Analysis of arguments for and against mandatory renewable energy targets
To answer these questions, renewable energy incentive schemes were assessed in the Netherlands, Denmark, Germany and Spain (all with subsidies) and Belgium, Poland, the United Kingdom and Sweden (all with mandatory targets).
The report concludes that there are at present no clear indications that mandatory targets are more cost-effective than subsidisation as long as the share of renewable electricity is still limited (up to 2020). To support the longer-term energy transition, however, from 2015 onwards mandatory targets will need to be gradually introduced as a means of achieving a timely shift in investments from conventional to renewable sources, essential for the envisaged transition. How mandatory targets can best be introduced in the Netherlands is an issue requiring further study.
The present study was commissioned by the Dutch Association for Energy Markets (VME).
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