy investments expected in the forthcoming years also implies an increasingly relevant contribution of private and institutional investors. In this context, especially regulatory and policy risks have been shown to play a major role for investors when evaluating investments in renewable energy and should thus also be taken into account in risk assessment and when deriving risk-return profiles. In this paper, we provide a stochastic model framework to quantify policy risks associated with renewable energy investments (e.g. a retrospective reduction of a feed-in tariff), thereby also taking into account energy price risk, resource risk, and inflation risk. The model is illustrated by means of simulations and scenario analyses, and it makes use of expert estimates and fuzzy set theory for quantifying policy risks. Our numerical results for a portfolio of onshore wind farms in Germany and France show that policy risk can strongly impact risk-return profiles, and that cross-country diversification effects can considerably decrease the overall risk for investors. - Highlights: •Quantification of policy risks associated with renewable energy investments. •Results emphasize that policy risk has a major impact on risk and return. •Study of the cross-country diversification potential. •Cross-country diversification can considerably decrease the risk for an investor.

Evaluation of the Development of the Renewable Energy Markets in Russia

Directory of Open Access Journals (Sweden)

Irina Aleksandrovna Grechukhina

2016-12-01

Full Text Available The aim of this study is to systemize and present the quantitative and quality evaluation of the economic and non-economic effects of the implementation of the new mechanism of the support of renewable energy in Russia. It should allow meeting the middle-term goal of 2.5 % of renewables at the Russian wholesale electricity market by 2024. To achieve this aim, in the introduction part of the article, a detailed description of the new mechanism of the support of the renewable energy in Russia is presented. It is based on the payment for energy in the wholesale electricity market. The estimated aggregate positive effect resulting from this mechanism’s implementation was expected as follows: a replacement of non-renewable fossil fuels to renewable energy, b reduction of carbon dioxide emissions, c the average prices reduction in the wholesale electricity market, d reduction of the costs on environmental measures and health protection measures in traditional power generation, e creating new jobs, f reduction of fresh water used for cooling in traditional power generation, g multiplicative effects from the development of renewable energy and etc. The resulting economic effect is estimated at 47.77 billion rubles per year by 2024. The authors relied on expert estimates, forecasts of the Ministry of Energy and the Ministry of Economic Development, the Russian Energy Agency, the International Energy Agency, the International Agency for Renewable Energy, the Renewable Energy Policy Network for the 21st Century, the experience of foreign countries, the data of Russian Federal State Statistics Service.

Support mechanisms for renewable energies, their strengths and weaknesses

International Nuclear Information System (INIS)

Percebois, Jacques

2014-01-01

There is an on-going debate in France over whether or not it is better to stay with the System actually in place to promote renewable energy penetration, notably wind and solar photovoltaic power in the overall energy mix. This System is one of guaranteed prices with compulsory purchase (feed-in tariffs, FIT); but it is increasingly called into question because of the perverse impacts that have become evident. (author)

Renewable energy: Externality costs as market barriers

International Nuclear Information System (INIS)

Owen, Anthony D.

2006-01-01

This paper addresses the impact of environmentally based market failure constraints on the adoption of renewable energy technologies through the quantification in financial terms of the externalities of electric power generation, for a range of alternative commercial and almost-commercial technologies. It is shown that estimates of damage costs resulting from combustion of fossil fuels, if internalised into the price of the resulting output of electricity, could lead to a number of renewable technologies being financially competitive with generation from coal plants. However, combined cycle natural gas technology would have a significant financial advantage over both coal and renewables under current technology options and market conditions. On the basis of cost projections made under the assumption of mature technologies and the existence of economies of scale, renewable technologies would possess a significant social cost advantage if the externalities of power production were to be 'internalised'. Incorporating environmental externalities explicitly into the electricity tariff today would serve to hasten this transition process. (author)

Governmental interventions in the energy market. Study of the Dutch level playing field for fossil fuels, renewable sources, nuclear energy and energy conservation

International Nuclear Information System (INIS)

De Visser, E.; Winkel, T.; De Jager, D.; De Vos, R.; Blom, M.; Afman, M.

2011-06-01

This study has made an inventory of 53 governmental interventions in the Dutch energy market. Moreover, the consequences for the playing field for fossil fuels, renewable sources, nuclear energy and energy saving have been quantified. It shows that the government still stimulates the use of energy and fossil fuels more than it stimulates use of renewable energy sources. Policy that focuses on decreasing the price differences between sustainable and fossil should therefore focus on the phase-out of this support and subsequently on bridging the remaining financial gap. [nl

Power sector investment risk and renewable energy: A Japanese case study using portfolio risk optimization method

International Nuclear Information System (INIS)

Bhattacharya, Anindya; Kojima, Satoshi

2012-01-01

The conventional pricing mechanism used for electricity systematically hides huge investment risks which are embedded in the overall cost of production. Although consumers are often unaware of these risks, they present a large financial burden on the economy. This study applies the portfolio optimization concepts from the field of finance to demonstrate the scope of greater utilization of renewable energies (RE) while reducing the embedded investment risk in the conventional electricity sector and its related financial burden. This study demonstrates that RE investment can compensate for the risks associated with the total input costs; such costs being external volatilities of fossil fuel prices, capital costs, operating and maintenance costs and the carbon costs. By means of example, this case study shows that Japan could in theory obtain up to 9% of its electricity supply from green sources, as compared to the present 1.37%, based on the utilization of a portfolio risk-analysis evaluation. Explicit comparison of the monetary values of the investment risks of conventional and renewable energy sources shows that renewable energies have high market competitiveness. The study concludes with a recommendation that, as a business objective, investors would benefit by focusing on electricity supply portfolio risk minimization instead of cost. This could also inherently increase the supply of renewable energy in the market. - Research highlights: ►Energy sector investors should not be bothered only about the absolute cost figures of the input factors like fossil fuels but should also be careful about the fluctuation of their costs while making the investment decisions. ►Inclusion of renewable energy in the investment portfolio can increase the cost apparently but can reduce the risk hedging costs, too. ►International carbon price may not be a good factor to encourage renewable energy investment in the market.

