Study of the Effects on Employment of Public Aid to Renewable Energy Sources | Renewable Energy | Wind Power

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Study of the Effects on Employment of Public Aid to Renewable Energy Sources
    Study of the effects onemployment of publicaid to renewableenergy sources Research director: ã   Gabriel Calzada Álvarez PhD. URJC researchers: ã   Raquel Merino Jara ã   Juan Ramón Rallo Julián Technical Consultant: ã   José Ignacio García Bielsa      M  a  r  c   h   2   0   0   9    C O - COMISSIONED BY : I NSTITUTO  J UAN DE M ARIANA 2009 Work released under a Creative Commons  Attribution – Noncommercial – Share Alike 3.0 License Paper published at: PROCESOS DE MERCADO. Volumen VII,Número 1, Primavera 2010. ISSN: 1697-6797-13.   Study of the effects on employment of publicaid to renewable energy sources - i-    – Table of Contents –   EXECUTIVE SUMMARY: LESSONS FROM THE SPANISHRENEWABLES BUBBLE __________________________________ 1   CHAPTER 1.   THE ORIGIN OF GOVERNMENT SUPPORT TO RENEWABLE ENERGY SOURCES AND THE PHILOSOPHY OF GREEN JOB CREATION _________________________________ 1   III...   The green job philosophy _____________________________ 1   IIIIII...   The European tradition of government aid to create “green jobs” 2   IIIIIIIII...   Europe moves to create new employment opportunities __ 4   III V  V  V ...   Background to Case Study: Policies in Spain ___________ 6   CHAPTER 2.   THE SPANISH RENEWABLES BUBBLE _________ 8   III...   Introduction. Wind and photovoltaic energy _______________ 8   I.1.   Support to renewable energy _______________________ 8   I.2.   Economic cycle _________________________________ 8   IIIIII...   The retributive framework for wind energy ________________ 9   IIIIIIIII...   Retributive framework for photovoltaic solar energy: an unprecedented bubble, a reversal and the burst ______________ 12   III.1.   The increase in installed capacity of photovoltaic plants up to100 kW _________________________________________ 12   III.2.   The bubble: September 29 th , 2007 through September 29 th ,2008 13   III.3.   The looming collapse of the photovoltaic sector ________ 18   III V  V  V ...   The expansion of renewable energy and its link to the expansion of credit ___________________________________ 19   CHAPTER 3.    JOB CREATION IN THE WIND, MINI-HYDROELECTRIC AND PHOTOVOLTAIC INDUSTRY_________ 21   III...   Measuring job creation in Spain’s wind, mini-hydroelectric and photovoltaic industries. _______________________________ 21   IIIIII...   Estimate of the number of jobs created in wind power ______ 22     Study of the effects on employment of publicaid to renewable energy sources a   - ii-   IIIIIIIII...   Estimate of the number of jobs created in mini-hydroelectricenergy 22   III V  V  V ...   Estimate of the number of jobs created in solar photovoltaicenergy 23    V  V  V ...   Wind, mini-hydroelectric and photovoltaic premiums for the generation of electricity. _______________________________ 23    V  V  V III...   Investment costs for photovoltaic, wind and mini-hydroelectric projects ________________________________ 24    V  V  V IIIIII...   Conclusion __________________________________ 25   CHAPTER 4.   THE ECONOMICS OF ARTIFICIAL JOB CREATION: A CALCULATION OF THE COST OF GREEN JOBS ONTHE REST OF PRODUCTIVE ACTIVITY ____________________ 27   III...   Stock of capital per worker __________________________ 28   IIIIII...   The annual productivity of the expense __________________ 28   IIIIIIIII...   Spain’s Self-inflicted Economic Wounds from “Green Jobs” Regimes 33   BIBLIOGRAPHY 37   APPENDIX 39   III...   Data used to calculate the  green jobs effects on the economy (chapter 4) _________________________________________ 39    – Figure Index –  Figure 1.- Installed wind power by year (1990-2008) ______________ 9   Figure 2.- (a) Average kWh price. (b) Total retribution and over-cost(mill. €) of wind energy (1998-2008) ________________________ 10   Figure 3.- Official installed capacity (MW) and production (GWh) to installed MW ratio for technologies under the special regime (2008) 11   Figure 4.- Yearly growth of installed capacity (MW) of solar photovoltaicenergy (reported and estimated) from 2004 to 2008. ____________ 12  
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