Feed-in Research Articles

Exploring the efficacy of renewable energy support policies in uncertain environments: A real options analysis

This paper explores the impact of various renewable energy support policies on investor behavior and environmental value. Specifically, the study investigates the effects of fixed feed-in tariff (FIT) and tradable green certificates (TGC) on investor’s flexibility and environmental value under conditions of uncertainty. Real options theory and envelope theory are employed to analyze these uncertainties, with an empirical analysis of China’s electricity market serving as the basis for the study. The results of the analysis demonstrate that the use of TGC can lead to higher environmental value for utility-scale photovoltaic (PV) projects in China. For onshore wind, substituting FIT with TGC may be more appropriate. However, for offshore wind projects, FIT may be more suitable due to their increased vulnerability to uncertainty. Additionally, the study finds that greater support is required for projects deployed under FIT policies.

Post Facto Calculation of Peer to Peer Transactions: Proportional and Preferential Energy Sharing Models

Global rooftop solar grows at a rate of 20.14% annually, according to global solar consortium energypedia. Conventionally prosumers sell excess solar generated to the utility grid using a feed-in-tariff policy. Feed-in-tariff policy is effective if the grid is the only customer, but prosumers with peer-to-peer (P2P) tariff mechanism yield better profits to prosumers and energy savings to consumers. Existing P2P energy-sharing models are computationally intensive and have scalability issues. Further it’s difficult to implement in the real world. To overcome these problems, this paper proposes two post-facto P2P energy-sharing models. One is the preferential energy sharing model (PES) where consumer and prosumer pairs are ranked based on energy generated and consumed. The second model is the proportional energy sharing model (PRES) where consumer energy generated and consumed are shared proportionally. Both models are illustrated using seasonal variations by comparing with feed-in tariff policy and observed an effective reduction of bills for consumers and increased profit of prosumers. The results concluded that microgrids with excess solar will profit more when they are in the PRES model, whereas microgrids with significant demand will benefit when they are in the PES model. Further, PRES model executes in 107 milliseconds, and the PES model executes in 52 milliseconds. These results show that the proposed models are computationally less intensive and easily scalable.

Onshore wind in Portugal: History, supporting policies, economic viability and future perspectives

Onshore wind energy is currently playing a crucial role in Europe’s decarbonization efforts. Among other European countries, Portugal is recognized as a successful example of large-scale wind energy implementation thanks to its supportive policies in the 00 s. However, the government's financial support for onshore wind technologies has faced criticism, with accusations that feed-in tariffs were set too high and that farm owners were overpaid for their energy production. As the end of feed-in tariff regimes approaches for onshore wind farms in Portugal, it is unclear whether farm owners will choose to pursue repowering and life extension strategies, or opt to shut down operations. The present paper provides a techno-economic assessment to onshore wind farms in Portugal to assess their historical financial performance based on power production estimates and applicable feed-in tariff legal regimes. Based on the estimated investment costs, farm yield and established feed-in tariffs, the results suggest that there is no evidence of exceptional profits in onshore wind projects in Portugal. The results also suggest significant economic benefits for Portugal in prioritizing future investments in onshore wind, by pointing towards a strategic focus on life extension and repowering strategies as key components of this forward-looking approach.

The Economic Potential of Agrivoltaic Systems in Apple Cultivation—A Hungarian Case Study

Agrivoltaic systems (AVS) allow the simultaneous use of land—as a limited resource—for crop production and electricity generation. This paper introduces the development prospects of AVS in Hungary with insights into international trends. The most important part is a complex economic analysis and a unit cost analysis of a 38 MWp capacity AVS, considering the most typical basic data in electricity and apple production. The applied risk analysis is based on a Monte Carlo simulation, the distribution function, and probabilities. To introduce the economic facet of the competitiveness of AVS, a comparative analysis was carried out between AVS, ground-mounted photovoltaic (GM-PV) systems, and conventional apple production systems (ConAPS). In the most probable scenario, the AVS was financially attractive (NPV = 70 million EUR under 30 years). Our correlation analysis shows that feed-in tariff (FIT) price and the role of financing are considered the dominant economic factors. A favorable FIT price enhances the profitability of AVS; however, it makes GM-PV systems more profitable compared to AVS, so it negatively affects the competitiveness of AVS systems. AVS operations result in a more balanced unit cost of apples and of electricity compared to the independent operation of GM-PV systems and of ConAPS; in addition, it allows for land saving and more intensive land use.

