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The design and sustainability of renewable energy incentives: An economic analysis

This comprehensive study assesses the effectiveness of different types of incentive mechanism for renewable energy, including feed-in tariffs, portfolio standards, quotas, auctions, and avoided cost tariffs. It provides a global taxonomy of the different economic and financial incentives provided by renewable energy support schemes. The study considers the effectiveness of incentive mechanisms, the details of tariff design, the integration of climate finance considerations into existing regulatory processes, and financing and affordability issues. The work is based on detailed case studies of Brazil, Egypt, Indonesia, South Africa, Sri Lanka, Tanzania, Turkey, and Vietnam, which are included in the report. This study will be of use to policymakers and advisors considering the design of incentive schemes and who wish to take economic principles and evidence into account when setting targets and tariffs.

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