the renewables portfolio standard in texas an early assessment texas has rapidly emerged as one of the leading wind power markets in the united states this development can be largely traced to a well designed and carefully implemented renewables portfolio standard rps the rps is a new policy mechanism that has received increasing attention as an attractive approach to support renewable power generation though replacing existing renewable energy policies with an as of yet untested approach in the rps is risky early experience from texas suggests that an rps can effectively spur renewables development and encourage competition among renewable energy producers initial rps targets in texas were well exceeded by the end of 2001 with 915 mw of wind installed in that year alone rps compliance costs appear negligible with new wind projects reportedly contracted for well under 3 us cent k wh in part as a result of a 1 7 us cent kwh production tax credit an outstanding wind resource and an rps that is sizable enough to drive project economies of scale obliged retail suppliers have been willing to enter into long term contracts with renewable generators reducing important risks for both the developer and the retail supplier finally the country s first comprehensive renewable energy certificate program has been put into place to monitor and track rps compliance c 2002 published by elsevier science ltd less

support systems for the diffusion of renewable energy technologies an investor perspective concern over climate change impacts and the projected depletion of fossil fuels has urged more governments to adopt policies that stimulate the diffusion of renewable energy technologies ret with an increasingly diverse suite of support instruments the question emerges as to which instruments or combinations are able to achieve faster more substantial diffusion results although various support instruments were extensively addressed in policy studies there is still no consensus this is partly because many policy studies take a policy maker approach in comparing support instruments leaving relationships between policy design and policy results as a black box this paper proposes an investor oriented perspective to analyze the diffusion potential of support systems for ret the main argument is that it is not the type of support instrument but rather its risk profitability characteristics that influence investor behavior and the rate of diffusion the two instruments most frequently discussed and compared are the feed in tariff and the quota model the analysis in this paper concludes that policy design is crucial while often feed in tariffs are applauded and quota system feared feed in tariffs may also bring about disappointing diffusion results when poorly designed while quota systems may be also conceived as attractive instruments for independent power producers

european schemes for promoting renewables in liberalised markets abstract the paper describes possibilities and problems for penetration of supply systems based on renewable energy sources in liberalised markets the analysis is based on recent development in eu with different models for support of installations based on renewable energy these include feed in models with guaranteed minimum tariffs tender models for different bands of technologies and green certificates trading models with obligatory consumer quota the paper describes the market situation in selected european countries including germany the uk holland and denmark an eu directive from september 2001 has postponed the decision on a possible harmonisation of promotional models until at least 2005 in order to obtain more practical experience with the different support schemes a critical evaluation is given in this paper of the different models with proposals for a balanced development between environmental and trading concerns it is argued that too much emphasis is presently given to the side of free trade at the expense of long range planning for a sustainable energy development

performance evaluation of renewable energy support policies applied on flanders tradable certificates system abstract the article is composed as a diptych first a general framework of criteria to evaluate the performance of renewable energy support systems is elaborated it is built around the main criteria effectiveness efficiency and equity all three are multi layered and specifying the contents of the various layers is case dependent second the framework is applied on detailed data about the flemish tradable certificates support system several salient conclusions confirm observations from research in other countries causing growing awareness first most crucial is a careful and detailed qualification of renewable energy sources and technologies without even effectiveness is not reliably measurable second nearby targets of renewable energy output must follow from a clearly designed transition trajectory towards a sustainable electricity sector such transition is intertwined with an industrial technological policy for bringing the necessary technologies to development and maturity third if the above two prerequisites are overridden certificates systems abound of excess profits predominantly reaped by incumbent power companies being not the best agents of real change to a sustainable energy future

distributional modeling and short term forecasting of electricity prices by generalized additive models for location scale and shape abstract in the context of the liberalized and deregulated electricity markets price forecasting has become increasingly important for energy company s plans and market strategies within the class of the time series models that are used to perform price forecasting the subclasses of methods based on stochastic time series and causal models commonly provide point forecasts whereas the corresponding uncertainty is quantified by approximate or simulation based confidence intervals aiming to improve the uncertainty assessment this study introduces the generalized additive models for location scale and shape gamlss to model the dynamically varying distribution of prices the gamlss allow fitting a variety of distributions whose parameters change according to covariates via a number of linear and nonlinear relationships in this way price periodicities trends and abrupt changes characterizing both the position parameter linked to the expected value of prices and the scale and shape parameters related to price volatility skewness and kurtosis can be explicitly incorporated in the model setup relying on the past behavior of the prices and exogenous variables the gamlss enable the short term one day ahead forecast of the entire distribution of prices the approach was tested on two datasets from the widely studied california power exchange calpx market and the less mature italian power exchange ipex calpx data allow comparing the gamlss forecasting performance with published results obtained by different models the study points out that the gamlss framework can be a flexible alternative to several linear and nonlinear stochastic models

green electricity policies in the united states case study while there has been interest in promoting the use of renewable energy in electricity production for a number of years in the united states the market share of non hydro renewable energy sources in electricity production has remained at about 2 percent over the past decade the paper reviews the principal energy resources used for electricity production considers the changing regulatory environment for the electricity industry and describes government policies that have been used to promote green electricity in the united states with an emphasis on measures adopted by state governments factors influencing the development of green power markets are also discussed including underlying economic issues public policy measures the regulatory environment external costs and subsidies without significant increases in fossil fuel prices much more stringent environmental regulations or significant changes in electricity customer preferences green electricity markets are likely to develop slowly in the united states

gains from an integrated market for tradable renewable energy credits abstract decoupling the environmental attributes of renewable energy re generation from the physical unit of energy is an innovative mechanism for marketing green or renewable power the introduction of tradable renewable energy credits trecs allows the green power attributes of energy to be sold or traded separately from the physical unit of energy since the green power certificate system removes potential locational and physical bottlenecks both suppliers and consumers gain flexibility in the marketplace the trec is also an efficient tool to meet renewable portfolio standard rps required by different states in the us this paper discusses the rps requirements for different states and examines the implications of an integrated trec market it offers a competitive setting to the consumers to pay for renewable energy and a cost effective tool to support renewable energy generation grace and wiser 2002 this paper also highlights some practical difficulties that should be addressed in order to establish an efficient integrated trec market

estimating the revenue costs of tax treaties in developing countries 12764 petr jansk marek sediv tax treaties between countries influence how much tax revenues governments receive from multinational enterprises these treaties often reduce the withholding tax rates on outgoing dividend and interest payments we provide illustrative estimates of costs for these two taxes for 14 developing countries in sub saharan africa and asia in a first multi country comparison of this kind these might be overestimates because we assume that foreign direct investments are not influenced by the tax treaties we estimate that the highest potential tax revenue losses are within hundreds of millions us and around 0 1 of gdp with philippines incurring the highest losses both in us and relative to gdp we also find that around 95 of the losses is due to dividends and that only four investor countries japan netherlands switzerland and singapore are together responsible for more than half of the losses we discuss the limitations of these estimates and how future research could improve their quality as well as coverage

