Adapting Renewable Energy Policies To Dynamic Market Conditions

May 2014

High learning rates and rapid cost decreases for new technologies in recent years have combined with effective support policies to accelerate the spread of renewable energy around the world. However, this dynamism in the market creates new challenges for policy makers seeking to promote the long-term transition to renewable sources and technologies.

Adapting Renewable Energy Policies to Dynamic Market Conditions provides an overview of the challenges arising from the rapidly changing global market, along with various possible policy responses. For example, cost-tracking features, such as auctions for renewable energy, provide market transparency and predictability, along with helping to phase out support at the right time. Grid connections and storage must also be planned and upgraded in order to integrate growing shares of variable renewables, such as solar and wind power.

The report presents analytical frameworks to assess suitable policies for each country, depending on level of economic development, the desire to adopt wind, solar, smart-grid, storage or other specific technologies, and the need to address utilities, independent power producers and consumers.