The schemes to remunerate investments in renewables should allow for a differentiation among RES-E generation technologies, and plant sizes, where this is necessary.

 

Differentiation may be desirable for various reasons. Traditionally, the main motivations have been to accelerate learning curves of the more expensive renewable technologies; to avoid excessive producers rent, for instance for the developers of larger plants of the same technology; and to favour the activation of investments from households and small economic actors, which can mobilise additional investment capital and contribute to a broader social acceptance of the renewable energy transition. In the next decade, new reasons for differentiation may become more important: for ex-ample, favouring renewable generation investments that improve system stability or reduce the costs of balancing variable renewables. The latter could occur by encouraging dispatchable renewables, or the location of variable renewables in areas where their generation profile can be more easily integrated.

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