Effectiveness and efficiency of support schemes in promoting renewable energy sources in the Spanish electricity market

This research paper delves into the central mechanisms implemented in Spain to foster the adoption of clean energy projects. The study scrutinizes various mechanisms established from 2005 onwards, evaluating their efficacy in achieving the desired outcome of supporting clean energy project implementation. The aim is to comprehensively assess the associated costs, effectiveness, and attainment of renewable energy objectives stemming from implementing diverse support schemes. This paper explores the effectiveness of feed-in tariffs and feed-in premium mechanisms in promoting the integration of new renewable energy generation into the power system. However, the Spanish experience suggests that exhaustive planning control is imperative to prevent excessive support costs that could jeopardize the entire market and cause a significant rise in final energy costs. The research studies the support schemes and associated market distortion and presents the roadmap from regulated tariffs to a “total market” for wind and solar energy. The findings demonstrate that, under proper supervision and planning, a transitional retribution scheme effectively promotes renewable energy plant integration. Finally, the analysis examines the need to regulate the excess benefits that non-emitting power sources receive in a marginal price market, as this can lead to market imbalances and a substantial increase in final costs. These plans serve as a crucial tool in achieving the decarbonization objectives of the European Power System.

Assessment of hydrogen and Lithium-ion batteries in rooftop solar PV systems

Hydrogen batteries are currently gaining attention as a promising clean energy storage technology. However, limited knowledge is available at present on the technical and financial performance of Hydrogen batteries in rooftop solar PV (RSP) systems. This study models the operation of a commercial Hydrogen battery in RSP system, using Time of Use and Solar Feed-In tariffs, and compares the performance with a commercial Lithium-ion (Li-Ion) battery under solar and arbitrage scheme. The model considers battery aging and performance degradation, with results suggesting that both hydrogen and Li-Ion batteries can reduce grid dependency and lower electricity costs by minimizing grid imports. However, the Li-Ion battery outperforms the hydrogen battery in better capacity utilisation due to lower roundtrip energy losses. The Li-Ion battery generates higher net income, achieving a payback period 9 years earlier in the arbitrage scheme and 1 year in the solar scheme, compared to the Hydrogen battery. However, the Hydrogen battery demonstrates a longer lifespan, enduring 18 % fewer charge-discharge cycles than Li-Ion battery. This makes the Hydrogen battery suitable for remote applications requiring extended duration of energy storage. The methodology developed in this study provides a valuable framework for evaluating the potential adoption of Hydrogen and Li-Ion batteries globally.

The Role of Renewable Energies for Sustainable Energy Governance and Environmental Policies for the Mitigation of Climate Change in Nigeria

In response to the escalating global challenges posed by climate change, this research investigates the role of renewable energies in shaping sustainable energy governance and environmental policies for climate change mitigation in Nigeria. The study underscores the pivotal relationship between renewable energies and governance structures, emphasizing the need for innovative policy approaches. In Nigeria, a country grappling with a surge in energy demand, particularly in densely populated urban areas, this research delves into the current state of renewable energy adoption, technological aspects, and the policy and regulatory frameworks governing its integration. The study scrutinizes the technological aspects of solar, wind, hydropower, and biomass energy in Nigeria, exploring advancements in solar photovoltaic, hydropower, bioenergy, and geothermal technologies. Additionally, it dissects the nation's policy landscape, assessing key initiatives such as the National Energy Policy, the National Policy and Guidelines on Renewable Electricity, and Feed-in Tariffs. Furthermore, the research examines the alignment of environmental policies with renewable energy goals, highlighting the importance of targets, incentives, and regulatory frameworks. It also scrutinizes incentives for sustainable practices in Nigeria, including investment tax credits, the Renewable Energy Development Fund, and concessional import duty rates for renewable equipment. The study assesses the impact of renewable energy initiatives in Nigeria, gauging investment trends, ongoing projects, and the effectiveness of policy frameworks. It also delves into the economic, social, and environmental co-benefits of renewable energy projects, emphasizing their role in job creation, investment attraction, and reduction in energy costs. Finally, the research evaluates the effectiveness of renewable energy initiatives in reducing the nation's carbon footprint and fostering environmental sustainability. It highlights progress in achieving climate change mitigation goals through increased renewable energy capacity, policy frameworks, and off-grid electrification initiatives.

