RELP 1/2015



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Issue 1/2015

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Rafael Leal-Arcas
Editorial
Renewable Energy Law and Policy Review 1/2015: pp. 1-2 [Editorial]
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The current issue brings together four articles, two country reports, a book review, and an energy regulation forum report. The first article, by Anton Ming-Zhi Gao, analyzes the possibility of developing renewable energy infrastructure offshore in the aftermath of the Fukushima accident of 2011. The author makes the case that Europe has been a pioneer in recent years in facilitating large-scale deployments of offshore wind farms.

Anton Ming-Zhi Gao
Europe’s Policy Framework for Promoting Offshore Wind Energy: Lessons for Taiwan and Other Countries
Renewable Energy Law and Policy Review 1/2015: pp. 3-16 [Article]
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As a result of the recent proliferation of onshore renewable energy (RE) infrastructure in many developed countries around the world, related environmental and public concerns have arisen. Consequently, to facilitate further growth in RE, especially after the Fukushima accident of 2011, these and other countries are considering options for developing RE infrastructure offshore, or in less controversial spaces. Offshore wind farms (OWFs), for example, present a viable option for their energy policy. Europe, in particular, has emerged in recent years as a pioneer in facilitating large-scale deployments of OWFs. Taiwan has expended much effort in the development of offshore wind technology since the 2000s. In 2006, a formal policy to develop OWFs in Taiwan was announced as the first phase of offshore wind energy production, although progress from that point has not yet occurred. After the Fukushima accident, the government of Taiwan launched additional measures to realise the country’s ‘first’ OWF, creating the Office of Thousand Wind Turbines Promotion and a Demonstration Incentive Programme, and promulgating a Demonstration Subsidy Ordinance. Several demonstration projects are scheduled to be funded under this scheme, yet whether these efforts will result in Taiwan’s first OWF still remains to be seen. The purpose of this article is to draw lessons from the European experience to evaluate Taiwan’s approach in promoting OWFs, and identify the possible challenges and potential solutions. Ideally, such an analysis would also benefit other late-comers to the development of OWFs in strengthening their RE policy framework.

Pablo del Río, Anxo Calvo-Silvosa and Guillermo Iglesias
The New Renewable Electricity Support Scheme in Spain: A Comment
Renewable Energy Law and Policy Review 1/2015: pp. 17-24 [Article]
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A complex regulatory package implementing a new support scheme for renewable electricity has recently been adopted in Spain. The aim of this article is to describe the main elements of the new remuneration scheme and to provide a brief analysis of its main shortcomings. It is argued that the new system has several potential drawbacks. Its priority is not on increasing deployment, but on containing the total costs of support, making it potentially ineffective. The regulation is retroactive for existing plants, non-transparent, highly-risky for both existing and new plants (since basic parameters affecting the remuneration levels can be revised ex-post every 6 years), administratively costly and subject to the discretionary power certainly of the government. It is definitively not a best-practice model on which future support schemes elsewhere should be based. I. Introduction Spain has received worldwide attention in the last years because of high deployment levels of electricity from renewable energy sources (RES-E) between 2000 and 2009 and the implementation of measures to contain the costs associated to this deployment between 2010 and 2013. The government was certainly concerned about the substantial increase of RES-E support costs (see, e.g., the SpecialReport of the IPCC on Renewable Energy, Mitchell et al 2011)1. One of those cost-containment measures was a sine-die moratorium on support for RES-E deployment in January 2012. A new regulatory package and particularly the approval of Royal Decree (RD) 413/2014 on electricity from renewable energy sources on June 2014 (RD413/2014 fromnow on) has put an end to this moratorium and implemented a new RES-E support scheme, which involves a substantial rupture with

