feed-in ( FIT , FiT , standard bidding rates , advanced renewable tariff , or renewable energy payments ) is a policy mechanism designed to accelerate investments in renewable energy technologies. This achieves this by offering long-term contracts for renewable energy producers, usually based on the cost of generation of each technology. Instead of paying the same amount for energy, but generated, technologies such as wind power and solar PV, for example, are given a lower price per kWh, while technologies such as tidal power are offered at higher prices, reflecting higher costs. currently.
In addition, feed-in rates often include "tariff degression", a mechanism that price-based (ratchet) prices (or rates) fall over time. This is done to track and drive technology cost reductions. The goal of feed-in tariffs is to offer cost-based compensation to renewable energy producers, providing price certainty and long-term contracts that help finance renewable energy investments.
Video Feed-in tariff
Description
FIT usually includes three main provisions:
- guaranteed network access
- long term contract
- cost-based purchase price
Under the feed-in tariff, eligible renewable electricity generators, including homeowners, business owners, farmers and private investors, are paid cost-based pricing for the renewable electricity they supply to the grid. This allows a variety of technologies (wind, solar, biogas, etc.) to develop and provide reasonable returns to investors. This principle is described in the 2000 German Renewable Energy Sources Act:
The level of compensation... has been determined by means of scientific study, subject to the stipulation that the identified tariff should allow the installation - when managed efficiently - to be operated cost-effectively, based on the use of state of the art technology and dependent on naturally available renewable energy sources in certain geographical environments.
As a result, tariffs (or rates) may vary by technology, location (eg roof or ground installed for solar PV projects), size (occupancy or commercial scale) and region. Tariffs are usually designed to decrease over time to track and drive technological change.
FIT usually offers a guaranteed purchase agreement for a long period (15-25 years).
Performance-based rates provide incentives to producers to maximize the output and efficiency of their projects.
In 2010, the feed-in tariff policy has been enacted in more than 50 countries, including Algeria, Australia, Austria, Belgium, Brazil, Canada, China, Cyprus, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Iran, Republic of Ireland, Israel, Italy, Kenya, Republic of Korea, Lithuania, Luxembourg, Netherlands, Pakistan, Portugal, South Africa, Spain, Switzerland, Tanzania, Thailand, Turkey, and England. In early 2012 in Spain, Rajoy's government suspended feed-in fees for new projects.
In 2008, detailed analysis by the European Commission concluded that "a well-adapted feed-in tariff regime is generally the most efficient and effective support scheme for promoting renewable electricity." This conclusion is supported by other analyzes, including by the International Energy Agency, the European Federation for Renewable Energy, as well as by Deutsche Bank.
The feed-in rate can differentiate based on marginal cost. This is a theoretical alternative based on the concept of price differentiation (Finon). Under the policy, tariff rates range from several levels slightly above the spot price to the price required to obtain the optimal production levels set by the government. Companies with lower marginal costs receive prices at the lower end of the spectrum that increase their income but not as much below the uniform feed-in tariff. More marginal producers face higher tariff rates. This policy version has two goals. The first is to reduce the profitability of a particular production site.
Many renewable sources rely heavily on their location. For example, windmills are most advantageous in windy locations, and solar power plants work best in sunny locations. This means that generators tend to be concentrated in these most profitable sites. Different tariffs are trying to make the less productive sites naturally more profitable and so spread the generator which many regarded as undesirable items in the area (Finon). Imagine cutting down all the forests to build a wind farm; this will not be good for the environment. This, however, leads to the production of less cost-effective renewable electricity because most efficient sites are underutilized. Another objective of the tariff is differentiated by the marginal cost is to reduce the cost of the program (Finon). At a uniform rate, all producers receive the same price which at that time is overweight from the price required to encourage them to produce. Additional income translates into earnings. Thus, different tariffs try to give each producer what it takes to maintain production so that the optimal market quantity of renewable energy production can be achieved (Finon).
Overall, and in the light of the new globalization, feed-in tariffs cause increasing problems from a trade standpoint, as their application in one country can easily affect industry and other party policies, thus requiring ideal coordination and coordination of global care. the policy instruments, which can be contacted at the World Trade Organization.
Compensation
There are three methods of compensation.
- Feed-in tariff, - compensation above retail, and as the percentage of adopters increases, FIT is reduced to the retail level.
- Net measurements - allow manufacturers to consume electricity from the grid, for example, when the wind stops. Credits usually roll over to future periods. Payments (to utilities or consumers) depend on net consumption.
- Power Purchase Agreement - pays for electricity generation and usually below retail level, although in case of solar can in some countries higher, as diesel in many countries produces at peak demand.
Maps Feed-in tariff
History
United States
The first form of feed-in tariff (under other names) was implemented in the US in 1978 under President Jimmy Carter, who signed the National Energy Act (NEA). This Act includes five separate Acts, one of which is the Public Utility Regulatory Policies Act (PURPA). The goal of the National Energy Act is to encourage energy conservation and develop new energy resources, including renewable energy such as wind, solar and geothermal power.
In PURPA are provisions requiring utilities to purchase electricity generated from eligible independent power producers at prices not exceeding the cost they avoid. Avoiding fees are designed to reflect the costs to be incurred by a utility to provide the same power plant. Different interpretations of PURPA prevailed in the 1980s: some utility utilities and state utility commissions meant to avoid costing narrowly which meant avoiding fuel costs, while others chose to define "avoidable costs" as "avoiding the long-term marginal cost" of generation. Long-term cost refers to the estimated cost of electricity in the coming years. This latter approach was adopted by California in the Contract of Supply Standard No. 4. Other provisions included in the PURPA law are that utilities are prevented from having more than 50% of projects, to encourage new entrants.
