Towards a green energy economy? The EU Energy Union's transition to a low-carbon zero subsidy electricity system – Lessons from the UK's Electricity Market Reform
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Authors
Newbery, DM
Abstract
© 2016 Elsevier Ltd The 2015 EU Energy Union Package proposes integrating renewables into the market, just as the UK has moved away from Premium Feed-in Tariffs (FiTs) for renewable electricity supply (RES-E) to something closer to the standard FiT, which, when auctioned, demonstrated a 3% real fall in the weighted average cost of capital (WACC). The UK, which has experimented with nearly all forms of RES-E support, offers the evidence base for designing the Energy Union's RES-E support. Innovation needs a further redesign to deliver adequate funding, best done through country contributions to an EU-wide innovation competition.
Description
Keywords
renewable electricity, support mechanisms, auctions, contract design, innovation support
Journal Title
Applied Energy
Conference Name
Journal ISSN
0306-2619
Volume Title
179
Publisher
Elsevier BV
Publisher DOI
Sponsorship
This paper is supported by a donation from the ENEL Foundation under the project The role of energy subsidies in the European electricity sector. The author is a member of DECC’s independent Panel of Technical Experts but is writing in his academic capacity and drawing only on published evidence, so that the views expressed here are his alone and cannot be attributed to DECC.