redefining recs part 2 untangling certificates and emission markets abstract renewable energy and greenhouse gas emissions markets are currently in a state of confusion regarding the treatment of renewable energy certificate recs how should emission trading schemes treat recs how can emission mitigation policies provide real incentives for renewable generation the objective of rec markets should be to promote additional renewable energy investments the author asserts that defining recs in terms of attributes especially off site attributes does not further this goal ambiguous language such as environmental attribute or environmental benefit creates confusion in the marketplace while failing to address the relevant coordination issues with renewable portfolio standard compliance markets voluntary emission offset markets or emission cap and trade markets specifically defining recs in terms of off site attributes creates a number of problems including that once an emissions cap and trade scheme is in place such definitions of a rec can become indefensible the author proposes to redefine recs in terms of on site attributes which resolves the aforementioned problems and allows compliance and voluntary renewable energy and emission markets to function without conflicts ideally environmental commodities should be homogeneous first best measures of the relevant environmental good as well as easily measured and verified the author proposes tradable environmental commodities that achieve these characteristics

a market for renewable energy credits in the indian power sector abstract electricity generation from renewable energy sources in india has been promoted through a host of fiscal policies and preferential tariff for electricity produced from the same the fiscal policies include tax incentives and purchase of electricity generated through renewable energy sources the enactment of the electricity act 2003 the act has lent further support to renewable energy by stipulating purchase of a certain percentage of the power procurement by distribution utilities from renewable energy sources the renewable portfolio obligation as well as the feed in tariff for power procurement has been specified by a number of state electricity regulatory commissions sercs for the respective state under their jurisdiction a feed in tariff determined through a cost plus approach under a rate of return framework lacks incentive for cost minimisation and does not encourage optimal utilisation of renewable energy resources in the country such regulatory provisions differ across states the prevalent practice of fixing a renewable portfolio obligation along with cost based feed in tariffs disregards economic efficiency the paper proposes nationally tradable renewable energy credits scheme for achieving the targets set by the respective sercs as renewable portfolio obligation this would reduce the cost of compliance to a renewable portfolio obligation and would encourage efficient resource utilisation and investment in appropriate technologies the paper highlights its advantages and implementation issues this paper discusses regulatory developments for promotion of renewable energy in various indian states the paper also identifies a number of issues related to regulations concerning renewable portfolio obligation

renewables portfolio standard a means for trade with electricity from renewable energy sources abstract this paper discusses the main support mechanisms for enhancing the deployment of renewable energies re implemented in different industrialised countries the focus is on the electricity sector where deregulation and liberalisation has led to market opening and introduction of competition in the formerly strongly regulated power market under open market conditions price regulation mechanisms in favour of renewable energies which were used by many governments to support renewables tend to be considered as being inappropriate because they lead to distortions in competition and are difficult to abolish once market participants got used to them therefore the idea of creating a demand for re instead of supporting supply is gradually spreading this paper concentrates on the renewables portfolio standard rps which is a considerably new instrument that is aimed on the demand side and has only recently entered discussion it is based on legislatively mandating a percentage share of electricity generated from renewables and proved with certificates before this new means is discussed in more detail a short overview of the existing supply side mechanism is given to point out the different approach in addition examples of some countries already having some experience with the rps are given to show the present status of implementation derived from these theoretical considerations and practical experiences the paper discusses possible impacts on market participants they depend strongly on the outline of the rps and the organisation of the electricity sector adopted as a conclusion the introduction of an rps cannot alone solve the problem of enhancing the use of re however the advantages are a higher degree of competition among generators or developers of re technology more freedom of choice concerning the options for meeting the requirement and perhaps less government expenditures also experiences with national certificate trading within the rps system could ease the way for international or at least european trading systems like the emissions trading as proposed in the kyoto protocol

feed in tariff and tradable green certificate in oligopoly abstract feed in tariff fit and tradable green certificate tgc schemes are studied in a formal model and numerical example using the uk data we find that if the markets were perfectly competitive then feed in tariff and the certificate price would be the same however when the markets are imperfect they are generally different while both the tariff and certificate price fluctuate around the difference between the costs of green and black energy the tariff deviates more from the cost difference than the certificate price the supplies of both black and green energy under fit are higher than tgc obviously as a result of subsidies a troubling outcome is that the total energy supply increases under fit as the renewables quota increases which can negate other measures to mitigate climate changes such as demand management finally using the data from the uk market we find that social welfare under tgc is consistently higher than fit for a wide range of values of the parameters

simulating price patterns for tradable green certificates to promote electricity generation from wind abstract this article uses computer simulation to anticipate the price dynamics in a market for tradable green certificates tgcs these markets have been used in europe to promote generation of electricity from renewable resources like wind similar markets have been proposed in the united states of america usa where the certificates are called renewable energy credits recs the certificates are issued to the generating companies for each megawatt hour of renewable electricity generation the companies may sell the certificates in a market and the revenues from certificate sales provide an extra incentive to invest in new generating capacity proponents argue that this market based incentive can be designed to support government mandates for a growing fraction of electricity generation from renewable sources in the usa these mandates are set by the states and are known as renewable portfolio standards rps we simulate the price dynamics of a market designed to support an aggressive mandate for wind generation in the northwestern usa the simulations show that the certificate price climbs rapidly to the cap in the early years after the market opens investors then react to these high prices with construction of new wind capacity after a few years wind generation meets and then exceeds the requirement we show that this pattern appears again and again when the simulations are repeated with wide variations in the estimates of behavioral parameters we use the model to study the impact of different trading strategies by the wind companies and by the distribution companies we also study the simulated market response if the usa adopts the carbon allowance market envisioned in the climate stewardship act the article concludes with recommendations for policy makers involved in tgc market design

electricity price forecasting using sale and purchase curves the x model abstract our paper aims to model and forecast the electricity price by taking a completely new perspective on the data it will be the first approach which is able to combine the insights of market structure models with extensive and modern econometric analysis instead of directly modeling the electricity price as it is usually done in time series or data mining approaches we model and utilize its true source the sale and purchase curves of the electricity exchange we will refer to this new model as x model as almost every deregulated electricity price is simply the result of the intersection of the electricity supply and demand curve at a certain auction therefore we show an approach to deal with a tremendous amount of auction data using a subtle data processing technique as well as dimension reduction and lasso based estimation methods we incorporate not only several known features such as seasonal behavior or the impact of other processes like renewable energy but also completely new elaborated stylized facts of the bidding structure our model is able to capture the non linear behavior of the electricity price which is especially useful for predicting huge price spikes using simulation methods we show how to derive prediction intervals for probabilistic forecasting we describe and show the proposed methods for the day ahead epex spot price of germany and austria