Balancing Cost and Risk: The Treatment of Renewable Energy inWestern Utility Resource Plans

Energy Technology Data Exchange (ETDEWEB)

Wiser, Ryan; Bolinger, Mark

2005-09-01

Markets for renewable electricity have grown significantly in recent years, motivated in part by federal tax incentives and in part by state renewables portfolio standards and renewable energy funds. State renewables portfolio standards, for example, motivated approximately 45% of the 4,300 MW of wind power installed in the U.S. from 2001 through 2004, while renewable energy funds supported an additional 15% of these installations. Despite the importance of these state policies, a less widely recognized driver for renewable energy market growth is poised to also play an important role in the coming years: utility integrated resource planning (IRP). Formal resource planning processes have re-emerged in recent years as an important tool for utilities and regulators, particularly in regions where retail competition has failed to take root. In the western United States, recent resource plans contemplate a significant amount of renewable energy additions. These planned additions - primarily coming from wind power - are motivated by the improved economics of wind power, a growing acceptance of wind by electric utilities, and an increasing recognition of the inherent risks (e.g., natural gas price risk, environmental compliance risk) in fossil-based generation portfolios. The treatment of renewable energy in utility resource plans is not uniform, however. Assumptions about the direct and indirect costs of renewable resources, as well as resource availability, differ, as do approaches to incorporating such resources into the candidate portfolios that are analyzed in utility IRPs. The treatment of natural gas price risk, as well as the risk of future environmental regulations, also varies substantially. How utilities balance expected portfolio cost versus risk in selecting a preferred portfolio also differs. Each of these variables may have a substantial effect on the degree to which renewable energy contributes to the preferred portfolio of each utility IRP. This article

Renewable energy and its impact on rural development and sustainability in the UK

Energy Technology Data Exchange (ETDEWEB)

NONE

2003-07-01

This report summarises the results of a study investigating the social and economic benefits of renewable energy by examining twelve case studies and applying the findings to the wider industry in order to forecast the effect of renewable energy on rural development. The UK government's policy on renewable energy development, the Non-Fossil Fuel Obligation, and the effect of the New Electricity Trading Arrangements (NETA) on the market price for electricity are discussed. Details are given of the case studies concerning wind power, biomass, and wind and hydro schemes; the identification of the economic impacts, the workforce involved, and the expenditure in the local area; and the use of a Keynsian local economic multiplier model to evaluate the impact of the local expenditure and the incoming investment in renewable energy.

Renewable energy and its impact on rural development and sustainability in the UK

International Nuclear Information System (INIS)

2003-01-01

This report summarises the results of a study investigating the social and economic benefits of renewable energy by examining twelve case studies and applying the findings to the wider industry in order to forecast the effect of renewable energy on rural development. The UK government's policy on renewable energy development, the Non-Fossil Fuel Obligation, and the effect of the New Electricity Trading Arrangements (NETA) on the market price for electricity are discussed. Details are given of the case studies concerning wind power, biomass, and wind and hydro schemes; the identification of the economic impacts, the workforce involved, and the expenditure in the local area; and the use of a Keynsian local economic multiplier model to evaluate the impact of the local expenditure and the incoming investment in renewable energy

Wholesale energy market in a smart grid. Dynamic modeling, stability, and robustness

Energy Technology Data Exchange (ETDEWEB)

Kiani Bejestani, Arman

2013-01-24

The recent paradigm shift in the architecture of the smart grid is driven by the need to integrate Renewable Energy Resources (RER), the availability of information through communication networks, and an emerging policy of demand that is intertwined with pricing. A major component of this architecture is the design of electricity markets, which pertains to the optimal scheduling of power generation and reserve requirements. The challenge is to carry out this scheduling with a high level of integration of renewable generation sources, a formidable task due to intermittency and uncertainty. Introducing huge intermittency and uncertainty in the smart grid will demand a dynamic framework for addressing the operation, scheduling and financial settlements in the uncertain environment. The temporal components in scheduling generation are necessary due to increasing penetration of renewable sources, and increasing potential of adjustable demand via Demand Response (DR). The former brings issues of strong intermittency and uncertainty, and the latter brings a feedback structure, where demand can be modulated over a range of time-scales. Both of these components are dictating a new look at market mechanisms, with a controls viewpoint enabling a novel framework for analysis and synthesis. This dissertation provides static and dynamic models that capture the various aspects of electrical power systems, including the dynamics of market participants, the physical and technical constraints of power systems, and the uncertainty of RER. The proposed models shed new light on wholesale electricity market design, allowing an understanding to be gained of how to create markets, which enhance the stability of price profiles, and efficiency of the power systems, in the presence of uncertain demand and intermittent resources. The notion of market equilibrium in the presence of RER and DR is presented. The effects of uncertainties due to forecast errors in RER and variations due to DR on

Renewable energy annual 1996

International Nuclear Information System (INIS)

1997-03-01

This report presents summary data on renewable energy consumption, the status of each of the primary renewable technologies, a profile of each of the associated industries, an analysis of topical issues related to renewable energy, and information on renewable energy projects worldwide. It is the second in a series of annual reports on renewable energy. The renewable energy resources included in the report are biomass (wood and ethanol); municipal solid waste, including waste-to-energy and landfill gas; geothermal; wind; and solar energy, including solar thermal and photovoltaic. The report also includes various appendices and a glossary

Renewable energy annual 1996

Energy Technology Data Exchange (ETDEWEB)

NONE

1997-03-01

This report presents summary data on renewable energy consumption, the status of each of the primary renewable technologies, a profile of each of the associated industries, an analysis of topical issues related to renewable energy, and information on renewable energy projects worldwide. It is the second in a series of annual reports on renewable energy. The renewable energy resources included in the report are biomass (wood and ethanol); municipal solid waste, including waste-to-energy and landfill gas; geothermal; wind; and solar energy, including solar thermal and photovoltaic. The report also includes various appendices and a glossary.

Conference on renewable energies integration to power grids

International Nuclear Information System (INIS)

Laffaille, Didier; Bischoff, Torsten; Merkel, Marcus; Rohrig, Kurt; Glatigny, Alain; Quitmann, Eckard; Lehec, Guillaume; Teirlynck, Thierry; Stahl, Oliver

2014-01-01

The French-German office for Renewable energies (OFAEnR) organised a conference on renewable energies integration to power grids. In the framework of this French-German exchange of experience, more than 150 participants exchanged views on the perspectives and possible solutions of this integration in order to warrant the security of supplies and the grid stability in a context of increasing injection and decentralization of renewable power sources. This document brings together the available presentations (slides) made during this event: 1 - French distribution grids - Overview and perspectives (Didier Laffaille); 2 - Distribution Grids in Germany - Overview and Perspective (Torsten Bischoff); 3 - Integration of renewable energies into distribution grids - a case example from Germany (Marcus Merkel); 4 - Regeneratives Kombikraftwerk Deutschland: System Services with 100 % Renewable energies (Kurt Rohrig); 5 - Overview of the different grid instrumentation-control and automation tools (Alain Glatigny); 6 - Which Ancillary Services needs the Power System? The contribution from Wind Power Plants (Eckard Quitmann); 7 - The Flexibility Aggregator - the example of the GreenLys Project (Guillaume Lehec); 8 - Energy Pool - Providing flexibility to the electric system. Consumption cut-off solutions in France (Thierry Teirlynck); 9 - Demand Response experiences from Germany (Oliver Stahl)

The duties of public service in relation to cogeneration and renewable energy sources

International Nuclear Information System (INIS)

Suzzoni, P.

