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Financing EE and RE
Policy and support measures
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Policy and support measures

Many of the barriers for RE and EE projects translate into higher costs or risk premiums compared to conventional energy solutions. Therefore, most promotion instruments are designed to improve the economic parameters of projects through financial incentives or other financial support mechanisms. The list of policies and measures for supporting RE and EE investments can be broadly grouped as follows:

Policy group
Instrument / Measure
Fiscal incentives
• Grant • Subsidy / rebate • Tax credit • Tax reduction • Accelerated depreciation
Public finance
• Investment • Guarantee • Loan • Preferential public procurement
• Feed-in tariff (FIT) • Net metering • Net billing • Auctions • Power purchase agreement (PPA) • Quota obligations, mandates and targets • Premium guarantee • Feed-in premium • Priority or guaranteed access to grid • Priority dispatch mandates • Energy performance certificate • Minimum energy performance standards • Energy service agreement • Energy performance contract
• Renewable energy certificates • Carbon offsets • Carbon pricing • Carbon trading • Power capacity markets • Green labelling
• Information disclosure requirements • Labelling, rating, certification systems • Standardisation of processes and instruments • Capacity building • Technical assistance • Project development assistance • R&D support

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