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To conclude, we provide an outlook on alternative designs of premium schemes, and discuss whether they seem better suited for addressing the challenges ahead.
By offering plant operators a premium on top of the electricity market price, premium schemes represent an option to increase the alignment of renewable electricity production with market signals, and have been implemented by several EU member states.
In several EU countries, feed-in premium schemes have been implemented to better align RES production with electricity prices and to enhance the efficiency of RES marketing by increasing direct participation of producers in electricity markets.
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This paper examines the case study of the German market premium scheme adopted in 2012.
In the spring of 1996, a consultation was undertaken by the Scottish Office Agriculture, Environment and Fisheries Department (SOAEFD), over a proposed new agri-environmental scheme, the Countryside Premium Scheme.
The price premium scheme greatly promotes the defer option values in the short term, but the feed-in tariff scheme excels in the long term.
Findings are applied to two case studies, the UK's Renewables Obligation and the German feed-in tariff/feed-in premium scheme.
To encourage Irish farmers to afforest agricultural land, a premium scheme supporting such planting was implemented in 1989 and afforestation targets outlined in 1996.
Offering only an incentive tool – such as the current premium scheme – will not be sufficient to encourage those farmers to plant trees.
The pupil premium scheme was criticised by Ofsted last week for having had little or no impact on the way disadvantaged children are taught in more than 50% of schools.
The report by the charity Impetus – a private equity foundation that works to improve the lives of young people – was particularly critical of the government's pupil premium scheme.
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