Epsilon Archive for Student Projects

Abstract

Feed-in tariffs are a support instrument used to promote investment in wind energy. This paper examines how feed-in tariff levels stimulate wind growth, and if the effectiveness of a feed in tariff depends on domestic wind power concentration. The study contains an exploratory analysis of eight countries in the European Union where fitted line plots are used to visualize and interpret the relationship between feed-in tariff levels and wind growth. The same variables form a basis for the computation of a country-based feed-in tariff effect factor. The effect factor relies on simplified assumptions that limit the study's findings to a suggestive level. There was a positive correlation between the effect factor and wind concentration, indicating that feed-in tariff effectiveness had a positive relationship to wind concentration. Furthermore, the results indicate a positive but heterogeneous wind growth relationship to changes in feed-in tariff levels across different countries. The characteristics of the growth reaction are suggested to be influenced by the long-term consistency of feed-in tariff support.