To comply with PURPA, some states began to offer Standard Contract Contracts to manufacturers. The California Public Utilities Commission establishes a number of Standard Bid Contracts, including Standard Offer No.4 (SO4), which utilizes a fixed price, based on expected long-term cost generation. The long-run estimate of electricity costs is based on confidence (widely held at the time) that oil and gas prices will continue to rise. This led to a fixed purchase price increase schedule, designed to reflect the long-term costs of avoiding new power plants. In 1992, private power producers have installed about 1,700 MW of wind capacity in California, some of which are still operating today. The adoption of PURPA also causes significant renewable energy generation in countries like Florida, and Maine.
Nonetheless, PURPA maintains a negative connotation in the US electrical industry. When oil and gas prices plummeted in the late 1980s, the Standard Bid Contracts signed to encourage the development of renewable energy appeared high in comparison. As a result, the PURPA contract is considered an expensive burden for electric taxpayers.
Another source of opposition to PURPA comes from the fact that it was designed to encourage non-utility generation. This is interpreted as a threat by many large companies, especially monopolistic suppliers. As a result of its drive toward non-utility generation, PURPA has also been interpreted as an important step towards increasing competition.
Europe
In 1990, Germany adopted "Stromeinspeisungsgesetz" (StrEG), or "The Law of Feeding Electricity Into the Grid". StrEG requires utilities to purchase electricity generated from renewable energy suppliers with a percentage of the prevailing electrical retail price. The percentage offered for solar and wind power is set at 90% of the price of residential electricity, while other technologies such as hydropower and biomass sources are offered percentages ranging from 65-80%. A project cap of 5 MW is entered.
While German StrEG is insufficient to drive expensive technologies like photovoltaics, it proved quite effective in pushing low-cost technologies such as wind, which led to the deployment of a new 4,400 MW wind capacity between 1991 and 1999, representing about a third of the global. capacity at the time.
An additional challenge that Streg denies is the right to interconnect to the grid. The Streg guarantees access to renewable power producer networks. The same percentage-based feed-based law was adopted in Spain, as well as in Denmark in the 1990s.
German Renewable Energy Act Act
The German feed-in legislation underwent a major restructuring in 2000 into the Renewable Energy Source Act (2000) (German: Ernuerbare-Energien-Gesetz or Erneuerbare-Energien-Gesetz) EEG ). Long heading is a priority giving action for renewable energy sources. In its new form, the action proved to be a very effective policy framework to accelerate the spread of renewable energy. Important changes include:
- the purchase price is based on generating costs - this leads to different prices for different technologies and for projects of different sizes
- utilities are allowed to participate Tariffs
- are designed to decrease each year based on expected cost reductions, known as 'tariff reductions'
Because it is very successful, German policy (amended in 2004, 2009, and 2012) is often used as a benchmark against other feed-in rate policies being considered. Other countries follow the German approach. Long-term contracts are usually offered non-discriminatively to all renewable energy producers. Because the purchase price is based on cost, the project operates efficiently resulting in a reasonable rate of return. This principle is stated in the law:
"The level of compensation... has been determined by means of scientific study, subject to the stipulation that the tariffs identified should allow the installation - when managed efficiently - to be operated cost-effectively, based on the use of state-of-art technology and dependent on renewable energy sources available natural in certain geographical environments. "
The feed-in tariff policy typically targets a 5-10% return. The success of photovoltaics in Germany resulted in a reduction in electricity prices by up to 40% during peak output time, with savings between EUR520 million and EUR840 million for consumers. Consumer savings mean a significant reduction in the profit margins of large power companies, which react by lobbying the German government, which reduces subsidies in 2012. The increase in the share of solar energy in Germany also has the effect of gas and coal-fired cover.
Often all the power generated is fed to the grid, which makes the system work somewhat like PPA in accordance with the above disambiguation; however, there is no need for a purchase agreement with the utility, but the feed-in tariff is regulated by the state, so the term "feed-in tariff" (German "Einspeisetarif") is usually used. Since around 2012, other types of contracts have become more common, because AKP is supported and for small-scale solar projects, the use of power directly becomes more attractive when feed-in rates are lower than prices for purchased power.
On 1st August 2014, updated Renewable Energy Policy Update is enacted. The specific deployment corridor now determines the extent to which renewable energy will be expanded in the future and the feed-in tariffs for new capacity are gradually ceased to be fixed by the government but will be determined by the auction; starting with solar plants installed on land. This is a major change in policy and will be extended in 2017 with a tender process for offshore and offshore winds.
Effect on electricity rates
FiT has increased and decreased electricity prices.
Improvement has been attributed to the fact that renewable energy is usually more expensive than electricity generated from conventional sources. An increase of about four Euros per month per household was recorded in Germany. However, renewable energy can reduce the spot market price through a reward effect, the practice of using high-cost fossil fuel facilities only if demand exceeds the capacity of lower-cost facilities. This has led to a reduction in electricity prices in Spain, Denmark and Germany.
Grid parity
Grid parity occurs when the cost of alternative technologies for electricity production corresponds to the average that exists for the area. Parity can vary both in time (ie during the day and over the years) and in space (ie geographically). The price of electricity from the grid varies greatly from high-cost areas such as Hawaii and California, to lower-cost areas such as Wyoming and Idaho. In regions with daily pricing, rates vary throughout the day, rising during high demand hours (eg 11 AM-8 PM) and decreasing during low demand hours.
In some areas, wind power, landfill gas, and biomass generation are cheaper than electricity grids. Parity has been reached in areas that use feed-in rates. For example, the cost of generation of landfill gas systems in Germany is currently lower than the average spot price of the electric market. In remote areas, electricity from photovoltaic solar can be cheaper than building a new distribution line to connect to transmission lines.
