Incentives for renewables

In the long run scientists see a way out of the global energy dilemma through the forced use of renewable sources. To support such sources and related technlogies is modern part of many government policies. As renewable sources are mainly local resources, cities and their surroundings are asked to develop concrete projects on the local level.

• Fiscal policies: A greater part of subsidies in OECD countries is dedicated to renewables. Some European cities support solar projects, heat pump projects and biomass projects with part-financing grants. It is obvious that such subsidies depend on the financial resources of the municipality.

• Regulations: Some countries have fixed percentages of renewable energy as a share of energy produced by utilities. This should stimulate research and development in this sector.

• Research and development: To make a programme of this topic, a first step should be the performance of an integrated resource planning project, to figure out the local potentials (solar, biomass, hydro-power), the necessary investments to exploit this resources and the potentials for subsitution of conventional energy sources. Such studies are international standard meanwhile.

• Effects: Renewables are local resources and will influence the local business. New technologies require new companies to provide these technologies. Each city should be interested to be location of renewable installations as they will reduce negative environmental impacts and improve the local energy and emission balance.

• Obstacles to be aware: Renewables are more often than not more cost expensive and therefore not competitive under energy market conditions.