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In some contexts, it may also refer to technology that has not seen widespread use, but whose scientific background is well understood.
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Sign up to take part. A Nature Research Journal. Recent announcements highlight the increasing competitiveness of renewable electricity sources and signal that the need for subsidies may be approaching an end. However, this is exactly what was announced in mid-January 1. Further confirmation that renewable energy sources are finally reaching the age of maturity comes from the European Commission's EC recent Winter Package 2 , which consists of numerous legislative proposals aimed at further completing the Internal Energy Market IEM for electricity and implementing the Energy Union.
Although it is still subject to further scrutiny by the European Parliament and the Member States, the long-awaited package addresses a great number of important aspects of the future EU IEM, and indicates the main priorities and objectives that will shape the future of European electricity markets.
Energy efficiency is considered one of the core principles of the Energy Union. This target will be met through a number of approaches including new policies, better financing of energy efficiency conditions, strengthening the scope of requirements on products, vehicles and buildings, and greater consumer involvement. Regarding electricity market design, the Winter Package aims to ensure a level playing field between renewable and fossil fuel technologies.
Currently, renewable energy plants get priority dispatch, established as part of the Renewable Energy Directive 3. This means that electricity generated from renewable energy sources has priority access to the grid ahead of electricity generated from fossil fuels.
To compensate for the subsequent reduced profitability of traditional fossil fuel generators, and to ensure system reliability given renewable intermittency, capacity mechanisms were also introduced. Capacity mechanisms are payments, in addition to the wholesale market prices, that accrue to fossil fuel generation capacity kept available regardless of actual generation.
The Winter Package will abolish priority dispatch so that renewable sources have to bid for access alongside fossil sources. At the same time, the package will increase the necessity for cross-border coordination in the determination of new capacity payments.
Taken together, these measures suggest that the low carbon transition in the energy system will now need to seriously consider the affordability of renewable energy sources and the distortions that they cause to electricity markets by not being subject to market dynamics. While some 4 consider this process potentially dangerous for the sustained deployment of renewables in the EU Member States, it could also be considered an indirect acknowledgement of the competitiveness that new renewable energy generation technologies have reached globally.
The outgoing president of the United States, Barack Obama, recently echoed this sentiment 5. In his opinion market forces are providing a powerful boost to clean energy, above and beyond public support.
His words could certainly be interpreted as wishful thinking in the face of the forthcoming Trump presidency, which indeed appears to be less committed to climate change and the low carbon transition 6. However, the many signals stemming from large private and public investors operating in mature 7 and emerging 1 8 , 9 economies suggest that this optimism could be justified, for at least two reasons.
First, because expectations play a major role in market dynamics 10 , and thus the continually decreasing cost for low carbon technologies is drawing investments across the board. As they approach grid parity, renewable energy sources will be increasingly called upon to contribute to energy security and network stability without causing an unsustainable increase in electricity bills, while also providing the necessary ancillary and systems reliability services currently offered by fossil fuel sources.
The EC's Winter Package sets the perspective that those widespread incentives for renewable technologies might shortly come to an end, reminding us that the threshold of adulthood is getting closer for clean energy technologies.
Renewables could lose European power grid priority, documents reveal. Obama, B. Science , — Giberson, M. Energy 1 , The Guardian 5 January The Guardian 22 December Jaffe, A.
Download references. Reprints and Permissions. Nature Energy Energy and Buildings Energy Policy Advanced search. Skip to main content. Subjects Energy economics Energy efficiency Energy policy. Article Google Scholar 6 Giberson, M. Rights and permissions Reprints and Permissions. About this article. Schmidt Nature Energy Modular facade retrofit with renewable energy technologies: the definition and current status in Europe H.
Jones Energy and Buildings The early retirement challenge for fossil fuel power plants in deep decarbonisation scenarios Benjamin M. Kefford , Benjamin Ballinger , Diego R. Download PDF.
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