2004-01-01

In France, the costs of programs for cogeneration and renewable energy are ultimately paid by consumers via mechanisms based on bids, the obligation to purchase at a guaranteed price, and an evaluation made by the energy regulation Commission. The emission permit (or green certificate) guaranties that the amount of electricity delivered by the producer to the distribution network comes from renewable primary energy sources. A special market devoted to emission permits could be set independently from that of electricity, this market would allow electricity producers to reach a minimal ratio of electricity issued from renewable energy sources. The suggestion made is to test in France marketed emission permits before creating a European market

Energy Storage Applications in Power Systems with Renewable Energy Generation

Science.gov (United States)

Ghofrani, Mahmoud

In this dissertation, we propose new operational and planning methodologies for power systems with renewable energy sources. A probabilistic optimal power flow (POPF) is developed to model wind power variations and evaluate the power system operation with intermittent renewable energy generation. The methodology is used to calculate the operating and ramping reserves that are required to compensate for power system uncertainties. Distributed wind generation is introduced as an operational scheme to take advantage of the spatial diversity of renewable energy resources and reduce wind power fluctuations using low or uncorrelated wind farms. The POPF is demonstrated using the IEEE 24-bus system where the proposed operational scheme reduces the operating and ramping reserve requirements and operation and congestion cost of the system as compared to operational practices available in the literature. A stochastic operational-planning framework is also proposed to adequately size, optimally place and schedule storage units within power systems with high wind penetrations. The method is used for different applications of energy storage systems for renewable energy integration. These applications include market-based opportunities such as renewable energy time-shift, renewable capacity firming, and transmission and distribution upgrade deferral in the form of revenue or reduced cost and storage-related societal benefits such as integration of more renewables, reduced emissions and improved utilization of grid assets. A power-pool model which incorporates the one-sided auction market into POPF is developed. The model considers storage units as market participants submitting hourly price bids in the form of marginal costs. This provides an accurate market-clearing process as compared to the 'price-taker' analysis available in the literature where the effects of large-scale storage units on the market-clearing prices are neglected. Different case studies are provided to

Can renewable energy sources be financed through competitive power markets in the long run?; Koennen sich erneuerbare Energien langfristig auf wettbewerblich organisierten Strommaerkten finanzieren?

Energy Technology Data Exchange (ETDEWEB)

Kopp, Oliver; Essler-Frey, Anke; Engelhorn, Thorsten [MVV Energie AG, Mannheim (Germany)

2012-12-15

In this paper we address the issue of whether renewable energy sources can be integrated into power markets if the use of renewable energies is extended at the desired speed. Market integration means that renewable energy sources have to cover their full costs from revenues on competitive markets. In the first part of this paper, we evaluate the long-term revenues of intermittent renewable energy sources using a high resolution power market model. Considering the renewable targets of the German lead study of 2010, we show that due to the merit order effect, intermittent renewable energy sources, such as wind power and photovoltaic, cannot be financed through power markets alone, even if their full costs fall below those of conventional power plants. This is also true for scenarios with high CO{sub 2}-prices and increasing spot market prices. In the second part of this paper, we discuss whether in the long run additional instruments such as green certificates or capacity markets would allow for a more competitive financing of renewable energy sources. Center stage in the discussion is the question under which circumstances these instruments increase competitive pricing and decentralised market decisions. (orig.)

Correlations between energy economy and housing market prices in the EU-impacts on future sustainability

Directory of Open Access Journals (Sweden)

Maassen Maria Alexandra

2017-07-01

Full Text Available The global economic system is facing multiple challenges in terms of social development, technology and innovation, as well as sustainability needs. As a result, the value of existing assets is changing globally depending on the scarcity, necessity and effects on the business field leading to increased prices of traditional sources of energy and increased competition in the economic field. Thus, the EU energy market has progressed in reducing its dependence on external energy sourcing, by increasing production of renewable energy, such as wind or solar, as well as by further integration of the electric grid. Based on the Pearson coefficient this article intends to research the correlations between the economic, energy and house prices in recent years and the future possible impacts depending on their evolution. For example, gas prices in the past decade increasing household costs in most countries due to the dependence on third parties for energy, lead to the need of increasing the share of renewable energy in total energy consumption, which have consequently decreased electricity prices since 2008. However, this development has still not solved the additional costs issue of households due to the new technologies implemented although wind and solar energy receive in general low margins. Such energy issues, as well as the increased housing prices after the financial crisis in 2008 have caused on their own an additional burden on the economy and households spending income in the next years following.

International Benchmark Renewable Energy. European Union and Norway. Final report

International Nuclear Information System (INIS)

Van Beek, A.; Benner, J.H.B.; Brogtrop, A.C.G.M.; Van Alphen, M.

2001-12-01

The main aim of the survey was to generate an actual, realistic and accepted overview of potentials and cost prices for all relevant renewable energy options in the different countries of the European Union. The survey covered electrical options, heat options and combined heat and power options for renewable energy. Survey data were obtained directly from the responsible governments and their energy agencies, not from theoretical model studies. The intention was to improve insight for future decisions and create a useful basis (in the form of definitions, guidelines, etc.) for future perfection. Survey results also help to assess the relative ambition of the different national targets, especially in the EU Member States. The survey thus primarily sought answers to the following questions: (1) What renewable energy potential is available, and to what extent can the potential be exploited and what would be the related costs; and (2) What observations can be made, considering the survey results

Renewable energy and policy options in an integrated ASEAN electricity market: Quantitative assessments and policy implications

International Nuclear Information System (INIS)