the importance and the policy impacts of post contractual opportunism and competition in the english and welsh non fossil fuel obligation the non fossil fuel obligation nffo which consisted in a competitive auction for the deployment of renewable electricity was the main policy for almost a decade in england and wales once also used in ireland and france it has recently been abandoned in all countries many critics of the nffo have focused on its inability to develop a national industry and promote a climate of stability among investors this paper focuses on the incentives faced by developers bidding for a nffo contract and shows that the low deployment rate under this scheme is likely to have been a predictable outcome of how the policy was structured and implemented rather than an unfortunate accident the importance of the nffo goes beyond the lack of an intense deployment of renewable electricity generation observed in the years in which the policy was on place in fact the nffo has contributed to promoting hostility against wind farms creating false expectations of a price competitive renewable electricity sector creating a playing field giving advantages to big players preventing the creation of a wide renewable lobby coalition and the effective solution of planning constraints encountered by several renewable developers

green electricity market development lessons from europe and the us this study compares the development and implementation of green electricity policies in germany the netherlands sweden and the united states a set of countries applying a range of policy instruments to encourage electricity from renewable energy sources a general tendency is identified that policies shift emphasis from r d stimulation towards dissemination and market application of renewable energy technologies we argue that in light of the long term nature of policy goals on energy security mitigation of climate change and environmental protection the applied range of policy instruments may be lacking in providing incentives for the long term development of new technologies clarifying policy objectives would allow careful selection of policy instruments including support for r d improved capacity building for policy implementation is also important

basic concepts for designing renewable electricity support aiming at a full scale transition by 2050 abstract renewable electricity supply is a crucial factor in the realization of a low carbon energy economy the understanding is growing that a full turn over of the electricity sectors by 2050 is an elementary condition for avoiding global average temperature increase beyond 2 c this article adopts such full transition as europe s target when designing renewable energy policy an immediate corollary is that phasing in unprecedented energy efficiency and renewable generation must be paralleled by phasing out non sustainable fossil fuel and nuclear power technologies the double phasing programme assigns novel meaning to nearby target settings for renewable power as share of total power consumption it requires organizing in the medium term eu wide markets for green power a highly demanding task in the present context of poorly functional markets in brown power the eu commission s 2007 2008 proposals of expanding tradable certificates markets were not based on solid analysis of past experiences and future necessities the keystone of sound policies on renewable electricity development is a detailed scientific differentiation and qualification of renewable electricity sources and technologies for measuring the huge diversity in the field we provide but structuring concepts about such qualification because implementation requires extensive research resources support for renewable electricity development is organized via feed in prices or premiums and via quota obligations connected to tradable green certificates green certificates are dependent on physical generated renewable power but separable and no joint products contrary to conventional wisdom we argue their separation in cost analysis but firm linking during trade a few graphs illustrate the importance of assigning qualities to different renewable power sources technologies feed in systems based on an acceptable qualification perform generally better than certificate markets imposing uniform approaches on a very diverse reality for a similar reason uniform and undifferentiated taxation of non sustainable energy sources cannot replace renewable energy support schemes capable of differentiation

short and mid term forecasting of baseload electricity prices in the u k the impact of intra day price relationships and market fundamentals in this paper we investigate whether considering the fine structure of half hourly electricity prices the market closing prices of fundamentals natural gas coal and rm co 2 and the system wide demand can lead to significantly more accurate short and mid term forecasts of apx u k baseload prices we evaluate the predictive accuracy of a number of univariate and multivariate time series models over a three year out of sample forecasting period and compare it against that of a benchmark autoregressive model we find that in the short term up to a few business days ahead a disaggregated model which independently predicts the intra day prices and then takes their average to yield baseload price forecasts is the best performer however in the mid term factor models which explore the correlation structure of intra day prices lead to significantly as measured by the diebold mariano test better baseload price forecasts at the same time we observe that the inclusion of fundamental variables especially natural gas prices in the short term and coal prices in the mid term provides significant gains the rm co 2 prices on the other hand generally do not improve the price forecasts at all at least in the time period considered in this study april 2009 december 2013

national environmental targets and international emission reduction instruments according to the agreed burden sharing within the european union the overall eu emission reduction target as agreed by in the kyoto protocol is converted into national greenhouse gas reduction targets for each of the member states in parallel with national emission reduction initiatives common eu policies for emission reductions are considered currently discussed is the introduction of a market for tradable permits for co2 emissions to achieve emission reductions within the power industry and other energy intensive industries in parallel with this markets for green certificates to deploy renewable energy technologies seem to be appearing in a number of countries among these denmark italy sweden belgium flanders england and australia although these national initiatives for a green certificate market are fairly different they could be a starting point for establishing a common eu certificate market but interactions between national targets for greenhouse gas emissions and these international instruments for emission reduction are not a trivial matter especially not seen in relation to the possible contributions of these instruments in achieving national ghg reduction targets the paper is split into three parts all taking a liberalised power market as starting point the first part discusses the consequences of a general deployment of renewable energy technologies using planning initiatives or national promotion schemes feed in tariffs in the second part an international green certificate market is introduced into the liberalised power market context substituting other national promotion schemes finally in the third part a combination of an international green certificate market tgc and an international emission trading scheme for co2 is analysed within the liberalised international power market set up the main conclusion is that neither the use of national renewable support schemes nor the introduction of a tgc market into a liberalised power market can be recommended if these initiatives efficiently are expected to contribute in achieving the national co2 reduction targets countries most ambitious in implementing renewable energy technologies will only partly be gaining the co2 reduction benefits themselves the ambitious countries will support the less ambitious ones in achieving their ghg reduction targets finally in a tgc market context the most ambitious countries to fulfil their tgc quotas will have to buy certificates from the less ambitious ones although this only contributes to fulfilling a national target for renewable development not in reaching their national co2 reduction targets however a combination of an international tradable permits market and a green certificate market is seen to be efficient in contributing in achieving the national co2 reduction targets if a close co ordination of the two instruments is undertaken at least at the national level when the green power production is increased the tradable permits quota should be decreased correspondingly otherwise the expected co2 reductions will not contribute by the full value in achieving the national targets for greenhouse gas reductions thus if it is a prerequisite that renewable power contributes to achieving national ghg reduction targets then the combination of these two markets might be the right solution

