Cost-efficiency benchmarking of European renewable electricity support schemes

After a detailed literature review introduces previous studies on both types of efficiency measures for renewable deployment the results are presented and explained. This study reveals that although the performance of PV support improved rapidly in the time period, wind generated electricity remained more cost efficient. The DEA found wind support schemes in North European countries (Norway, Sweden, Ireland and Denmark) and PV support schemes in Romania, Malta, Cyprus and Italy to be notably cost efficient. Some of these countries are the traditional large-scale producers (like Denmark or Italy) but 'newcomers' also performed well due to technology learning resulting in low entry costs. The DEA shows that financing conditions are perhaps as important as resource endowment in determining cost efficiency of support schemes across EU countries. Based on the outcomes we conclude with recommendations to improve the design for more market oriented RES-E support schemes as required by new EU legislation.