Chang, Youngho; Li, Yanfei

2015-01-01

Energy market integration (EMI) in the ASEAN region is a promising solution to relieve the current immobilization of its renewable energy resources and would serve the fast increasing demand for electricity in the region. EMI could be further extended with coordinated policies in carbon pricing, renewable energy portfolio standards (RPS), and feed-in-tariffs (FIT) in the ASEAN countries. Using a linear dynamic programming model, this study quantitatively assesses the impacts of EMI and the above-mentioned policies on the development of renewable energy in the power generation sector of the region, and the carbon emissions reduction achievable with these policies. According to our results, EMI is expected to significantly promote the adoption of renewable energy. Along with EMI, FIT appears to be more cost-effective than RPS and is recommended for the ASEAN region, albeit political barriers for policy coordination among the countries might be a practical concern. In addition, an RPS of 30% electricity from renewable sources by 2030, which is considered politically a “low-hanging fruit”, would achieve moderate improvements in carbon emissions reductions and renewable energy development, while incurring negligible increases in the total cost of electricity. -- Highlights: •Energy market integration (EMI), carbon pricing, RPS, and FIT are examined for ASEAN. •EMI is a promising and feasible solution to promote renewable energy for ASEAN. •Along with EMI, FIT appears to be more cost-effective than RPS for ASEAN. •RPS of 30% by 2030 appears to be reasonable and feasible for ASEAN. •Coordinating FIT and RPS policies under EMI among ASEAN is advised

Rural and Renewable Energy Project: Renewable and Alternative Energy Devices and Viable Alternatives to Fuelwood and Kerosene

International Nuclear Information System (INIS)

1997-12-01

The need for conservation of the nation's trees and other forestry resources so as to make the Government's reafforestation, soil erosion and desertification control programs successful, is a matter that requires serious attention. This is because the bulk of the people of this country, who are in the rural areas, depend massively on fuelwood as their source of energy for cooking. For a large percentage of the urban dwellers, the situation is not much different since the recent increases in the prices of kerosene and liquefied petroleum gas has forced many to opt for fuelwood for cooking. Viable renewable and alternative energy systems like solar cookers, biogas plants, improved wood burning stoves, briquetted biomass and smokeless coal briquettes and stoves are essential for the provision of alternative cooking fuels and methodologies. Furthermore, the inefficient open-to-sun drying method is prevalent, while the rural areas are particularly starved of petroleum products and grid electricity. Modern solar dryers, solar-PV, wind and hydropower can be used to meet some of the energy needs of the rural population. This paper discusses these renewable and alternative devices and how they can be integrated into the Nigerian rural energy system. (author)

Renewable energy handbook

Energy Technology Data Exchange (ETDEWEB)

Fine, R

1976-01-01

The potential for renewable energy use in Canada is examined. It is pointed out that Canada can choose to begin to diversify its energy supply now, moving rapidly and smoothly towards an efficient energy society based on renewable energy sources; or, it can continue on its present course and face the possibility of being forced by necessity to make a later transition to renewable sources, probably with a great deal of economic and political disruption. The handbook begins with a discussion on major issues and options available. This second section deals with the technology, applications, and costs of direct solar energy utilization, solar thermal electricity generation, photovoltaic conversion, wind energy, biomass energy, tidal power, wave energy, ocean thermal energy, geothermal energy, heat pumps, and energy storage. Section three discusses how renewable energy might realistically supply Canada's energy requirements within a reasonable period of time. Some issues on how government, industry, and the individual may become involved to make this happen are suggested. A list of resource people and renewable energy businesses is provided in the last section. A recommended reading list and bibliography complete the handbook. (MCW)

Renewable energy annual 1995

International Nuclear Information System (INIS)

1995-12-01

The Renewable Energy Annual 1995 is the first in an expected series of annual reports the Energy Information Administration (EIA) intends to publish to provide a comprehensive assessment of renewable energy. This report presents the following information on the history, status, and prospects of renewable energy data: estimates of renewable resources; characterizations of renewable energy technologies; descriptions of industry infrastructures for individual technologies; evaluations of current market status; and assessments of near-term prospects for market growth. An international section is included, as well as two feature articles that discuss issues of importance for renewable energy as a whole. The report also contains a number of technical appendices and a glossary. The renewable energy sources included are biomass (wood), municipal solid waste, biomass-derived liquid fuels, geothermal, wind, and solar and photovoltaic

Renewable energy annual 1995

Energy Technology Data Exchange (ETDEWEB)

NONE

1995-12-01

The Renewable Energy Annual 1995 is the first in an expected series of annual reports the Energy Information Administration (EIA) intends to publish to provide a comprehensive assessment of renewable energy. This report presents the following information on the history, status, and prospects of renewable energy data: estimates of renewable resources; characterizations of renewable energy technologies; descriptions of industry infrastructures for individual technologies; evaluations of current market status; and assessments of near-term prospects for market growth. An international section is included, as well as two feature articles that discuss issues of importance for renewable energy as a whole. The report also contains a number of technical appendices and a glossary. The renewable energy sources included are biomass (wood), municipal solid waste, biomass-derived liquid fuels, geothermal, wind, and solar and photovoltaic.

The effect of real-time pricing on load shifting in a highly renewable power system dominated by generation from the renewable sources of wind and photovoltaics

Science.gov (United States)

Kies, Alexander; Brown, Tom; Schlachtberger, David; Schramm, Stefan

2017-04-01

The supply-demand imbalance is a major concern in the presence of large shares of highly variable renewable generation from sources like wind and photovoltaics (PV) in power systems. Other than the measures on the generation side, such as flexible backup generation or energy storage, sector coupling or demand side management are the most likely option to counter imbalances, therefore to ease the integration of renewable generation. Demand side management usually refers to load shifting, which comprises the reaction of electricity consumers to price fluctuations. In this work, we derive a novel methodology to model the interplay of load shifting and provided incentives via real-time pricing in highly renewable power systems. We use weather data to simulate generation from the renewable sources of wind and photovoltaics, as well as historical load data, split into different consumption categories, such as, heating, cooling, domestic, etc., to model a simplified power system. Together with renewable power forecast data, a simple market model and approaches to incorporate sector coupling [1] and load shifting [2,3], we model the interplay of incentives and load shifting for different scenarios (e.g., in dependency of the risk-aversion of consumers or the forecast horizon) and demonstrate the practical benefits of load shifting. First, we introduce the novel methodology and compare it with existing approaches. Secondly, we show results of numerical simulations on the effects of load shifting: It supports the integration of PV power by providing a storage, which characteristics can be described as "daily" and provides a significant amount of balancing potential. Lastly, we propose an experimental setup to obtain empirical data on end-consumer load-shifting behaviour in response to price incentives. References [1] Brown, T., Schlachtberger, D., Kies. A., Greiner, M., Sector coupling in a highly renewable European energy system, Proc. of the 15th International Workshop on

A logistic regression approach to model the willingness of consumers to adopt renewable energy sources

Science.gov (United States)

Ulkhaq, M. M.; Widodo, A. K.; Yulianto, M. F. A.; Widhiyaningrum; Mustikasari, A.; Akshinta, P. Y.

