Feed-in Research Articles

Subsidies or cost-reflective energy tariffs? Alternative pathways for decarbonizing the residential sector and implications for cost efficiency

This study assesses alternative energy technologies (i.e., PV and battery systems, electric heat pumps, hybrid gas heating with solar thermal energy) in terms of profitability and CO2 emissions, for the case of two simulated typical households living in detached houses in Germany. Under the status-quo regulatory framework, the energy transition in the heating sector is fostered through grants for replacing old heating systems, whereas PV generation is fostered by feed-in tariffs and indirect subsidies for self-consumption. This study considers an alternative regulatory scenario with a more market-oriented approach, finding that a CO2-oriented reform of energy surcharges and taxes, as well as a reform of network charges, can support a more cost-efficient energy transition in the residential sector. The paper concludes with a discussion of the consistency, cost efficiency and effectiveness of past and current policies underpinning the energy transition in the residential sector.

Characterization of Production under feed-in tariffs in Portugal Mainland

EDP Serviço Universal (EDP SU), in its core business, must ensure the purchase of energy from producers under special regime and distributed production, with feed-in tariffs, and sell it through spot and future markets. Furthermore, the company must ensure the purchase of energy in those markets for the supply of its customers. The process of buying and selling electricity is quite complex from the legislative and regulatory point of view. In Portugal, over the last two and a half decades, high focus on the promotion of renewable energies has been set, particularly through power plants with feed-in tariffs, which has increased the use of internal energy resources and has stimulated the reduction of the country’s energy dependence. During this process, the development of related legislation and the dynamism of the sector, with the introduction of incentives which prompted the investment and promoted the maturation of new technologies, has been essential. The present work characterizes the producers to whom EDP SU purchases energy, with emphasis on technologies, number of installations, installed power, geographic location and acquired energy, showing the evolution over last years.

Blockchain for the Energy Transition

The massive impact of the wind and PhotoVoltaic (PV) power on the power systems require new approach and strategies, because of their unpredictability. This large expansion has been due to the feed-in tariffs, financial support and a concentration of R&D activities. Moreover, the distributed energy sources require a pervasive and complex management of the energy exchanges. Until now, the management has been usually based on a central authority, but new paradigms based on the BlockChain (BC) technology are very promising. This approach can also be useful to manage the peak power as well as the Demand-Response (DR) strategies. The paper presents this challenging tool for the current energy transition, highlighting the intrinsic features of the blockchain technology and the opportunities for the future energy systems, e.g. the execution of smart contracts in Peer-to-Peer (P2P) networks. This approach will become increasingly useful to manage the energy exchanges in new contexts, where the number of prosumers and active users is growing. The paper also proposes an application of the BC to manage the peak demand, using the energy injected into the grid by the electric vehicles.

Technical and economic assessment of energy from Tidal Currents

The present work aims to study the feasibility of deploying a farm of sea current turbines for electricity generation in Portugal. An approach to the tides, which are they, how they are formed, its prediction, is held. It is also conducted a study about the energy of sea currents and it is presented some technology about ocean currents too. A model of tidal height and velocity of the currents it is also developed. The energy produced by a hypothetical park, built in Sines (Portugal), is calculated and afterwards, an economical assessment is performed for two possible scenarios and a sensitivity analysis of NVP (Net Present Value) and LCOE (Levelized Cost of Energy) is figured. The conclusions about the feasibility of the projects are also presented. Despite being desired due to its predictability, this energy source is not yet economically viable as it is in an initial state of development. To push investment in this technology a feed-in tariff of, at least €200/MWh, should be considered

The impact of renewable energy rebates on environmental sustainability in Australia

ABSTRACT This study investigates the influence of renewable energy rebates on the quality of the environment in Australia, with a specific emphasis on premium feed-in tariffs and renewable energy target policy. Using econometric modelling, this study demonstrates that premium feed-in tariffs have a notable long-term impact on reducing carbon emissions, albeit there are difficulties in the short run. On the contrary, the renewable energy target policy regularly demonstrates efficacy in both the short and long run. In addition, external factors, including the China-Australia trade dispute and COVID-19 disruptions, introduce heterogeneity in the outcomes of these policies by influencing supply chains and international collaborations related to renewable energy technologies. The aforementioned findings provide valuable insights for policymakers, underscoring the importance of developing well-thought-out policies that strike a balance between short-term advantages and long-term environmental advantages. This study highlights the significant contribution of effectively designed rebates for renewable energy in Australia's pursuit of a more environmentally conscious future, emphasising the importance of such incentives in promoting ecological integrity and ensuring enduring viability.

