Renewable energy premium; price of renewable electricity in Austria, Czech Republic and Slovak Republic

Abstract

Core question of this work is: What are the costs linked to electricity production from renewable electricity sources in selected CEE countries? It covers Austria, Czech Republic and Slovak Republic - analyzing and predicting the costs through projections of renewable electricity production, current structure of electricity market and regulatory policies. Findings of this work sets out that by 2020 support in respective countries could reach in case of Austria approx. 1,23 bln. EUR, Czech Rep. 1,46 bln. EUR and in case of Slovak Rep, 0,49 bln. EUR annually. It also tries to assess investments needed to reach the targets of the Directive 2009/28/EC where Austria is to have most capital expenditures in the period from 2011-2020. These figures compared to different criteria however show that impact compared to GDP is higher in Czech and Slovak Rep. When simulations in terms of sensitivities and different scenarios are applied the costs differ according to indexation of feed in tariffs or technologies for renewable electricity production implemented.