Alternative and complementary policies
The Renewable Portfolio Standard (RPS) and subsidies create a protected market for renewable energy. RPS requires utilities to get a minimum percentage of their energy from renewable sources. In some states, utilities may purchase Renewable Energy Certificates (US), Renewable Energy (EU) Certificate Systems, Renewable Energy Registry (AUS) Regulations to meet these requirements. This certificate is issued to renewable energy producers based on the amount of energy they put into the grid. Selling certificates is another way for renewable producers to supplement their income.
Certificate prices fluctuate based on overall energy demand and competition among renewable producers. If the amount of renewable energy produced exceeds the required amount, the price of the certificate may be stalled, as is the case with carbon trading in Europe. This could undermine the economic feasibility of renewable producers.
Quota systems support large vertically integrated generators and multinational power utilities, if only because certificates are generally denominated in one megawatt-hour. They are also more difficult to design and implement than FIT.
Setting dynamic rates for customer-initiated metered increases (including for distributed energy absorption) may be a more cost-effective way to accelerate renewable energy development.
By country
The feed-in rate law was implemented in 46 global jurisdictions in 2007. Information on diesel tariffs can be found in consolidated form, but not all countries are listed in this source.
Algeria
To cover the additional costs of generating electricity from renewable energy and for the cost of diversification, electricity producers from renewable energy receive bonuses for each kWh produced, marketed or consumed. For electricity generated from solar heat or radiant heat alone, the bonus is 300% of the price per kWh of electricity generated by market operators set by Law 02-01 of 22 Dhu El Kaada 1422 in accordance with February 5, 2002 until the minimum contribution of represented solar energy 25% of all primary energy. For electricity generated from the facility using a solar-gas hybrid solar thermal system, the bonus is 200% of the price per kWh.
For solar energy contributions under 25%, bonuses paid under the following conditions:
The price of electricity is set by CREG (Gas and Electricity Regulatory Commission). According to the final decision to fix it, the consumer pays for the electricity as follows:
- 1.77 DZD/kWh for consumption lower than 41.6 kWh/month.
- 4.17 DZD/kWh for consumption higher than 41.6 kWh/month.
Other consumers (industry, agriculture... etc.), they pay 4.17 DZD/kWh.
Feed-in tariff provides bonuses for electricity generated by 160% cogeneration, taking into account the use of thermal energy 20% of all primary energy used. The bonus for electricity and cogeneration produced by the sun is cumulative. The electrical generated remuneration is guaranteed during the entire life of the plant.
Australia
Feed-in rates were introduced in 2008 in South Australia and Queensland, 2009 in Australian Capital Territory and Victoria and 2010 in New South Wales, Tasmania and Western Australia. Northern Territory only offers local feed-in tariff schemes. A uniform federal scheme to replace all State schemes was proposed by Green Tasmanian Senator Christine Milne but not authorized. In mid-2011, Feed-in rates in NSW and ACT have been closed for new generators, because installed capacity has been reached. In NSW, both Feed-in tariff and cap are truncated, because the original setting is too generous. The new conservative Victorian government replaces the original Feed-in tariff with Feed-in transitional tariffs of less than 25 cents per kilowatt-hour for any excess power generated for generator use, pending the outcome of an investigation by the Commission's Competition and Efficiency Commission. This does not meet the normal definition and has been referred to as a "fake tariff feed-in". This is actually a net measurement with payments for any kilowatt credit, not a normal roll.
Canada
Ontario introduced feed-in tariffs in 2006, revised in 2009 and 2010, up from 42 Â ¢/kWh to 80.2 Â ¢/kWh for a photovoltaic grid-tied photo-grid (<= 10 kW) project, and decreased to 64.2 Â ¢/kWh for applications received after July 2, 2010. Applications received before it has until 31 May 2011 to install the system to receive higher rates. The FiT Ontario program includes tariff schedules for larger projects up to and including 10MW solar farms at reduced tariffs. As of April 2010, several hundred projects have been approved, including 184 large-scale projects, worth $ 8 billion. As of April 2012, 12,000 systems have been installed and tariffs have fallen to 54.9 Â ¢/kWh, for applications received after September 1, 2011. Schedule prices such as the 2012 revised solar price to 28-38 Â ¢/kWh.
China
As of August 2011, the national solar tariff is spent around US $ 0.15 per kWh.
China sets tariffs for new ground wind power plants in a move to help project operators struggle to realize profits. The National Development and Reform Commission (NDRC), the country's economic planning agency, announced four categories of ground-based wind projects, which by region would be able to implement tariffs. Areas with better wind resources will have lower rates, while those with lower output will be able to access cheaper rates.
Tariffs are set at 0.51 yuan (US 0.075, GBP 0.05), 0.54 yuan, 0.58 yuan and 0.61 yuan. This is a significant premium at an average rate of 0.34 yuan per kilowatt-hour paid to coal-fired power generators.
Czech Republic
The Czech Republic introduced tariffs with the law no. 180/2005 in 2005. Tariff is guaranteed for 15-30 years (depending on the source). Supported sources are small hydroelectric (up to 10 MW), biomass, biogas, wind and photovoltaic. In 2010, the highest rate was 12.25 CZK/kWh for small photovoltaic. In 2010, more than 1200 MW of photovoltaic was installed, but by the end of the year, FiT was removed for larger systems, and reduced by 50% for smaller systems. In 2011, no photovoltaic system was installed.
Egypt
On September 20, 2014, the Ministry of Electricity announced the price of a new feed-in tariff (FIT) for electricity generated from new and renewable energy sources for households and private sector companies. The FIT will be implemented in two phases, the official date for implementing the first phase is October 27, 2014 and the second phase to be implemented after two years from the first phase (launched on 28 October 2016).