implementing renewable energy portfolio standards the good the bad and the ugly in a two state comparison abstract understanding how household practices with regard to energy usage change and how to most effectively encourage the adoption of technologies that utilize renewable energy sources at the residential scale are important issues for addressing the environmental impacts of energy use here the social practices model spaargaren 2003 is applied to examine solar technology adopters in two u s states who were interviewed about adopting residential solar electric technology and specifically about their experiences with the rebate and incentive programs available to them examining the policies and interrogating their potentially unintended consequences from the perspective of the user sheds light on how residential solar incentive programs act as systems of provision shaping the practices of solar technology adopters in hopes of improving these incentive programs and effectively encouraging increased residential solar technology adoption findings suggest that feed in tariffs offer additional positive outcomes related to broadening the context for adoption and encouraging future energy conservation while size restrictions wholesale pricing in net metering agreements and inconsistent policy mechanisms across utilities in the same state all have potentially unintended negative consequences utilizing a perspective attentive to social practice offers a means of improving the design and implementation of energy policy

the market for tradable renewable energy credits abstract as states seek to foster the development of renewable energy resources some have introduced renewable portfolio standards rpss which require retailers of electricity to derive a specified amount of their energy supply from renewable energy resources rpss in texas arizona wisconsin and nevada allow for or require the use of tradable renewable energy credits the price of such credits is expected to reflect the cost premium for generating electricity from renewable resources relative to the market price of conventionally generated electricity using the market to trade renewable energy credits exposes buyers and sellers to risks of imperfect information poor performance and opportunism these risks can be managed through contractual arrangements and regulatory requirements pertaining to property rights in credits pricing term of the contract and assurance of performance

the politics of taxation introduction to the special section abstractdomestic revenue mobilisation has received growing attention in recent years international players such as the organisation for economic co operation and development oecd the world bank and the g20 are calling for more determined action to combat tax evasion and avoidance developing countries are urged to increase their own tax collection however implementing and sustaining tax reforms has proven to be a challenging task for many governments this special section provides new evidence on the political factors determining taxation in developing countries the articles gathered here address two distinct yet related questions first which factors shape long term taxation patterns and why are these patterns so difficult to change even when they prove to be dysfunctional in many ways second which factors determine the fate of specific tax reforms evidence from case studies covering six countries is complemented by a statistical analysis of factors influencing revenue vulnerability in the fac

public policies to support the development of renewable energy in romania a review abstract the aim of this study is to review the public policies used to support the development of renewable energy in romania over the past ten years romania assumed a target of 24 share of renewable energy in consumption in 2020 higher than the average target of the european union and this target has already been reached in the beginning of 2014 as a result of the public policies implemented therefore this study examines firstly the support schemes for the development of renewable energy in the european union underlining the arguments to support the renewable energy as well as the main barriers for its development secondly this study analyses the renewable energy sector in romania in terms of theoretical and economic potential production and consumption of renewable energy and legislation related to the renewable energy thirdly this study discloses the main issues of the public renewable energy policy in romania starting with an overview of the tradable green certificates system and revealing the changes of the romanian support scheme and the possible effects of the policy changes the results of the present study may be useful for further research regarding public policies for the development of renewable energy projects

efficient modeling and forecasting of electricity spot prices abstract the increasing importance of renewable energy especially solar and wind power has led to new forces in the formation of electricity prices hence this paper introduces an econometric model for the hourly time series of electricity prices of the european power exchange epex which incorporates specific features like renewable energy the model consists of several sophisticated and established approaches and can be regarded as a periodic var tarch with wind power solar power and load as influences on the time series it is able to map the distinct and well known features of electricity prices in germany an efficient iteratively reweighted lasso approach is used for the estimation moreover it is shown that several existing models are outperformed by the procedure developed in this paper

bidding strategy of virtual power plant for participating in energy and spinning reserve markets part i problem formulation this paper addresses the bidding problem faced by a virtual power plant vpp in a joint market of energy and spinning reserve service the proposed bidding strategy is a non equilibrium model based on the deterministic price based unit commitment pbuc which takes the supply demand balancing constraint and security constraints of vpp itself into account the presented model creates a single operating profile from a composite of the parameters characterizing each distributed energy resources der which is a component of vpp and incorporates network constraints into its description of the capabilities of the portfolio the presented model is a nonlinear mixed integer programming with inter temporal constraints and solved by genetic algorithm ga

danish energy reform policy implications for renewables abstract for decades renewables have been promoted in denmark by the feed in model fixed price scheme with favourable tariffs for green electricity this has resulted in successful penetration of wind power covering more than 13 of danish electricity consumption 2001 changing the promotional scheme to a quota based system with tradable green certificates has been on the political agenda since 1999 this article discusses danish energy policy with focus on the implications for the penetration and deployment of renewables it has turned out to be more complicated than anticipated to create an efficient operational system for trade in green certificates and the starting date for trading has been postponed several times the national green certificates market was to be fully operational by the beginning of 2003 however political negotiations in the fall of 2001 seem to postpone the initiation of the certificate market until 2005 transitional rules for green electricity during the period from 2003 to 2005 are under negotiation after a national election in november 2001 this situation has created widespread uncertainty among potential investors in green electricity the article evaluates a number of problems related to the shift in danish energy policy

the renewable portfolio standard design considerations and an implementation survey renewables have social and environmental bene ts compared to conventional electricity sources but are rarely competitive on a strict nancial cost basis this is because conventional sources are sometimes subsidized their full pollution costs are ignored and renewables involve newer higher cost technologies whose relative costs will fall with commercialization governments use several mechanisms to support renewables including direct nancial support grants loans indirect support r d demonstrations reform of nancial costs of conventional sources subsidy removal pollution taxes and the renewable portfolio standard rps the rps requires a minimum share of electricity from renewable energy sources its use is spreading because it maintains an incentive for renewable producers to reduce costs links the regulated market outcome to an environmental target and reduces government involvement although it is too early to evaluate fully its e ectiveness the survey for this study explored implementation issues in three european countries nine us states and australia and found the following the rps target is usually set to have environmental bene ts without causing signi cant price increases cost caps are sometimes used most jurisdictions limit eligibility to gridconnected domestic renewables the rps is usually applied to producers rather than consumers and to energy output not capacity flexibility mechanisms are desired but a challenge to implement administration in the us and australia is by government with delegation to independent utility regulators while in europe it is more the responsibility of government everywhere the rps is applied alongside other mechanisms of renewables support 2001 elsevier science ltd all rights reserved

the profitability of electricity generating firms and policies promoting renewable energy using a cross country firm level dataset this study empirically analyses how the implemented renewable electricity promotion systems tradable green certificates vs feed in tariffs affected the pro

the political economy of international green certificate markets this paper analyzes the political economy of establishing bilateral trade in green certificate markets as one step towards harmonization of european green electricity support systems we outline some of the economic principles of an integrated bilateral green certificates market and then discuss a number of issues that are deemed to be critical for the effectiveness stability and legitimacy of such a market by drawing on some of the lessons of the fairly recent intentions to integrate a future green certificate market in norway with the existing swedish one we highlight exemplify and discuss some critical policy implementation and design issues these include for instance the system s connection to climate policy targets the role of other support schemes and the definition of what green electricity technologies should be included furthermore the establishment of an international market presumes that the benefits of renewable power e g its impacts on the environment diversification of the power mix self sufficiency etc are approached and valued from an international perspective rather than from a national one thus implying lesser emphasis on for instance employment and regional development impacts a bilateral green certificate system thus faces a number of important policy challenges but at the same time it could provide important institutional learning effects that can be useful for future attempts aiming at achieving greater policy integration in the european renewable energy sector

