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Financial Incentives for Renewable Energy Development

By Piscitello, E. Scott

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Book Id: WPLBN0000042419
Format Type: PDF eBook
File Size: 0.2 MB
Reproduction Date: 2005
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Title: Financial Incentives for Renewable Energy Development  
Author: Piscitello, E. Scott
Language: English
Subject: Economics, Finance & business, World Bank.
Collections: Economics Publications Collection
Publication Date:
Publisher: The World Bank


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Piscitello, E. S. (n.d.). Financial Incentives for Renewable Energy Development. Retrieved from


SECTION 1. Introduction: The Government of China (GOC) is giving increased attenti on to renewable energy development. In the longer term, this will contribute to diversifying energy sources and curbing pollution problems caused by the coal-dominated power sector. Recognizing that in the short to medium term many renewable energy technologies will have financial lifecycle costs above those from conventional alternatives, GOC requested technical assistance from the World Bank for developing recommendations for financial incentives for commercial renewable energy development. Such financial incentives may be justified by longer-term environmental benefits, but need to be carefully designed and implemented. To help focus the technical assistance in the Chinese context, financial incentives for wind farms and photovoltaic (PV) solar home systems were selected as examples of grid-connected and off-grid renewable energy systems, respectively. The decision to focus on these technologies is consistent with the findings of the World Bank?s sector work with GOC1 and the proposed World Bank/Global Environment Facility (GEF)-assisted China Renewable Energy Project (FY99). As part of the technical assistance, the World Bank held a workshop in Amsterdam February 17-21, 1997 to present and discuss financial incentive policies that have been used in selected countries, their impacts, and their applicability to China. The workshop brought together senior GOC officials, World Bank staff, and senior government officials from six countries (Denmark, Germany, India, the Netherlands, the United Kingdom, and the United States) that share China?s commitment to development of commercial markets for renewable energy technologies via financial incentives and other policies.


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