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- Analysis of a wind farm's revenue in the British and Spanish markets
Jorge L. Angarita-Marquez, C. A. Hernandez-Aramburo and J. Usaola-Garcia. Energy Policy, Vol. 35, No. 10, Oct 2007, pp. 5051-5059. The composition of the revenue of a wind generation company (WGENCO) under two different European markets is estimated in this paper. The two markets under consideration (British and Spanish) have a very different structure; the Spanish market is a pool-based system while the British market encourages bilateral trading. These markets have also different ways to provide incentives to wind farms, and deal with the trading imbalances to which they are particularly susceptible given the variability of the resource. All these conditions are explained and accounted for in our study of a hypothetical WGENCO that can participate in the two markets. Real wind profiles, two wind-speed forecasting tools and market rules and conditions are used to estimate the WGENCO's revenue over a period of 3 months. Our results show that the net revenue would have been fairly similar under the two market structures; however, the composition of this revenue shows significant differences in terms of renewable incentives and generation revenue.; All rights reserved, Elsevier
- Between fragmented authoritarianism and policy coordination: Creating a Chinese market for wind energy
Adrian Lema and Kristian Ruby. Energy Policy, Vol. 35, No. 7, July 2007, pp. 3879-3890. The Chinese grid-connected wind energy sector has undergone a number of fundamental changes during its 20 years of existence. The scope of this article is to track the reforms of the energy bureaucracy and its policy approach on the one hand and changes in wind energy installations on the other. By comparing three historically distinct phases of wind energy in China it is shown how policy reforms have changed largely from a state of 'fragmented authoritarianism' towards policy coordination. In the initial phase (1986-1993), wind energy was expanding very slowly with disjointed policy making and in the incremental phase (1994-1999), the energy authorities were in dispute over the strategy and launched conflicting policy initiatives with poor results in wind energy output. The latest coordinated phase (2000-2006), however, developed a coherent renewable energy agenda and policy regime for the wind power sector. It is found that this phase with coordinated market regulations and incentives has helped give birth to a take-off in Chinese wind energy installations and substantial cost reductions, although the latter is threatening the profitability of wind farms. The article contributes to the academic debate over the role of policy making in renewable energy development and argues that China should continue, and improve, the coordination of regulations and incentives. [Copyright 2007 Elsevier Ltd.]
- Big Is Beautiful: Green Utilities Grow, but Not Fast Enough
Christian Parenti. The Nation, Vol. 284, No. 18, May 7 2007, pp. 14-18. Examines the development of renewable utilities, the industry's key players, the sector's relationship to the rest of the economy, & the real economics of creating a green power grid. Attention is given to wind, solar, & hydropower. A call is made for state intervention in the form of tax incentives & subsidies to assist in the building of a green grid. Adapted from the source document.
- Fostering a renewable energy technology industry: An international comparison of wind industry policy support mechanisms
Joanna I. Lewis and Ryan H. Wiser. Energy Policy, Vol. 35, No. 3, Mar 2007, pp. 1844-1857. This article examines the importance of national and sub-national policies in supporting the development of successful global wind turbine manufacturing companies. We explore the motivations behind establishing a local wind power industry, and the paths that different countries have taken to develop indigenous large wind turbine manufacturing industries within their borders. This is done through a cross-country comparison of the policy support mechanisms that have been employed to directly and indirectly promote wind technology manufacturing in 12 countries. We find that in many instances there is a clear relationship between a manufacturer's success in its home country market and its eventual success in the global wind power market. Whether new wind turbine manufacturing entrants are able to succeed will likely depend in part on the utilization of their turbines in their own domestic market, which in turn will be influenced by the annual size and stability of that market. Consequently, policies that support a sizable, stable market for wind power, in conjunction with policies that specifically provide incentives for wind power technology to be manufactured locally, are most likely to result in the establishment of an internationally competitive wind industry. [Copyright 2006 Elsevier Ltd.]
- The potential for wind energy meeting electricity needs on Vancouver Island
R. Prescott, G. C. van Kooten and H. Zhu. Energy & Environment, Vol. 18, No. 6, 2007, pp. 723-746. In this paper, an in-depth analysis of power supply and demand on Vancouver Island is used to provide information about the optimal allocation of power across 'generating' sources and to investigate the economics of wind generation and penetrability into the Island grid. The methodology developed can be extended to a region much larger than Vancouver Island. Results from the model indicate that Vancouver Island could experience blackouts in the near future unless greater name-plate capacity is developed. While wind-generated energy has the ability to contribute to the Island's power needs, the problem with wind power is its intermittency. The results indicate that wind power may not be able to prevent shortfalls, regardless of the overall name-plate capacity of the wind turbines. Further, costs of reducing CO sub(2) emissions using wind power are unacceptably large, perhaps more than $100 per tCO sub(2), although this might be attributable to the mix of power sources making up the Island's grid.
- Regional Renewable Energy Policy: A Process of Coalition Building
Sarah L. Mander. Global Environmental Politics, Vol. 7, No. 2, May 2007 2007, pp. 45-63. In 2003, the UK Government adopted a target to reduce carbon emissions by 60 percent by 2050, a longer term commitment than is required under the Kyoto Protocol. Given that increasing low carbon generating capacity is essential to achieve the required carbon reductions, renewable energy policies are a central element of overall climate change policy. To facilitate the building of renewable capacity, greater responsibility has been placed upon the English regions, with the advent of regional sustainable energy strategies, though there remain many profound tensions between the liberalized UK energy system and the adoption of a more strategic approach to renewable energy at the regional scale. This paper uses a 'discourse analysis' framework to explore wind energy policy in the North West of England from the perspective of competing coalitions. In the light of this assessment, it is concluded that the implementation of national energy policy at regional and sub-regional scales can be considered as a process of coalition building, where Government is reliant on building partnership between state and non-state actors to achieve its objectives.