Regional feed-in tariff mechanism for photovoltaic power generation in China considering tradable green certificate revenue

This study introduces a new regional feed-in tariff (FIT) pricing mechanism for solar photovoltaic (PV) energy in China, informed by real option (RO) theory and incorporating the increasing significance of tradable green certificate (TGC) policy revenues. The mechanism aims to balance government and consumer burdens with investor benefits. By factoring in additional income from green certificate sales, the study calculates the internal rate of return (IRR) to fall between 8 and 16% and uses a Monte Carlo simulation to determine optimal FITs for 30 Chinese provinces. These optimal FITs are then compared with current FITs, which are categorized by three types of solar resource regions, revealing that many current FITs are set within an inappropriate range and require adjustment. Additionally, the study observes minor differences in provincial FITs within six regional power grids, suggesting that setting FIT guide prices at the regional grid level is more practical than by solar resource regions. A sensitivity analysis examines the impact of green certificate prices, carbon prices, and technological advancements on the FIT for solar PV, comparing scenarios in a realistic environment versus a more favorable one. The results indicate that in a better environment—with higher TGC and carbon prices and encouraged corporate innovation—the FIT for solar PV is closer to the cost of coal-fired electricity, thus promoting grid parity. The study advocates for adjustments to the FIT mechanism, higher TGC and carbon prices, and the encouragement of innovation to enhance the competitiveness of solar PV energy in China’s energy market.

How to use BAPV to alleviate the urban heat island effect: An evolutionary game perspective.

In recent years, the phenomenon of the urban heat island caused by the rapid development of cities is very serious. To solve the problem of the urban heat island, this study proposed a PPP project consisting of the government (GOVT), photovoltaic investment company (PVIC), and residential customers (RS). Based on an evolutionary game model and combined with current policies and industry regulations in China, the evolution process and stable evolution strategies were studied. The result shows that more government subsidies, higher carbon trading prices, and feed-in tariffs will promote the development of the PPP project. For relatively suitable reference value ranges, the installation tilt angle of the BAPV system is 30°, the photovoltaic grid electricity price is 0.1096∼0.1296 $/kWh, the carbon trading is 8.92∼9.42 $/t.

Micro-Grid of Batteray Energy Storage System (BESS) Design for Malaysia’s Net Energy Metering (NEM)

The depletion of fossil fuels and the increasing demand for energy have led to the adoption of renewable energy sources like solar photovoltaic (PV) systems. Net energy metering (NEM) has given individuals and organizations the ability to generate electricity using PV and sell excess energy back to the grid. However, without a battery energy storage system (BESS), the excess energy can only be sold back at a lower feed-in-tariff (FiT) rate. The integration of BESSs with PV systems has become necessary to avoid potential energy savings loss. This study addresses this gap by simulating an AC-coupled BESS with a capacity of 200kWh in MATLAB. Six modes of operation are discussed in the battery management system (BMS) to verify the performance and cost-effectiveness of the BESS for AC-coupled interconnection systems. A lithium-ion battery was chosen due to its high energy density, and long cycle life. The simulation results are based on the state of charge within 20% to 80% of battery capacity and include PV generation, load consumption, battery energy, battery state of charge (SOC), and grid energy. The study also evaluates the cost-effectiveness of the integrated BESS-PV system under NEM policies in Malaysia. The results show that the BESS can effectively reduce the amount of energy purchased from the grid, maximizing cost savings up to 12% per day under NEM 3.0 policies. The study provides valuable insights and recommendations for future implementation of BESS with PV system in the storing and using renewable energy efficiency, contributing to a more sustainable energy future.

When Haste Makes Waste: Fair And Equitable Treatment Violations in Canada's Feed-in Tariff Program Implementation and Lessons for Vietnam

When Haste Makes Waste: Fair And Equitable Treatment Violations in Canada's Feed-in Tariff Program Implementation and Lessons for Vietnam