Energy tariffs during the first phase are divided into five categories; The purchase price per kilowatt-hour (KWh) for residential solar generation is EGP 0.848. For non-residential installations of less than 200 kilowatts of installed generation capacity, the price rises to 0.901 EGP/KWh. The third category, between 200 and 500 kilowatts, will be paid 0.973 EGP/KWh. The fourth and fifth categories of non-residential installations are paid in USD, to attract foreign investment, with the fourth category, ranging from 500 kilowatts to 20 megawatts, paid 0.136 USD/KWh (with 15% of exchange rate at 7.15 EGP per USD ). The last category, which runs between 20-50MW, will be paid 0.1434 USD/KWh. On the other hand, the purchase price for wind-generated power is based on the number of hours of operation and more complicated than the sun's tariff. It covers operating hours from 2500 to 4000 hours, with decreasing purchasing rates from 0.1148 USD/KWh to 0.046 USD/KWh.
In the second phase, the category of solar power generation is reduced to four, with the housing category rate rising to 1.0288 EGP/KWh. The second category, non-residential installation of less than 500 KW has a purchase price of 1,0858 EGP/KWh. The third and fourth categories, non-residential installations between 500 KW and 20 MW and between 20 MW and 50 MW, have a purchase rate of 0.0788 USD/KWh and 0.084 USD/KWh, respectively (with 30% of tariffs pegged at exchange rate of 8.88 EGP per USD).
The government will buy electricity generated by investors, taking into account inflation, while consumption will be paid in local currency and the depreciation rate is reviewed after two years. The Ministry of Finance will provide subsidized subsidized financing for households and institutions using less than 200 KW at 4%, and 8% for 200-500KW. The government is preparing a law that will allow state-owned land to be provided for new energy production projects under the usage system in return for 2% of the energy generated. The power company will be obliged to buy and transport energy. The new tariff system also includes customs cuts for new and renewable energy supply supplies of 2% while the proportion of bank financing has been set at 40-60%. The government expects new and renewable energy to account for 20% of Egypt's total energy mix by 2020.
European Union
The EU does not operate or needs to push the entry tariff scheme, this is a problem for member countries.
But the tariff feed-in scheme in Europe has been opposed under European legislation because it is an illegal state aid. PreussenElektra filed a case concerning the German Power Control Act ( Stromeinspeisungsgesetz ). In 2001, the European Court (ECJ) ruled that the German regulation was not a state aid. The Court concluded that:
Provisions of the law of a Member State which, first, require private power companies to purchase electricity produced in their supply area from renewable energy sources at a lower price than the real economic value of that type of electricity, and, secondly, distribute the burden resulting from an obligation between the provider of electricity and the operators of the upstream private power grid is not a State aid in the sense of Article 92 (1) of the EC Agreement.
The proposed Transatlantic Trade and Investment Partnership (TTIP) trade agreement now threatens to cancel feed-in tariff schemes across the EU. The energy chapter of the TTIP draft, leaked to The Guardian in July 2016, mandates that operators of energy networks provide access to gas and electricity "on a reasonable, transparent and non-discriminatory commercial terms, including between types of energy". This will open a feed-in tariff scheme for commercial challenges, including those used by Germany. Green MEP Claude Turmes stated: "This [TTIP] proposal is totally unacceptable, they will sabotage the ability of EU legislators to grant the right to renewable energy and energy efficiency over unsustainable fossil fuels.This is an attempt to undermine democracy in Europe. "
French
The administrative procedures for PV systems installed on the ground were significantly modified by the end of 2009. The difference between the segments is basically based on capacity, which determines the complexity of the administrative process. The call for a tender for PV projects above 250 kW p was launched on September 15, 2011. The projects should be analyzed based on several criteria, including the rates requested by the applicant.
German
First introduced in 2000, the Renewable Energy Renewable Energy Act (German: Ernuerbare-Energien-Gesetz ) is reviewed on a regular basis. Its predecessor was 1991 Stromeinspeisegesetz . In May 2008, the program fee was added around EUR1.01 (USD1.69) for each monthly housing electricity bill. In 2012, the cost rose to EUR0.03592/kWh. However, for the first time in more than ten years, electricity prices for household customers fell in early 2015.
The tariff rates for PV electricity vary depending on the size and location of the system. In 2009, tariffs were raised for electricity consumed directly rather than being supplied to the network with increasing yields if more than 30% of total production is consumed on site. This is to provide incentives on demand-side management and help develop solutions to intermittent solar power. Tariff duration is usually 20 calendar years plus installation year. The system accepts rates applicable at the time of installation for the entire period.
The feed-in tariff, effective from August 1, 2004, was modified in 2008. Given the unexpected high growth rate, accelerated depreciation and new categories (<1000 kW p ) are made at more rate low. Premium facade removed. In July 2010, the Renewable Energy Source Act was again amended to reduce the additional 16% rate in addition to normal annual depreciation, as PV panel prices dropped sharply in 2009. The contract duration is 20 years.
Greek
PV Feeding Fares for 2013 are:
India
India inaugurated the latest solar power program to date on January 9, 2010. The National Solar Mission Jawaharlal Nehru (JNNSM) was officially announced by Indian Prime Minister on January 12, 2010. The program aims to install 20 GW of solar power by 2022. The first phase of the program is targeted at 1,000 MW, by paying tariffs set by the Central Electricity Control Commission (CERC) of India. While in this spirit is feed in tariff, some conditions affect the size of the project and commissioning date. Rates for solar PV projects are set at Rs. 17.90 (USD 0.397)/kWh. The tariff for solar thermal project is Rs fixed. 15.40 (USD 0.342/kWh). Rates will be reviewed periodically by CERC. In 2015, feed in tariff is about Rs. 7.50 (USD 0.125)/kWh and most of it applies at the utility level. Feed-in rates for roof PV plants are still not applicable..
