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Grid - Legal Framework for Feeding Renewable Energy

From energypedia

Overview

Renewable energies (RE) hold the key to a climate friendly energy future and an energy supply that is sustainable and secure in the long term. Since the Bonn Renewable Energy Conference in 2004, numerous developed and developing countries have increasingly set targets for the utilisation of renewable energies in meeting their power supply needs. In order to reach their targets, many countries have designed and implemented a variety of policies, strategies and instruments.[1]


Tarifing and Regulating Systems

Feed-in Tariffs

Feed-in tariffs have been demonstrated to be the most effective policy mechanism that a country can use to foster the rapid development of renewable energy systems. Close to two-thirds of the world’s wind energy and half of the solar PV systems have been installed as a result of feed-in tariffs.[2]

CO2-Tax

Carbon tax is one of two major market-based options to lower emissions, the other being cap-and-trade schemes. While cap-and-trade seems to have won over most politicians, many economists and consumers prefer carbon tax for its simplicity and impartiality.[3]

Limitation for Renewable Energy to the Grid

Quota Regulation

Quota obligations based on Tradable Green Certificates (TGCs) are generation-based, quantity driven instruments. The government defines targets for renewable energy sources deployment and obliges a particular party of the electricity supply-chain (e. g. generator, whole saler or consumer) with their fulfilment. Once defined, a parallel market for renewable energy certificates is established and their price is set following demand and supply conditions (forced by the obligation)[4].

Further Information

References

  1. ↑ Legal Frameworks for Renewable Energy - http://www.giz.de/fachexpertise/downloads/giz2012-en-legal-frameworks-renewable-energy.pdf
  2. ↑ Feeding the Grid Renewably - http://www.ontario-sea.org/Storage/28/1943_Feeding_the_Grid_Renewably-_Using_feed-in_tariffs_to_capitalize_on_renewable_energy_.pdf
  3. ↑ How Carbon Tax Works - http://science.howstuffworks.com/environmental/green-science/carbon-tax.htm
  4. ↑ Feed-in Tarrifs and quotas for renewable energy in Europe - http://www.cesifo.de/pls/guestci/download/cesifo%20dice%20report%202007/cesifo%20dice%20report%204/2007/dicereport407-forum5.pdf


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