Recent experience in the electricity markets has shown that the introduction of VRE, even at modest penetration levels, has had large impacts on the level and volatility of electricity prices and has jeopardised the economics of existing generators and incumbent utilities. More specifically, it is urgent that all technologies be exposed to the market price and bear the hill cost of connecting the plant to the T&D infrastructure. If policies are sought to promote the development of low-carbon technologies, they should primarily focus on the establishment of an adequate and credible carbon price, and could be possibly combined with other forms of technologically neutral incentives to low-carbon technologies. However, such incentives must leave each generator exposed to the market price and thus link the remuneration with the value of the electricity provided to the system.