Indonesia
The Indonesian government, which operates primarily through the State Electricity Company (PLN), encourages independent power producers (IPP) to invest in the power sector. Many IPPs invest in large factories (more than 500 MW) and many smaller plants (such as 200 MW and smaller). To support this investment agreement, the power purchase agreement (PPA) is approved with PLN. Prices vary greatly from relatively low prices for large coal-based factories such as the Cirebon coal mills that start operations by the end of 2012 to higher prices for smaller geothermal plants generating more expensive power from distant locations such as the Wayang Windu geothermal plant in West Java. Indonesia has made different FIT Rules for various forms of renewable power generation, such as geothermal energy and solar photovoltaic power plants. These regulations require the prices PLN pays to the IPP under various circumstances, provided that the prerequisites are met.
Iran
The Organization of Renewable Energy of Iran (SUNA; ????) first introduced feed-in tariff in 2008. The purchase price of 1,300 Rials/kWh (900 Rial/kWh for 4 hours a night) is set for electricity of all types of renewable resources. In 2013, the Ministry of Energy introduced a new feed-in tariff, set at 4442 Rials/kWh (0.15 USD). The conditions set by the government are getting better and there is a high feed-in rate [FiT]. FiT was recently raised and is now set at US $ 0.18 per kWh for the wind. FiT for solar panels (below 10 MW p ) has decreased by 27% from 4/2016. Now 4900 Rls/kWh = $ 0.14/kWh. In 2016, the Government modifies tariffs and differentiates tariffs for each type of renewable technology.
ireland
REFIT III supports medium and large scale electricity production from bioenergy sources such as Biomass, CHP Biomass and Anaerobic Digestion CHP. The REFIT scheme is managed by the Department of Energy and Natural Resources Communication (DCENR). The scheme was enacted after extensive lobbying by industry representative bodies such as the Irish BioEnergy Association and the Micro Energy Generating Association.
Residential and Micro Scale Solar, Wind, Hydro and CHP do not receive grant aid, no subsidies and no tax breaks are available. There is no Feed-In rate available for this customer and net-metering is also unavailable. Electricity shared and shared privately between separate property is illegal. The 9c/kWh Feed-In rate is available from Electric Ireland until December 2014, when withdrawn without replacement. Revenue from feed-in tariff is subject to income tax of up to 58%. No other Micro-Scale Feed-In rate is available.
Homeowners with networked micro-generation systems charge EUR9.45 per "low-cost" low-cost "billing" cycle to import less than 2kWh per day or become net energy exporters within the billing period.
Israel
On June 2, 2008, Israel's Utilities Public Authority approved a feed-in tariff for a solar power plant. The rate is limited to 50MW total installations for 7 years, whichever comes first, with maximum installation of 15 kW p for occupancy and maximum 50 kW p for commercial use. Bank Hapoalim offers a 10-year loan for installing solar panels. The National Infrastructure Ministry announced it will expand the feed-in tariff scheme to include medium-sized solar power plants ranging from 50 kilowatts to 5 megawatts. The new tariff scheme led solar companies Sunday Solar Energy to announce that it will invest $ 133 million to install photovoltaic solar panels at the kibbutzim, which is a social community that divides revenue among their members.
Italy
Italy introduced feed-in tariff in February 2007. In 2011 Italy installed 7128 MW, behind only Germany (7500 MW), and reduced FiT.
Japanese
A FiT  ¥ 42 (US $ 0.525) per kWh for 10 years for systems less than 10 kW, and  ¥ 40 (US $ 0.50) for larger systems, but for 20 years, starting on July 1, 2012. The level is reviewed annually, for the next connected system.
To secure a second round price of 37.8 yen/kWh for a 20 year PPA period, foreign investors must complete the following actions on March 31, 2014:
- (1) obtaining the company's right to the project site (either by purchasing the land, entering the lease or obtaining written commitment from the landowner to make the project site available);
- (2) submit an application for consultation and network connection to an electric utility that will purchase power from a relevant renewable energy project (ie utilities operating in the geographical region on which the project is based); and (3) obtaining approval for its generation facilities from the Ministry of Economy, Trade and Industry ("METI") under Article 6 of the Renewable Energy Act.
The project completing the above steps until March 31, 2014 will be eligible to enter into a 20 year PPA with the relevant electric utility at a price of 37.8 yen/kWh for 20 years.
Netherlands
The Dutch Cabinet agreed on 27 March 2009 to apply some portion of the feed-in tariff in response to the global financial crisis. The proposed regulations can adjust the quota incentive system. In the summer of 2009, the Netherlands operated a subsidy system. The subsidy budget has quotas for various types of energy, with several tens of millions of euros. Wind budget for wind is hardly used, because the tariff is too low. The 2009 Budget for Wind on Land is 900 MW (including 400 MW unused from 2008); only 2.5 MW is used. Dutch utilities have no obligation to buy energy from windparks. Rates change every year. This creates an uncertain investment condition. The subsidy system was introduced in 2008. The previous 2003 subsidy scheme of the MinisteriÃÆ'â "¢ le regelling milieukwaliteit elektriciteitsproductie (Ministerial Regulation for environmental electricity production) is funded by charging 100 euros per household annually above the energy taxes discontinued in 2006 because it was considered too expensive. In 2009, the Dutch wind park was still being built with grants from the old scheme. Old and new subsidy schemes are funded from the general budget.