Performance monitoring as fault detection approach on AC power output of monocrystalline grid-connected photovoltaics system

As per the Malaysian sustainable energy development authority (SEDA), Malaysia has seen a significant growth in renewable energy thanks to the feed-in tariff (FiT) program. However, photovoltaic (PV) systems in tropical countries like Malaysia experience degradation due to technological factors and operating conditions. The effectiveness of PV systems is influenced by geographical location and weather conditions. This research study conducted a comparative analysis between the actual power output PAC_actual and the predicted power output PAC_expected, referred to as the acceptance ratio (AR). The study also assessed the yield and performance ratio (PR) of a PV system situated at the green energy research center (GERC) in Universiti Teknologi MARA, Malaysia. The actual monocrystalline grid-connected photovoltaic (GCPV) system versus predicted AC power and AR were monitored over a year, with MATLAB software used for simulating output power based on real data. According to the Malaysian Standard MS2692:2020, an AR value of 0.9 or higher is required for approval in testing and commissioning tests. The findings indicate that most AR graphs fall below this threshold, and the PR value for each month is below 0.75, suggesting a need for significant system overhaul.

An examination of motivation factors driving investor behaviours towards socially responsible community energy initiatives

Community energy initiatives play a significant role at the grassroots level in the transition to Renewable Energy Communities and a low-carbon economy. However, these initiatives are hampered by multiple barriers at the market, institutional, organisational, and individual level. Funding cuts of state-supported feed-in tariff (FiT) policy in major markets such as Germany, Japan, China and the additional capping of the number of new installations that could be accredited under the FiT scheme in the UK. In light of these market changes and the need to accelerate the development and growth through the creation of new and/or complementary future community energy models consisting of private investors, a detailed understanding of the dynamics of community energy investor characteristics and socio-psychological motivations is increasingly important. First, a review is conducted including the theories that underpin and explain the factors that affect investor behaviour, after which a conceptual framework to examine investor behaviours towards socially responsible community energy initiatives is developed. The framework is used as the basis to construct and administer a survey involving sampling of 295 UK investors in community energy initiatives and the subsequent statistical analysis of the survey data and discussions of the findings. The results first capture the differences among investors with differing regional affect and investment behaviours. The study also provides the needed insight into better understanding the dynamics of investor characteristics and motivations of community energy initiatives. Results also indicate that investors are predominantly ethically-oriented, particularly toward environmental concerns. Additionally, community and social factors also appear to play significant roles in investor participation while financial orientation is least dominant.

Impact of the feed-in-tariff exemption on energy consumption in Japanese industrial plants

To promote renewable energy deployment, Japan introduced a feed-in tariff policy in 2012, financed through a surcharge on electricity prices for consumers. The Japanese government also offered a discount system for electricity-intensive industrial plants, exempting them from paying full surcharges. Using monthly plant-level data from 2005 to 2018, this study evaluated the exemption system’s impact on electricity and fossil fuel consumption for plants in the iron and steel, chemical products, and pulp and paper sectors. Our results show that the exempted iron and steel plants decreased electricity purchase and consumption 18.62% and 17.88% after 2017, respectively. This decrease is attributed to the introduction of an electricity efficiency after 2017. It is worth noting, however, that the revision of the scheme did not affect the chemical, pulp and paper sectors. In this sense, a stronger efficiency requirement might be warranted to ensure the decrease in electricity consumption for all sectors. Nevertheless, we estimate that roughly 7 million tCO2 have been avoided thanks to the decrease in electricity consumption in the iron and steel sector.

