TBP04-LevelField.pdf (671 KB)

Authors: Jonathan Pershing, Jim Mackenzie (WRI)

Energy sectors around the world, especially power and gas, are currently adapting to the reform and liberalisation paradigm. The loosening of formerly integrated supply chains, the introduction of competition at various levels of the energy value chain, and the regulation of consequent new markets provide new opportunities for renewable energies: they make more and more transparent the cost and subsidy structures that have remained hidden in uncompetitive markets.

There is an ongoing discussion about both the internalisation of external costs in energy prices and about the internalisation of benefits in the prices of renewable energies. Apart from the purely economic arguments, it is important to consider barriers to increased use of renewable energy technology stemming from various legislative provisions or administrative procedures. For example, it is important to facilitate and sometimes even to favour grid access for renewable energy sources so that renewable electricity can be competitive within the system.

Similarly, a number of administrative barriers hinder the accelerated growth of markets for renewable energies. Administrations often lack the capacity to understand and efficiently regulate factors peculiar to renewable energy sources. Another important related issue is the slow progress of standardisation in this field.

Among the barriers the authors consider pertinent, this paper provides a discussion of import barriers to renewable energy technology and related services.