Congratulations on (almost) finishing the course!
Here are the key ideas that you must take away from this week:
From an economic perspective, renewable energies have a marginal cost close to zero. This fact generates distortions in the wholesale market when the share of renewables in the electricity mix is majority. This situation affects the electric markets all over Europe, making necessary to rethink the retribution of the network costs or the capacity systems in a free market context.
The energy transition also implies a change a in the business models for the utility sector and for the service agents operating in cities. For this purpose, a stable legal framework with long-term signals is necessary to minimize risks. This way, multiple financing models can be developed, from the most traditional to the newest ones, such as crowdfunding.
The Property Assessed Clean Energy (PACE) is an innovative long-term and voluntary financing mechanism for the energy refurbishment of households. It consists in financing the implementation of efficiency or renewable energies. The loan is received by the household and the returns are collected on taxes.