2018-03-01

The implementation of renewable energy in this globalization era is inevitable since the non-renewable energy leads to climate change and global warming; hence, it does harm the environment and human life. However, in the developing countries, such as Indonesia, the implementation of the renewable energy sources does face technical and social problems. For the latter, renewable energy sources implementation is only effective if the public is aware of its benefits. This research tried to identify the determinants that influence consumers’ intention in adopting renewable energy sources. In addition, this research also tried to predict the consumers who are willing to apply the renewable energy sources in their houses using a logistic regression approach. A case study was conducted in Semarang, Indonesia. The result showed that only eight variables (from fifteen) that are significant statistically, i.e., educational background, employment status, income per month, average electricity cost per month, certainty about the efficiency of renewable energy project, relatives’ influence to adopt the renewable energy sources, energy tax deduction, and the condition of the price of the non-renewable energy sources. The finding of this study could be used as a basis for the government to set up a policy towards an implementation of the renewable energy sources.

Estimating Renewable Energy Economic Potential in the United States. Methodology and Initial Results

Energy Technology Data Exchange (ETDEWEB)

Brown, Austin; Beiter, Philipp; Heimiller, Donna; Davidson, Carolyn; Denholm, Paul; Melius, Jennifer; Lopez, Anthony; Hettinger, Dylan; Mulcahy, David; Porro, Gian

2016-08-01

This report describes a geospatial analysis method to estimate the economic potential of several renewable resources available for electricity generation in the United States. Economic potential, one measure of renewable generation potential, may be defined in several ways. For example, one definition might be expected revenues (based on local market prices) minus generation costs, considered over the expected lifetime of the generation asset. Another definition might be generation costs relative to a benchmark (e.g., a natural gas combined cycle plant) using assumptions of fuel prices, capital cost, and plant efficiency. Economic potential in this report is defined as the subset of the available resource technical potential where the cost required to generate the electricity (which determines the minimum revenue requirements for development of the resource) is below the revenue available in terms of displaced energy and displaced capacity. The assessment is conducted at a high geospatial resolution (more than 150,000 technology-specific sites in the continental United States) to capture the significant variation in local resource, costs, and revenue potential. This metric can be a useful screening factor for understanding the economic viability of renewable generation technologies at a specific location. In contrast to many common estimates of renewable energy potential, economic potential does not consider market dynamics, customer demand, or most policy drivers that may incent renewable energy generation.

Renewable energy export network

International Nuclear Information System (INIS)

Anon

2000-01-01

A Renewable Energy Exporters Network (REEN) has recently been established, following a meeting of renewable energy exporters and government agencies on 30 October 2000. REEN will assist the Australian renewable energy industry to take advantage of the opportunities offered by the burgeoning global market for renewable energy goods and services. Recent estimates of the significant potential global growth is renewable energy demand have reinforced the industry and Government's view that, in the medium to long-term, growth in the Australian renewable energy industry will largely depend on capturing export market share. Expanding the export market was identified as a crucial component in the Renewable Energy Action Agenda, developed jointly by industry and Government and released in June 2000. It was estimated that, for the industry to achieve its vision of sales of $4 billion per year by 2010, exports would need to comprise approximately 50% of the forecast growth in sales. As such, the need for a specific export strategy for the Australian renewable energy industry was recognised in the Action Agenda, and the establishment of the REEN is one of the first initiatives undertaken as part of the Renewable Energy Export Strategy. The REEN comprises approximately 50 export-ready renewable energy companies, the Department of Industry, Science and Resources, Austrade, and Stage Government agencies such as NSW's Sustainable Energy Development Authority. The Export Network will operate electronically, with face-to-face meetings held as appropriate. The Department of Industry, Science and Resources will facilitate the Export Network and has published a website at www.isr.gov.au/industry/reen. The site includes: a members directory; a discussion forum; information on opportunities to showcase Australian renewable; energy products and services; and Iinks to sites containing information that may be useful to renewable energy exporters. Other actions that are being undertaken as

Willingness to pay for renewable energy investment in Korea: A choice experiment study

International Nuclear Information System (INIS)

Ku, Se-Ju; Yoo, Seung-Hoon

2010-01-01

Renewable energy sources are considered as alternatives for coping with the high price of oil and global warming. The Korean government has set a target that 11% of the total primary energy supply should be obtained through renewable energy sources until 2030. In order to develop proper policies for renewable energy investment, it is necessary to analyze the benefits of renewable energy investment based on households' willingness to pay. This study attempts to apply a choice experiment (CE) for assessing renewable energy investment in Korea. Moreover, we employ a multinomial probit (MNP) model to relax the assumption that all respondents have the same preferences for the attributes being valued, which is usually required in empirical CE studies. An MNP model allows the most flexible pattern of error correlation structure. The results reveal that the Korean public puts a value on the protection of wildlife, reduction of pollution, and increased employment opportunities. On the other hand, respondents do not derive significant values from the improvement of landscapes. This study is expected to provide policy-makers with useful information for evaluating and planning policies related to renewable energy investment. (author)

Renewable Energy in the Baltic States. Different Situations

International Nuclear Information System (INIS)

Streimikiene, Dalia

2007-01-01

In many ways, the Baltic nations seem to be good students with ambitious objectives for applying European directives and the Kyoto Protocol. For example, in 2006, renewable energies already accounted for 9 % in Lithuania, 10 % in Estonia and 43 % in Latvia (5.2 % in the EU-15) of primary energy output. This should increase to 12 %, 15 % and 50 % in 2010 (12 % in the EU-15) respectively. While all are dependent on oil imports, their own resources vary: nuclear power in Lithuania (at least until 2009 when the last reactor of the Ignalina power station will close, with EU compensation), oil shale feeds Estonian power stations, wood in Latvia. The latter must import electricity while the two other countries produce double their domestic demand. All three are linked to the Russian power grid built up during the Soviet era rather than the European. Nevertheless, the share of renewable energy produced electricity is very small in these two producer countries, unlike Latvia which has hydraulic resources. The three countries have very different taxation on energy and electrical products, including renewable energy price support. All were granted transitional periods of differing lengths to apply European standard. The Baltic nations produce low greenhouse gas emissions and only Estonia has organized an emission rights trading market

Marketing of new Technologies: The case of Renewable Energies in the UK

DEFF Research Database (Denmark)

Brem, Alexander; Muehlmann, F.; Sarmiento, T.

