Full Title: Adapting Renewable Energy Policies To Dynamic Market Conditions
Author(s): Salvatore Vinci, Divyam Nagpal and Rabia Ferroukhi, Ethan Zindler and Anna Czajkowska
Publisher(s): International Renewable Energy Agency
Publication Date: 5/2014


The conditions affecting renewable energy policy-making have shifted dramatically within a very short time span. In some countries and jurisdictions, rapidly declining renewable generation costs have made it challenging to set “appropriate” levels of public support. In others, the proliferation of renewables is having unanticipated consequences for power grids and markets. Meanwhile, almost everywhere, tighter post-recession fiscal conditions have meant that fewer funds are available to support the industry.

This report sets out to provide an overview of selected challenges emerging from dynamic markets and policy responses being adopted to address them. In particular, it identifies four key challenges faced by policy makers today: 1) accounting for rapidly falling renewable generation costs, 2) addressing tax/rate-payer burdens, 3) accounting for renewable energy’s cost competitiveness, and 4) integrating variable renewable power. For each of the challenges, innovative policies being implemented or proposed around the world are analysed with the aim to assess their recent or potential impact and to highlight their potential risks. Through the analysis, the report gathers “lessons learned”. A framework is then presented that allows policy makers to assess the suitability of specific policies to different contexts.