- Renewable Energy in Future Energy Supply: A Renaissance in Waiting
Marianne Haug.
Quarterly Journal of International Agriculture, Vol. 46,
No. 4, 4th Quarter 2007, pp. 305-324.
Renewable energy has hardly kept pace with global energy supply since 1990, despite two digit growth rates for wind energy, solar PV, and biofuels and despite ambitious national and regional targets for renewable energy expansion in a large number of countries. In 2005, renewables accounted for 12.7% of global energy supply of which more than half is traditional biomass in developing countries. While global growth is still stagnating, the composition of renewables is changing towards "modern" renewables for electricity, heating and transport. The potential of renewables to supply mankind with energy is huge. No resource constraints exist for solar, wind, geothermal and wave, but only a two to three fold expansion of hydro energy is likely, and no consensus exists about the limits for sustainable bioenergy. Carbon constraint and market pull policies for renewables should support an accelerated uptake of renewables in the coming decade as other low carbon technologies have not yet reached the commercialization stage or struggle for social acceptance. Over the medium and long-term, renewables will have to compete not only with fossil fuel, but with new low or zero carbon technologies or transformatory energy carriers. Thus, the share of renewables in future energy supply is likely to reach a plafond as countries aim for diversity, and adopt a mix of energy policies. Policies--more than cost or resources--will determine the speed of renewables growth and its overall contribution to future energy supply in the next decades.
- The rise of community wind power in Japan: Enhanced acceptance through social innovation
Yasushi Maruyama, Makoto Nishikido and Tetsunari Iida. Energy Policy, Vol. 35, No. 5, May 2007, pp. 2761-2769. The purpose of this paper is to analyze the socio-economic dynamics that are brought about by renewable energy technologies. We call this dynamic "Social Innovation" as it changes the rules of risk-benefit distribution and the roles of social actors. For this purpose, we take up a typical case in Japan, community wind power in which the initial cost is funded by the investment of citizens. Through this case study, we examine how the citizens' initiative can affect the social acceptance of renewable energy as well as social change. Based on interviews with those involved in these projects, we analyze the interests of the various actors involved in community wind power projects in a framework of "actor network theory", which enables us to understand the detail of each actor's position. This study also involved a quantitative survey of investors. The case study clarified that there was a remarkable difference in the interests of the main actors in the community wind power projects, the networks are complex and actors share various interests such as economic interests and a sense of social commitment, participation and contribution. These incentives are also clarified in quantitative data. However, the variety of incentives differs in each project. [Copyright 2007 Elsevier Ltd.]
- What to expect from a greater geographic dispersion of wind farms? A risk portfolio approach
B. Drake and Klaus Hubacek. Energy Policy, Vol. 35, No. 8, Aug 2007, pp. 3999-4008. The UK, like many other industrialised countries, is committed to reducing greenhouse gas emissions under the Kyoto Protocol. To achieve this goal the UK is increasingly turning towards wind power as a source of emissions free energy. However, the variable nature of wind power generation makes it an unreliable energy source, especially at higher rates of penetration. Likewise the aim of this paper is to measure the potential reduction in wind power variability that could be realised as a result of geographically dispersing the location of wind farm sites. To achieve this aim wind speed data will be used to simulate two scenarios. The first scenario involves locating a total of 2.7 gigawatts (GW) of wind power capacity in a single location within the UK while the second scenario consists of sharing the same amount of capacity amongst four different locations. A risk portfolio approach as used in financial appraisals is then applied in the second scenario to decide upon the allocation of wind power capacity, amongst the four wind farm sites, that succeeds in minimising overall variability for a given level of wind power generation. The findings of this paper indicate that reductions in the order of 36% in wind power variability are possible as a result of distributing wind power capacity.; All rights reserved, Elsevier
- Wind power implementation in changing institutional landscapes: an international comparison
S. Breukers and Maarten Wolsink. Energy Policy, Vol. 35, No. 5, May 2007, pp. 2737-2750. In order to understand diverging achievements in wind power implementation, the Netherlands, England, and the German state of North Rhine Westphalia are compared in a multiple cases study. The comparison addresses the extent to which wind power, as a new energy technology, has become embedded in existing routines and practices of society. The concept of institutional capacity building is adopted to qualify the trajectories followed, taking into account the interdependent and changing political, economic, environmental and planning conditions. Moreover, attention is focused on the conditions that affect the local planning contexts, because that is the level at which conflicts are eventually played out and where a lack of social acceptance becomes manifest. This comparison partly clarifies diverging achievements in terms of implementation. Local social acceptance is problematic-to various degrees-in all three cases. Policymakers and wind project developers do not sufficiently recognise the nature of tensions at the local level. Facilitating local ownership and institutionalising participation in project planning can help to arrive at a better recognition and involvement of the multiple interests (environmental, economic and landscape) that are relevant at the local level of implementation.; All rights reserved, Elsevier
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