interactions between the power and green certificate markets abstract the current trend of liberalising the power markets is combined with ambitious deployment plans for power production based on renewable energy supplies a new policy scheme to ensure this extension has been developed in the form of a green certificate system with a politically determined target of deployment in such a system producers of renewably based electricity receive tradable certificates in proportion to the electricity they produce the producer can thereby sell these certificates and receive additional revenue apart from the power price this paper studies the price and consumption effects of such a system with a simple model we show that the effects are ambiguous this ambiguity is caused by the interaction between the two markets therefore the green certificate system is difficult to manage if the state has parallel energy targets such as a desired deployment of renewably based energy and a stabilisation or reduction of the energy consumption in addition this complicates the regulation through a deployment target of renewably based power production as the regulator has to be aware of the different effects which follow a specific target until now these effects have not been considered in the analyses of the green certificate system when introducing the system even though it might have considerable consequences for the success of the system

renewable energy certificate markets in india a review abstract in india the national action policy on climate change napcc 1 has set a target of 15 of electricity via renewable energy sources by 2020 to reach these ambitious targets in march 2011 the government of india launched the renewable energy certificates rec a market based mechanism to drive renewable energy development and spur further investments however a look into the actual performance of rec market trading during the first year of operation shows that though volume of trading steadily increased the number of accredited certificates issued was less than 2 5 of the technical rec demand potential indicating that the full potential of the rec markets was far from being realized we critically examine the design and implementation of the rec market in india as well as its effectiveness in meeting the desired objectives in the context of international best practices our analysis of rec market best practices reveals that though forward markets banking and price bounds are recommended for stable markets best of class methods for determining the optimal length of banking the level of floor and forbearance prices and the values of credit vintage multipliers are not fully established we then establish that the main issues with the indian rec markets appear to be demand uncertainty resulting from lack of long term targets absence of clarity on compliance and near absence of long term price signals to investors finally we present an analysis of other important features of the indian rec market in the context of well functioning rec markets such as credit multipliers set asides vintage multipliers and voluntary markets 2013 elsevier ltd

green certificate markets the risk of over investment and the role of long term contracts abstract several papers have recently analyzed the theory and implementation of renewable energy support schemes the case for a renewable electricity standard res in tandem with a tradeable green certificate tgc market has been largely based on efficiency considerations case study evidence is inconclusive in part due to the short track record but is not generally favorable here we reconsider the efficiency case both static and dynamic in light of special characteristics of renewable energy projects we find that when exclusively high fixed cost technologies comprise the eligible technology pool the equilibrium form of contracting obviates the principal efficiency advantages claimed for certificate markets when low fixed cost technologies compete alongside high fixed cost technologies in the certificate market we show that it is likely that long term contracts will disappear and the technological choice will be inefficiently shifted away from the high fixed cost technology we consider evidence from three well developed certificate schemes in britain sweden and texas and find that it is broadly consistent with the theory here

policies and market factors driving wind power development in the united states abstract in the united states there has been substantial recent growth in wind energy generating capacity with growth averaging 24 percent annually during the past five years about 1700 mw of wind energy capacity was installed in 2001 while another 410 mw became operational in 2002 during 2003 development activity has remained strong with an estimated 1600 mw of capacity installed with this growth an increasing number of states are experiencing investment in wind energy projects currently about half of all states host at least one wind power project this paper explores the key factors at play in the 12 states in which a substantial amount of wind energy capacity has been developed or planned some of the factors that are examined include policy drivers such as renewable portfolio standards rps federal and state financial incentives as well as market drivers such as consumer demand for green power natural gas price volatility and wholesale market rules

recent advances in electricity price forecasting a review of probabilistic forecasting abstract since the inception of competitive power markets two decades ago electricity price forecasting epf has gradually become a fundamental process for energy companies decision making mechanisms over the years the bulk of research has concerned point predictions however the recent introduction of smart grids and renewable integration requirements has had the effect of increasing the uncertainty of future supply demand and prices academics and practitioners alike have come to understand that probabilistic electricity price and load forecasting is now more important for energy systems planning and operations than ever before with this paper we offer a tutorial review of probabilistic epf and present much needed guidelines for the rigorous use of methods measures and tests in line with the paradigm of maximizing sharpness subject to reliability the paper can be treated as an update and a further extension of the otherwise comprehensive epf review of weron 1 or as a standalone treatment of a fascinating and underdeveloped topic that has a much broader reach than epf itself

financial risks for green electricity investors and producers in a tradable green certificate market this paper analyzes financial risks in a market for tradable green certificates tgc from two perspectives existing renewable producers and potential investors in new renewable electricity generation capacity the equilibrium pricing mechanism for a consumer based tgc market is described and a market with wind turbines as the sole renewable technology is analyzed in this framework tgc prices and fluctuations in production from wind turbines will be negatively correlated and as a result tgc price fluctuations can actually help decrease the total financial risk based on this recognition analytical expressions for revenue variance minimizing trading strategies are derived and an analysis of the demand and supply for financial hedging is used to show that forward contracts will be traded at a risk premium

green energy market development in germany effective public policy and emerging customer demand this paper reviews the development of renewable energy in germany from 1973 to 2003 it investigates the relative importance of energy policy and green power marketing in shaping the renewable energy market more than a decade of consistent policy support for renewables under the feed in law streg and its successor eeg has been an important driver for increasing renewable electricity generation to date putting the country in a better position than most of its peers when it comes to achieving european union targets for renewable energy green power marketing driven by customer demand on the other hand is growing but has had limited measurable impact so far we discuss potential intangible benefits of green power marketing and scenarios for future market development the paper concludes with lessons that can be learned from the german case for policy design and market development in other countries

the eu renewables directive what is the fuss about trading abstract considerable argument about trading in green electricity certificates gecs preceded the publication of the proposed eu renewables directive in early 2008 the proposed directive set a binding target of 20 per cent of eu energy to be derived from renewable energy by 2020 broken down into targets for each member state those arguing for trade in green certificates called certificates of guaranteed origin go included major electricity companies however the idea of mandatory trading was opposed by the main renewable energy industry lobby groups the proposed directive limited trading in accordance with the demands of the renewables industry pressure groups analysis suggests that if member states were forced to trade to achieve a mandatory target of 20 per cent target then gec prices would rise to high levels because the demand for tradeable certificates would be much higher than their supply trading is unlikely to improve the prospects for meeting the targets a system of nationally based feed in tariff systems would not face the problems of uncertain certificate prices faced by compulsory trading in gecs