2011-01-01

The market in the UK for renewable energy is arguably at a very critical phase in its development. Key drivers for current policy include energy security, climate change and energy prices, added to which the UK has agreed specific targets with other EU countries to help meet these challenges....... The paper includes a general overview of worldwide energy demand and a comprehensive overview of renewable energy alternatives. Based on that, it describes the development of the UK renewables marketplace with a market overview including a summary of selected key organisations currently operating. Finally......, this paper recapitulates the key findings of our quantitative research, based on a survey of 65 organisations operating in the market, into the state of the UK market, including a view on the trends and outlook for the future. Finally, the paper offers some concluding remarks which state, among others...

Financial incentives to promote renewable energy systems in European electricity markets: a survey

International Nuclear Information System (INIS)

Haas, R.; Huber, C.; Wohlgemuth, N.

2001-01-01

Renewable energy systems may contribute to sustainable development. Therefore, one of the challenges for energy policy is to ensure that renewable energy options have a fair opportunity to compete with other supply resources. This paper presents a survey on promotion mechanisms to enhance the market penetration of renewable energies in European electricity markets. Strategies include rebates and tax incentives, regulated rates, system benefit charges, bidding-oriented mechanisms and various types of green pricing programs. The paper concludes that efficient promotion mechanisms should focus on incentives per kWh generated rather than on rebates on the investment in generating capacity (kW), and that there is no one single program type which has the best application to the promotion of all renewable technologies. For example, enhanced buy-back rates work as a dissemination strategy for wind energy but they do not work for photovoltaics. (author)

Energy Systems With Renewable Hydrogen Compared to Direct Use of Renewable Energy in Austria

International Nuclear Information System (INIS)

Gerfried Jungmeier; Kurt Konighofer; Josef Spitzer; R Haas; A Ajanovic

2006-01-01

The current Austrian energy system has a renewable energy share of 20% - 11% hydropower and 9 % biomass - of total primary energy consumption. Whereas a possible future introduction of renewable hydrogen must be seen in the context of current energy policies in Austria e.g. increase of energy efficiency and use of renewable energy, reduction of greenhouse gas emissions. The aim of the research project is a life cycle based comparison of energy systems with renewable hydrogen from hydropower, wind, photovoltaic and biomass compared to the direct use of renewable energy for combined heat and power applications and transportation services. In particular this paper focuses on the main question, if renewable energy should be used directly or indirectly via renewable hydrogen. The assessment is based on a life cycle approach to analyse the energy efficiency, the material demand, the greenhouse gas emissions and economic aspects e.g. energy costs and some qualitative aspects e.g. energy service. The overall comparison of the considered energy systems for transportation service and combined heat and electricity application shows, that renewable hydrogen might be beneficial mainly for transportation services, if the electric vehicle will not be further developed to a feasibly wide-spread application for transportation service in future. For combined heat and electricity production there is no advantage of renewable hydrogen versus the direct use of renewable energy. Conclusions for Austria are therefore: 1) renewable hydrogen is an interesting energy carrier and might play an important role in a future sustainable Austrian energy system; 2) renewable hydrogen applications look most promising in the transportation sector; 3) renewable hydrogen applications will be of low importance for combined heat and electricity applications, as existing technologies for direct use of renewable energy for heat and electricity are well developed and very efficient; 4) In a future '100

New renewable energy sources

International Nuclear Information System (INIS)

2001-06-01

This publication presents a review of the technological, economical and market status in the field of new renewable energy sources. It also deals briefly with the present use of energy, external conditions for new renewable energy sources and prospects for these energy sources in a future energy system. The renewable energy sources treated here are ''new'' in the sense that hydroelectric energy technology is excluded, being fully developed commercially. This publication updates a previous version, which was published in 1996. The main sections are: (1) Introduction, (2) Solar energy, (3) Bio energy, (4) Wind power, (5) Energy from the sea, (6) Hydrogen, (7) Other new renewable energy technologies and (8) New renewable s in the energy system of the future

Model documentation renewable fuels module of the National Energy Modeling System

Science.gov (United States)

1995-06-01

This report documents the objectives, analytical approach, and design of the National Energy Modeling System (NEMS) Renewable Fuels Module (RFM) as it relates to the production of the 1995 Annual Energy Outlook (AEO95) forecasts. The report catalogs and describes modeling assumptions, computational methodologies, data inputs, and parameter estimation techniques. A number of offline analyses used in lieu of RFM modeling components are also described. The RFM consists of six analytical submodules that represent each of the major renewable energy resources -- wood, municipal solid waste (MSW), solar energy, wind energy, geothermal energy, and alcohol fuels. The RFM also reads in hydroelectric facility capacities and capacity factors from a data file for use by the NEMS Electricity Market Module (EMM). The purpose of the RFM is to define the technological, cost, and resource size characteristics of renewable energy technologies. These characteristics are used to compute a levelized cost to be competed against other similarly derived costs from other energy sources and technologies. The competition of these energy sources over the NEMS time horizon determines the market penetration of these renewable energy technologies. The characteristics include available energy capacity, capital costs, fixed operating costs, variable operating costs, capacity factor, heat rate, construction lead time, and fuel product price.

Model documentation renewable fuels module of the National Energy Modeling System

Energy Technology Data Exchange (ETDEWEB)

NONE

1995-06-01

This report documents the objectives, analytical approach, and design of the National Energy Modeling System (NEMS) Renewable Fuels Module (RFM) as it relates to the production of the 1995 Annual Energy Outlook (AEO95) forecasts. The report catalogues and describes modeling assumptions, computational methodologies, data inputs, and parameter estimation techniques. A number of offline analyses used in lieu of RFM modeling components are also described. The RFM consists of six analytical submodules that represent each of the major renewable energy resources--wood, municipal solid waste (MSW), solar energy, wind energy, geothermal energy, and alcohol fuels. The RFM also reads in hydroelectric facility capacities and capacity factors from a data file for use by the NEMS Electricity Market Module (EMM). The purpose of the RFM is to define the technological, cost and resource size characteristics of renewable energy technologies. These characteristics are used to compute a levelized cost to be competed against other similarly derived costs from other energy sources and technologies. The competition of these energy sources over the NEMS time horizon determines the market penetration of these renewable energy technologies. The characteristics include available energy capacity, capital costs, fixed operating costs, variable operating costs, capacity factor, heat rate, construction lead time, and fuel product price.

