Promoting Renewables through Market Mechanisms

Abstract

Section 1 gives an introduction explaining the need for a separate promotion scheme for renewables. In section 2, the so far successful promotion of renewables in Denmark is described, as is the background for introducing a certificate-based system. Section 3 describes a model national certificate market, followed by a description in section 4 of the proposed Danish system and the necessary administrative set-up. Section 5 deals with the perspectives and problems of trading certificates internationally based on a three-country case study performed by Risø National Laboratory. The last section presents the conclusions from the paper.