What is it about?
This paper explains how price factors affect market penetration of new energy, such as wind and PV. Also tells how subsidy policies, e.g. FiT should optimally be planned. A high FiT accelerates, sometimes even overheats the market.
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Why is it important?
The price difference of new and old energy explains quite well market uptake of new energy (wind, solar, shale gas).
Perspectives
The paper was based on extensive data analysis in including global and national data. The outcome, i.e. how new energy technologies' share grow, was quite surprising in that the cost/price-factors seem to affect considerably the penetration. The model created help to explain the impacts of subsidies, e.g. FiT, but also how to plan an optimal support policy for new energy. I'm planning a follow-up paper on this work to look more into future scenarios and refine some of the data.
Professor Peter D. Lund
Aalto University
Read the Original
This page is a summary of: Energy policy planning near grid parity using a price-driven technology penetration model, Technological Forecasting and Social Change, January 2015, Elsevier,
DOI: 10.1016/j.techfore.2014.05.004.
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