engleski

The Role of "Green" Electrictiy Generation Incentives

Despite significant investments and incentives, renewable energy resources are still not economically competitive to traditional fossil energy resources, except for isolated sustainable power systems detached from the national electricity grid. As far as the cost of “green” power production, or the power generated from renewable resources, is not approximately equalized to the cost of fossil energy resources, or until the renewable energy technologies become competitive, it is necessary to make a considerable effort in the form of financial incentives and support towards the renewable energy sector. This implies further improvement and application of renewable energy technologies, which should stimulate the development of domestic production of energy equipment and services, the creation of new jobs and development of entrepreneurship in the energy sector and other related industries, the creation of new, innovative technologies and ultimately development of economy in general. The purpose of this study is to determine the significance and the role of measures, or public authorities' incentives to stimulate production and greater use of “green” electricity. Thereby the paper analyzes various systems of stimulation, such as preferential purchase prices, or feed-in tariffs for generated energy, models of market premiums, systems of mandatory quotas, certificates, models of direct subsidies for renewable resources installation, support for research and development, and other. The paper confirms the hypothesis about the impact of incentives on the increased use of renewable energy resources in EU Member States. Moreover, even though there is a potential for renewable resources, further action is necessary in the form of technical and administrative/legislative mechanisms in order to grow and develop the renewable energy market.

incentives, renewable energy resources, “green” electricity, guaranteed purchase price, development of economy

Zbornik indeksiran u Web of Science, EBSCO, Thomson Reuters, EconPapers ISSN 1848-9559