Promotion Systems for Electricity Generation from Renewable Energy Sources Revisited

To increase the share of electricity from renewable energy sources (RES-E) different strategies are implemented in various countries. The core objective of this paper is to extract lessons learned from promotion schemes in Europe and to derive resulting recommendations for future. The major results are: (i) The success stories of RES-E in Europe in recent years has been triggered by FITs; A well-designed (dynamic) FIT provides a certain deployment of RES-E fastest and at lowest costs for society; (ii) TGC systems in recent years especially in Europe have eroded gradually: they have come closer and closer to FIT (like in Italy or Belgium). The only country where certificate trading systems prevail with good performance is Sweden.