• Energy Research

We analyse quantitatively how risk exposure from different support mechanisms, such as feed-in tariffs and premiums, can influence the investment incentives for private investors. We develop a net cash flow approach that takes systematic and unsystematic risks into account through cost of capital and the Capital Asset Pricing Model as well as through active liquidity management. Applying the model to a specific case, a German offshore wind park, we find that the support levels required to give adequate investment incentives are for a feed-in tariff scheme approximately 4-10% lower than for a feed-in premium scheme. The effect of differences in risk exposure from the support schemes is significant and cannot be neglected in policy making, especially when deciding between support instruments or when determining adequate support levels. International Journal of Sustainable Energy Planning and Management, Vol 7 (2015)

This is the dataset to the academic paper with the title: "Policy choices and outcomes for offshore wind auctions globally" Please cite the dataset as follows: Jansen,M.; Beiter, P.;Riepin, I. Müsgens, Felix; Juarez Guajardo-Fajardo, Victor, Staffell, I.; Bulder, B.; Kitzing, L. (2022) Policy choices and outcomes for offshore wind auctions globally. Energy Policy. DOI: https://doi.org/10.1016/j.enpol.2022.113000

Abstract We develop the concept of evolving risk to demonstrate that the optimal policy choice between price and quantity instruments may change over time. Drawing from system innovation, evolutionary concepts and modern financial and transaction cost economics, we analyze dynamic cost and welfare impacts of instrument choice under uncertainty. In early market deployment of niche technologies, economic and system-innovation arguments suggest price instruments can stabilize revenues and decrease market risks for investors. This accelerates deployment without necessarily compromising economic efficiency. Protective policies that work well for niche technologies should, however, be used cautiously during market upscaling and diffusion, due to the changing nature of risks. We use theoretic arguments and a case to demonstrate that a gradual shift towards quantity control may become preferable for welfare maximization under certain circumstances. Solar photovoltaics in Germany serves as illustrative case, where auctions (a form of quantity control) succeeded feed-in tariffs (a price instrument).

Abstract. Wind energy is anticipated to play a central role in enabling a rapid transition from fossil fuels to a system based largely on renewable power. For wind power to fulfill its expected role as the backbone—providing nearly half of the electrical energy—of a renewable-based, carbon-neutral energy system, critical challenges around design, development, and deployment of land and offshore technologies must be addressed. During the past three years, the wind research community has invested significant effort toward understanding the nature and implications of these challenges and identifying associated gaps. The outcomes of these efforts are summarized in a series of ten articles, some under review by Wind Energy Science (WES) and others planned for submission during the coming months. This letter explains the genesis, significance, and impacts of these efforts.

Abstract Nations today are urgently challenged with achieving a significant increase in the deployment of renewable energies. In Europe that need has given rise to a debate about the most effective and efficient support strategy. Whilst the different interests debate whether full European harmonisation or strengthening of national support policies for electricity from renewable energy sources (RES-E) is the best way forward, individual national support schemes are rapidly evolving. This study investigates how the EU member states have applied support policy types over the last decade. By identifying predominant developments in the application of feed-in tariffs, premiums, tradeable green certificates, tax incentives, investment grants, and financing support for specific technologies (wind, biomass, PV), this study shows that Europe is currently experiencing certain tendencies towards a ‘bottom-up’ convergence of how national policy-makers design RES-E policy supports. While some outliers remain, the policy supports of most countries become more similar in the policy types applied (dominance of feed-in tariffs) and in their scope of implementation (differentiation for installation sizes and ‘stacking’ of multiple instruments). These trends in national decision-making, which show tendencies of convergence, could make an EU-driven ‘top-down’ harmonisation of support either dispensable or at least (depending on the agreement) less controversial.