What creates a successful feed-in tariff?

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Detail

What is a feed-in tariff? They are essentially payment to generators of renewable energy for each kilowatt-hour of electricity they produce. How do they work? Basically there are three key elements. First, guaranteed access to the grid for all players, no matter what their size. Second, a guaranteed rate for twenty years. Third, ideally no limit so that industrial scale development occurs.

The key elements that need to be considered in defining a successful renewable energy policy include:
- Program limits
- Project size
- Contract length
- Renewable energy technologies included
- Cost of generation
- Differentiated by technology
- Differentiated by size
- Differentiated by resource intensity for wind
- Inflation

Germany provides the best model in the world for renewable energy policy and feed-in tariff specifically. In North America Ontario provides the leading model - for details click here.

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