Promotional Policies and Legislative Support for Grid-Connected Renewable Energy Projects

Renewable Energy Sources-Based Electricity (RES-E) plays a key role in sustainable development – of meeting current energy demands, without adding to global warming concerns. However, as of 2017, only 8.5% of the total electricity generation came from RES-E. To boost this contribution, countries rely on strong legislative and policy support/tools. This case focuses on studying the legislative or regulatory frameworks put in place by the top three developed countries, and compares it with three developing countries, each of which are forerunners in RES-E, as of 2017. The comparative study suggests that while no single policy can be credited with the success behind rising RES-E in these countries, two key incentives are most important – namely feed-in-tariffs and renewable purchase obligations. Feed-in-tariffs act as floor price guarantee to the generator and renewable purchase obligations assures the generator of quantum of sale of the RES-E generated. When combined, these two incentives remain the most trusted policy tools even today for countries starting their journey in increasing their RES-E footprints.