The non-operating solar projects: Examining the impact of the feed-in tariff amendment in Japan

Although most countries in the world have been trying to introduce renewable energy into their power supplies to address issues related to the environment and energy security, the Middle East has the lowest overall renewable energy capacity in the world. However, there is currently a trend of accelerating renewable energy deployment with increased investment in the region for the purposes of improving energy security and independence and promoting long-term social and economic benefits. This study aims to examine the impact of implementing a feed-in tariff (FiT) in Abu Dhabi, United Arab Emirates. After a simulated test, it was found that the levelized cost of electricity (LCOE) and the current average unit cost of electricity were considerably divergent. That is to say, a large extra cost is incurred in order to deploy renewable energy in Abu Dhabi. In this context, the effectiveness of implementing a FiT in Abu Dhabi is confirmed. Furthermore, an estimation of the size of the renewable energy surcharge indicated that the impact of implementing a FiT would be enormous. For example, if the target rate of deploying renewable energy is set at 7%, a renewable energy surcharge equivalent to approximately one third of the total turnover of the electricity sector should be additionally imposed. It follows that the electricity rate will be raised by about thirty percent on average, unless subsidies are provided by the government.

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Managing Wind Turbine Generators with a Profit Maximized Approach

Sustainability ◽

10.3390/su12177139 ◽

2020 ◽

Vol 12 (17) ◽

pp. 7139

Author(s):

Dominik McInnis ◽

Massimiliano Capezzali

Keyword(s):

Wind Turbine ◽

Electricity Market ◽

Investment Decision ◽

Production Costs ◽

Variable Cost ◽

Turbine Generators ◽

Wind Turbine Generators ◽

Short Run ◽

The Impact ◽

Feed In Tariff

In Europe, at least 3 GW installed capacity of wind turbine generators (WTG) will fall out of subsidy schemes every year from 2021 onwards. An estimated 50% of this capacity cannot be replaced with new WTG due to commercial and legal restrictions. The remaining options are either to sell the electricity without subsidies on the wholesale electricity market—a novelty for most WTG, as most are receiving a feed-in tariff—or their dismantlement. Since the electricity market fixes the price at the intersection of demand and short run marginal production costs, WTG might struggle to generate enough revenues to cover their costs. This paper proposes an innovative commercialization strategy for WTG after the end of the feed-in tariff, namely a profit-maximized approach that focuses on synergies between revenues and costs when increasing the curtailments of the WTG. The two key elements of this approach are a more flexible and variable cost structure and a central overall optimization process. The paper proves the potential of this new strategy and highlights the necessity of further research for WTG at the end of their lifetime from a technical and commercial perspective, due to the impact on the initial investment decision and best allocation of subsides.

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Analysis of Competitiveness and Support Instruments for Heat and Electricity Production from Wood Biomass in Latvia

Latvian Journal of Physics and Technical Sciences ◽

10.2478/v10047-012-0007-3 ◽

2012 ◽

Vol 49 (2) ◽

pp. 3-13

Author(s):

G. Klavs ◽

I. Kudrenickis ◽

A. Kundzina

Keyword(s):

Electricity Market ◽

Cost Estimation ◽

Renewable Energy Sources ◽

Economic Feasibility ◽

Electricity Production ◽

Minor Role ◽

Wood Biomass ◽

Estimation Model ◽

The Impact ◽

Feed In Tariff

Analysis of Competitiveness and Support Instruments for Heat and Electricity Production from Wood Biomass in Latvia Utilisation of renewable energy sources is one of the key factors in a search for efficient ways of reducing the emissions of greenhouse gases and improving the energy supply security. So far, the district heating supply in Latvia has been based on natural gas, with the wood fuel playing a minor role; the same is true for decentralised combined heat-power (CHP) production. The paper describes a method for evaluation of the economic feasibility of heat and electricity production from wood biomass under the competition between different fuel types and taking into account the electricity market. For the simulation, a cost estimation model is applied. The results demonstrate that wood biomass can successfully be utilised for competitive heat production by boiler houses, while for electricity production by CHP utilities it cannot compete on the market (even despite the low prices on wood biomass fuel) unless particular financial support instruments are applied. The authors evaluate the necessary support level and the impact of two main support instruments - the investment subsidies and the feed-in tariff - on the economic viability of wood-fuelled CHP plants, and show that the feed-in tariff could be considered as an instrument strongly affecting the competitiveness of such type CHP. Regarding the feed-in tariff determination, a compromise should be found between the economy-dictated requirement to develop CHP projects concerning capacities above 5 MWel - on the one hand, and the relatively small heat loads in many Latvian towns - on the other.

