Promoting renewable electricity generation in emerging economies (original) (raw)
Related papers
Energy Policy, 2018
This paper examines the viability of low PV prices in developing countries from recent competitive auctions and discusses the sustainability of these low prices for further market expansion. Our analysis of utility-scale PV projects procured through major auctions in developing countries between 2013 and 2016 reveals that low PV prices are viable. PV prices of 0.06−0.08/kWhareconsistentwithmarketfundamentalsandpriceslowerthan0.06-0.08/kWh are consistent with market fundamentals and prices lower than 0.06−0.08/kWhareconsistentwithmarketfundamentalsandpriceslowerthan0.03/kWh are viable under exceptional conditions in some countries. Maintaining low prices while ensuring deployment of quality projects requires a combination of high capacity factors, low equipment prices, low cost of capital, de-risked investment environments, e.g., through the presence of guarantees, and other factors such as particular project developer strategies. Overall, developing countries with abundant local solar resources are well-positioned to drive the global expansion of PV capacity. Well-designed auctions offer a unique opportunity to expand solar PV capacity to many markets in a cost-effective manner.
2008
The main aim of this policy-support document is to attract policy-makers attention in renewable energies deployment, offering to energy and development stakeholders an alternative subsidy-scheme to support electrification in a village-scale mini-grid based on the good performance of the renewable electricity generation. Market support mechanisms are required to stimulate the deployment of most renewable energy technologies becoming already competitive with existing energy technology options for off-grid areas. Historically the promotion of renewable energy technologies (RET) in isolated areas has involved international donors or government subsidising the initial capacity investment. Instead, in Europe the renewable electricity generation support scheme, the Feed-in Tariff (FiT), has been a successful mechanism to increase the deployment of renewables in the country's electricity grid. The basis of the FiT mechanism involve the obligation on the part of an electricity utility to...
Overcoming barriers to solar and wind energy adoption in two Asian giants: India and Indonesia
Energy Policy
Solar and wind electricity generation technologies have become cost competitive and account for a growing share of global investment in new electricity generation capacity. Both India and Indonesia have ambitious targets for adoption of these technologies, and India has an impressive current rate of uptake. Substantial obstacles exist, however, including the entrenched positions of coal and other fossil fuels, regulatory barriers to market access, and weak abilities of electricity utilities to manage intermittent renewables. This paper reviews these obstacles and discusses strategies to overcome them. We focus on the use of reverse auction processes able to deliver low-price solar and wind contracts, as are being successfully employed in India, on tax and subsidy reform options, on regulatory and incentive-design strategies, on approaches to bolster grid management capacities, and on the importance of minimising protectionist barriers. Our analysis covers both small-scale and large-scale systems.
Energy policy to promote photovoltaic generation
Renewable and Sustainable Energy Reviews, 2013
Supplying present and future energy demand without adding to climate change is one of the most pressing problems today. Renewable energy is a potentially huge solution, for which governments are creating policies to encourage its harness and use. The dominance of photovoltaic (PV) among renewable energy technologies is owed mostly to its noiselessness, non-toxic emission, and relatively simple operation and maintenance. This study reviews the policies existing and in the making in seven leading countries that actively champion use of PV.
Faster Than You Think: Renewable Energy and Developing Countries
Annual Review of Resource Economics
Since 2007, large and unexpected declines in generation costs for renewable energy systems, particularly solar but also wind, combined with policy measures designed to limit greenhouse gas emissions, have created a paradigm shift in energy systems. Variable renewable energy now dominates total investment in electricity power generation systems. This dominance of variable renewable energy in investment has thrust the systems integration task of matching electricity supply with demand to center stage, presenting new challenges for energy policy and planning as well as for the institutional organization of power systems. Despite these challenges, there is ample reason to believe that variable renewables will attain very high levels of penetration into energy systems, particularly in regions well endowed with solar and wind potential. Similar to their success with mobile phone telephony, many developing countries have a significant opportunity to leapfrog directly to more advanced energ...
On the Effectiveness of Feed-In Tariffs in the Development of Photovoltaic Solar
SSRN Electronic Journal, 2000
Growing concern for climate change and rising scarcity of fossil fuels prompted governments to stimulate the development of renewables. This paper empirically tests whether feed-in tariff (FIT) policies have been effective in the development of photovoltaic solar (PV), explicitly taking into account structure and consistency of FITs. Panel data estimations are employed for 30 OECD member countries over the period 1990-2011. We find a positive effect of the presence of a FIT and the development of a country's share of PV in the electricity-mix. This effect increases if policies are consistent. Tariff height is the most important characteristic of a FIT, but other characteristics such as cost level, duration of contract and restrictions on capacity levels can also not be neglected if the goal is to increase effectiveness of FITs.
Renewable energy auctions in South Africa outshine feed-in tariffs
Energy Science & Engineering
South Africa's Renewable Energy Independent Power Producer Procurement Program has run four competitive tenders/auctions since 2011, which have seen US$19 billion in private investment, and electricity prices of wind power falling by 46% and solar PV electricity prices by 71%, in nominal terms. Competitive tenders were introduced after an unsuccessful attempt to implement feed-in tariffs. The tenders incorporated standard, nonnegotiable contract documents, including 20-year Power Purchase Agreements and an Implementation Agreement whereby the Government of South Africa back-stops IPP payments by the national utility, Eskom. All of these projects have reached financial close to date and some are already delivering power to the grid. The financing success has been due in part to the requirements for commercial banks to undertake a thorough due diligence of projects prior to bids being offered. The details of the policy package described may be useful for other policy makers in countries developing policies for renewable energy deployment.
Renewable Energy Auctions in Developing Countries Acknowledgement
The International Renewable Energy Agency (IRENA) is an intergovernmental organisation that supports countries in their transition to a sustainable energy future, and serves as the principal platform for international cooperation, a centre of excellence, and a repository of policy, technology, resource and financial knowledge on renewable energy. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy in the pursuit of sustainable development, energy access, energy security and low carbon economic growth and prosperity.
Re-considering the economics of photovoltaic power
Renewable Energy, 2013
We briefly consider the recent dramatic reductions in the underlying costs and market prices of solar photovoltaic (PV) systems, and their implications for decision-makers. In many cases, current PV costs and the associated market and technological shifts witnessed in the industry have not been fully noted by decision-makers. The perception persists that PV is prohibitively expensive, and still has not reached "competitiveness". We find that the commonly used analytical comparators for PV vis a vis other power generation options may add further confusion. In order to help dispel existing misconceptions, we provide some level of transparency on the assumptions, inputs and parameters in calculations relating to the economics of PV. The paper is aimed at informing policy makers, utility decision-makers, investors and advisory services, in particular in high-growth developing countries, as they weigh the suite of power generation options available to them.