Feed in tariff primer feed in tariffs are successful
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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

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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


  • World solar pv capacity 2008 13 000 mw

    World Solar PV Capacity 2008~13,000 MW

    Paul Gipe, wind-works.org


    Renewable tariffs solar photovoltaics in germany

    Renewable Tariffs & Solar Photovoltaics in Germany

    Paul Gipe, wind-works.org


    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

    • Toby Couture, E3 Analytics, [email protected], 506-292-3585

    • Karlynn Cory, NREL, [email protected], 303 384-7464

    • John Farrell, Insitute for Local Self Reliance, [email protected], 612-379-3815 x210

    • Wilson Rickerson, Rickerson Energy Strategies, [email protected], 617 930 5502


    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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