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ASSESSMENT OF APPLICATION OF SUPPORT MECHANISM FOR ELECTRICITY GENERATION FROM RENEWABLE ENERGY SOURCES
Abstract
The support mechanism for electricity generation from renewable energy sources was set up for the development of its consumption. Producers got an opportunity to get rights to sell the electricity generated from renewable energy sources within the frame of compulsory purchase. Public sellers were obliged to buy the fixed amount of generated electricity and to determine the higher purchase price for cogeneration stations. The support mechanism for electricity generation by using renewable energy sources was created to achieve the common targets of Latvian State and EU. According to National Renewable Energy Action Plan the consumption of electricity produced from renewable energy sources will increase from 3030 GWh in 2005 to 5191 GWh in 2020, thus extending by 42\%, if the targets and indicative interim targets will be attained. The share of electricity generated from renewable energy sources in the general consumption was 49,9\% in 2009, then it dropped to 48,5\% in 2010. The share was falling while electricity consumption was rising from 7223 GWh in 2009 to 7500 GWh in 2010. The research assesses the efficiency of support mechanism by estimating the problems of its application, control and analyzing the Feed-In Tariff scheme. The paper contains the conclusions on the problems of the support mechanism for electricity generation by using renewable energy sources, its legal regulation drawbacks. The research proposes solutions for improving the support mechanism and its efficiency.
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