Researchers analyses the electricity market in Spain during the 2008-2012 period -a time of maximum renewable penetration in Spain when energy production within the Special Scheme saw a 57% increase and quantifies its cost.
From an economic perspective, the question focuses on determining the cost of the feed-in tariff systems.
· The incentives are as expensive as has been maintained in most recent regulatory modification.
· The effect is similar with respect is similar with respect to all renewable technologies.
The researchers have conducted the study as follows-
· Firstly, they measured the market savings produced by participating in renewable sources.
· Secondly, they calculated the amount paid in the form of incentives to green energy.
The difference between the two figures represents the net cost of renewable energy. The results of this research point to the importance of designing the incentive systems correctly and the risk of oversizing the feed-in tariff for some technologies.
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