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Which policy design for which stage of market maturity?

REN 21 Renewables Academy Bonn 10 November 2014

Renewable Energy Policy Frameworks

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…since Renewables 2004

• Number of countries with RE support policies has tripled (45-138)

• The vast majority adding policies are non-OECD countries (86%)

• A profusion of different types of policies and combinations of them

• An increasing focus on generation (MWh) rather than just installation (MW)

• Increasing focus on cost competitiveness

• Increasing focus on market design issues

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• Some expression of political commitment from the government

• Effective rule of law and transparency

• Financing Mechanisms: a clear and effective pricing structure

• Grid Access: Provisions for priority access to the grid; connection

availability and ease of grid access for wind farms

• A government and/or industry led strategy for public and

community buy-in/acceptance and awareness

• An industrial development and employment strategy

• A functioning finance sector

Key Elements for any Policy to work

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Additional Questions in relation to Auctions

1. Is the bar set high enough to keep out speculators?

2. What do you get at the end of the auction: a contract, or a

chance for one?

3. Consequences/penalties for not living up to the terms of the

auction?

4. Where are the sites?

5. How much is being auctioned at any given time?

6. Who’s responsible for the grid connection?

7. How does local content figure?

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GSR Key Findings

• Transformation not just integration

• Level the playing field – externalities, markets, etc.

• Stability, Stability and Stability

• Build on local successes

• Horses for courses – policies per technology

• Electricity is great, but…we need more focus on

heating/cooling and transport

• Data is critical

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Electric vehicles

Heat p

umps

Elec

tric b

oile

rs

electricity

energy

emission

50% of electricity demand

Flexible and Coherent Energy System

Source: Energinet.dk

Thank you!For more information:

Steve Sawyer, GWEC

Steve.Sawyer@gwec.net

Beijing | Brussels | Washington

Beijing | Brussels | Washington