How feed-in-tariff subsidies affect renewable energy investments in China? New evidence from firm-level data

The feed-in-tariff (FiT) policy is a commonly applied policy instrument aimed at fostering renewable energy (RE) investments, yet its actual incentive effect remains controversial, and there is a dearth of micro-level evidence. This study utilizes data from 39 Chinese RE generation companies from 2014 to 2021 to investigate the effect of FiT subsidies on RE investments at the corporate level. Our outcomes are as follows: (1) FiT subsidies exert a significantly positive influence on the investments of RE firms, wherein cash flow, corporate profitability and financing constraints serve as intermediating factors. (2) The economic policy uncertainty (EPU) tends to diminish the positive impact of FiT subsidies on RE investments. Conversely, environmental regulation (ER) levels can enhance the FiT subsidies' positive effect. (3) The stimulating effect of FiT subsidies on investments in large state-owned RE firms exhibits a greater magnitude. Based on this, we put forward targeted policy recommendations.

A framework for developing and implementing FIT policies for renewable energy based on local economic conditions

Energy policymakers of developing countries are striving to provide adorable, reliable, and cleaner energy for all the sectors of their economies. Feed-In Tariff (FIT) policies have played an important role in attracting independent power producers to invest in energy generation from renewable sources in developed and some developing countries. However, the development and application of the FIT policy framework are not autonomous of national and local fiscal and socio-economic policies. Financial modeling of FIT which considers local economic conditions and the state of the energy sector at the national level can contribute to the development of FIT policies that are relevant, realistic, and sustainable to investment in energy generation from renewable energy sources at the local level. This paper outlines the financial modeling of the FIT rates using a solar farm in Malawi as a case study. The results show that a shift from a fixed price model to a fixed price model with full or partial inflation adjustment considering the volatile inflation rate and macroeconomic risks in a fragile economy can effectively attract and increases private investments in the energy sector. Consequently, the financial modeling of FIT can enhance the generation of strategic information that can be used for the development of FIT policies that are relevant, realistic, and sustainable in the context of local economic conditions.

Evaluation and integration of photovoltaic (PV) systems in Albanian energy landscape

As a country situated in a region with abundant solar resources, Albania has enormous potential for using solar energy through photovoltaic (PV) systems. With the energy crisis repeating itself over the years, now more than ever is the moment to assess and fully use this opportunity. This paper studies the current state of PV usage in Albania's energy sector and the opportunities and challenges coming together with this technology. Economic, social, and environmental benefits are discussed, as well as existing policies for renewable energy. It evaluates PV technology's role in the country's sustainable energy transition and analyzes various integration models like net-metering and feed-in tariffs. Successful projects and case studies are highlighted, while challenges such as regulatory complexities and public awareness are discussed. The study also assesses large-scale PV feasibility and emphasizes the need for integrated energy planning. This research aims to offer relevant information to Albanian policymakers, energy stakeholders, and investors to support the effective implementation of PV systems for a cleaner, more sustainable energy future. Furthermore, there is a lack of studies about renewables in Albania's reality. Enhancing the country's energy sustainability and reducing greenhouse gas emissions is important.

