Incentives for renewable energy

Abstract

This paper carries out a critical analysis of the current mechanism of incentives by comparing the expected results and the results that have actually been reached. For the case of Italy, renewable sources for heating and electricity and the effect of incentive schemes on the cost of energy paid by final customers are analysed. Average fair prices for all renewable sources, obtained by comparison with conventional production, are found. They can be taken as reference prices for an incentive market based scheme, valid for all technologies and alternative to the current one, based on feed‐in tariffs. Authors