27.11.2014 Views

Study on Renewable Energy Resources, Oman - authority for ...

Study on Renewable Energy Resources, Oman - authority for ...

Study on Renewable Energy Resources, Oman - authority for ...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

<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 />

Page 106 of 134<br />

.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!