Temitope Tunbi Onifade
Global Clues for Choosing Suitable Support Systems for Renewable Energy in the Power Sector
Renewable Energy Law and Policy Review 1/2015: pp. 25-37 [Article]
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The article analyses schemes suitable for supporting the integration of renewable energy (RE) intopower sectorswithin jurisdictions. Its thesis is that stable andpredictable regulatory frameworks that enhance RE are prerequisite for successfully integrating RE into energy streams in the power sector. It employs qualitativemethods, and relies on primary and secondary sources. It contributes to the literature by building on existing classifications of RE support systems, revealing clues for choosing mechanisms that offer the best potential for successfully integrating RE into countries’ energy streams. It reveals that production-based support mechanisms are better for supporting RE projects than investment-based support systems, and identifies the fixed and premium feed-in tariff models as tested reliable support mechanisms. It recommends that jurisdictions should adjust these models alongside energy efficiency to suit their peculiarities, and government interference with RE policy should be moderate, mainly focusing on setting predictable legal and investment conditions and providing incentives. It concludes that jurisdictions should give closer attention to the design of processes underpinning support mechanisms, rather than the choice of support mechanisms they eventually employ.

Rafael Leal-Arcas, Costantino Grasso and Juan Alemany Ríos
Multilateral, Regional and Bilateral Energy Trade Governance
Renewable Energy Law and Policy Review 1/2015: pp. 38-87 [Article]
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The article analyses schemes suitable for supporting the integration of renewable energy (RE) intopower sectorswithin jurisdictions. Its thesis is that stable andpredictable regulatory frameworks that enhance RE are prerequisite for successfully integrating RE into energy streams in the power sector. It employs qualitativemethods, and relies on primary and secondary sources. It contributes to the literature by building on existing classifications of RE support systems, revealing clues for choosing mechanisms that offer the best potential for successfully integrating RE into countries’ energy streams. It reveals that production-based support mechanisms are better for supporting RE projects than investment-based support systems, and identifies the fixed and premium feed-in tariff models as tested reliable support mechanisms. It recommends that jurisdictions should adjust these models alongside energy efficiency to suit their peculiarities, and government interference with RE policy should be moderate, mainly focusing on setting predictable legal and investment conditions and providing incentives. It concludes that jurisdictions should give closer attention to the design of processes underpinning support mechanisms, rather than the choice of support mechanisms they eventually employ.

Danai Fati and Panagiota Makri
Greece: Major Changes to the Greek Support Scheme for Renewable Energy Production – The ‘New Deal’ Legislation and Its Implementation to Date
Renewable Energy Law and Policy Review 1/2015: pp. 88-91 [Report]
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I. Introduction On 7th April 2014, the Greek Ministry for Environment, Energy and Climate Change adopted Law 4254/2014 (Government Gazette Nr. 85/7.04.2014) including a series of measures aiming at reshaping the Greek RES market.The main changes introduced concern a) a retroactive cut on the amount due to producers for the year 2013, in the form of a lump sum discount offered to the Market Operator and b) unilateral amendment on the term of the existing Power Purchase Agreements concerning the purchase price for energy produced hereafter.

Cătălin Gabriel Stănescu
Romania: The Target for Renewable Energy Production for 2020 Has Already Been Reached – but Is It Really Good News?
Renewable Energy Law and Policy Review 1/2015: pp. 92-94 [Report]
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In 2014, Romania has reached the renewable energy production target for 2020. However, this is not necessarily good news. The green certificates prices have reached their peak,which poses heavy burdens on national companies. These burdens are reflected in the price of Romanian products, which makes them non-competitive on the EU market. On the other hand, governmental measures taken in order to ease the burden of local producers are chasing away investors in renewable energy.

Dr Youseph Farah
Book Review
Renewable Energy Law and Policy Review 1/2015: pp. 95-96
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International Energy Governance: Selected Legal Issues
By Rafael Leal-Arcas, Andrew Filis, Ehab S. Abu Gosh – Cheltenham: Edward Elgar, 2014

Leigh Hancher, Adrien de Hauteclocque and Malgorzata Sadowska
Florence School of Regulation FSR & BNetzA Forum on Legal Issues of Energy Regulation
Renewable Energy Law and Policy Review 1/2015: pp. III-VII
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The 7th FSR & BNetzA Forum on Legal Issues of Energy Regulation took place on 6 February 2015 at the Berlin Office of Linklaters LLP.


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