Analyzing Policy Framework of Agrovoltaics Across the Water Energy and Food (WEF) Nexus in The Gambia

The projected increase in demand for food, water, and energy owing to systemic shocks has heightened the need for innovative solutions and integrated resource governance. The Agrovoltaics for Mali and Gambia (APV MaGa) Project, focuses on sustainable electricity production through agrovoltaics' triple land-use system and is leveraged with digital technologies. The project addresses The Gambia’s high food importation gap, growing dependency on fossil fuels for electricity generation, and high electricity tariffs. However, the nascence of agrovoltaics presents a new energy dimension that calls for increased coordination of sectoral policy and management, a domain of WEF nexus governance detached mainly from governance practice. Thus, a policy and institutional foresight of the potential implications of agrovoltaics’ integration is warranted, since Gambia’s decision-making for land, water, energy, and agriculture remains mainly sectoral. A qualitative research design was adopted, using a sample of twenty-eight key informative interviews, policy document analysis, and grey literature. Research findings show that the existing policy frameworks such as ‘Feed-in tariffs for excess RE, renewable energy funds, and capital subsidies can practically accommodate the frame of the agrovoltaics. However, clarification is required on the siting aspect of solar panels within the compartmentalized land policy structures. Institutionally, the Ministry of Energy’s nexus platform allows for technical coordination of agrovoltaics projects. However weak institutional harmonization, technical/financial incapacities, and overriding national interests due to sectoral bias present challenges. Therefore, harmonizing sectoral divergent policy provisions, interests, and prioritization of sustainability concerns will foster the pertinent integration of agrovoltaics for fast expansion.

Voltage regulation in low voltage distribution networks with unbalanced penetrations of photovoltaics and battery storage systems

AbstractGrid integration constraints are limiting the deployment potential of renewable energy sources in Malta. Large penetrations of photovoltaics in the low voltage (LV) distribution network pose a significant risk to grid stability due to their inherent intermittency and are known to cause overvoltages and reverse power flows. The authors evaluate how self‐consumption strategies with distributed battery energy storage systems can contribute to the voltage regulation in LV networks and the reduction of reverse power flows. The batteries are controlled to absorb the reverse power flow at the dwellings' point of common coupling, before this is injected into the LV network. Simulations show that uncoordinated strategies are not suitable to address the distribution network challenges during reverse power flows and evening peak demands. On the other hand, self‐consumption coordinated by a time‐varying feed‐in tariff (FiT) can provide higher profitability to the prosumers while providing added benefits to the utility. The net‐billing profitability for the prosumers in a self‐consumption scenario with time‐varying FiT is transformed from the downward trend of the uncoordinated scenario to an upward trend against the increasing values of storage capacity.

Prospects of solar power generation in dry regions: the case of Arar in KSA

The prim aim of this paper is to propose and analyze technical and economic dimensions concerning the integration of solar power (PV) unit(s), in the existing typical conventional power generation system, in the absence of a feed-in tariff scheme. The basic scenario examined in this work assessed possible electricity unit cost taking into account the penetration of PV modules of about 5 to 10 kW PV systems as roof-tops for residential use, without storage capability in prevailing local conditions in the northern region of KSA, i.e. city of Arar. Based on the input data and assumptions made, the simulations indicated that the scenario to meet the electrical demand of Arar would require installing at least 20-30 central modules, with a capacity of about 10 MW each. But it is not possible to meet the total electrical demand by employing distributed PV modules. In addition, the cost The estimated cost of produced electricity is about 0.1-0.12 US$/kWh and considered very high compared with the current prices of about US$ 0.013 per kWh. Without government incentives, i.e. feed-in-tariff or any other financial scheme aiming to encourage the utilization of renewable energy resources, such systems will not be feasible or find its way in KSA. However, the sensitivity analysis on current fuel prices, used for power generation, showed that increasing the local fuel prices would make such plants more economically attractive compared with conventional systems.

