What are the most effective wind energy policies around the world?

FITs represent a simple tool for directing support to new renewables once a technology is proven. While FITs are effective for driving new capacity at all scales they are perhaps most appropriate at the small-scale since they are easy to understand and apply for householders. They also tend to have low admin costs when dealing with large numbers of applicants, thus keeping down costs. Perhaps the key problem with FITs is that is is hard to judge the right level of payments. Too low and no-one wants to invest. Too high and the overall return and costs are high, stimulating higher deployment than expected and high system costs.

Eliminate tax advantages and concessions. Encourage genuine investors to step forward as long as they perceive a tangible return on investment, not a charitable donation. Entrepreneurs don't seek charity; they seek sustainable returns.

Think of FITs as a promise. Wind energy producers are assured a set price for the power they generate for a defined duration. This assurance acts as a catalyst, beckoning investors and innovators alike. Now, emerging markets are catching the drift. Take India, for instance. The nation's wind corridors bustle with turbines, a testament to FITs propelling capacity growth. Similarly, China's gusty terrains are home to sprawling wind farms, underlining how FITs can turn potential into prowess.

The premise of the question is not the best. Wind energy policies are heavily influenced by the existence or not of wind tunnels in different countries and regions. Wind energy policies need to take into account wind tunnels and local (natural, social, economic and political) specificities. In particular, the design of a wind energy policy must take into account efficiency, utilisation, return on investment and the least negative impact on the environment.

I hold reservations about feed-in tariffs, viewing them as artificial price controls that can distort the renewable energy market. Currently, there's an over-reliance on subsidies in some regions, sparking a rush to invest that might not be sustainable long-term and could expose consumers to risks. While I support a gradual transition to green energy, I favor a more balanced approach to subsidies. My conviction stems from the belief that advancements in wind and solar technology will naturally make them more competitive. In two decades, I anticipate that the technologies we rely on today will be obsolete, replaced by more effective solutions.

Well, from the perspective of climate protection and a sustainable, circular economy, such and such a decision by the political leadership is to be welcomed. At the same time, knowing the developments of the last years (virus, war in Ukraine and the Middle East), the green transition has been repeatedly given a boost and a slap on the wrist. However, the above-mentioned political decision also has a major impact on the markets. The energy companies aware that the transition is mainly a medium- to long-term investment, but most of them think in the short term, on an annual basis, which is why the share of green investments in energy companies is below 10%.

In light of my extensive experience in the energy sector and strategic planning, I see Renewable Portfolio Standards (RPS) as instrumental in shaping a competitive renewable energy market. However, for optimal impact and integration, I advocate for a gradual implementation over an extended timeline. This approach allows utilities and energy providers adequate time for capacity planning and infrastructure investment. A phased RPS rollout also provides leeway for market adjustments and technological innovations, creating a more resilient energy ecosystem. By doing so, we mitigate potential disruptions while still driving investment into renewables like wind, thereby achieving our clean energy goals sustainably.

Stepping into the modern policy arena, auctions and tenders are changing the wind energy landscape. Rather than preset prices, it's a battle of competitive bids, aiming to deliver wind power at lean costs. The outcome? Remarkably low prices, often rivaling traditional energy sources. Emerging economies are harnessing this approach with gusto. Brazil's blustery coastlines and vast plateaus are seeing more turbines, thanks to favorable auction outcomes. Similarly, Morocco's breezy terrains are being transformed, as tenders lead to cost-effective projects. It's a testament to innovation meeting intent.

Drawing on my experience in energy systems and strategic decision-making, I concur that auctions and tenders are a promising avenue for the wind energy sector. This mechanism promotes efficiency, cost-effectiveness, and transparency, key elements for a mature market. By requiring competitive bids, it inherently drives down costs, making wind energy increasingly competitive with traditional fossil fuels. Countries like Brazil and South Africa have already achieved record lows in wind power prices through this method. However, to ensure long-term stability and quality, it's crucial that these auctions are well-designed, balancing not just cost but also reliability and integration factors. Also 100% transparency!

Taking an offshore wind supply chain perspective. A market based on site auctions provides transparency and foresight that is very valuable for companies to invest to meet future demand. Which is good. It is a double-edged sword though because we're seeing a few issues with the approach. For example, competing for the lowest price makes projects vulnerable to future external cost inflation. This is hitting supply chain margins, and sometimes leading to negative bidding. Similarly, the certainty of a future market is increasing the cost of entry as large energy companies weigh in with big budgets, which may lead to higher energy prices. The recent Wind Power Action Plan from the European Commission is trying to mitigate these risks.

