Specifying an Efficient Renewable Energy Feed-in Tariff

摘要: This paper derives efficient pricing formulae for renewable energy Feed-in Tariff (FiT) designs that incorporate exposure to uncertain market prices by using option theory. Such FiT are presented as a means delineate price risk amongst investors and policymakers when designing support schemes. Sequential game theory provides the theoretical framework through which we model strategic interaction of during policy formulation. is solved comprised combined with guaranteed element. solution also allows an analytical formulation cost subsidisation. Partial derivatives characterise sensitivity investor remuneration deviations in conditions beyond those expected. Analytical derivations provide set tools may guide more investment decisions. Numerical simulations demonstrate application stylised Irish case study, scenario analysis providing further insight into relative under different conditions.