Feed-in-premium renewable energy support scheme: A scenario approach

Abstract

Topics such as energy demand, energy security and greenhouse emissions have made countries around the world turn to more environmentally friendly resources to produce electricity. Due to their stochastic behaviour (particularly wind energy and solar photovoltaics (PV)), the energy producers that are renewable energy driven need concrete financial mechanisms in order to sell their generated electricity under uncertainty in a highly competitive environment. In this work, the application of the Feed-in Premium (FiP) policy in the Greek wholesale liberalised electricity market is compared against a multiple revenue stream tactic. The investigation of the financial performance is conducted in terms of Net Present Value and Complete Payback Period of a 10 MW wind park and a 2 MW solar PV park and is questioned under a multiple revenue stream approach. It was found for projects that offer at least 75% of their electricity production to the market, if their operation licence is extended for five more years, incentivising them to participate in the FiP scheme, instead of the Feed-in-Tariff one, this will increase their profitability in most cases, for both wind and PV projects.