The feed-in rate was briefly adopted in 2011, but ended a month later, in February.
Portugal
Under Portuguese energy policy, feed-in tariffs are offered to renewable sources (except large hydro) as well as distributed micro-generation (eg solar, wind), waste and generating, and CHP plants from renewable and non-renewable sources. , with the oldest tariff coming from 1998. The highest feed-in rates are for photovoltaics, ranging from over 500 EUR/MWh in 2003, and then decreased to 300 EUR/MWh; most other tariffs continue to increase and stabilize between 80 and 120 EUR/MWh. Portuguese policy was found to have a positive impact over the period 2000-2010, with emissions reduction of 7.2 MtCO2eq, an increase in GDP of 1557MEUR, and the creation of 160 thousand-year jobs. Long-term impacts have not been evaluated since tariffs have not expired for the earliest installations.
The Philippines
Under the Renewable Energy Act of 2008, the Philippine Energy Regulatory Commission could "(guarantee) a fixed interest rate per kilowatt-hour - FIT tariffs - for power producers utilizing renewable energy under the FIT system." In February 2015, ERC agreed to provide FIT P8.53 per kilowatt hour for 20 years to Burgos Wind Farm from Energy Development Corporation.
South Africa
The South African National Energy Regulator (NERSA) announced March 31, 2009 a feed-in tariff system designed to generate 10 tw-h of electricity annually by 2013. The tariff is much higher than that of the original NERSA proposal. Tariffs, differentiated by technology, must be paid for 20 years.
NERSA said in its release that tariffs are based on generating costs plus reasonable profits. Tariffs for wind energy and solar power concentrations are the most exciting around the world.
Rates for wind energy, 1.25 ZAR/kWh (EUR0,104/kWh) are larger than those offered in Germany and more than those proposed in Ontario, Canada.
Rates for solar concentrate, 2.10 ZAR/kWh, less than that in Spain. The NERSA revision program follows an extensive public consultation.
Stefan GsÃÆ'¤nger, Secretary General of the World Wind Energy Association said, "South Africa is the first African country to introduce feed-in tariffs for wind energy.Many small and large investors will now be able to contribute to take-off, wind industry in the country, investment such decentralization will enable South Africa to tackle the current energy crisis, will also help many South African communities to invest in wind farms and generate electricity, new jobs and new income.These decisions came shortly after the first law in North America was filed by the Canadian Provincial Government of Ontario ".
However, the tariff was abandoned before it began supporting a competitive bidding process launched on 3 August 2011. Under this bidding process, the South African government plans to acquire 3,750 MW of renewable energy: 1.850MW inland wind, 1,450 MW solar PV, 200MW CSP, 75 MW small hydro, 25MW landfill gas, 12.5MW biogas, 12.5MW biomass and 100MW small project. The bidding process consists of two steps:
- Qualifying phase. Project assessed based on project structure, law, land acquisition and use, finance, environmental approval, technical, economic development and bidding warranty
- Evaluation stage. The appropriate offer is then evaluated by: (1) the relative price to the ceiling provided in the offer documentation, accounting for 70% of the decision, and (2) economic development, accounting for 30% of the decision.
The first round of offers is due on November 4, 2011. PPA is expected to be in June 2012. The project should be commissioned in June 2014, except for the expected CSP project in June 2015.
Spanish
The Spanish feed-in legislation is stipulated by Royal Decree 1578/2008 ( Real Decreto 1578/2008 ), for photovoltaic installations, and Royal Decree 661/2007 for other renewable technologies that inject electricity into the public network. Originally under 661/2007, photovoltaic rates were developed under separate legislation due to its rapid growth.
Decision 1578/2008 is categorized as installation in two main groups with different tariffs:
- Building an Integrated Installation; with 34cEUR/kWh in system up to 20 kW nominal power, and for systems above 20 kW with a nominal power limit of 2MW tariff 31cEUR/kWh
- Unintegrated installation; 32cEUR/kWh for systems up to 10MW nominal power.
For other technological decision 661/2007 set:
On 27 January 2012, the Spanish government temporarily stopped accepting applications for projects that started operations after January 2013. Construction and operation of existing projects were not affected. The country's electricity system has a deficit of EUR24 billion. FiT payments do not contribute significantly to the deficit. In 2008, FiT is expected to produce 400 MW of installed diesel fuel. However, it is so high that more than 2600 MW is installed. Utilities in Spain report that they have no way to continue raising costs to consumers by increasing interest rates and instead of accruing deficits, although this is debatable.
Switzerland
Switzerland introduced the so-called "cost-inclusive remuneration for feed-in to the power grid (CRF)" on May 1, 2008.
CRF applies to hydroelectric power (up to 10 megawatts), photovoltaic, wind energy, geothermal energy, biomass and waste materials from biomass and will last for 20 and 25 years, depending on the technology. Implementation is done through the national network operator SWISSGRID.
While high by appearance, CRF has little effect, since the total amount of "extra" costs for the system is limited. Since about 2009, no more projects can be financed. About 15,000 projects await the allocation of money. If all projects are implemented, Switzerland can warm up all its nuclear power plants, which currently supply 40% of its power.
In 2011, after Fukushima, several local power companies, mostly owned by villages and cantons/provinces, selectively began to offer their own tariffs, thus creating a small explosion.
As of March 2012, KEV-FIT for Solar PV has been reduced several times to CHF 0.30-0.40/kWh (USD 0.33-0.44/kWh) depending on size, but higher than in Germany and most other countries in the world.
Taiwan
Feed-in tariff for renewable energy generation in Taiwan is set by the Energy Bureau. This applies to most renewable energy sources, namely solar, wind, hydraulic, geothermal, biomass, waste, etc.