Balancing Cost and Risk: The Treatment of Renewable Energy in Western Utility Resource Plans

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Wiser, Ryan

2005-08-10

Markets for renewable energy have historically been motivated primarily by policy efforts, but a less widely recognized driver is poised to also play a major role in the coming years: utility integrated resource planning (IRP). Resource planning has re-emerged in recent years as an important tool for utilities and regulators, particularly in regions where retail competition has failed to take root. In the western United States, the most recent resource plans contemplate a significant amount of renewable energy additions. These planned additions--primarily coming from wind power--are motivated by the improved economics of wind power, a growing acceptance of wind by electric utilities, and an increasing recognition of the inherent risks (e.g., natural gas price risk, environmental compliance risk) in fossil-based generation portfolios. This report examines how twelve western utilities treat renewable energy in their recent resource plans. In aggregate, these utilities supply approximately half of all electricity demand in the western United States. Our purpose is twofold: (1) to highlight the growing importance of utility IRP as a current and future driver of renewable energy, and (2) to identify methodological/modeling issues, and suggest possible improvements to methods used to evaluate renewable energy as a resource option. Here we summarize the key findings of the report, beginning with a discussion of the planned renewable energy additions called for by the twelve utilities, an overview of how these plans incorporated renewables into candidate portfolios, and a review of the specific technology cost and performance assumptions they made, primarily for wind power. We then turn to the utilities' analysis of natural gas price and environmental compliance risks, and examine how the utilities traded off portfolio cost and risk in selecting a preferred portfolio.

Renewable energy in eastern Asia: Renewable energy policy review and comparative SWOT analysis for promoting renewable energy in Japan, South Korea, and Taiwan

International Nuclear Information System (INIS)

Chen, Wei-Ming; Kim, Hana; Yamaguchi, Hideka

2014-01-01

Japan, South Korea, and Taiwan are deficient of domestic fossil energy sources and depend significantly on imported fuels. Since the oil shock in the 1970s, all three countries have promoted renewable energy as an alternative energy source to improve energy security. Currently, renewable energy is being promoted to build low-carbon economies. This study reviews the development of renewable energy policies and roadmaps. It also examines and compares strengths, weaknesses, opportunities, and threats (SWOT) of these countries in the context of advancing renewable energy policies and technologies and expanding domestic renewable energy installations, as well as strategically positioning themselves in the international renewable energy market as exporters of clean energy technologies. Through the SWOT analysis, this paper identifies a capacity for additional renewable energy deployment in these countries and highlights the necessity of increased cooperation between the three countries to strengthen their domestic and regional renewable energy sectors and compete in the global renewable energy market in the post-Fukushima era. - Highlights: • Japan, South Korea and Taiwan need to develop renewable energy (RE). • These countries have been too conservative to achieve a notable share of RE. • Pro-nuclear energy policies have hindered the RE development in these countries. • The Fukushima disaster made these countries more favorable to RE. • Joint cooperation for R and D and deployment of RE is recommended

Impacts of Variable Renewable Energy on Bulk Power System Assets, Pricing, and Costs

Energy Technology Data Exchange (ETDEWEB)

Wiser, Ryan H. [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Mills, Andrew [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Seel, Joachim [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Levin, Todd [Argonne National Lab. (ANL), Argonne, IL (United States); Botterud, Audun [Argonne National Lab. (ANL), Argonne, IL (United States)

2017-11-29

We synthesize available literature, data, and analysis on the degree to which growth in variable renewable energy (VRE) has impacted to date or might in the future impact bulk power system assets, pricing, and costs. We do not analyze impacts on specific power plants, instead focusing on national and regional system-level trends. The issues addressed are highly context dependent—affected by the underlying generation mix of the system, the amount of wind and solar penetration, and the design and structure of the bulk power system in each region. Moreover, analyzing the impacts of VRE on the bulk power system is a complex area of research and there is much more to be done to increase understanding of how VRE impacts the dynamics of current and future electricity markets. While more analysis is warranted, including additional location-specific assessments, several high-level findings emerge from this synthesis: -VRE Is Already Impacting the Bulk Power Market -VRE Impacts on Average Wholesale Prices Have Been Modest -VRE Impacts on Power Plant Retirements Have So Far Been Limited -VRE Impacts on the Bulk Power Market will Grow with Penetration -The ’System Value’ of VRE will Decline with Penetration -Power System Flexibility Can Reduce the Rate of VRE Value Decline All generation types are unique in some respect—bringing benefits and challenges to the power system—and wholesale markets, industry investments, and operational procedures have evolved over time to manage the characteristics of a changing generation fleet. With increased VRE penetrations, power system planners, operators, regulators, and policymakers will continue to be challenged to develop methods to smoothly and cost-effectively manage the reliable integration of these new and growing sources of electricity supply.

Mapping of renewable energies

International Nuclear Information System (INIS)

Boulanger, V.

2013-01-01

Germany is the champion of green energy in Europe: the contribution of renewable energies to electricity generation reached about 20% in 2011. This article describes the situation of renewable energies in Germany in 2011 with the help of 2 maps, the first one gives the installed electrical generation capacity for each region and for each renewable energy source (wind power, hydro-electricity, biomass, photovoltaic energy and biogas) and the second one details the total number of jobs (direct and indirect) for each renewable energy source and for each region. In 2011 about 372000 people worked in the renewable energy sector in Germany. (A.C.)

Southern African Power Pool: Planning and Prospects for Renewable Energy

Energy Technology Data Exchange (ETDEWEB)

Miketa, Asami [IRENA, Bonn (Germany); Merven, Bruno [Energy Research Centre, Univ. of Cape Town (South Africa)

2013-06-25

With the energy systems of many African countries dominated by fossil-fuel sources that are vulnerable to global price volatility, regional and intra-continental power systems with high shares of renewable energy can provide least-cost option to support continued economic growth and address the continent’s acute energy access problem. Unlocking Africa’s huge renewable energy potential could help to take many people out of poverty, while ensuring the uptake of sustainable technologies for the continent’s long-term development. The report examines the ''renewable scenario'' based on a modelling tool developed by IRENA and tested in cooperation with the South African National Energy Development Institute (SANEDI) and the Southern African Development Community (SADC). Initial results from the System Planning and Test (SPLAT) model show that the share of renewable technologies in Southern Africa could increase from the current 10% to as much as 46% in 2030, with 20% of decentralised capacity coming from renewable sources and nearly 80% of the envisaged capacity additions between 2010 and 2030 being provided by renewable energy technologies. Deployment and export of hydropower from the Democratic Republic of Congo’s Inga hydropower project to the SADC region would significantly reduce average electricity generation costs. Analysis using SPLAT – along with a similar model developed for West Africa – can provide valuable input for regional dialogue and energy projects such as the East and Southern Africa Clean Energy Corridor and the Programme for Infrastructure and Development in Africa (PIDA). IRENA, together with partner organisations, has started plans to set up capacity building and development support for energy system modelling and planning for greater integration of renewables in Africa. IRENA is also completing a similar model and study for East Africa and intends to extend this work to Central and North Africa.