What Stops to Switch on to Solar Energy? An Empirical Evidence from Pakistan

This is an exploratory and qualitative study based on a survey. The study aims to generate a list of factors hindering switching to solar energy systems. The study design comprises the literature review, data analysis and discussion. The population under study includes stakeholders of solar energy systems, e.g., solar penal producers, importers, sellers, marketers, buyers/consumers, regulators, etc. Twenty-one samples are drawn from within the stakeholders, constituting a non-probability purposive sample of experts. The data are collected using a matrix-type questionnaire from experts. To perform analysis on data, the classical technique of Interpretive Structural Modeling (ISM) combined with Matriced' Impacts Cruise's Multiplication Appliquee a U.N. Classement (MICMAC) is used. Findings of ISM modeling show that limited production and uncertainty about after sale service fall at Level I, in contrast, lack of expertise and lack of social awareness fall at Level V & VI (respectively) of the model. All other barriers lye in middle on the continuum of bottom-to-top. It is worth mentioning that the barriers contained at Level I are the least important and those held at Level V & VI are the most important ones. Findings of MICMAC show that barriers, namely limited production and uncertainty about after sale service, fall in the independent cluster. In contrast, barriers, namely weak infrastructure structure, non-availability of feed-in tariff (fit) system, limited production and uncertainty about after sale service, fall in the dependent cluster. All the other barriers fall in the linkage cluster. This is an original valuable study based on real-time data collected from stakeholders that contributes new information about inter-relationships of barriers about the phenomenon under study. The study has various implications for the stakeholders, i.e. solar penal producers, wholesalers, retailers, importers, marketers, regulators, buyers, society and economy, etc.

Can green certificates substitute for renewable electricity subsidies? A Chinese experience

While Feed-in-Tariffs (FIT) promote the growth of renewable electricity, they also impose heavy financial burdens on the government, thus leading to a shift from FIT to the Renewable Portfolio Standard (RPS) mechanism with Tradable Green certificates (TGC). Examining the pricing of green certificates from the perspective of supply and demand is the key to understanding their price changes and the basis for analyzing whether they can substitute for subsidies. However, there are few studies on the pricing mechanism of green certificates. To understand the efficiency of green certificate substitution for government subsidies, we study the green certificates market in China as an example. Firstly, we examine the factors affecting the supply of and demand for green certificates under the co-existence of FIT and RPS and study the pricing mechanism of the green certificates. Then we establish the price model to forecast the price of green certificates in China. Finally, we calculate the substitution efficiency of green certificates for subsidies in China from 2023 to 2025. The results show that in 2025, the price of China's green certificates will not exceed 246.8 CNY per certificate, and the substitution efficiency of green certificates for subsidies will be 41.8 %.

Regulation of the bioeconomy: Barriers, drivers and potential for innovation in the case of Ireland

The bioeconomy is generally understood as an economy in which sustainably-sourced renewable bio-based resources are used for the production of food, energy and other products and services. Expectations are high for its potential to support the transition away from a fossil fuel-based economy and help to address complex issues such as climate change and biodiversity depletion. However, given its cross-sectoral nature and key focus on innovation, tensions can emerge between bioeconomy goals and the need for regulation of bioeconomy activities. In particular, there is a recognition of the need for regulation to (a) support sustainability and resource efficiency, (b) manage competing interests and (c) provide coherence and innovation support. To identify how regulation may be acting as a barrier and / or driver of the bioeconomy in Ireland, interviews were conducted with a range of key stakeholder organisations. Analysis revealed four key barriers, relating to the need for financial support tools such as feedin tariffs, more flexible approaches to regulating the use of waste materials, closing the gap between regulation and innovation activity and addressing planning issues. The two drivers identified highlight a positive role for regulation in supporting and enabling bioeconomy development, especially in terms of using more flexible and innovative approaches. Associated challenges include the need to support genuine public participation and the provision of resources to support policy-makers in the design and implementation of an effective bioeconomy regulatory framework.

Technical and economic analyses of PV battery systems considering two different tariff policies

Installing batteries in solar photovoltaic (PV) houses is becoming commonplace and different tariff policies give residents more options to lower their energy bills. This paper develops two rule-based control strategies to operate solar PV battery systems under fixed flat or time-of-use tariff policies, aiming to increase PV self-consumption and self-sufficiency. The battery modelling considers the charging and discharging efficiencies and the battery energy efficiency. The payback period for solar PV battery systems under the two tariff policies is also analysed considering various economic factors such as the capital cost of solar PV systems, the capital and maintenance costs of the batteries, the annual discount rate and the increases or decreases in the retail prices of grid electricity and the feed-in tariff. The analyses are conducted using actual PV energy and smart meter data from a real case study house in Geelong, Australia. Results indicate that when battery capacity is increased, PV self-consumption and self-sufficiency grow under both tariff policies, but this trend is limited by constrained PV generation due to seasonal conditions. Additionally, increasing solar PV system size for fixed battery capacity increases PV self-sufficiency, but decreases PV self-consumption. Results of economic analysis demonstrate that the payback period for a standalone solar PV system increases as its capacity grows. Moreover, the payback period for PV batteries can be slightly shorter or even longer than using solar PV systems alone under both tariff policies, which is economically unattractive. Considering the benefits that batteries can bring to residents and electricity networks, local governments need to be more proactive in providing financial subsidies for residents to install batteries.