Thai
In 2006, the Thai government imposed tariffs paid on top of the costs avoided, differentiated by technology type and generator size and guaranteed for 7-10 years. Solar receives the highest amount, 8 baht/kWh (about US cents 27/kWh). Large biomass projects received the lowest at 0.3 baht/kWh (about 1 US cents per kWh). Additional per-kWh subsidies are provided for projects that offset the use of diesel in remote areas. In March 2010 1364 MW renewable energy private sector is online with an additional 4104 MW in pipeline with signed PPA. Biomass is the largest part of this capacity: 1292 MW (online) and 2119 MW (PPA only). Solar power is the second one but it grows faster, with 78 MW online and signed the PPA for an additional 1759 MW.
Uganda
Uganda launched tariffs in 2011. Uganda Electricity Transmission Company Limited holds the country's transmission license and is mandated by the Electrical Regulatory Authority to provide the following FiT for small-scale projects ranging from 0.5MW to 20MW.
Ukraine
Ukraine introduced the law 'On feed-in tariff' on 25 September 2008. The law ensures grid access for renewable energy producers (small hydro to 10 MW, wind, biomass, photovoltaic and geothermal). Rates for renewable electricity producers are set by national regulators. In February 2013 the following rates per kWh are applied: biomass - UAH 1.3446 (EUR 0.13), wind - UAH 1.2277 (EUR 0.12), small hydro - UAH 0.8418 (EUR 0.08), solar - UAH 5.0509 (EUR 0.48). In case of significant fluctuations of the national currency against Euro, adjustment of feed-in adjusts.
United Kingdom
In October 2008, the United Kingdom announced that the UK will implement the scheme in 2010, in addition to the current renewable energy quota scheme (ROCS). In July 2009, the UK Secretary of State for Energy and Climate Change, Ed Miliband, presented the details of the scheme, which began in early April 2010.
Less than a year into the scheme, in March 2011 the new coalition government announced that support for large-scale photovoltaic installations (over 50 kW) would be cut. This is a response to European speculators lining up to build large solar farms in Western Countries that will absorb disproportionate amounts of funds.
On June 9, 2011, DECC confirmed tariff cuts for solar PV systems above 50 KW after August 1, 2011. Many were disappointed by the DECC decision. It is believed that the total subsidies for the solar PV industry are unchanged, but tariffs for large systems will be cut to benefit the smaller systems. The fast track review is based on a long-term plan to achieve an annual installation of 1.9GW by 2020.
In October 2011 DECC announced a dramatic cut of about 55% against tariffs, with additional reductions to community or group schemes. The cuts will be effective starting December 12, 2011, with consultation exercises to end on December 23, 2011. This was successfully challenged in the high court by an application for judicial review, jointly created by the Friends of the Earth (FoE) environmental pressure group and two solar companies - Solarcentury and HomeSun. The judgment, made by Mr. Justice Mitting after a two-day trial, was hailed as a major victory by the green campaign and the solar industry. Lawyers for the Department of Energy and Climate Change soon moved to appeal the verdict. The appeal was unanimously rejected by the Supreme Court, allowing anyone who installed their system before March 3, 2012 to receive a higher rate of 43.3 p/kWh.
The 30.7 p/kWh level is available for solar systems up to 5 MW, and consequently no larger systems are built. Feed-In-Tariff Payment is Tax Free in UK.
As of April 2012, 263,274 systems, totaling 1,152,835 MW, received FiT payments. Of these, 260,041 are solar photovoltaic, totaling 1,057,344 MW. Payment for 25 years. The typical photovoltaic system costing Ã, £ 7,500 pays for itself in 7 years and 8 months, and generating Ã, Â £ 23,610 for 25 years.
United States
In April 2009, 11 state legislatures were considering adopting FiT as a complement to their renewable electricity mandate.
California
The California Public Utilities Commission (CPUC) approved a feed-in tariff on January 31, 2008 effective immediately.
In 2010, Marin Energy Authority launched the first Community Choice Feed-in program. The program is updated in November 2012, and now offers fixed price contracts for 20 years, with prices varying according to energy sources (peak, base load, intermittent) and progress towards the current 10-MW program limit.
The city utility company implements a feeding tariff pilot program in Palo Alto and Los Angeles: Palo Alto CLEAN (Clear Accessible Local Energy Now) is a program to buy up to 4MW of electricity generated by solar systems located in the CPAU service area. In 2012 the minimum project size is 100 kW. The purchase rate is between 12,360 Ã, Â ¢/kWh up to 14,003 Ã, Â ¢/kWh depending on the length of the contract. The city began accepting applications on April 2, 2012.
On April 17, 2012, the Water and Electricity Board of Los Angeles's Department of Water and Electricity approved the 10MW FiT Demonstration Program.
As of January 1, 2010 state legislation allows homeowners to sell excess electricity to utilities. Previous homeowners will not get credit for excessive production during the year. To get the California Solar Initiative (CSI) customer rebates are not allowed to install systems that are intentionally over-produced thus, encouraging efficiency measures to be installed after the solar installation. This over-production credit is not available for certain city utility customers ie Los Angeles Water and Power.
Florida
In February 2009, the city commissioner in Gainesville, Florida, approved the country's first feed-in-diesel tariff. This program is limited to 4 MW per year. In 2011, Gainesville has increased electricity generated from 328 kW to 7,391 kW, about 1.2% of peak load energy (610 MW). The program is discontinued in 2014 after more than 18 MW of capacity has been installed.
Hawaii
In September 2009 the Hawaii Public Utilities Commission required Hawaii Electricity Company (HECO & MECO & HELCO) to pay the above market price for renewable energy put into the power grid. This policy offers projects at a set price and a standard 20 year contract. PUC plans to review feeding rates beginning two years after the program starts and every three years thereafter.