redefining recs part 1 untangling attributes and offsets abstract renewable energy and greenhouse gas emissions markets are currently in a state of confusion regarding the treatment of renewable energy certificates recs should consumers buy recs or emission offsets after examining this question the author concludes that recs are not equivalent to emission offset credits and as currently defined the retiring of a rec may have no impact on emissions from electric power generation consumers who purchase recs in voluntary green power markets are providing financial assistance to renewable generators in the form of a production subsidy generators that sell recs are not transferring emission reductions since they are unlikely to have ownership or the ability to quantify reductions using a commonly accepted standard more importantly recs currently sold in voluntary markets do not pass credible additionality tests and can at best be expected to have a market demand effect which will be less than the supply of recs on the market rec definitions that use the term environmental attributes or environmental benefits are almost universally ambiguous providing the mistaken impression that consumers are purchasing a good instead of subsidizing a public good

the impact of renewable energies on eex day ahead electricity prices in this paper we analyze the impact of renewable energies wind and photovoltaic on the formation of day ahead electricity prices at eex we give an overview of the policy decisions concerning the promotion of renewable energy sources in germany and discuss their consequences on day ahead prices an analysis of electricity spot prices reveals that the introduction of renewable energies enhances extreme price changes in the frame of a dynamic fundamental model we show that there has been a continuous electricity price adaption process to market fundamentals furthermore the fundamental drivers of prices differ among hours with different load profiles our results imply that renewable energies decrease market spot prices and have implications on the traditional fuel mix for electricity production however the prices for the final consumers increased overall because they must pay in addition the feed in tariffs for the promotion of renewable energy

the market value of variable renewables the effect of solar wind power variability on their relative price this paper provides a comprehensive discussion of the market value of variable renewable energy vre the inherent variability of wind speeds and solar radiation affects the price that vre generators receive on the market market value during windy and sunny times the additional electricity supply reduces the prices because the drop is larger with more installed capacity the market value of vre falls with higher penetration rate this study aims to develop a better understanding on how the market value with penetration and how policies and prices affect the market value quantitative evidence is derived from a review of published studies regression analysis of market data and the calibrated model of the european electricity market emma we find the value of wind power to fall from 110 of the average power price to 50 80 as wind penetration increases from zero to 30 of total electricity consumption for solar power similarly low value levels are reached already at 15 penetration hence competitive large scale renewable deployment will be more difficult to accomplish than as many anticipate

green certificate trading in the netherlands in the prospect of the european electricity market the support system for green electricity in the netherlands has been one of the most complex and complicated systems across europe a voluntary trade of green certificates or green labels was one of the schemes used in the policy models of the 1990s the liberalization of the electricity market has attracted substantial changes in the degree and nature of commitment by energy companies and political authorities for renewable electricity in 2001 a new mechanism for the voluntary trade of green certificates has become operational replacing the green label trade system one terminated in the end of 2000 this paper presents the two systems of green certificates trade developed in the netherlands and discusses their market stimulation potential in the very different economic and industrial circumstances that has surrounded each of them the paper argues for a need to enable a support system that reduces investment risks as much as possible and removes the residual but still strong institutional administrative and social barriers for renewables deployment but before this a clear governmental vision on the role of renewables in current energy supply systems is first needed backed by a coherent policy and sufficient support along the economic dimension of renewables market diffusion

aiming low and achieving it a long term analysis of a renewable policy in chile abstract we use an integrated resource planning model to assess the costs of meeting a 70 renewables target by 2050 in chile this model is equivalent to a long term equilibrium in electricity and renewable energy certificate rec markets under perfect competition we consider different scenarios of demand growth resource eligibility e g large hydropower and transmission system configuration our numerical results indicate that the sole characteristics of the available renewable resources in the country and reductions in technology costs will provide sufficient economic incentives for private investors to supply a fraction of renewables larger than 70 for a broad range of scenarios meaning that the proposed target will likely remain a symbolic government effort increasing transmission capacity between the northern and central interconnected systems could reduce total system cost by 400 million per year and increase the equilibrium share of nonconventional renewable energy ncre in the system from 45 to 52 without the need for any additional policy incentive surprisingly imposing a 70 of ncre by 2050 results in a rec price lower than the noncompliance fine used for the current target of 20 of ncre by 2025 the latter of which represents the country s maximum willingness to pay for the attributes of electricity supplied from ncre resources

sustainability guided promotion of renewable electricity generation in recent years the threat of global climate change high fuel import dependence and rapidly rising electricity demand levels have intensified the quest for more sustainable energy systems this in turn has increased the need for policy makers to promote electricity generation from renewable energy sources guaranteed prices coupled with a buy back obligation for electricity fed into the grid is a popular renewables promotion instrument especially in europe more recently driven mainly by electricity market liberalisation efforts quota targets for the share of renewables in combination with tradable green certificates tgc have received considerable attention tgc offer a greater theoretical potential for economic efficiency gains due to price competition and the greater flexibility assigned to the obliged parties while guaranteed prices and tgc schemes support the operation of renewable energy technology systems bidding schemes for renewable energy generation capacity are used to raise economic efficiency on the plant construction side all of these policy instruments suffer from the shortcoming that they do not explicitly account for the often widely varying environmental social and economic impacts of the technologies concerned in this paper we propose a methodology for the design of renewable energy policy instruments that is based on integrated assessment in particular we argue that using participatory multicriteria evaluation as part of the design of renewable energy promotion policies would make it possible 1 to differentiate the level of promotion in a systematic and transparent manner according to their socio ecological economic impact and 2 to explicitly account for the preferences of stakeholders a further problem of existing tgc and bidding schemes is that diversity of supply could be severely diminished if few low cost technologies were allowed to dominate the renewable energy market to ensure a certain diversity of technologies our scheme suggests the use of different technology bands for technologies that are relatively homogeneous with respect to their maturity

probabilistic mid and long term electricity price forecasting abstract the liberalization of electricity markets and the development of renewable energy sources has led to new challenges for decision makers these challenges are accompanied by an increasing uncertainty about future electricity price movements the increasing amount of papers which aim to model and predict electricity prices for a short period of time provided new opportunities for market participants however the electricity price literature seem to be very scarce on the issue of medium to long term price forecasting which is mandatory for investment and political decisions our paper closes this gap by introducing a new approach to simulate electricity prices with hourly resolution for several months up to three years considering the uncertainty of future events we are able to provide probabilistic forecasts which are able to detect probabilities for price spikes even in the long run as market we decided to use the epex day ahead electricity market for germany and austria our model extends the x model which mainly utilizes the sale and purchase curve for electricity day ahead auctions by applying our procedure we are able to give probabilities for the due to the eeg practical relevant event of six consecutive hours of negative prices we find that using the supply and demand curve based model in the long run yields realistic patterns for the time series of electricity prices and leads to promising results considering common error measures

