This paper is derived from an examination of the conflicts that exist between two of the key drivers of energy policies worldwide. These are increasing cost competitiveness on the one hand and environmental responsibility on the other (security of supply being the third pillar). The former has to lead to electricity market liberalisation, with the aim of reducing the price of electricity. The latter has lead to sustainable energy policies including specific targets for the penetration of renewable energy into electricity supply, which generally results in an increase in the cost of electricity. The particular focus of the work is on the interaction of these two policy areas and their impact on wind energy deployment. This paper presents the preliminary findings of this work.
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