Sawin 2004 National Policy Instruments

On hard drive.

• Paper discusses pros and cons of various policies used to encourage RE implementation.
• 27 Summary of recommendations:
• Favors pricing systems (feed-in laws) over quota systems as incentive to invest in renewable energy. Pros and cons on 16-17.
• Provide net metering for small scale renewables so individuals/businesses can get money for surplus electricity fed into grid
• Favors production payments rather than tax credits as incentive to provide renewable energy (tax credits can lead to investment in subpar infrastructure without subsequent power generation)
• Long-term, low interest loans as incentive to investment
• Favors investment rebates over tax credits (equal benefits to everyone, even those with low existing tax burdens)
• Favors rebates per unit of capacity over rebate on total cost, as way to encourage most efficient/least cost options
• Tie investment incentives to technology or production standards, to prevent RE investment being used as tax shelter
• Subsidies should phase out over time, to encourage technological development and cost reduction
• Recommends central global clearinghouse for information on RE: resource availability, capacity and generation statistics, government incentives, policy successes and failures
• National training programs in vocational schools, universities
• Public ownership of facilities and participation in policy formation and siting decisions to increase buy-in
• Standards for technology performance, safety, siting
• Standards for grid connection to eliminate onerous utility interconnection requirements and charges
• Create or strengthen building codes to promote EE and RE
• Internalize external costs of fossil fuels and external benefits of RE into prices through taxes and subsidy shifting
• Government procurement of RE to advance tech, decrease costs, increase awareness
• Most of all, policies must be predictable, long-term, and consistent
• Policies should also be appropriate (for area and technology type, neither too high nor too low), flexible, enforceable, clear, simple, and transparent
• Includes boxes on: Brazil and ethanol, Germany and feed-in law, India and RE, Japan and PVs, California and public benefit funds and San Francisco solar bond initiative, policies for developing countries
• HOW WOULD PUBLIC INVESTMENT IN RE FIT HERE? DOES IT OVERCOME HURDLES MORE EFFECTIVELY THAN THE POLICIES DESCRIBED? DOES IT CREATE PROBLEMS OF ITS OWN? ALSO, IF RE DOES COST MORE, NEED TO ADDRESS THIS ADDITIONAL BURDEN ON POOR.