Wind, by nature, is whimsical. Its unpredictable gusts pose grid stability challenges. Emerging tech markets are stepping up with policies focusing on grid integration and magnification. Imagine a world where grids are smart, intuitively balancing supply-demand. Places like South Africa are investing in such smart grid technologies, ensuring every gust is harnessed. Then there's energy storage. Countries with vast terrains, like Brazil, are exploring storage solutions, making sure not a breeze goes to waste. Additionally, inter-regional connections are on the rise, ensuring wind energy flows seamlessly, optimizing every turbine's potential.

In line with my experience in power systems and business strategy, I endorse policies focused on grid integration and expansion to better harness wind energy. I've personally seen how our aging grid, especially feeder lines and substations, lacks the capacity to accommodate increased renewable energy loads. Smart grid technologies, energy storage systems, and demand response mechanisms are crucial for modernizing this infrastructure. These tools not only address the variability and intermittency of wind energy but also serve to optimize the overall energy mix, enhancing both flexibility and resilience.

Drawing from my own expertise in power systems and corporate strategy, I concur that R&D policies are a cornerstone for propelling wind energy technology to new heights. Financial mechanisms like tax incentives and grants are essential for fostering an innovation-friendly ecosystem. These investments in R&D can catalyze advancements in turbine design, materials science, and grid integration, ultimately reducing LCOE (Levelized Cost of Electricity) and mitigating environmental impact. These policies not only elevate the technological robustness of wind energy but also give it a competitive edge in the larger energy market. R&D serves as a catalyst for quality and efficiency improvements, essential for long-term industry sustainability.

One specific example of a wind energy policy in the UK is the government’s commitment to a major expansion of offshore wind capacity to 50 GW by 2030, with 5GW from floating wind. It is part of the UK government’s Ten Point Plan for a Green Industrial Revolution and the Energy White Paper. The impact of this policy on the UK’s sustainability goals could be significant because wind power is one of the largest sources of renewable electricity in the UK. It is also expected to be important to meet the UK's “Net Zero” greenhouse gas emissions target by 2050.

A good contribution is the Tax Incentives, it provides tax credits or deductions for investments in wind energy, therefore, it could make it more financially attractive for businesses and individuals to adopt wind technology, by using new research and development in the design or in the performance.

What matters most in business: information. If a community is not fully and thoroughly informed, in language that the average person can understand, about the pros and cons of wind energy and the research that has been done to eliminate them and the results of that research, people will start to gather information from the internet. This can lead to negative radicalisation (depending on the information they come across). To prevent this, it is essential to keep the public informed in an understandable language as part of marketing.

In the age of misinformation, public perception is often underestimated but holds immense significance for the success of any RE policy framework. To ensure the pragmatism and effectiveness of deep decarbonization, we must prioritize public perception, and more critically, its management in shaping long-term policies. It is imperative that we promptly address the 'Not in my backyard' mentality and proactively engage with the public to educate them about the dire consequences of an unchecked climate crisis. This can be achieved by implementing policies and business models that allow the general public to actively participate, thereby enhancing transparency and fostering trust.

Effective wind energy policies globally often include incentives like Feed-in Tariffs (FiTs), Renewable Portfolio Standards (RPS), Production Tax Credits (PTCs), and Power Purchase Agreements (PPAs). Grid integration, R&D funding, and tax incentives are key. Policymakers must consider local conditions and goals when crafting policies.

Not exactly a policy, but New York just approved an investment in 4 GW of offshore wind projects to commence. This is projected to provide 12% of New York's power by 2030. These awards have been the largest state investment in wind to date which definitely makes it notable in one of the most effective "policies" around the world.

1. Renewable Energy Targets: Setting clear and ambitious targets for wind energy capacity is a common practice. 2. Feed-in Tariffs providing financial incentives for wind energy producers through fixed, above-market rates for the electricity they generate. 3. Production Tax Credits, Offering tax incentives to wind energy investors and developers to encourage the construction and expansion of wind farms. 4. Power Purchase Agreements Establishing agreements with utilities or corporations to purchase wind energy at a predetermined price, providing revenue certainty for wind projects. 5. Net Metering: Allowing homeowners and small businesses to sell excess electricity generated from wind turbines back to the grid.

Besides, some incentives like renewable energy certificates (RECs) or carbon pricing to create economic incentives for wind energy adoption; or to increase the engaging with wind energy industry stakeholders to understand their needs and challenges can inform effective policies and foster innovation; for instance with mining, green mine with wind technology.