THEORETICAL CONSIDERATIONS OF PRICE STABILITY AS PART OF THE FINANCIAL STABILITY

OpenAIRE

Magdalena RĂDULESCU; Marinela TANASCOVICI

2012-01-01

Currently there are many authors who consider that the only objective of the central bank should be the price stability and between the respective objective and financial stability there is incompatibility. As far we are concerned, we subscribe the idea that between price stability and financial stability there are complementarities. And a strong argument in the favour of this position is also historical. Actually, many older or newer facts show that banking crises were often caused by the un...

Efficient pricing and investment in electricity markets with intermittent resources

International Nuclear Information System (INIS)

Chao, Hung-po

2011-01-01

Facing growing technological and environmental challenges, the electricity industry needs effective pricing mechanism to promote efficient risk management and investment decisions. In a restructured electricity market with competitive wholesale prices and traditionally regulated retail rates, however, there are technical and institutional barriers that prevent dynamic pricing with price responsive demand. In regions with limited energy storage capacity, intermittent renewable resources present special challenges. This could adversely affect the effectiveness of public policies causing inefficient investments in energy technologies. In this paper, we present an updated economic model of pricing and investment in restructured electricity market and use the model in a simulation study for an initial assessment of renewable energy strategy and alternative pricing mechanisms. A key objective of the study is to shed light on the policy issues so that effective decisions can be made to improve efficiency. - Highlights: → Renewable resources present special challenges in regions with limited energy storage capacity. → This paper presents an updated economic model of pricing and investment in restructured electricity market. → A simulation study assesses renewable energy strategy and alternative pricing mechanisms. → The study results inform policy decisions to improve efficient investments in energy technologies.

Financing investments in renewable energy: the impacts of policy design

International Nuclear Information System (INIS)

Wiser, Ryan H.; Pickle, Steven J.

1998-01-01

The costs of electric power projects utilising renewable energy technologies (RETs) are highly sensitive to financing terms. Consequently, as the electricity industry is restructured and new renewables policies are created, it is important for policymakers to consider the impacts of renewables policy design on RET financing. This paper reviews the power plant financing process for renewable energy projects, estimates the impact of financing terms on levelised energy costs, and provides insights to policymakers on the important nexus between renewables policy design and financing. We review five case studies of renewable energy policies, and find that one of the key reasons that RET policies are not more effective is that project development and financing processes are frequently ignored or misunderstood when designing and implementing renewable energy policies. The case studies specifically show that policies that do no provide long-term stability or that have negative secondary impacts on investment decisions will increase financing costs, sometimes dramatically reducing the effectiveness of the program. Within U.S. electricity restructuring proceedings, new renewable energy policies are being created, and restructuring itself is changing the way RETs are financed. As these new policies are created and implemented, it is essential that policymakers acknowledge the financing difficulties faced by renewables developer and pay special attention to the impacts of renewables policy design on financing. As shown in this paper, a renewables policy that is carefully designed can reduce renewable energy costs dramatically by providing revenue certainty that will, in turn, reduce financing risk premiums. (Author)

VT Renewable Energy Sites - Renewable Energy Professionals

Data.gov (United States)

Vermont Center for Geographic Information — (Link to Metadata) The Renewable Energy Atlas of Vermont and this dataset were created to assist town energy committees, the Clean Energy Development Fund and other...

New scenario of the non-conventional renewable energies on Chile after the incentives created on the ''Short Law I''

International Nuclear Information System (INIS)

Leonardo, Valencia M.

2008-01-01

Non-conventional renewable energies have never played an important role in the Chilean energy generation system, mainly due to the economic barriers that actually exists on our country for the inclusion of these kinds of technologies. Nevertheless, the use of renewable energy system technologies have started to be an interesting issue for the Chilean government, and for that reason, the last modification of the Energy Law during 2004, usually known as ''Short Law I'', introduced the first direct incentive to renewable energy generation (specifically in the art. 71-7). In this work we analyze in detail the modification on the electric law we mentioned before, especially for geothermal and wind power generation, and we compare the economic incentive generated with the new law and the differences between the real energy costs using renewable energy systems technologies and the current energy price in Chile. It is clear from the analysis that the total incentives do not cover more than 8.3% of the price differences between incomes and costs. (author)

Marketing of renewable energies. Foundations, business models, case studies

International Nuclear Information System (INIS)

Herbes, Carsten; Friege, Christian

2015-01-01

How to market green electricity or biomethane? What is the right price for renewable energy and how do you design the optimal use of social media? What impact have the EEG or electromobility to the Green Power Marketing? Does direct marketing works or is online marketing the guarantee of success? Answers to these and many other basic questions provides the band with contributions from leading scientists and renowned practitioners. For the first time they describe in a structured form the basics of marketing of renewable energies, provide an introduction to the legal and market-based features and present new business models. The book is based on the latest research results, treats all questions of marketing issues important for practitioners, provides case studies and specific recommendations. [de

Study on reasonable curtailment rate of large scale renewable energy

Science.gov (United States)

Li, Nan; Yuan, Bo; Zhang, Fuqiang

2018-02-01

Energy curtailment rate of renewable energy generation is an important indicator to measure renewable energy consumption, it is also an important parameters to determine the other power sources and grids arrangement in the planning stage. In general, to consume the spike power of the renewable energy which is just a small proportion, it is necessary to dispatch a large number of peaking resources, which will reduce the safety and stability of the system. In planning aspect, if it is allowed to give up a certain amount of renewable energy, overall peaking demand of the system will be reduced, the peak power supply construction can be put off to avoid the expensive cost of marginal absorption. In this paper, we introduce the reasonable energy curtailment rate into the power system planning, and use the GESP power planning software, conclude that the reasonable energy curtailment rate of the regional grids in China is 3% -10% in 2020.