Ms Anna Geddes, ETH, Switzerland Prof Tobias Schmidt, ETH, Switzerland Keywords: state investment banks, innovation, public finance, technological change, renewable energy, project finance Renewable energy technologies (RETs) are considered essential to help mankind achieve its climate change goals . But there is a significant ‘financing gap’ for the projects required and many are concerned that investments for the large-scale diffusion of RETs will not materialise [2-4]. Public support and utilities’ balance sheets are constrained and, given the necessary scale of investment, private finance is required [5-8]. Meanwhile, to become competitive in the long term, further innovation is needed . In recognition of this issue, some governments have appointed State Investment Banks (SIBs) to accelerate the diffusion (and innovation) of RETs. For example the UK’s GIB was founded to foster a greener and more innovative economy by mobilising private finance into low carbon projects. Studies exist on why SIBs are being created and their role in the economy [9-11], but not regarding their impact on technological change. With this work we aim to answer the following questions: How and to what extent Read more…
Tags: De-risking, Energy efficiency, energy finance and investment, green investment banks, Innovation, project finance, public finance, renewable, Renewables, state investment banks, technological change, technological innovation systemsGeddes-The-Role-of-State-Investment-Banks-in-Tech-Change.pdf 1.31 MBGeddes-The-role-of-State-Investment-Banks-in-tech-innov-systems.pdf 289.01 KB
Mr Jostein Kristensen The recent proposal for a Renewables Directive from the European Commission has set a target on the UK to source 15% of total energy consumption from renewable sources. This is likely to require the development of a large amount of additional UK renewable electricity generation capacity using a variety of technologies. Some of these technologies—in particular, certain offshore generation technologies—have yet to be proven commercially viable. This is the case even with the financial supports provided in the UK, which include the Renewable Obligation and the associated tradeable Renewable Obligation Certificates. We present recent and on-going research by Oxera to assess whether current UK policies are likely to be successful in bringing forth sufficient renewable generation capacity by the private sector, and whether alternative policies (some seen elsewhere in the EU) are likely to be more effective, efficient, and/or robust. Based on a dynamic investment model, several scenarios of UK renewable generation deployment are shown, including an economic assessment of the efficiency of existing and potential price or quantity policy levers. In addition, the effectiveness of schemes Read more…Renewing-the-renewables-obligation-pres.pdf 237.59 KB
David Newbery, University of Cambridge 2008. What is the relationship between climate change, RD&D for low carbon investment and energy security? Security concerns are characterised as problem of cost rather than pure security of supply or market failures. However intervention is required to correct the market failures of carbon emissions and lack of RD&D. The right instruments are needed, including a credible future carbon price, to enable markets to deliver electricity investment. The EU 2020 renewables target is discussed together with who should pay for RD&D. The current policy of incorporating costs into electricity bills is highly regressive.
Tags: Carbon emissions, Carbon price, conference 2008, Consumer bills, Energy pricing, EU, Fossil fuels, Fuel poverty, Global, Non-fossil fuels, Nuclear, RD&D, renewable, security and sustainability, UK