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System effects of the subsidy regime for a wind power in Sweden and Denmark
Panel: Panel 5: Energy Policy for a Sustainable Environment
Author:
Peter Helby, Department of Environmental and Energy Systems Studies, University of Lund
Abstract
This
study comprise analysis and discussion of incentives inherent in
the Swedish and Danish subsidy regimes for household owned wind
power.
New results include an evaluation of the subsidy value of income
and VAT tax breaks available to investors, and a demonstration of
the importance of the choice of ownership arrangements for the profitability
of wind power projects.
The study outlines the complex restrictions associated with different forms of wind power ownership. These cause the investment market to be highly segmented. The discussion includes several irrational system effects of the subsidy regimes. Among these are collision with energy saving goals, excessive capital costs, dubious siting decisions, and distorted competition among technologies.
In conclusion, some policy recommendations are suggested.
Paper
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