Project size is limited to five megawatts (MW) for the island ? Oahu and 2.72 MW for the islands of Maui and Hawaii. The Commission's decision closes the total number of incoming feed tariff projects brought to the power grid at 5% of the system's peak on Oahu, Maui, and Island of Hawaii during the first two years. Tier 3 is still awaiting Decision and Order based on the findings of the Working Group on Reliability Standards ("mapet in the map").
Tier 2 and 3 project cap sizes vary by island and by technology. Tier 2 includes larger systems less than or equal to: 100 kW-AC for onshore and hydropower winds across the island; 100 kW-AC for PV and CSP in Lanai and Molokai; 250 kW-AC for PV in Maui and Hawaii; 500 kW-AC for CSP in Maui and Hawaii; and 500 kW-AC for PV and CSP in Oahu. Tier 3 includes systems larger than Tier 2 caps.
Maine
In 2009, the "Feed-In" Tariff Bill failed to pass. In June 2009, a pilot program was started, and is available for projects up to 10MW in size. On April 24, 2013, the Utilities and Energy Committee of Maine will consider a new bill: LD1085 "Act to Establish Renewable Energy Feed Rates".
New York
The Long Island Power Authority (LIPA) adopts feed-in tariff on July 16, 2012, for systems from 50 kW (AC) to 20 MW (AC), and is limited to 50 MW (AC). Because customers can not use their own electricity, this is actually a 20-year fixed rate power purchase agreement and LIPA maintains SREC. The NY legislation failed to pass legislation that would open the New York market for SREC starting 2013. Payments of 22.5 ¢/kWh, less than what LIPA pays for peak generation at various times. At an avoided cost estimate of $ 0.075/kWh, the program adds approximately $ 0.44/month to the average household electricity bill.
Oregon
In June 2009, Oregon established a level of incentive and solar pilot solar payment program. Under this incentive program, the system is paid for kilowatt-hours (kWh) generated over a 15-year period, at rates set at the time the system is enrolled in the program. The Oregon Public Utilities Commission (PUC) sets tariffs and rules by May 2010. The program is offered by three utilities owned by investors in Oregon and managed by the company. PUC plans to periodically re-evaluate tariffs. Program costs can be recovered in utility rates and systems owned by utilities are not eligible for incentives.
Close the installation of a limited pilot program on 25 megawatt (MW) solar photovoltaic (PV) caps, with a maximum cap size of 500 kilowatts (kW). Aggregate program boundaries should be distributed evenly over four years, with a capacity of 6.25 MW eligible to receive incentives annually. Aggregate hats are divided, based on 2008 retail sales revenue. PGE has a 14.9 MW limit, Pacific Power is 9.8 MW, and Idaho Power is 0.4 MW. Idaho Power program is limited to residential installations. Rates vary by system size and geographic zone. Small and medium scale systems participate in programs that are modeled after net measurements. A larger-scale system is a competitive bid. Participating PV systems must be network-connected, measured and meet all applicable codes and regulations. The system must be "permanently installed".
100 kW or less systems can participate on a net basis. Producing 20 MW of aggregate cap is provided for the net meter section, with 12 MW available for housing and 8 MW available for small commercial systems. This residential and small commercial system is paid for the amount of electricity generated, up to the amount of electricity consumed. In essence, customers are paid for the amount of electricity consumption of electrical loads that are offset by on-site generations. Unlike typical feed-in rates, customers can consume locally generated electricity and receive production incentives - or volumetric incentive payments - for the amount of electricity generated and consumed. To eliminate any unfavorable incentives to increase electricity consumption to receive larger payouts, the system must be of the right size to meet the average electricity consumption. Pricing is determined by PUC based on annual system cost and annual energy output, differentiated by geographic zone. The cost estimate is based on installation data from Energy Trust of Oregon. The actual rate paid to customer-generators is the level of volumetric incentives minus the retail level. The rate of volumetric incentives should be re-evaluated every six months. Tariffs for performance-based incentive programs range from $ 0.25/kWh to $ 0.411/kWh.
Vermont
Vermont adopted a feed-in rate on May 27, 2009 as part of the Vermont Energy Act of 2009. The generator should have a capacity of no more than 2.2 MW, and limited participation of up to 50 MW by 2012, an increased limit of 5 to 10 MW/year to a total of 127.5 MW by 2022. Payments were 24 Â ¢/kWh for diesel, which increased to 27.1 Â ¢/kWh in March 2012, and 11.8 Â ¢/kWh for winds above 100 kW and 25.3 Â ¢/kWh for wind turbines up to 100 kW. Other eligible technologies include methane, hydro, and biomass. The SPEED Vermont program calls for 20% renewable energy by 2017 and 75% by 2032. The program is fully subscribed in 2012. Payments are for 25 years.
Puerto Rico
The region operates a net measurement program that pays back energy to the network at the retail level. Rates vary each month by about 23 cents per kilowatt. This program is credited provider account every month rather than making actual payment. At the end of the fiscal year (June), any surplus is paid at a fixed 10 cents per KW, of which 25% is maintained for public schools. To participate in program insurance and the means to disconnect accessible systems outside of buildings and special equipment brands specified by the government are required.
See also
- Automatic meter reading
- Distributed generation
- Efficiency of electrical energy in US farms
- Electrical meter
- Efficient energy use
- Combined heat and power
- Net measurements
- Power Purchase Agreement
- Commercialization of renewable energy
- The relative cost of electricity generated by various sources
- Smart meter
- Utility meter
- Virtual power plant
References
Source of the article : Wikipedia
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