The Main Reasons for Inefficiency in the Market of Property Rights to Certificates of Energy Origin from Renewable Sources

Abstract

The article focuses on an analysis of the absence of property rights market efficiency to energy origin certificates from renewable sources in the light of energy law provisions. The market of property rights is a market for electricity manufacturers licenced to produce energy from a renewable source, though such sources should be connected to the national electricity grid. The basic function of this market is to mobilise subsidies for such means of energy at a level which could compensate the coverage of the increased manufacturing costs compared to that of energy manufactured from conventional sources. Practical experience proves that this function is not met. The basic reasons underlying this include the absence of market liquidity, the market's low transparency and the absence of competition in gaining access to subsidies by the producers taking advantage of different manufacturing technologies and having, at their disposal, equipment characterised by diverse levels of depreciation.