D4.2 Report on novel financing instruments for RECs
This Deliverable 4.2 (D 4.2) addresses various model financing instruments, with a focus on the framework conditions and the context. D 4.2 provides an analysis of the financing instruments and of their instrumental adequacy to promote RECs. The D 4.2 report will also consider established financial incentives to promote RECs under “grid-supporting” conditions. This implies an overview on different tariffs (energy and grid) as well as the corresponding legal framework conditions for the economic viability of RECs in future energy markets. The report shortly analyses the regulatory framework conditions with regard to grid tariffs for active and passive market participants.
The following analysis thus represents a preparatory step for other work packages and future tasks, especially the concluding task, since this will assess which instruments work best under what regulatory and policy conditions under work package 4 and stretching to WP 7.
Furthermore, the project report D4.2 will – following the tradition of hands-on approaches under COME RES in the target regions - give an overview of the financing instruments that already exist in the COME RES countries, including e.g. tax incentives, renewable energy certificates or specific local bond mechanisms. Throughout this task they are analysed regarding their benefits and deficits, based on input received from the COME RES countries. This analysis is then used to determine appropriate business models and financing instruments, which work best under certain local specific conditions. Preliminary results of this Deliverable were fed into project tasks 5.2 and 5.3 which identify and assess good and best practice cases of RECs.
Publication Date: 07 Jun 2022
Author: Dörte Fouquet (BBH)