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Policy Department A: Economic and Scientific Policy ____________________________________________________________________________________________ With increasing shares of renewable electricity in the grid, the question of energy storage becomes increasingly imminent. If not tackling this issue upfront, expansion of renewable electricity may come to a halt midway, unnecessarily losing development dynamics. Large-scale infrastructure transformation, like building new high-voltage power lines, often face resistence from local communities. On option to overcome this barrier could be to develop financial vehicles for the local population to economically partake in the venture, i.e. through a fair share of revenues being directed to the communities, or providing structures for local individuals to invest therein. Both vehicles have proven successful with the deployment of onshore wind power projects in Germany. There, the project organisation (often set up as a cooperative) is registered with the local community. People from the local community and beyond have invested into the venture, e.g. through a stake in the cooperative or a project fund. Support instruments Depending on the stage of techno-economic development and framework conditions, support instruments can facilitate the uptake of renewable energies at best, may have no impacts at all, or can fall short and can thus be a waste of money at the worst. Though instruments like renewable energy certificates (RECs), emissions trading scheme (ETS) and renewable portfolio standards (RPS) at first may be cost-effective in the short-term for industry stakeholders, the mid to long-term prospects are better with e.g. the feed-in-tariff (FIT). Indications are among others: - RECs/ RPS/ ETS: tendency for ‘boom & bust’ engagement; bias towards near term solutions (least cost option of today); falling short in promoting important long-term technologies like photovoltaics that require sufficient lead-time and that would benefit from today’s lower energy costs. - FIT: strongest in terms of planning certainty for all stakeholders involved; especially suited for the deployment of renewable energies that gain in importance in the longer run only, but require long lead-times to walk through the ‘death- valley’ of deployment cost. For more detailed discussions on support instruments, see chapter 3.1 Energy regulatory policy. Mind set Mind set is a barrier to the development and especially the deployment of renewable energies. With the development of energy policy frameworks, it is important to take into consideration that the conversion efficiency of photovoltaics and wind energy is much higher than with photosynthesis. This is a natural barrier that cannot be overcome and thus should guide all strategic considerations in future. Bioenergy is important, especially in the short-term and especially as a ‘drop-in’ technology. However, to date, it can be observed that bioenergy is much more likely to be grossly overestimated, while electricity-based renewable energies, such as wind and solar energies, are often grossly underestimated. This observation goes hand in hand with a preference of short-term considerations over long-term aspects and needs. 2.3.2. Offshore Wind A key barrier to the deployment of offshore wind energy is the double infrastructure question: (a) connection to the cost lines and (b) further on to the ‘hinterland’. IP/A/ITRE/ST/2009-11 & 12 66 PE 440.278PDF Image | Policy Department Renewable Technologies
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