factors influencing the likelihood of regulatory changes in renewable electricity policies abstract the renewable electricity literature has expanded in recent years from the analysis of policies focused on research and development rd the coherence of the policies the size and variety of the coalitions supporting and opposing renewable electricity and the brussels effect the importance of these factors is evaluated in the case of three major markets of renewable electricity germany the netherlands and denmark

interactions of a tradable green certificate market with a tradable permits market abstract the reduction of greenhouse gas ghg emissions is an important goal in the energy and environmental policies of the european union eu and its member states according to a recent directive proposal from the eu commission the inclusion of renewable technologies is one of the important ways to achieve this emission reduction more policy instruments are on hand to pursue this objective frequently discussed currently is the establishing of a market for tradable permits for co2 emissions to achieve emission reductions in the power industry in parallel with this is the introduction of a green certificate market to promote the development of renewables if these two instruments are brought into play at the same time two separate markets with two individual targets will co exist in a number of countries with a focus on the green certificate market this paper discusses how these two markets may interact with each other in international trade three different cases are analysed 1 a green certificate market without any tradable permits scheme 2 a green certificate market in combination with a tradable permits scheme based on grandfathering and finally 3 a green certificate market in combination with a tradable permits bidding scheme emphasis is placed on analysing the pricing mechanisms in international trade at the green certificate and tradable permits market in relation to the value of the reductions in ghg emissions actually achieved the influence of the permits scheme on the spot market price of electricity is shown and the benefits of trading green certificates compared to a domestic implementation of renewable technologies are discussed the main conclusion is that only if a green certificate market is combined with a tradable permit scheme based on a bidding procedure will trade in certificates be equivalent to the domestic development of renewables using the bidding system no other country will have to pay for co2 reductions in the home country of the renewable development as would otherwise be the case if a tradable permit system based on grandfathering were introduced or even worse if no tradable permits were introduced at all finally it must be stated that even if the green certificate market were introduced alongside with a tradable permit bidding system there still would be no incentives for international certificate trade on account of the need for ghg reductions in the version of the green certificate market discussed in this paper no ghg credits are attached to certificates this means that the development of renewables will add to ghg reductions only in those countries where the plants are established no matter what kind of tradable permit scheme is adopted

when outcomes are the reflection of the analysis criteria a review of the tradable green certificate assessments abstract the tradable green certificates tgc framework is a prevalent policy support scheme enacted to stimulate investments in electricity from renewable energy sources res e in several countries including sweden and norway the tgc framework is currently under reevaluation in this process academic literature plays a crucial role in reflecting the outcomes of this policy framework the outcomes however are often limited by the analysis criteria which reflect what has been accounted for or disregarded when assessing the performance of the tgc framework the analysis criteria also stress what is considered as a successful outcome given the importance of such criteria this paper presents an extensive and systemic literature review of academic publications assessing the performance of the tgc framework the findings are to provide an overview of the publications analysis criteria and outline their outcomes we also provide descriptive statistics for the publications and examine the average citation record of the publications that use various analysis criteria in order to explore their relative impact on later studies these findings can help policymakers put the assessments into perspective when reevaluating a country s tgc system they also suggest several intriguing directions for future studies in this field

on the importance of the long term seasonal component in day ahead electricity price forecasting abstract in day ahead electricity price forecasting epf the daily and weekly seasonalities are always taken into account but the long term seasonal component ltsc is believed to add unnecessary complexity to the already parameter rich models and is generally ignored conducting an extensive empirical study involving state of the art time series models we show that i decomposing a series of electricity prices into a ltsc and a stochastic component ii modeling them independently and iii combining their forecasts can bring contrary to a common belief an accuracy gain compared to an approach in which a given time series model is calibrated to the prices themselves

the impact of renewables on electricity prices in germany an estimation based on historic spot prices in the years 2011 2013 abstract germany s public opinion and media usually attribute increasing electricity prices to the high share of renewables in the german power system but average electricity prices at the european energy exchange dropped during the last years due to an excess of renewable energy this study uses historic market data in order to quantify the effect of renewables on prices historic demand and supply curves from 2011 to 2013 have been used to reconstruct electricity prices under the assumption that no wind and pv would be available the analysis reveals an astonishingly high increase of market prices up to 5 29 ct kwh due to a lack of non renewable power capacities in 2013 the available conventional capacity would not have been able to cover the demand during 269 hours the estimated maximum deficit of 5 6 gw is in good agreement to data published by the german grid operators the discussion of the origin of this deficit leads to the conclusion that the current situation has not been caused by renewables the liberalization of the european energy market established investment risks that hindered required investment a long time before the renewables boomed

the effect of financial constraints technological progress and long term contracts on tradable green certificates tradable green certificates tgcs have recently become a diffuse instrument to support renewable electricity in oecd countries although it is perhaps too early to draw a conclusive judgement on the effectiveness of this instrument in increasing renewable capacity and decreasing the price of certificates one view in the literature maintains that long term contracts are of particular importance for tgcs to be effective this paper contributes to this debate by analysing how financial constraints and technological progress can induce investors to hold pessimistic expectations of their ability to sell green certificates and still make a profit clearly these expectations will prevent investors from building new capacity to fulfil the quota comprised in tgcs and will keep the price of certificates traded in the market high as this kind of expectation is not influenced by most design features of tgcs one can conclude that long term contracts are particularly important in determining the effectiveness and cost effectiveness of these instruments some attention should therefore be paid to the features of the tgcs which induce obliged parties to offer long term contracts to renewable generators

the role of regulatory uncertainty in certificate markets a case study of the swedish norwegian market abstract price volatility in green certificate markets reflects uncertainty over future prices representing a major source of risk for renewable energy generators price risk is considered the principal deficiency of this market based policy since it causes investors to require higher returns moreover investors are exposed to regulatory risk namely the risk that a change in the regulation will materially impact the certificate price regulatory uncertainty is reflected in market volatility exacerbating certificate price risk using an econometric approach we investigate the role of regulatory changes on price volatility in the swedish certificate market the results of our analysis indicate that regulatory changes strongly affect certificate markets resulting in periods of higher volatility moreover we analyze whether certificate price volatility has changed after creating a joint swedish norwegian market results indicate that the ambivalence surrounding the creation of this bigger market led to a period of increased price volatility between 2010 and 2011 overall this article brings a better understanding of the role of regulatory uncertainty on certificate markets and gives evidence for its negative impact in terms of increased price volatility