Renewable energy plants: environmental compatibility and external costs assessment at global, regional and local scale

In Italy and many European countries energy production from biomass is encouraged by strong economic subsidies (in Italy up to 280 €/MWh granted through a feed-in tariff linked to the electrical production) so that biomass energy plants are getting large diffusion. Nevertheless, this kind of energy plant can involve heavy PM10, NOx, ammonia, methane and N2O emissions, as well as indirect emissions relating to cultivation, transport, fertilizers’ production. Within the described outline, the definition of the environmental compatibility as well as technological and economic issues dealing with the emerging renewable energy scenario is of primary importance. This evaluation should take into account global parameters as well as environmental impacts at regional and local scale coming from new polluting emissions. The environmental balances regarding new energy plants are of primary importance within very polluted areas such as Northern Italy where air quality limits are systematically exceeded. The paper analyses the energy and environmental performances of anaerobic co-digestion of manure and energy crops, wood and poultry manure combustion, involving the emissive balances, analysing different possible energy scenarios, using environmental economics tools like the ExternE methodology, an approach devoted to the assessment of the externalities associated to airborne pollution. The most important conclusion that can be drawn is that the production of renewable energy from anaerobic digestion, can strongly increase ammonia and NOx emissions and, in some cases, also GHG emissions could be worrying, whereas the application of best available techniques to waste gas cleaning and energy recovery allows positive environmental balances.

Cost Benefit Analysis to select clean energy solutions in dairy farm milk collection posts in Azores.

The aim of this paper is to evaluate the possibility of implementation of alternative renewable energy micro-generation installations in dairy farm milk collection posts, from the technical, economical and environmental perspectives. This work was performed through a dairy farm milk collection post energy audit, to perform energy profile characterization and demand requirements. Following that, a study of the weather conditions was done and the obtained data (through CLIMAAT and MacSIMAR projects) [11] was introduced in a renewable energy solutions calculator (HOMER). Moreover, a system design from the available portfolio of micro-generation devices was defined and a cost benefit analysis of the selected alternatives was done. In the end a comparison of the current implemented solution with alternative designs was performed. Results show that from the analyzed solutions for this case, the set of PV (20Kw) and Wind (3KW) with no batteries is the best one, since it presents the least cost of energy, the smallest initial capital and the highest Net Present Cost. The sensitivity analysis derive that wind micro-turbines should be installed except if the solar radiation is on its maximum value and that in no case the use of batteries is an advantage for the system operation. For systems requiring a certain degree of energy (in this case with an average of 350 kW/day), the implementation of micro generation systems, like the ones evaluated, will never be economically viable in terms of Total Economic Value, even with generous feed-in tariff schemes. It is preferable that the grid operator makes investments in renewable energy production. To improve the system energy performance, the options should be focused on energy efficiency measures.

Pre-feasibility Study of Landfill Biogas for Electricity in Colombia

A technical and financial pre-feasibility study of an energy from waste project in Colombia is presented. The current situation in Colombia, the technologies available, and the tools for the simulation are described. A case study based on transforming an existing landfill to allow the collection of the landfill gas to generate electricity for sale to the grid as well as to nearby industry is presented. Two special variations of the case study are also presented to demonstrate the effect of Feed-in-Tariff (FIT) and Clean Development Mechanisms (CDM) incentives. Results demonstrate the importance of a sound FIT policy and the potential advantage of gaining CDM credits in the financial viability of the project. The project additionally may contribute to the reduction of GHG emissions.

An exemplary subsidization path for the green hydrogen economy uptake: Rollout policies in the United States and the European Union

The present paper reviews the green hydrogen uptake policies in the United States and the European Union. While the EU has a rather broad public support strategy that envisages the entire hydrogen value chain, the U.S. policies are more focused on hydrogen research hubs and subsidies having electric vehicle applications. From the experience of the solar and wind power rollout of the past three decades, we know that the subsidization schemes of the end product play an important role in the transition to renewables. These kinds of subsidization schemes are still lacking for clean hydrogen both in the EU and the U.S. This paper provides a brief overview of selected subsidization schemes from other renewables markets, which are then applied to define an exemplary subsidization path to empower large-scale growth in a market for green hydrogen. Here is proposed a long-term subsidization scheme – deemed as an adequate strategy for the expansion of clean hydrogen in an electricity mix. The suggested exemplary subsidization path recommends shifting from feed-in tariffs to direct marketing with market premiums once a certain threshold is reached, while both can be flanked by the issuance of a Guarantee of Origin for green hydrogen so that there is one market for hydrogen and another market for the certificates.