Costs and prices for renewable energy development in industrialized countries and applications to China

Abstract

Developing renewable energy is now becoming a hot topic as it is important in dealing with climate change issue and energy supply issue. With the growing demand of energy, it has become urgent to develop the effective policies and measures that would enable people to maintain the living standards. Among all the measures, price is an essential one. In order to evaluate the costs and prices of the electricity from renewable energy sources (RES-E) and their effects to the market, this paper firstly focus on the extra costs of the RES-E by breaking it into four parts, including investment, construction, connection and operation. Then, the policy choices made in some typical industrialized countries are examined to find answers to the problems RES-E can raise. Finally, the choices made in China are examined in comparison to industrialized countries so as to determine how the current situation could be improved.

Keywords

renewable energy / public policy / costs / prices / renewable portfolio / feed-in tariff

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