What Are Feed-in-Tariffs?
Renwable Feed-in-Tariffs (FITs) is a policy mechanism designed to encourage the adoption of renewable energy sources and to help accelerate the move toward grid parity.
It typically includes three key provisions: 1) guaranteed grid access, 2) long-term contracts for the electricity produced, and 3) purchase prices that are methodologically based on the cost of renewable energy generation and tend towards grid parity.
Under a feed-in tariff, an obligation is imposed on regional or national electric grid utilities to buy renewable electricity (electricity generated from renewable sources, such as solar power, wind power, wave and tidal power, biomass, hydropower and geothermal power), from all eligible participants.
A Feed-in-Tariff program, which allows individuals and companies to sell renewable energy – like
solar, wind, water, biomass, biogas and landfill gas – into the grid at set rates. Examples include,
on-farm biogas (18.5-19.5 c/kWh), on-shore wind-power (13.5 c/kWh), and landfill gas (10.3- 11.1 c/kWh)8
The Pembina Institute in their Feed-in-Tariffs Primer, states “FITs are implemented when there is a political desire to make renewable energy a priority, combined with a willingness to share the cost of renewable energy systems.
FITs have been demonstrated to be the most effective policy mechanism that a country can use to foster the rapid development of renewable energy systems. Close to two-thirds of the world’s wind energy and half of the solar PV systems have been installed as a result of feed-in tariffs. “
Ontario and Nova Scotia have introduced renewable energy Feed-in-Tariffs and both provinces have planned to phase out coal; Nova Scotia has committed a 2015 target of 25 percent renewable electricity to law. Ontario plans to phase out coal by 2014.
Sign the Petition calling for Feed in Tariff policy be adopted in Alberta...
See also the Alberta Environmental Network's Feed-in-Tariffs Resources Page...
Other Feed-in-Tariffs News by Paul Gipe....
Ontario's Green Energy Act
Since having Feed-in-Tariffs (FITs) adopted in Ontario, renewable energy producers, with a guaranteed rate of pricing, has secured financing for the green energy industry in the province.
The Ontario Green Energy Act received Royal Assent on May 14, 2009. This legislation is part of Ontario’s plan to become a leading green economy in North America.
The Green Energy Act will:
* Spark growth in clean and renewable sources of energy such as wind, solar, hydro, biomass and biogas in Ontario.
* Create the potential for savings and better managed household energy expenditures through a series of conservation measures.
* Create 50,000 jobs for Ontarians in its first three years.
* AND PHASE OUT COAL by 2014
April 7th, Ontario announced a record $8-billion renewable energy investment.
Renewable Energy Portfolio Standards
Renewable Portfolio Standards (RPS) are standard requirements for utitities to purchase specific percentages of total electricity from renewable sources (set with targets for short and long terms). Market forces continue to determine pricing rates (versus a pricing fixed by the FITs policy), but as mandated by government policy, a percentage the electricy must come from renewables.
This set of policies also increases confidence for investment in renewable energy production sector, although not believed to increase the rapid development of renewable energy production as with Feed in Tariffs.
In a deregulated energy market like in Texas (and as in Alberta), REPS have been successful in increasing Texas' renewable energy production, becoming leaders in their country. The Texas RPS has been so successful that its 10-year goal was met in just over six years.
Subsidies and Incentives
Info coming soon
Compare the favouritism the fossil fuel industry has gotten. In a nеw report bу IEA, http://www.iea.org/files/energy_subsidies.pdf , governments have spent $557 billion worldwide аѕ οf 2008 (read more in the article: Time to come clean on energy subsidies?).
Affordable Energy
Info coming soon
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