Can the Current State Support Mechanisms Help the Growth of Renewable Energies in Wind Markets?

The aim of this paper is to provide evidence on the effectiveness of the current state support mechanism incentive adopted by the Italian government in the wind market. In particular, this paper intends to investigate the effectiveness of the auction mechanism as an incentive tool for renewable sour...

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Autores principales:	Donato Morea, Lucilla Bittucci, Arturo Cafaro, Fabiomassimo Mango, Pina Murè
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	project financing renewable energy green energy wind energy sustainable finance public incentives Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
Acceso en línea:	https://doaj.org/article/b0896da15ddd494fbd5154d07eed5d3e
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spelling	oai:doaj.org-article:b0896da15ddd494fbd5154d07eed5d3e2021-11-11T19:44:01ZCan the Current State Support Mechanisms Help the Growth of Renewable Energies in Wind Markets?10.3390/su1321120942071-1050https://doaj.org/article/b0896da15ddd494fbd5154d07eed5d3e2021-11-01T00:00:00Zhttps://www.mdpi.com/2071-1050/13/21/12094https://doaj.org/toc/2071-1050The aim of this paper is to provide evidence on the effectiveness of the current state support mechanism incentive adopted by the Italian government in the wind market. In particular, this paper intends to investigate the effectiveness of the auction mechanism as an incentive tool for renewable sources as required by the transposition of Directive 2009/28/EC. In order to demonstrate the economic and financial feasibility of a typical wind-sector investment, we performed a scenario analysis (Monte Carlo simulation) determining a 52,500 Net Present Value (NPV) by varying the key underlying variables of the investment. The results show that with the mechanism currently in place the percentage of positive leveraged NPV is approximately equal to 70%. Despite the state contribution provided through the “Feed-in tariff” mechanism, the profitability of wind projects is not always successful, and this problem could be amplified by the slowness of the authorization procedures. The article offers prime reflections for scholars and policy makers who have long been committed to promoting sustainable development and important considerations on the introduction of further incentive models.Donato MoreaLucilla BittucciArturo CafaroFabiomassimo MangoPina MurèMDPI AGarticleproject financingrenewable energygreen energywind energysustainable financepublic incentivesEnvironmental effects of industries and plantsTD194-195Renewable energy sourcesTJ807-830Environmental sciencesGE1-350ENSustainability, Vol 13, Iss 12094, p 12094 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	project financing renewable energy green energy wind energy sustainable finance public incentives Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
spellingShingle	project financing renewable energy green energy wind energy sustainable finance public incentives Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350 Donato Morea Lucilla Bittucci Arturo Cafaro Fabiomassimo Mango Pina Murè Can the Current State Support Mechanisms Help the Growth of Renewable Energies in Wind Markets?
description	The aim of this paper is to provide evidence on the effectiveness of the current state support mechanism incentive adopted by the Italian government in the wind market. In particular, this paper intends to investigate the effectiveness of the auction mechanism as an incentive tool for renewable sources as required by the transposition of Directive 2009/28/EC. In order to demonstrate the economic and financial feasibility of a typical wind-sector investment, we performed a scenario analysis (Monte Carlo simulation) determining a 52,500 Net Present Value (NPV) by varying the key underlying variables of the investment. The results show that with the mechanism currently in place the percentage of positive leveraged NPV is approximately equal to 70%. Despite the state contribution provided through the “Feed-in tariff” mechanism, the profitability of wind projects is not always successful, and this problem could be amplified by the slowness of the authorization procedures. The article offers prime reflections for scholars and policy makers who have long been committed to promoting sustainable development and important considerations on the introduction of further incentive models.
format	article
author	Donato Morea Lucilla Bittucci Arturo Cafaro Fabiomassimo Mango Pina Murè
author_facet	Donato Morea Lucilla Bittucci Arturo Cafaro Fabiomassimo Mango Pina Murè
author_sort	Donato Morea
title	Can the Current State Support Mechanisms Help the Growth of Renewable Energies in Wind Markets?
title_short	Can the Current State Support Mechanisms Help the Growth of Renewable Energies in Wind Markets?
title_full	Can the Current State Support Mechanisms Help the Growth of Renewable Energies in Wind Markets?
title_fullStr	Can the Current State Support Mechanisms Help the Growth of Renewable Energies in Wind Markets?
title_full_unstemmed	Can the Current State Support Mechanisms Help the Growth of Renewable Energies in Wind Markets?
title_sort	can the current state support mechanisms help the growth of renewable energies in wind markets?
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/b0896da15ddd494fbd5154d07eed5d3e
work_keys_str_mv	AT donatomorea canthecurrentstatesupportmechanismshelpthegrowthofrenewableenergiesinwindmarkets AT lucillabittucci canthecurrentstatesupportmechanismshelpthegrowthofrenewableenergiesinwindmarkets AT arturocafaro canthecurrentstatesupportmechanismshelpthegrowthofrenewableenergiesinwindmarkets AT fabiomassimomango canthecurrentstatesupportmechanismshelpthegrowthofrenewableenergiesinwindmarkets AT pinamure canthecurrentstatesupportmechanismshelpthegrowthofrenewableenergiesinwindmarkets
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Can the Current State Support Mechanisms Help the Growth of Renewable Energies in Wind Markets?

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