Feed-in Tariff Primer Feed-in tariffs are successful • They have created rapid growth in new renewable generation • They have created the most kilowatt-hours of actual renewably-generated electricity of any policy • They have proven successful in Germany, France, & Spain
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Feed-in Tariff Primer Feed-in tariffs are successful They have created rapid growth in new renewable generation They have created the most kilowatt- hours.
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Feed-in Tariff Primer Feed-in tariffs are successful
• They have created rapid growth in new renewable generation
• They have created the most kilowatt-hours of actual renewably-generated electricity of any policy
• They have proven successful in Germany, France, & Spain
Feed-in Tariff PrimerFeed-in tarifs are adaptable to North America
• No intrinsic limitations to use inCanada or the United States
• No intrinsic limitations to use inStates, Provinces, or at the Federal level
• Have been successfully used in both Ontario, Canada and California (early 1980s)
• Currently being considered in severalUS States & Canadian Provinces
Feed-in Tariff PrimerFeed-in tariffs go by many names
• Advanced Renewable TariffsA system of feed-in tariffs (prices or payments) for
different technologies
• Renewable Energy PaymentsBecause the “tariffs” are a payment per kilowatt-hour
of electricity generated
• Standard Offer Contracts (Incorrect!)Feed-in tariffs use “standard contracts” but not
“standard offers” as the “offers” differ by technology (one price for solar, another for wind)
Feed-in Tariff PrimerFeed-in taiffs are more equitable
• Everyone can participateHomeowners, farmers, Native Americans,
small & large businesses
• Payments not tax creditsParticipants do not have to be rich or have
tax liability to participate
• Payments not subsidies for hardwarePayments for electricity generated
Payments are bankable
Feed-in Tariff PrimerFeed-in tariffs are bankable
• Predictable revenuesEnable traditional financing
• Tariffs are high enough to workPrices based on the cost of
generation plus a reasonable profit
Prices not based on “value” of electricity
Feed-in Tariff PrimerKey program elements
• Priortity access to the grid for all
• Long contracts (20-25 years typical)
• Prices DifferentiatedBy technology, size, application, and resource
intensity (wind and now solar)
• Prices determined by cost plus profitFair but not excessive profit
• Inflation protection
• Periodic Review (every 2-4 years)
Feed-in Tariff PrimerAccess to the grid
• Must be able to connect
• Connection must be simple, timely, and at reasonable cost
Feed-in Tariff PrimerPriority purchase
• Renewable energy must be first priority
• Take or pay contractsProducer must be assured that the electricity
Feed-in Tariff Primer Solar PV for German Homeowners
• 150,000 New Systems• €6 Billion• Total of 600,000 Systems in Operation• ~1,500 MW in 2008!• ~2,000 MW in 2009 (Estimated)• Total 5,000 MW, 2008; 7,000 MW, 2009• ~2%Supply in Conservative Bavaria• ~1%Supply in Germany
2007
Feed-in Tariff PrimerSolar New Farm Crop in Germany
• 700 MW on Barn Roofs in 2008
• Total of 1,500 MW in Operation
• ~€9 Billion Invested by Farmers
• 1.5 TWh/year
• ~€700 million/year Farm Revenue
Feed-in Tariff PrimerEuropean Wind Market
• Europe = 2/3 of World Wind Capacity
• Gemany, France & Spain = 2/3 of Europe’s Wind Capacity
Top European Markets
• Germany, France & SpainAll Three Use Feed-in Tariffs
Feed-in Tariff PrimerWind Growing with Feed-in Tariffs
• Germany 2004-2008: ~2,000 MW/year30,000 MW by 2012
• Spain 2004-2008: ~2,000 MW/year
• Germany50% Community Owned
~€20 billion from Small Investors
Geographically Distributed
7% of Supply
Feed-in Tariff PrimerResults of German Feed-in Tariffs
• Renewables 15% of Supply12% of Supply from New Renewables
• Renewables 9.6% of Primary Energy• 90,000 Employed in Wind Industry• 50,000 Employed in PV Industry• 8,000 Employed in Biogas Industry• 280,000 Employed in Renewables• €32 (~$50) Billion Turnover
2008
Cost of German EEG~$50/yr/household
Paul Gipe, wind-works.org
EEG 5%Generation 58%
CHP Act 2%Concession 10%
VAT 14%
Eco Tax 11%
North American Jurisdictionswith Modern Feed-in Tariffs
• Ontario, CanadaFirst comprehensive system of feed-in tariffs in North America (2009)