Tables 1 & 2: about direct & indirect support policy instruments

Tables 1 & 2: about direct & indirect support policy instruments

 

Table 1.  Direct support policy instruments: type and country examples

I.Fiscal incentive type Definition[1] Country examples[2]
Grant Monetary assistance that does not have to be repaid and that is bestowed by a government for specified purposes (e.g. preparation, purchase or construction of renewable energy equipment or related infrastructure) to an eligible recipient. China: Interim Measures on Renewable energy development fund Imposition and Management (2011)
United States: Grants for Production of Advanced Biofuels (2008)
United Kingdom: Offshore Wind Capital Grants Scheme (2002)
Energy production payment Direct payment from the government per unit of RE produced. Argentina: Renewable Energy Generation Program (GENREN) (2010)
Sweden: Support for solar heating investments (2009)
India: Generation based incentives for wind power (2008)
Rebate One-time direct payment from the government to a private party to cover a percentage or specified amount of the investment cost of a renewable energy system or service. Australia: Renewable Energy Bonus Scheme (2010)
Chile: Regulatory Framework for Solar Water Thermal (Law 20,365) (2009)
Poland: Excise tax rebates for biofuels (2007)
Tax credit (production or investment) Provides the investor or owner of qualifying property with an annual income tax credit based on the amount of money invested in that facility or the amount of energy that it generates during the relevant year. United States: Residential Renewable Energy Tax Credit (2006)
France: Tax Credit for Energy-Saving and Renewable Energy Equipment (2005)
Belgium: Tax deductions for investments in energy efficiency and renewable energy (2003)
Tax reduction/exemption Reduction in tax—including but not limited to sales, value-added, energy or carbon tax—applicable to the purchase (or production) of renewable energy or renewable energy technologies. Uruguay: Tax exemptions for renewable energy (2012)
Mexico: Accelerated Depreciation for Environmental Investment (2005)
Colombia: Tax exemptions and incentives for ethanol producers (Law 788) (2002)
II.Public finance type
Investment Financing provided in return for an equity ownership interest in a renewable energy company or project e.g. a government-managed or as a funder of privately managed funds. Australia: Clean Energy Finance Corporation (2012)
United Arab Emirates: Overseas Renewable Energy Development Assistance Programme (2012)
Brazil: Luz para Todos (Light for All) electricifation programme (2003)
Guarantee Risk-sharing mechanism aimed at mobilising domestic lending from commercial banks for renewable energy companies and projects that have high perceived credit (i.e., repayment) risk. Netherlands: Guarantee scheme for geothermal energy (2009)
United States: DOE Loan Guarantee Programme (2007)
United Kingdom: Renewable Energy Guarantees of Origin (REGOs) (2003)
Loan Financing provided to a renewable energy company or project in return for a debt (i.e., repayment) obligation. Germany: 2012 Amendment of the Renewable Energy Sources Act (EEG) (2012)
Denmark: Green Growth Agreement 2010-2012 (2009)
Russia: EBRD Loans for Russian Hydropower (2006)
Public procurement Public entities preferentially purchase renewable energy services (such as electricity) and/or RE equipment. South Africa: Renewable Energy Independent Power Producer Programme (REIPPP) (2011)
Latvia: Regulations Regarding the Production of Electricity Using Renewable Energy Resources and the Procedures for the Determination of the Price (2010)
India: Tariff Policy (2006)


[1] All descriptions taken from IPCC (2011) [39].

[2] All examples taken from IEA/IRENA (2013) [40]. All examples classified as “In force” by original source.

 

Table 2.  Indirect support policy instruments: type and country examples 

I.Quantity-driven regulation type Definition[1] Country examples[2]
Renewable Portfolio Standard / Quota obligation or mandate Obligates designated parties (e.g. generators, suppliers, consumers) to meet minimum renewable energy targets, generally expressed as percentages of total supplies or as an amount of renewable energy capacity, with costs borne by consumers. Republic of Korea: Renewable Portfolio Standard (RPS) (2012)
Ecuador: Biodiesel blending mandate (Decree 1303) (2012)
United States: Renewable Portfolio Standard — Colorado (2004)
Tendering / Bidding Public authorities organise tenders for given quota of renewable energy supplies or supply capacities, and remunerate winning bids at prices mostly above standard market levels. Indonesia: Power purchase from solar photovoltaic plants (Solar auction programme) (2013)
Uruguay: Wind power bid (2011)
Brazil: Electric power auctions – Wind (2009)
II.Price-driven regulation type
Fixed payment feed-in tariff (FIT) Guarantees renewable energy supplies with priority access and dispatch, and sets a fixed price varying by technology per unit delivered during a specified number of years. Japan: Feed-in tariff for electricity from renewable energy sources (2012)
China: Renewable Energy Electricity feed-in tariff (2012)
Germany: 2012 Amendment of the Renewable Energy Sources Act -EEG- (2012)
Premium payment FIT Guarantees renewable energy supplies an additional payment on top of their energy market price or end-use value. Italy: New Feed-in premium for renewable energy sources other than photovoltaic (2012)
Denmark: Feed-in premium tariffs for renewable power (Promotion of Renewable Energy Act) (2009)
Slovenia: Feed-in Tariffs and Premiums (2002)
III.Quality-driven regulation type
Green energy purchasing Regulates the supply of voluntary renewable energy purchases by consumers, beyond existing renewable energy obligations. United States: Green Power Partnership (2001)
Switzerland: Implementation of the Law on the Reduction of CO2 Emissions (CO2 Law) (2000)
New Zealand: Energy-Wise Councils Partnership (1999)
Green labelling Usually government-sponsored labelling that guarantees that energy products meet certain sustainability criteria to facilitate voluntary green energy purchasing. New Zeleand: EECA Business (2009)
Netherlands: Implementation of EU Energy Performance of Buildings Directive (EPBD): Energy Performance Certificate and Energy Labeling (2006)
Switzerland: Naturemade Labelling Scheme (2000)
IV.Access-driven regulation type Definition[3] Country examples[4]
Net metering (also net billing) Allows a two-way flow of electricity between the electricity distribution grid and customers with their own generation. Philippines: Rules Enabling Net Metering Program for Renewable Energy (2013)
Denmark: Regulation on Net-metering for the Producers of Electricity for Own Needs (2012)
Spain: Regulation of small power plants connexion to the electricity grid (Royal Decree 1699/2011) (2011)
Priority or guaranteed access to network Provides renewable energy supplies with unhindered access to established energy networks. Norway: Duty of negotiations on third party access to district heating networks (2013)
Tunisia: The Decree on connection and access of renewable electricity to the national grid (2011)
Chile: Access for Small and Non-Conventional Power Producers: Short Law I and II (2005)
Priority dispatch Mandates that renewable energy supplies are integrated into energy systems before supplies from other sources. Spain: Feed-in tariffs for electricity from renewable energy sources (2007)
Australia: Improving Grid Accessibility (2004)
Mexico: Grid interconnection contract for renewable energy (2001)


[1] All descriptions taken from IPCC (2011) [39].

[2] All examples taken from IEA/IRENA (2013) [40]. All examples classified as “In force” by original source.

[3] All descriptions taken from IPCC (2011) [39].

[4] All examples taken from IEA/IRENA (2013) [40]. All examples classified as “In force” by original source.

 

 

 

 

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