This study was commissioned to help the Government in formulating its future policies on renewable energy in parallel with consideration of public responses to the Consultation Document issued by the Department of Communication, Marine and Natural Resources “Options for future Renewable Energy Policy, Targets and Programmes”.
Support mechanisms will be required to stimulate the deployment of most renewable energy technologies until they have matured and become competitive with existing energy technology options. A number of different measures can be employed to stimulate the development of renewable energy generation capacity.
The main objective of this study is to quantify the effects of renewable energy support mechanisms on society and on renewable energy deployment within Ireland.
In order to meet this objective the study:
- Provides a detailed economic, financial, and regulatory analysis of the various market based policy instruments that may be utilised to meet specified targets for penetration of RE in Ireland. The primary focus is on the four direct support mechanisms being currently employed in the OECD, namely feed in tariffs, competitive tendering, obligations with certificate trading and production tax credits.
- Seeks to increase the understanding of the various impacts of energy policy choices in Ireland. This is implemented by application of complex simulation tools (Green-X) that allows a robust understanding of the consequences of using various policy mechanisms. Over 40 scenarios are examined.
- Assists the formulation and implementation of the policy. This study contributes to decisions regarding implementation of an optimal RE support mechanism by clarifying the strengths and weaknesses of each support mechanism analysed for Ireland.