РЕТРОСПЕКТИВНИЙ АНАЛІЗ ВАРТОСТІ ПОХИБКИ ПРОГНОЗУ ДЛЯ ПОБУДОВИ БАЛАНСУЮЧИХ ГРУП ВИРОБНИКІВ З ВІДНОВЛЮВАНИХ ДЖЕРЕЛ ЕНЕРГІЇ

The significant increase in the installed capacity of power plants with renewable energy sources and the imbalance of the financial system of the wholesale electricity market of Ukraine prompted the Ministry of Energy to develop an alter-native support mechanism for RES producers. The introduction of a feed-in tariff (FIP), which compensates for the difference between the actual sale price of electricity and the "green" tariff, can help producers receive more money immediately after the electricity is released. However, studies have shown that exiting a balancing group without form-ing a new one can lead to increased costs associated with forecasting error. It is important for manufacturers to form independent balancing groups to compensate for negative consequences. The findings of the article show that there is no single optimal balancing group for all manufacturers, but some groups are often repeated. Switching to a separate balancing group can have a significant economic effect for the manufacturer, reducing the cost of forecasting error compared to being solely responsible for the imbalance. However, the balancing group determined by the method of retrospective calculation of the cost of the forecast error is not stable in the long term. Ref. 8, fig. 2, tab. 3 Key words: renewable sources, electricity market, short-term forecasting, forecast interval, deep learning neural net-works, cost estimation.

Prefeasibility analysis of the Pumped Hydro Storage (PHS) system in Türkiye: A case study on a hybrid system

Pumped Hydro Storage (PHS) power plants aim to exploit the price difference between storing and generating electricity. These power plants operate by pumping water from the lower reservoir to the upper reservoir, consuming energy, and generating electricity by transferring water from the upper reservoir to the lower reservoir. There is no pumped storage power plant in Turkey yet, and it is in the planning stage. This study aims to provide a preliminary feasibility analysis of this investment from an economic and technical point of view and to contribute to this issue through the recently announced feed-in tariff for PHS. The planned PHS at Gökçekaya Dam was considered a proposal in this study and was carried out using a developed algorithm. The algorithm determines the optimal installed capacity of hybrid energy. This feasibility analysis is based on two scenarios. The difference between the first and second scenarios is due to the investment cost of the PHS system. Additionally, the second scenario considers an integrated hybrid Solar Hydroelectric (SHE) system. Each scenario is evaluated in terms of base price, average price, maximum feed-in price, and market peak price. The result of the study is that only the market price represents a remarkable payback period for pumped storage power plants. As a result of the study, it was found that it’s possible to support the pumped storage power plant with a hybrid solar power system and market price if only the storage volume is increased. The feed-in tariff should be set to cover the demand. In the first scenario, only the PHS was evaluated, and after completing the economic analysis, the investment has a payback period of 28.39 years for the market peak price. If the PHS facility is supported by a hybrid solar energy system for internal energy needs, the payback periods can be reduced. In the first scenario, the investment has a payback period of 18.05 years, supported by integrated hybrid solar energy. In the second scenario, the PHS investment has a payback period of 9.63 years for the highest price on the market. The investment has a payback period of 8.66 years, which is supported by the integrated hybrid solar energy. Due to the high self-consumption of energy, integrated hybrid solar energy is suitable for the PHS projects.

Evaluation of generation cost-based feed-in tariff rate for wind energy in Myanmar

Feed-in Tariff (FiT) policy is proven to be an effective mechanism for enabling and accelerating the growth of wind energy industry. The determination of remuneration level in designing FiT system is a critical component that governs the extent of success for adoption of the policy. This study conducts a generation cost-based approach, applying the Net Present Value method, to determine the baseline FiT rate for the case of onshore wind energy in Myanmar. The analysis result indicates that USD 0.1453/kWh is required as a baseline rate to attract the energy producers for investing in Myanmar wind energy sector at the weighted average cost of capital of 11.25%, with debt-to-equity ratio of 70%. The sensitivity analysis is carried out to minimize the uncertainties associated with parameterization. It is found that baseline FiT rate is very sensitive to initial investment cost, and capacity factor whereas it is less sensitive to operation and maintenance cost. It is also found that lower cost of debts and higher debt-to-equity ratios could result in lower FiT values.

