SUPPORTIVE POLICY INSTRUMENTS
A wide range of remuneration schemes has traditionally supported Renewables’ projects. However, the most frequent schemes are:
- FEED-IN TARIFF (FIT) SYSTEMS: most popular scheme due to its simplicity and visibility for investors, where generators receive either a fixed payment for each unit of electricity generated regardless of the market price, or a payment on top of the market price (“Feed-in premium” and “Contract-for-difference” schemes).
- QUOTA OBLIGATIONS: on top of the market price, generators receive certificates for their final energy (“Green Certificates” or “GC”) which can be sold to the off-takers obliged to fulfill a specific quota (a share of energy that must come from renewable sources), therefore providing additional income to the generators.
- TENDERS AND AUCTIONS: are becoming increasingly popular, they do not represent a support category per se as they are used to allocate financial support to different renewables technologies and to determine the support level of other types of support schemes, such as feed-in systems, in a competitive bidding procedure.
- OTHER: includes investment grants, low interest loans and tax exemptions to support renewables.
The table below describes the overall current regulation in the geographies where EDPR operates.