Study on Renewable Energy Resources, Oman - authority for ...
Study on Renewable Energy Resources, Oman - authority for ...
Study on Renewable Energy Resources, Oman - authority for ...
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<strong>Renewable</strong> <strong>Energy</strong> <strong>Resources</strong> in <strong>Oman</strong><br />
7 Financing mechanisms<br />
7.1 Revenue by <strong>Renewable</strong> <strong>Energy</strong> producti<strong>on</strong><br />
The costs of most renewable energy technologies are higher than c<strong>on</strong>venti<strong>on</strong>al<br />
power generati<strong>on</strong>. This is also the case in <strong>Oman</strong>, as dem<strong>on</strong>strated in the previous<br />
chapter. The cost difference is however decreasing and will further decrease in<br />
the future. Due to this, renewable energy should receive special attenti<strong>on</strong> and<br />
support in order to find a place in the power producti<strong>on</strong> portfolio.<br />
The objective of this secti<strong>on</strong> is to introduce comm<strong>on</strong>ly used ec<strong>on</strong>omic incentives<br />
tools to introduce and develop renewable energy producti<strong>on</strong>. There are a number<br />
of models that have been introduced in different countries and in this secti<strong>on</strong> the<br />
mechanism and the experience with these models are summarised.<br />
Many of these models are designed to work in a liberalised power sector and attempts<br />
to make use of the market mechanism to select the most efficient technology<br />
and producer of renewable energy. However n<strong>on</strong>e of them are perfect in this<br />
respect - all of them have their advantages and drawbacks. This chapter will try<br />
to identify these.<br />
This secti<strong>on</strong> will also make an attempt of relating these models to an <strong>Oman</strong>i c<strong>on</strong>text<br />
where the power sector is unbundled, not liberalised and the network organised<br />
in three (nearly) independent supply systems with limited interc<strong>on</strong>necti<strong>on</strong>s<br />
and limited internati<strong>on</strong>al interc<strong>on</strong>necti<strong>on</strong>.<br />
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