market power in renewable portfolio standards abstract renewable portfolio standard rps which requires a certain percentage of electricity production from renewables has received considerable attention one emerging issue is the possibility of strategic behavior in the renewable energy certificate credit rec market and its spillover effects on the electricity market this paper develops dominant firm competitive fringe models that account for market power we show that market power could have significant impacts on the rec and power prices in particular when a nonrenewable generator is a dominant firm and a renewable generator is a competitive fringe the nonrenewable firm has a strong incentive to lower the rec price even to zero for avoiding rec costs the zero rec price would negate price impacts in the power market thereby mitigating market power of the dominant firm however this could lead to an underinvestment in renewables in the long run as subsidies received by renewables in form of recs vanish therefore regulatory agencies need to carefully oversee the market performance to ensure a healthy development of renewable industries under the rps policies

energy clearing price prediction and confidence interval estimation with cascaded neural networks the energy market clearing prices mcps in deregulated power markets are volatile good mcp prediction and its confidence interval estimation will help utilities and independent power producers submit effective bids with low risks mcp prediction however is difficult since bidding strategies used by participants are complicated and various uncertainties interact in an intricate way furthermore mcp predictors usually have a cascaded structure as several key input factors need to be predicted first cascaded structures are widely used however they have not been adequately investigated this paper analyzes the uncertainties involved in a cascaded neural network nn structure for mcp prediction and develops the prediction distribution under the bayesian framework a computationally efficient algorithm to evaluate the confidence intervals by using the memoryless quasi newton method is also developed testing results on a classroom problem and on new england mcp prediction show that the method is computationally efficient and provides accurate prediction and confidence coverage the scheme is generic and can be applied to various networks such as multilayer perceptrons and radial basis function networks

the challenges for developing countries in international tax justice developing countries face three main challenges in international tax cooperation the most widely known are the twin problems of tax avoidance by foreign investors and tax evasion by domestic actor

risk based assessment of the cost efficiency and the effectivity of renewable energy support schemes certificate markets versus feed in tariffs the introduction of renewable energy sources in the electricity generation mix has the potential to reduce power sector s emissions and countries dependence on imported oil climate change concerns and highly volatile oil prices have attracted governments interest and support to sustain investments in renewable energy capacity and different support policies have been implemented in many countries around the world this paper analyzes the effects of investors risk aversion on the performance of support schemes the analysis compares two policy options a feed in tariff mechanism with a certificate market system results show that while a tariff mechanism could obtain better results than a certificate market its performance is strictly dependent on regulator choices a certificate market instead permits to obtain the desired level of renewable energy market share with good cost efficiency as long as investors risk aversion is moderate moreover discounting future cash flows with higher social discount rates further benefits a certificate system making it preferable to feed in tariffs

cost effects of international trade in meeting eu renewable electricity targets abstract the european market for renewable electricity received a major stimulus from the adoption of the directive on the promotion of renewable electricity the directive specifies the indicative targets for electricity supply from renewable energy sources res e to be reached in european union eu member states in the year 2010 it also requires member states to certify the origin of their renewable electricity production this article presents a first eu wide quantitative evaluation of the effects of meeting the targets using an eu wide system for tradable green certificates tgc we calculate the equilibrium price of green certificates and identify which countries are likely to export or import certificates cost advantages of participating in such an eu wide trading scheme are determined for each of the member states moreover we identify which choice of technologies results in meeting targets at least costs results are obtained from a model that quantifies the effects of achieving the res e targets in the eu with and without trade the article provides a brief insight in this model as well as the methodology that was used to specify cost potential curves for renewable electricity in each of the 15 eu member states model calculations show that within the eu wide tgc system the total production costs of the last option needed to satisfy the overall eu res e target equals 9 2 eurocent kwh assuming that the production price of electricity on the european power market would equal 3 eurocent kwh in the year 2010 the indicative green certificate price equals 6 2 eurocent kwh we conclude that implementation of an eu wide tgc system is a cost efficient way of stimulating renewable electricity supply

some challenges related to introducing tradable green certificates abstract denmark is about to implement a tradable green certificate tgc system this paper presents and discusses some of the obstacles related to using tgcs as a part of the energy policy the most prominent obstacles are related to managing the coexistence of multiple types of res e suppliers with just one policy instrument the first problem considered relates to the creation of incentives for new res e deployment the second problem relates to unfortunate mixes of res e sources the final problem discussed relates to the problem of production overflow

bidding strategy of virtual power plant for participating in energy and spinning reserve markets part ii numerical analysis this paper is to evaluate the presented model in part i for bidding strategy of virtual power plant vpp with centralized control in a joint market of energy and spinning reserve service two test vpps are introduced and different scenarios are considered for markets prices at first the participation of vpp in only energy market is studied then the spinning reserve market is taken into consideration and the bids of vpp in a joint market of energy and spinning reserve service is studied under different scenarios of markets prices and the results are analyzed in all cases the results show the effectiveness and the quality of the procedure and validate the proposed model

when renewable portfolio standards meet cap and trade regulations in the electricity sector market interactions profits implications and policy redundancy emission trading programs c t and renewable portfolio standards rps are two common tools used by policymakers to control ghg emissions in the energy and other energy intensive sectors little is known however as to the policy implications resulting from these concurrent regulations especially given that their underlying policy goals and regulatory schemes are distinct this paper applies both an analytical model and a computational model to examine the short run implications of market interactions and policy redundancy the analytical model is used to generate contestable hypotheses while the numerical model is applied to consider more realistic market conditions we have two central findings first lowering the co2 c t cap might penalize renewable units and increasing the rps level could sometimes benefit coal and oil and make natural gas units worse off second making one policy more stringent would weaken the market incentive which the other policy relies upon to attain its intended policy target

green electricity policies in the netherlands an analysis of policy decisions over the last decades fundamental changes can be observed in both market conditions and the national policy framework for green electricity in the netherlands the dutch government has regularly intervened in markets demonstrating fundamental shifts in policy and approach this study aims to analyse the developments in renewable energy policy making in the netherlands it assesses changes in the choice of policy instruments and target groups the role of stakeholders and offers explanations behind policy successes and failures dutch green electricity policy over the last decade can be characterised roughly by three phases in the early 1990s the government negotiated voluntary agreements with the energy distribution sector on targets for green electricity sales which were never met in the second half of the 1990s a regulatory energy tax was introduced from which customers of green electricity were exempt this led to a substantial increase in demand which was largely met by green electricity imports and did not lead to additional domestic renewable energy capacity finally a change in policy has taken place recently 2003 shifting the focus from promotion of demand to the promotion of supply through a system of regulated feed in tariffs despite the renewable energy policies growth of the renewable energy market in the netherlands has been small and targets have not been fully met the dutch government has not yet succeeded in substantially reducing market uncertainties and in building confidence among market parties because the policies have not been stable and policy objectives have frequently been partly ambiguous in addition the influence of stakeholders in renewable energy policy making has been small which has the early acceptance and implementation of alternative policies