A Survey of Policy Recommendations for Renewable Energy

Table of Contents

Last updated Aug 28, 2023.

Recommendations

Analysts have identified the following policy recommendations for successful renewable energy development.

Disclaimer: The following recommendations are derived by APMDD from IEA material and other sources cited in the footnotes. The derived work is not endorsed by the IEA or any other author or organization.

1. Renewable Energy Targets

  • Governments should set ambitious but realistic renewable energy targets covering the short (5 years), medium (10-15 years), and long term (to 2050).1IEA 2018: 20 Renewable Energy Policy Recommendations, https://www.iea.org/reports/20-renewable-energy-policy-recommendations, License: CC by 4.0.
  • Targets should be enshrined in primary legislation.2IEA 2018, supra.
  • Renewable energy targets should be set with a clear purpose in mind and align with other strategic policy goals.3IEA 2018, supra.

2. Action Plans and Strategies

  • Action plans to achieve renewables targets should be established and regularly updated.4IEA 2018, supra.
  • Action plans should provide a clear, long-term trajectory on achievement of targets.5IEA 2018, supra.
  • Action plans should identify barriers and measures to overcome them.6IEA 2018, supra.
  • Action plans should involve all relevant levels of governance, and align with overall national energy strategy and energy efficiency policies.7IEA 2018, supra.

3. Data and Transparency

  • Governments should produce and publish comprehensive data on renewables following international standards.8IEA 2018, supra.
  • Data should be publicly accessible and freely available.
  • Types of relevant data include:
    • Resource data for different types of renewables9IEA 2018, supra.
    • Deployment data for individual renewable technologies10IEA 2018, supra.
    • Deployment data for renewables under specific policy mechanisms11IEA 2018, supra.
    • Data on costs of deployment12IEA 2018, supra.

4. Monitoring and Evaluation

  • Governments should designate an appropriate institution and evaluations to monitor progress against targets on a regular basis.13IEA 2018, supra.
  • Governments should develop metrics for performance.
  • Governments should be prepared to adjust policies based on the outcomes of evaluations.

5. Levelling the Playing Field for Renewable Energy

  • Governments should implement measures to level the playing field between renewables and fossil fuels, or even tip conditions in favor of renewables in order to encourage fossil fuel phase-out.
  • Relevant measures include:
    • Phasing out fossil fuel subsidies14IEA 2018, supra.
    • Setting energy prices and tariffs in a transparent manner15IEA 2018, supra.
    • Developing a carbon pricing system with a rising carbon price over time16IEA 2018, supra.
    • Alleviating any impact on fuel poverty17IEA 2018, supra.
  • Governments should continuously support the renewable energy sector with policy to create an enabling environment and help the sector mature.18Bhattacharya, Anindya. Renewable Energy: A Strategic Policy for Sustainable Development. Institute for Global Environmental Strategies, 2010. JSTOR, http://www.jstor.org/stable/resrep00734. Accessed 28 Aug. 2023.
  • Other measures such as feed-in tariff (FIT) schemes, renewable portfolio standards (RPS), subsidies, grants, rebates, energy production payments/credits, public financing, building codes that mandate/promote renewable energy, and net metering can encourage renewable development.19El-Ashry, Mohamed T. “National Policies to Promote Renewable Energy.” Daedalus, vol. 141, no. 2, 2012, pp. 105–10. JSTOR, http://www.jstor.org/stable/23240283. Accessed 28 Aug. 2023.

6. Combining Policies for Electricity, Heat, Cooling, Transport and Energy Efficiency

  • Governments should develop policies for electricity, heating, cooling, and transport in tandem.20IEA 2018, supra.
  • Local authorities should be given responsibilities for integrated local energy planning.21IEA 2018, supra.

7. Fostering Public Support for Renewables

  • Consultation with local communities should be required prior to and during renewable energy project development.22IEA 2018, supra.
  • Governments should promote local community and individual ownership of renewables.23IEA 2018, supra.
  • Profit-sharing should be enabled between large renewables installations and local communities.24IEA 2018, supra.
  • Renewable support mechanisms should remain affordable, especially for low-income households.25IEA 2018, supra.
  • Successful renewable energy programs often start with feasibility studies or pilot programs to gauge demand for renewable energy systems.26Sovacool, Benjamin K. “POLICY LESSONS FROM TEN RENEWABLE ENERGY ACCESS PROGRAMS IN DEVELOPING ASIA.” The Journal of Energy and Development, vol. 37, no. 1/2, 2011, pp. 1–44. JSTOR, http://www.jstor.org/stable/24812729. Accessed 28 Aug. 2023.
  • Local communities should be educated about renewable energy technologies prior to project fulfillment.27Sovacool, supra.

8. Ensuring Sustainability

  • Environmental, social, and cumulative impact assessments should be carried out prior to project commencement to minimize, mitigate, or compensate negative impacts.28IEA 2018, supra.
  • Renewable energy programs should be treated as energy services rather than merely technological deployment, and technologies should be selected appropriately in consideration of local and cultural circumstances.29Sovacool, supra.
  • Renewable energy technologies should be subject to rigorous technical standards to ensure that they work as expected.30Sovacool, supra.

9. Supporting Innovation

  • Governments should support innovation in renewables through national research, development, and demonstrations programs.31IEA 2018, supra.
  • Governments should identify priority technologies/areas of innovation.32IEA 2018, supra.
  • Governments should develop and track key performance indicators for priority technologies.33IEA 2018, supra.
  • Governments should participate in international research and development collaboration.34IEA 2018, supra.

