Feed-in Tariffs
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The document discusses feed-in tariffs (FITs) as an effective renewable energy policy, highlighting their benefits such as local job creation, energy independence, and simplified access to the grid. It outlines the history of FITs, their implementation in various countries, particularly Germany, which has emerged as a global leader in renewable energy production. Additionally, it notes recent developments in the U.S. and case studies from Vermont and Hawaii regarding the adoption of FITs.
Feed-in Tariffs
- 1. Feed-in Tariffs The Most Effective Renewable Energy Policy on the Planet Richard Deutschmann VP Policy & Market Development groSolar 1-800-GOSOLAR Grosolar.com
- 2. Solar Resources – Germany vs. US
- 4. Feed-in-Tariff - Definition • Standard, long term contracts for Renewable Electricity generated(20-25 years typical) • Priority access to the grid, simplified interconnection • Prices Differentiated • By technology, size, application, and resource intensity • Prices set by generation cost plus reasonable profit (5-8%) • Periodic Review (every ~2 years) with stepdowns
- 5. Benefits of Feed-in Tariffs • Most democratic: Everyone can be an energy producer. • Stimulates local banking to finance projects • Creates local jobs faster than other policies • Helps governments meet RPS and carbon goals • Increases our energy and national security - less dependence on foreign sources of fuels - decentralizes our power plants & electrical grids • Reduces transmission needs, in case of DG • Displaces expensive peaking power
- 6. History of Feed-in Tariffs • FITs originated after 1973 oil crisis • PURPA emerged in US in 1978 • Portugal creates premium tariff for RE, 1988 • Denmark soon followed • Germany creates first modern FIT in early 1990s • Germany now the world leader in RE production • FITs now the policy of choice in more than 45 countries • Ontario first North American fully differentiated FIT, 2009
- 7. Case Study - Germany •280,000 Jobs in RE Industry 30000 Cumulative Installed Wind Capcity (MW) •Nearly 25,000MW of Wind 25000 Capacity 20000 15000 •5GW of Solar PV Installed 10000 •Advanced Biofuels Industry 5000 0 •Built Extensive Manufacturing 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Base •Germany did more Solar PV on Cumulative Installed PV Capacity (MW) Barns and Farms in 2008, than all 6000 of US combined! 5000 •Cost to Average German 4000 3000 household $1.50/mo 2000 1000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008
- 8. Case Study - Vermont •Technology Differentiated FIT passed 2009 •Single Price for Solar $.30/kwh •50MW Program Cap •12.5MW PV Cap •170+MW Solar PV applied for on the first day
- 9. Waves of New Solar Coming - Hawaii •PUC rules in favor of feed-in tariffs 2009 •Technology differentiation •Size differentiation •Prices based on cost of generation •Limited project size (5 MW) •Final rules imminent
- 10. United States Landscape Feed-in Tariff Passed “FITINO” FIT Initiative died in Legislature in 2009
- 11. More Information • AllianceforRenewableEnergy.or g • Wind-works.org • WorldFutureCouncil.org
- 12. Credits Thanks to: • Paul Gipe/Wind-Works • Wilson Rickerson/Meister Consultants • Lois Barber/Alliance for Renewable Energy
- 13. Richard Deutschmann VP Policy & Market Development richard.deutschmann@grosolar.com 1-800-GOSOLAR grosolar.com