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Promotion of renewable energy in the Nordic countries

Opportunities for harmonization of instruments

image of Promotion of renewable energy in the Nordic countries

This study was commissioned by the Nordic Working Group for Renewable Energy in January 2008. The report is based on a literature review, interviews of selected companies and organisations and market expertise and analysis of the GreenStream Network Ltd. The report does not present the opinions of the Working Group for Renewable Energy. All the conclusions presented in the report are those of the authors (see below). The report has been prepared by Mr. Juha Ruokonen, Mr. Gunnar Aronsen, Ms. Anna-Maija Turkama, Mr. Kristian Gautesen, Mr. Mats Nilsson, Mr. Juha Ollikainen from GreenStream Network Plc and Mr Atle Middtun from Norwegian School of Management.

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Description for the calculation of the long-run marginal-costs

In the references used in this study, the costs are presented in divergent units such as NOK/MWh, €/MWh, M€/MW, MNOK/MW or SEK/MWh. The costs are also calculated with different interest/calculation rates over a broad range of lifetimes. To compare or use these numbers directly is thus not possible but a harmonisation of the cost estimates was necessary to conduct in order to use them in the optimisation model. For inflation adjustment, data from the EUROSTAT-database has been utilised. Taxation and interest rate also vary in the Nordic countries. In this study some assumptions have been made in order to create the long-run marginal-costs (LRMC) for each country. However, the assumptions made are consistent.

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