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• Market and financing barriers; and • Institutional and policy barriers. Ultimately, all of the barriers affect RETs in one of two ways – either they prohibit the installation of a RET for a particular application, or they cause a reasonably economical RET application to become uneconomic. Information barriers relate to the lack of information about RETs or the existence of confusing or incorrect information on their performance. Stakeholders affected by these barriers include independent power producers, energy consumers, utilities and retailers, permitting agencies, investors, and the civil service. Information barriers affect stakeholder decision-making in the marketplace by biasing decisions against the installation of economically or socially efficient RETs, such as micro- and small-scale hydro. Market and financing barriers include access to the transmission grid and to the market in general, pricing, supply and demand characteristics, and obtaining project financing. In addition to obtaining an appropriate price for the sale of electricity, investors require long term pricing or other instruments to manage risk and uncertainty. Financial barriers also relate to taxation structures for energy suppliers, behaviour of investors, and issues surrounding market externalities such as environmental impacts. In addition, there is a gap between the demand for greener sources of electricity and the supply of companies and resources to meet this new need. Institutional and policy barriers pertain to the market and regulatory structure, including energy regulations, utility culture, technical requirements, and procedures for connecting small-scale hydro installations to the electricity grid. Many of these barriers may exist because of an historical orientation of the electricity market toward large-scale centralized power supplies such as storage hydro or large natural gas projects. Thus, the policy and market structures (rules and standards) reflect that history and may disadvantage smaller-scale, distributed, RET supplies. The three types of barriers often overlap and interact – for example, information barriers affect investor behaviour (a financing barrier). Similarly, transaction costs to connect the grid system will affect the financial performance of an investment. These broad organizational categories were used to describe more specific barriers that apply to small-scale hydro projects in the three accompanying tables (Table 1 for Information Barriers; Table 2 for Market and Financing Barriers; and Table 3 for Institutional and Policy Barriers). The relevancy of the barriers for different stakeholders will change over different stages of project conception, assessment, approvals, and development. The barriers that are listed are primarily those faced by independent power producers. However, there are also barriers that are faced by consumers who want to purchase green power, yet are unable to access it.PDF Image | Organisations in Different Renewables
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