When Haste Makes Waste: Fair And Equitable Treatment Violations In Canada’s Feed-In Tariff Program Implementation And Lessons For Vietnam

Abstract Efforts to promote renewable energy investment as a key strategy against environmental issues from fossil fuels have raised legal and financial challenges. Governments, adopting policies like feed-in tariffs (FiT), initially attracted foreign investment but later faced resource wastage issues. Canada’s experience with FiT programs has led to investor-State disputes, underscoring the risks of not meeting the Fair and Equitable Treatment (FET) standard under the North American Free Trade Agreement (NAFTA). This article aims to provide recommendations to mitigate the risks of government’s policies that may lead to substantial legal disputes and hinder sustainable energy development. It delves into analyzing FET standards from arbitral practices in enforcing FiT programs, drawing lessons from Canada’s experiences to offer implications for Vietnam.

Optimal sizing of battery energy storage systems and reliability analysis under diverse regulatory frameworks in microgrids

The integration of battery energy storage systems (BESS) with microgrids (MG) is crucial to improve the reliability and flexibility of renewable energy sources (RES) integration. However, the reliability and regulatory policies are critical factors that affect the optimal operation of MGs in the market. This study aims to enhance the reliability of MGs integrated with RES and BESS by evaluating their performance under different regulatory frameworks, namely feed-in tariff (FiT), net metering (NM), and energy storage incentive (ESI). Also, a dynamic FiT (D-FiT) framework is utilized to improve the reliability of the MG. An artificial bee colony optimization algorithm is utilized to optimize the size of BESS for each regulatory policy to minimize the total cost of the MG. Each policy is formulated based on its specific constraints in the problem. Subsequently, the reliability indices of Loss of Load Expectation (LOLE) and Expected Energy not Supplied (EENS) are calculated for each optimized solution. Moreover, we have integrated the dynamic thermal rating (DTR) system into our proposed model, focusing on the safe augmentation of system component ratings. The study finds that the D-FiT and standard FiT frameworks provide the best reliability level, whereas the reliability improvement under the ESI policy is not significant, as most of the MG's demand is supplied by the main grid. Furthermore, the study shows that the improvements in EENS are higher than LOLE, indicating that installing BESS reduces the loss of energy rather than the number of interruption hours. D-FiT framework has a significant positive impact on both reliability indices, unlike the other frameworks that have a greater effect on EENS. Furthermore, we have noticed a substantial improvement in reliability indices when the DTR system is taken into account, as compared to the static thermal rating (STR) system.

Mass Media’s Role in Stimulating Interest in Solar Energy Uptake: Examination of Feed-in Tariff News Coverage in Hong Kong

Hong Kong's solar energy adoption lags behind its global peers, although the findings of numerous studies show that the city can take up the power on a bigger scale. This manuscript contributes to the research stream by investigating the role that mass media could play in engaging citizens on more healthy debates of solar energy and the Feed-in Tariff (FiT) scheme, in which households and institutions are paid for the energy they generate and is the government's first initiative on renewable energy involving the members of the public. Applying the theories of media framing, media hegemony, and public sphere, I conducted a content analysis of 315 Hong Kong newspaper articles on FiT spanning 55 months since the scheme's implementation. The results indicate that a majority of the articles are framed from enterprises' perspectives, implying that corporate hegemonic power has penetrated through news; criticisms of FiT are slanted towards the economic aspects, such as the financial incentive instead of the environmental and scientific reasons, undermining citizens' comprehension of the importance of the scheme; Chinese state-owned media were more critical on FiT than the pro-democracy one, indicating that politics does not matter to the issue. This study proposes that the media should play a watchdog role by monitoring institutions' ongoing solar power projects and their use of FiT-generated funds to perform the educational function to enhance citizens' scientific literacy on renewable energy to create a thriving public sphere for conversation and debate on the subject.

Smart tariff calculator for feed-in tariff scheme of renewable resources

Energy meter billing is an important part in the Energy Management System and Feed-in tariff schemes become more popular in many countries nowadays. However traditional techniques are complicated for getting the tariff values. Therefore, a novel IoT based technique namely Smart TARiff (STAR) calculator has been proposed for calculating the Feed-in tariff for residents which in turn improves the efficiency of the feed-in tariff scheme for renewable resources. The power generated from the solar panel has been stored in batteries. The sensors such as current and voltage sensors are used to measure the voltage and electricity supplied and fuzzy system will calculate the tariff and the calculated tariff will be send to the user via the internet. The experimental findings reveal that the energy generated by the suggested system is three times that of the system without intelligent functionalities. The Proposed approach improves the overall accuracy of the proposed Star, Chip based IoT Electrical Meter, and EMS is 99.03 %, 91.36 %, and 99.03 respectively.