Feed-in Tariffs: Accelerating the Deployment of Renewable Energy

by Miguel Mendonça

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A feed-in tariff is where the price per unit that a utility or supplier has to pay for renewable electricity is kept at a premium, which allows electricity generators to sell renewable energy sources at a fixed tariff for a determined period of time. Supporters argue that the feed-in model is one that, if implemented around the world, would greatly assist the energy revolution that is so desperately required: through CO2 reduction, job creation, export market creation and improved energy security. It was recommended in the Stern Report as the best policy tool for the fastest, lowest-cost deployment of renewables, and Germany's world leadership in renewable energy is largely due to their exemplary version.

Feed-in Tariffs is a concise introduction to feed-in law, presented in the context of other renewable energy policies, and examining the experience of countries that have implemented this model. The author argues that the policy should be implemented anywhere with a suitable national power grid infrastructure, and proposes variations on the policy for those areas without. Alternative models are examined, and their comparative advantages and disadvantages discussed, to provide policy makers with the information required to consider feed-in tariffs as a model, and to introduce the concept to renewable energy technology manufacturers, producers and investors.

Published with the World Future Council

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