A debate is now underway in Europe to decide whether or not the present system for promoting the penetration of renewable energy sources, in particular wind and solar (photovoltaic) energy, should be maintained in the energy balance. This system, based on feed-in tariffs, is increasingly contested because of the undesirable effects which have been observed. Other incentive schemes are possible and the aim of this article is to draw up a balance sheet of the advantages and disadvantages of the main mechanisms likely to assist the penetration of these renewable energy sources.
Keywords: Renewable energy, merit order, electricity, agricultural policy
Jel Code: Q28, Q48, L51