The Economic Sustainability of Variable Renewable Energy Considering the Negotiation of Different Support Schemes

The increase in the prices of fossil fuels and environmental issues are leading to a high investment wind power solar photovoltaic all over Europe, reducing its dependence on imported fuels. European countries started incentive programs for these renewable technologies, which consisted fixed market premium feed-in tariffs. These schemes involve long-term contracts with updated inflation. incentives highly installation new capacity Europe. They lead penetrations systems but originate tariff deficit due difference between tariffs paid technologies. End-use consumers pay retail This work analyzes market-based remuneration variable energy considering different support role risk-sharing mitigating spot price volatility. It presents models able negotiate bilateral risk management, notably attitude sharing, bid establishment, clause (by-laws) negotiation. Furthermore, evaluate economic sustainability generation Spain, it study 12-year starting 2010. results confirmed that, case using during crisis periods, incidence low (price “cannibalization”) decreases, such as deficit. high-inflation hedge against prices, resulting an surplus consumers.