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The impact of a feed-in tariff on wind power development in Germany

Resource and Energy Economics ◽

10.1016/j.reseneeco.2018.12.001 ◽

2019 ◽

Vol 57 ◽

pp. 18-35 ◽

Cited By ~ 14

Author(s):

Claudia Hitaj ◽

Andreas Löschel

Keyword(s):

Wind Power ◽

Power Development ◽

The Impact ◽

Wind Power Development ◽

Feed In Tariff

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A Study of the Feasibility of International ETS Cooperation between Shanghai and Korea from Environmental Efficiency and CO2 Marginal Abatement Cost Perspectives

Sustainability ◽

10.3390/su11164468 ◽

2019 ◽

Vol 11 (16) ◽

pp. 4468 ◽

Cited By ~ 5

Author(s):

Chao Qi ◽

Yongrok Choi

Keyword(s):

Power Plants ◽

Stochastic Frontier Analysis ◽

Market Price ◽

Abatement Cost ◽

Environmental Efficiency ◽

Marginal Abatement Cost ◽

Cross Sectional ◽

Frontier Analysis ◽

The Impact ◽

Feed In Tariff

With the worldwide spread of emissions trading schemes (ETSs) and the need for international cooperation on climate change, there is growing interest in linking ETSs. Along with sustainable development, preventing and controlling pollution, is now regarded as an urgent priority by China and Korea. In the context of the willingness of the Chinese and Korean governments to cooperate on ETS, this paper examines the feasibility of a pilot ETS cooperation between Shanghai and Korea from environmental efficiency and CO2 marginal abatement cost (MAC) perspectives. We apply a directional distance function (DDF) and stochastic frontier analysis (SFA) to estimate the environmental efficiency and the CO2 MAC of coal-fueled power plants in Shanghai and Korea using cross-sectional data from 2015. The results indicate that the group frontier environmental efficiency of Shanghai and Korea reached a similarly high score. However, as to meta-frontier environmental efficiency, the coal-fueled power plants in Korea performed better than those in Shanghai. The CO2 MAC results indicate that, despite the small gap in efficiency performance, the CO2 MAC of coal-fueled power plants is much higher than that in Shanghai due to the big feed-in tariff difference. This is because the MAC not only relates to the environmental efficiency, but also to the feed-in tariff. A higher feed-in tariff leads to higher MAC. To tackle this serious problem, which has also been addressed in previous studies, we suggest that policymakers should focus on the huge CO2 MAC differences caused by feed-in tariff differences to avoid equity problems when building the structure of the Shanghai-Korea ETS cooperation. For instance, compared with power plants in Shanghai, policymakers should set a looser cap and a higher offset for Korean plants. To reduce the impact of feed-in tariff on carbon trading in the market, it would also be effective to arrange a higher quota or a lower carbon tax for coal-fueled power plants in Korea. In addition, policymakers should fill the gaps of 85.15% and 67.6% between the realistic market price and the MAC results of coal-fueled power plants in Shanghai and Korea, respectively, by introducing stricter regulations.

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The impact of the UK governments spending review into the Feed in Tariff (FIT) on the installation on photovoltaic panels in the residential sector

World Journal of Science Technology and Sustainable Development ◽

10.1108/wjstsd-10-2013-0041 ◽

2014 ◽

Vol 11 (2) ◽

pp. 102-116 ◽

Cited By ~ 3

Author(s):

Amira Elnokaly ◽

Benjamin A.J. Martin

Keyword(s):

Good Deal ◽

Predictive Modelling ◽

Political Agenda ◽

Content Type ◽

The People ◽

The Government ◽

The Uk ◽

The Right ◽

The Impact ◽

Feed In Tariff

Purpose – In October 2011 the Government brought in measures to reduce the revenue provided by the Feed in Tariff (FIT) system. This change came under a lot of opposition due to the potential affects that it would have upon the industry. The purpose of this paper is to explore the potential benefits of the FIT and the impact that the Governments Comprehensive Spending Review had upon the industry and its uptake by the householders. Design/methodology/approach – For the study and to calculate the benefits of the FIT, a predictive modelling tool was built that could calculate the potential income and savings for a household. A photovoltaic (PV) installation was then monitored for over a year and the results of the predictive modelling tool were compared to actual results produced from the system to show how accurate the modelling tool was. The impacts of the Governments comprehensive spending review and the potential impacts in the industry were then calculated and discussed. Findings – The FIT is still a good incentive for people investing in PV. However, the reduction in the FIT may impact the “Rent a Roof” system and this in turn will impact most heavily on lower income families. The research also concluded that the changes in the political agenda have had a major impact on the FIT for both the industry and the community. Thus, the solar FITs will continue to be an attractive incentive in place to pay for heating through renewable means and thus ensuring reducing the own carbon footprint. Concomitantly, well-developed ownership schemes need to be put in place. Originality/value – The reduction in the FIT was the right move by the Government as it should prevent the increase in energy bill prices which will affect the people without PV at this point in time. It also has been set so that it is still generous enough to encourage the industry and stimulate installation as there is still profit but not in a way that should put people off. The UK may just have to take time to realise that the FITs are still a good deal after the very generous tariff that preceded them.

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