Renewable Energy Policies and Barriers

Abstract

The 1990s saw an explosion of energy policy changes around the globe. Driven by economic, environmental, security, and social concerns, energy regulation has been in great flux. Many of the changes are having a profound influence on renewable energy, both from policies explicitly designed to promote renewable energy and from other policies that indirectly influence incentives and barriers for renewable energy. This article considers six different types of policies that affect renewable energy development, both directly or indirectly: renewable energy promotion policies, transport biofuels policies, emissions reduction policies, electric power restructuring policies, distributed generation policies, and rural electrification policies. Each policy reduces one or more key barriers that impede development of renewable energy. These barriers are discussed first. In general, most renewable energy policies address cost-related barriers in some manner. Many policies address the requirements for utilities to purchase renewable energy from power producers. Most policies also address the perceived risks of renewable energy in one form or another (i.e., technical, financial, legal). Still others primarily address regulatory and institutional barriers. Some related policies may heighten barriers to renewable energy rather than reduce them. Table 1 summarizes the key renewable energy policies and barriers presented.