Price Systems
Minimum price system compared with the quota model –effectiveness and efficiency
Which compensation model can best promote electricity generation from renewable energies?
Currently, in a comparison in Europe minimum price systems are being applied to a large extent. These systems are often contrasted with the quota model as a supposedly more efficient promotion instrument. In the European comparison minimum price systems, compared to quota schemes, up until now clearly perform better in terms of installed capacity, newly installed wind turbines and current average compensation rate of wind power. They are not only more effective but also more efficient.