Download - Feed-in Tariffs
Feed-in Tariffs
The Most Effective Renewable
Energy Policy on the PlanetRichard Deutschmann
VP Policy & Market Development
groSolar
1-800-GOSOLAR
Grosolar.com
Solar Resources – Germany vs. US
World Energy Resources
• 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
Feed-in-Tariff - Definition
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
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
Case Study - GermanyCumulative Installed Wind Capcity (MW)
0
5000
10000
15000
20000
25000
30000
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Cumulative Installed PV Capacity (MW)
0
1000
2000
3000
4000
5000
6000
2000 2001 2002 2003 2004 2005 2006 2007 2008
•280,000 Jobs in RE Industry
•Nearly 25,000MW of Wind
Capacity
•5GW of Solar PV Installed
•Advanced Biofuels Industry
•Built Extensive Manufacturing
Base
•Germany did more Solar PV on
Barns and Farms in 2008, than all
of US combined!
•Cost to Average German
household $1.50/mo
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
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
United States Landscape
Feed-in Tariff
Passed
“FITINO”
FIT Initiative died in
Legislature in 2009
More Information
• AllianceforRenewableEnergy.or
g
• Wind-works.org
• WorldFutureCouncil.org
Credits
Thanks to:
• Paul Gipe/Wind-Works
• Wilson Rickerson/Meister Consultants
• Lois Barber/Alliance for Renewable Energy
