How does the feed-in-tariff potentially perpetuate power imbalances within the energy sector?
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The feed-in tariff, a common policy to incentivize renewable energy adoption, can perpetuate power imbalances within the energy sector. While it promotes renewable energy development, critics argue that it distorts competition and introduces inefficiencies, especially in liberalized energy markets. Additionally, the implementation of feed-in tariffs linked to wind power potential in Germany led to uneven distribution of wind power plants, resulting in suboptimal use of existing infrastructure and necessitating new investments in transmission corridors. Moreover, using a feed-in tariff financed by a carbon tax can have adverse macroeconomic and distributional welfare effects, highlighting the complexities and potential drawbacks of such policies. These findings suggest that while feed-in tariffs have benefits, they can also contribute to power imbalances and inefficiencies in the energy sector.
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| Papers (4) | Insight |
|---|---|
| The unbalanced current-based tariff incentivizes both utilities and customers to address current imbalances, promoting a more symmetrical voltage system and mitigating power quality issues in the energy sector. | |
| Feed-in tariffs can perpetuate power imbalances by distorting competition, introducing costly methods, and hindering energy market liberalization, as noted in the paper. | |
59 Citations | The feed-in tariff's link to wind power potential in Germany may perpetuate power imbalances by favoring windier locations with lower incentives, potentially leading to uneven distribution of wind power plants. |
Open access•Posted Content 5 Citations | The feed-in tariff in Germany, linked to wind power potential, may lead to power imbalances by favoring windier regions, impacting transmission infrastructure and efficiency in wind power development. |
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