The Estonian RES Subsidies Influence on the Market Participants in the Estonian Electricity Market
Author
Mets, Maiken
Term
4. Term
Publication year
2011
Submitted on
2011-01-13
Pages
99
Abstract
Denne afhandling undersøger, hvorfor interessen for at investere i vindkraft i Estland er steget markant. En kombination af faktorer spiller ind: åbningen af Estlands prisområde på elbørsen Nord Pool Spot, som har skabt mere gennemsigtige prisforhold; gunstige vindforhold på Estlands vestkyst; at vindmøller er en moden teknologi uden direkte emissioner og med kort tid fra beslutning til idriftsættelse; samt høje tilskud til el produceret fra vedvarende energikilder. Analysen peger på, at stigende miljøomkostninger vil gøre det konventionelle elsystem mindre konkurrencedygtigt, så Estland allerede i 2016 kan blive nettoimportør af elektricitet. Ved at indføre vindkraft i stor skala kan elsektoren blive mere konkurrencedygtig, og afhængigheden af importeret energi kan falde markant. Den samlede samfundsøkonomiske velfærd øges med hver ekstra megawatt (MW) installeret vindkapacitet.
This thesis examines why interest in investing in wind power in Estonia has risen sharply. A combination of factors is at play: the opening of Estonia’s price area on the Nord Pool Spot electricity market, which has made prices more transparent; favorable wind conditions on Estonia’s west coast; wind turbines as a mature technology with no direct emissions and short lead times from decision to operation; and high subsidies for electricity generated from renewable sources. The analysis indicates that, as environmental costs rise, Estonia’s conventional power system will become less competitive, making the country a net importer of electricity as early as 2016. By deploying large-scale wind power, the electricity sector can become more competitive and dependence on imported energy can drop significantly. Overall social welfare (the net benefit to society) increases with every additional megawatt (MW) of installed wind capacity.
[This abstract was generated with the help of AI]
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