Harmonization of renewable electricity feed-in laws in the European Union

This paper focuses on the harmonization of feed-in laws in the European Union as a support mechanism for the promotion of renewable electricity. In particular, it proposes a methodology for harmonization based on a feed-in law with a modular and transparent premium for renewable electricity producers. This premium considers technology costs, some grid services, political incentives and national priorities. The proposed approach includes flexibility mechanisms to update and revise premiums, to avoid windfall profits for producers, and to share technology innovation benefits with electricity consumers while maintaining incentives for innovation. Our approach is based on the review of the main features of the German and Spanish feed-in laws, and takes into account other necessary considerations for harmonization, such as grid access, funding, definitions and standards, ownership of rights derived from renewables, and exceptions for small non-commercial producers and energy-intensive industries. (c) 2006 Elsevier Ltd. All rights reserved.