Paper details

Title:

Feed-in Tariff vs. Green Certificate System for Biomass in Hungary

Author(s):

Somossy, É.S., Grabner, P., Tóth, T., Cseko, Z., Nagy, I.

Document(s):

Abstract:

Since the 2001 Electricity Act made it possible to introduce a green certificate system for renewables, there has been a strong debate in Hungary whether a feed­in tariff or a green certificate system should be implemented to support renewable energy production. The National Renewable Energy Action Plan is in favour of a gradual introduction of green certificates. The purpose of the paper is to examine which of the two support systems would be a better choice to encourage renewable and especially biomass based electricity production to fulfil the renewable targets cost efficiently by 2020. After giving a short description of the Hungarian feed­in tariff system, we take a closer look at the problems of the support system, especially regarding biomass. We make a regional analysis comparing the two types of support systems for biomass using indicators for effectiveness and cost efficiency. Our findings show that a well­differentiated feed­in tariff system would be a better choice than a green certificate system. We suggest therefore maintaining the feed­in tariff system for renewables and biomass (with some modifications) until the renewable energy market is mature enough for the introduction of green certificates.

Keywords:

biomass, green certificates, renewable energies, co-firing, feed-in tariff

Topic:

Biomass Policies, Markets and Sustainability

Subtopic:

Support policies, perception and acceptance

Event:

19th European Biomass Conference and Exhibition

Session:

OE3.3

Pages:

2523 - 2531

ISBN-13:

978-88-89407-55-4

ISBN-10:

88-89407-55-7

Paper DOI:

10.5071/19thEUBCE2011-OE3.3

Price:

FREE