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Energies 2017, 10, 413 5 of 26 The European Union is devoted to complying with the Kyoto Protocol in order to control the energy consumption, to increase the share of renewable energy and to improve energy efficiency. According to the 2009/28/EC directive, it is favourable to support the demonstration and commercialization phase of decentralized renewable energy production due to multiple benefits occurring with such an investment. The European Council set a binding target of 20% final energy consumption from renewable sources by 2020. To this end, each of the Member States is required to develop national action plans (for example, the National Renewable Energy Action Plan, the National Energy Efficiency Action Plan) tailored to their own resources. The European incentive scheme [26] provides the following incentive systems: • Feed-in Tariffs (FiTs) • Premium Tariffs (FiP) • Green certificates/quota obligations • Investment incentives • Auctions/tenders • Net metering A Feed-in Tariff (FiT) is an energy supply policy to encourage the spreading of renewable energy technologies. FiT ensures a pre-defined sale agreement for the electricity produced and fed to the grid for a defined contract period (typically 10–25 years), which compensates for the extra costs incurred in regards to investments in renewable technologies. FiTs are independent of market price and ensure a revenue stream to those who install power plants based on the production of energy from renewable sources. The financial support provided is differentiated by technology type, project size and country. For instance, incentives for biogas and biomass are granted based on several factors (e.g., quality, composition, installed capacity). Figure 3 provides the spectrum of FiTs for different European countries for the year 2016 [27]. 30 25 20 15 10 5 0 Figure 3. 2016 feed-in tariffs in European countries [27]. Figure 3 shows bars that represent the range of incentives provided by different European countries for those who install plants based on technologies eligible for FiTs. Taller bars refer to those countries that provide incentives sorted by renewable technology adopted and plant size. Smaller bars refer to those countries in which the incentives are not differentiated. Notice that the taller bars correspond to the European countries in which the support from FiTs is higher. As can be observed from Figure 3, some countries present more complex subsidies plans (e.g., Germany and Italy) than others (e.g., UK and Poland). The overall amount dedicated to feed-in tariff schemes is recalculated annually. Premium tariffs offer a premium on top of the market price to those who produce electricity from renewable sources. As opposed to FiT, which guarantee a predictable return on investment €ct/kWhPDF Image | Small Scale Organic Rankine Cycle (ORC)
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