Experience Curves Vs Dynamic Cost-Resource Curves and Their Impact on the Assessment of the Future Development of Renewables

Abstract

The recent development of several Renewable Energy Sources for electricity generation (RES-E) is characterised by decreasing investment costs and limited resources. In this paper we analyse the ambiguous role of these two effects and the consequences for deriving effective promotion policies for RES-E. Dynamic costresource curves will be derived which combine both approaches. They represent a tool to assist policy makers in deriving efficient and effective promotion instruments. By its application results can be gained with respect to both costs (i.e. efficiency) and penetration (i.e. effectiveness). Due to the combined consideration of resource restrictions and dynamic cost developments, dynamic cost-resource curves assist in deriving the optimal time-path for policy instruments.

Keywords

Renewable energy sources promotion instruments experience curves (dynamic) cost-resource curves

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