Renewable energy use for electricity generation in transition economies: Evolution, targets and promotion policies

Abstract

This study provides an overview of the evolution of renewable energy (RE) use for electricity generation and the measures adopted to promote its use in 17 transition economies. The study shows that the share of RE in electricity generation decreased by 7.65% in the 1995–2016 period, with its share accounting for 18.18% in 2016, and only 0.39% when hydraulic energy is not considered. Nevertheless, the RE installed capacity (without hydro) increased notably from 2016 to 2018, coinciding with the adoption of promotion measures. The study also shows that all transition economies, except two, have national RE targets. Feed-in tariffs (FITs) are the most used mechanism in force (in 12 countries), net metering has been introduced in seven countries and tax incentives in four. Tendering is spreading rapidly. Five countries had already held their first auctions in 2018 and, in 2019–20, another five countries have worked on the introduction of an auction system. In addition, tax incentives are also in place in four countries. The study finds important differences in the measures applied, and installed capacity improvements, by country. All countries, except two, have at least adopted one RE measure. However, seven countries present RE installed capacity values close to zero. Ukraine, Russia and Serbia have most increased their RE installed capacity. Ukraine and Serbia have achieved these records by means of FITs, while Russia has used tendering. This study shows that the recent measures adopted seems to be having a positive impact on the capacity to generate electricity from RE.