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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.

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feed in tariff primer feed in tariffs are successful
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 primer feed in tarifs are adaptable to north america
Feed-in Tariff PrimerFeed-in tarifs are adaptable to North America
  • No intrinsic limitations to use in
      • Canada or the United States
  • No intrinsic limitations to use in
      • States, Provinces, or at the Federal level
  • Have been successfully used in both
      • Ontario, Canada and California (early 1980s)
  • Currently being considered in several
      • US States & Canadian Provinces
feed in tariff primer feed in tariffs go by many names
Feed-in Tariff PrimerFeed-in tariffs go by many names
  • Advanced Renewable Tariffs
      • A system of feed-in tariffs (prices or payments) for different technologies
  • Renewable Energy Payments
      • Because 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 primer feed in taiffs are more equitable
Feed-in Tariff PrimerFeed-in taiffs are more equitable
  • Everyone can participate
      • Homeowners, farmers, Native Americans, small & large businesses
  • Payments not tax credits
      • Participants do not have to be rich or have tax liability to participate
  • Payments not subsidies for hardware
      • Payments for electricity generated
      • Payments are bankable
feed in tariff primer feed in tariffs are bankable
Feed-in Tariff PrimerFeed-in tariffs are bankable
  • Predictable revenues
      • Enable traditional financing
  • Tariffs are high enough to work
      • Prices based on the cost of generation plus a reasonable profit
      • Prices not based on “value” of electricity
feed in tariff primer key program elements
Feed-in Tariff PrimerKey program elements
  • Priortity access to the grid for all
  • Long contracts (20-25 years typical)
  • Prices Differentiated
      • By technology, size, application, and resource intensity (wind and now solar)
  • Prices determined by cost plus profit
      • Fair but not excessive profit
  • Inflation protection
  • Periodic Review (every 2-4 years)
feed in tariff primer access to the grid
Feed-in Tariff PrimerAccess to the grid
  • Must be able to connect
  • Connection must be simple, timely, and at reasonable cost
feed in tariff primer priority purchase
Feed-in Tariff PrimerPriority purchase
  • Renewable energy must be first priority
  • Take or pay contracts
      • Producer must be assured that the electricity they produce is purchased
      • Only exception is “system emergencies”
feed in tariff primer contract length
Feed-in Tariff PrimerContract length
  • 20 years or more
  • Longer contracts = lower initial tariff
      • Shorter contracts = higher initial tariffs
  • Germany: 20 years
  • Spain: 25 years to life of plant
feed in tariff primer differentiated prices
Feed-in Tariff PrimerDifferentiated prices
  • Differentiated by technlogy
      • wind, solar, biomass, geothermal, hydro, etc.
  • Differentiated by size
      • higher prices for small projects
      • lower prices for large projects
  • Differentiated by application
      • higher prices for rooftop solar
      • lower prices for ground-mounted solar
feed in tariff primer differentiated prices for wind energy
Feed-in Tariff PrimerDifferentiated prices for wind energy
  • Differentiated by resource intensity
      • Lower prices for windy sites
      • Higher prices for less windy sites
  • Ensures nearly all can participate
      • Landowners can’t move to windier sites
  • Limits excessive profits at windy sites
  • Distributes development geographically
      • Avoids concentrating wind development
feed in tariff primer prices determined by cost
Feed-in Tariff PrimerPrices determined by cost
  • Prices (tariffs) determined by cost
      • Of generating electricity by each different technology, and
  • Reasonable profit
      • Determined by existing regulatory practice
      • Fair but not excessive profit
  • Prices are not based
    • On the cost of conventional fuels, or
    • On the “avoided cost”, or
    • On the “value” of the electricity
feed in tariff primer inflation protection
Feed-in Tariff PrimerInflation Protection
  • Protects invested capital
      • Higher protection = lower initial tariffs
  • Prices adjusted periodically
      • For new projects
      • Inside existing contracts
  • Inflation indexing often less than 100%
      • France & Spain: 50% to 70% indexing
feed in tariff primer periodic review
Feed-in Tariff PrimerPeriodic Review
  • Determines if program is robust
  • Determines if targets being met
  • Allows price adjustment
      • If profits are too high
      • If targets are not being met
  • Allows addition of new technologies
  • Every 2-4 years
feed in tariff primer solar growing with feed in tariffs
Feed-in Tariff PrimerSolar Growing with Feed-in Tariffs
  • Major Solar PV Markets
      • Germany--1,500+ MW/year
      • Spain--500 MW/year
      • Italy--300-500 MW/yr
      • Japan--250 MW/year
      • California--200 MW/year
  • Markets with Feed-in Tariffs
      • Germany, Spain & Italy
feed in tariff primer solar pv success in germany
Feed-in Tariff Primer Solar PV Success in Germany
  • 500 MW on Home Rooftops/year
  • 2,000 MW+ Total
  • 2 TWh/yr
  • ~ €1 Billion/yr Revenue
  • Anyone with a Roof Can Do Solar in Germany!
      • Because revenue stream is bankable

20007

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

Feed-in Tariff Primer Solar PV for German Homeowners

2007

feed in tariff primer solar new farm crop in germany
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 primer european wind market
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 & Spain
      • All Three Use Feed-in Tariffs
feed in tariff primer wind growing with feed in tariffs
Feed-in Tariff PrimerWind Growing with Feed-in Tariffs
  • Germany 2004-2008: ~2,000 MW/year
      • 30,000 MW by 2012
  • Spain 2004-2008:~2,000 MW/year
  • Germany
      • 50% Community Owned
      • ~€20 billion from Small Investors
      • Geographically Distributed
      • 7% of Supply
feed in tariff primer results of german feed in tariffs
Feed-in Tariff PrimerResults of German Feed-in Tariffs
  • Renewables 15% of Supply
      • 12% 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
Cost of German EEG~$50/yr/household

Paul Gipe, wind-works.org

north american jurisdictions with modern feed in tariffs
North American Jurisdictionswith Modern Feed-in Tariffs
  • Ontario, Canada
    • First comprehensive system of feed-in tariffs in North America (2009)
  • Vermont (2009)
ontario s advanced renewable tariffs
Ontario’sAdvanced Renewable Tariffs
  • Technology differentiation
      • Solar, Wind, Hydro, Biomass, Biogas
  • Size & application differentiation
      • Solar: 5 classes
      • Wind: On Land & Offshore
      • Biogas: 5 classes
  • Prices based on cost of generation
  • Community & aboriginal bonus
  • No program cap
vermont s feed in tariffs
Vermont’s Feed-in Tariffs
  • Technology differentiation
      • Solar, Wind, Hydro, Biogas, Biomass
  • Includes small wind tariff
  • Prices based on cost of generation
  • Modest program cap (50 MW)
  • Limited project size cap (2.2 MW)
hawaii s proposed feed in tariffs
Hawaii’s Proposed Feed-in Tariffs
  • PUC rules in favor of feed-in tariffs
      • Fall 2009
  • Technology differentiation
  • Size differentiation
  • Prices based on cost of generation
  • Limited project size (5 MW)
  • Final rules end of 2009
feed in tariff primer north american experts
Feed-in Tariff PrimerNorth American Experts
feed in tariff primer for more information
Feed-in Tariff PrimerFor More Information
  • www.wind-works.org/articles/feed_laws.html
  • www.allianceforrenewableenergy.org
  • www.worldfuturecouncil.org/arguing_fits.html
  • International feed-in tariff news group
  • The Feed-in Tariff Channel
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