10. Financial Support for Renewables

  • Pricing should be set appropriately with degression over time linked to deployed capacity, involving competitive award of power purchase agreements where possible.35IEA 2018, supra.
  • Market evolution must be constantly monitored to properly set the tariff/premium levels.36IEA 2018, supra.
  • Alternatives to net metering should be considered for small-scale, decentralized renewables.37IEA 2018, supra.
  • Fairness for consumers should be a top priority.38IEA 2018, supra.
  • Policymakers should improve regional cooperation to harness maximum benefits of available resources.39Bhattacharya, supra.
  • Successful programs share costs across multiple sources of funding, e.g. the government, the private sector, and the community.40Sovacool, supra.

11. Enabling Grid Access

  • Governments should establish clear and fair rules governing grid connection costs.41IEA 2018, supra.
  • Governments should ensure timely connection for renewable plants or provide compensation for excessive delays.42IEA 2018, supra.
  • Governments should support grid development and strengthening to allow RE to connect from remote areas.43IEA 2018, supra.

12. System Integration of Variable Renewable Resources

  • Governments should differentiate tariff levels based on variable conditions of RE plants and provide support to encourage system flexibility.44IEA 2018, supra.
  • Governments should reform electricity market design to provide accurate pricing for variable renewable resources.45IEA 2018, supra.
  • Grid connection codes should include appropriate requirements for variable renewable resources.
  • Deployment plans should include a flexible mix of technologies that bring valuable synergies.46IEA 2018, supra; Sovacool, supra.

13. Tackling Non-Economic Barriers

  • Governments should accelerate permitting and planning without compromising public consultation and impact assessment.47IEA 2018, supra.
  • Governments should support reskilling and upskilling in the energy industry and supply chains, including by offering incentives such as scholarships or university training.48Sovacool, supra.
  • Governments should introduce financial support such as risk guarantees.49IEA 2018, supra.
  • Clean energy technologies should be adapted for use in developing countries.50El-Ashry, supra.
  • Effective programs distribute responsibilities across different institutional entities, which allows for sharing of risks and “checks and balances” on actors involved in the programs.51Sovacool, supra.

14. Reducing the Cost of Financing

  • Governments should provide guarantees for long-term Power Purchasing Agreements (PPAs).52IEA 2018, supra.
  • Governments should work with international financial institutions to develop renewables policies and debt financing programs.53IEA 2018, supra.
  • Governments should provide some public funding to encourage renewable development and investment from the private sector.54IEA 2018, supra.
  • Governments should implement fiscal incentives to reduce up-front costs, such as tax credits.55El-Ashry, supra.

References

  • 1
    IEA 2018: 20 Renewable Energy Policy Recommendations, https://www.iea.org/reports/20-renewable-energy-policy-recommendations, License: CC by 4.0.
  • 2
    IEA 2018, supra.
  • 3
    IEA 2018, supra.
  • 4
    IEA 2018, supra.
  • 5
    IEA 2018, supra.
  • 6
    IEA 2018, supra.
  • 7
    IEA 2018, supra.
  • 8
    IEA 2018, supra.
  • 9
    IEA 2018, supra.
  • 10
    IEA 2018, supra.
  • 11
    IEA 2018, supra.
  • 12
    IEA 2018, supra.
  • 13
    IEA 2018, supra.
  • 14
    IEA 2018, supra.
  • 15
    IEA 2018, supra.
  • 16
    IEA 2018, supra.
  • 17
    IEA 2018, supra.
  • 18
    Bhattacharya, Anindya. Renewable Energy: A Strategic Policy for Sustainable Development. Institute for Global Environmental Strategies, 2010. JSTOR, http://www.jstor.org/stable/resrep00734. Accessed 28 Aug. 2023.
  • 19
    El-Ashry, Mohamed T. “National Policies to Promote Renewable Energy.” Daedalus, vol. 141, no. 2, 2012, pp. 105–10. JSTOR, http://www.jstor.org/stable/23240283. Accessed 28 Aug. 2023.
  • 20
    IEA 2018, supra.
  • 21
    IEA 2018, supra.
  • 22
    IEA 2018, supra.
  • 23
    IEA 2018, supra.
  • 24
    IEA 2018, supra.
  • 25
    IEA 2018, supra.
  • 26
    Sovacool, Benjamin K. “POLICY LESSONS FROM TEN RENEWABLE ENERGY ACCESS PROGRAMS IN DEVELOPING ASIA.” The Journal of Energy and Development, vol. 37, no. 1/2, 2011, pp. 1–44. JSTOR, http://www.jstor.org/stable/24812729. Accessed 28 Aug. 2023.
  • 27
    Sovacool, supra.
  • 28
    IEA 2018, supra.
  • 29
    Sovacool, supra.
  • 30
    Sovacool, supra.
  • 31
    IEA 2018, supra.
  • 32
    IEA 2018, supra.
  • 33
    IEA 2018, supra.
  • 34
    IEA 2018, supra.
  • 35
    IEA 2018, supra.
  • 36
    IEA 2018, supra.
  • 37
    IEA 2018, supra.
  • 38
    IEA 2018, supra.
  • 39
    Bhattacharya, supra.
  • 40
    Sovacool, supra.
  • 41
    IEA 2018, supra.
  • 42
    IEA 2018, supra.
  • 43
    IEA 2018, supra.
  • 44
    IEA 2018, supra.
  • 45
    IEA 2018, supra.
  • 46
    IEA 2018, supra; Sovacool, supra.
  • 47
    IEA 2018, supra.
  • 48
    Sovacool, supra.
  • 49
    IEA 2018, supra.
  • 50
    El-Ashry, supra.
  • 51
    Sovacool, supra.
  • 52
    IEA 2018, supra.
  • 53
    IEA 2018, supra.
  • 54
    IEA 2018, supra.
  • 55
    El-Ashry, supra.