ICIS has published a comparison study of renewable energy subsidy schemes in Germany, Poland and the UK.
All three countries support renewable generation with a market premium on top of the electricity wholesale price for non-micro generation. In order to fuel the transformation of their power sector towards more renewable capacity, Germany and the UK - and to a large extent also Poland - have launched technology-specific auctions.
"In Germany and the UK, the first auction results have shown a high degree of cost degression," said Marcus Ferdinand, Lead analyst EU Power & Carbon Analytics at ICIS. "This trend of decreasing prices for renewables shows the competitiveness of renewable sources, but puts forward challenges for project developers, suppliers and investors who will have to adapt quickly to the changing market environment."
The insight paper was written by analysts and editors as part of a new online tool called Power Perspective which attempts to bring together the policy and regulation framework of energy markets throughout Europe.
Ferdinand said that changes to renewable policies are a main driver for long-term power price developments.
"Spanning all 28 EU power markets, Power Perspective is the first analytical tool that enables cross-border comparisons to spot investment opportunities, trends and trading opportunities," Ferdinand said.