Regulatory Design for RES-E Support Mechanisms: Learning Curves, Market Structure, and Burden-Sharing

Carlos Batlle, Ignacio Pérez-Arriaga, and P. Zambrano-Barragán

May 2011

Drawing from relevant experiences in power systems around the world, this paper offers a critical review of existing policy support mechanisms for RES-E (renewable energy sources for electricity), with a detailed analysis of their regulatory implications. While recent studies provide an account of current RES-E support systems, in this paper we focus on the impacts these mechanisms have on the overall energy market structure and its performance in the short and long term. Given the rising importance of RES-E in systems everywhere, these impacts can no longer be overlooked.