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On the success of policy strategies for the promotion of electricity from renewable energy sources in the EU

: Held, A.; Ragwitz, M.; Haas, R.


Energy and Environment 17 (2006), No.6, pp.849-868
ISSN: 0958-305X
Journal Article
Fraunhofer ISI ()
electricity; renewable energy source; policy support; effectiveness; economic efficiency

In recent years, a wide range of strategies has been implemented in different EU-countries to increase the share of electricity generation from renewable energy sources. This paper evaluates the success of different regulatory strategies. The most important conclusions of this analysis are: (i) regardless of which strategy is chosen, it is of overriding importance that there should be a clear focus on the exclusive promotion of newly installed plants; (ii) a well-designed (dynamic) feed-in tariff system ensures the fastest deployment of power plants using Renewable Energy Sources at the lowest cost to society; (iii) promotion strategies with low policy risks have lower profit requirements for investors and, hence, cause lower costs to electricity customers.