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The Feed-In Tariff
By: Taylor Noland
The Basics
o Renewable Energy Projects will receive Guaranteed Interconnection to the Grid along with guaranteed above-market profit rate
o 20-year fixed-rate contracts, can be for different terms
o Cost Recovery + Reasonable Rate of Return
o Open to any & all renewable energy projects
Benefits
o Promotes Investment by providing financial security
o “Grassroots” development of renewable energy projects – fairness and non-discriminatory
o Economic growth and Creates Jobs
o Utilities gain stability with long-term contracts and have costs reimbursed
Europe
o 40 different countries, leaders are Denmark, Spain, and Germany:
o In Germany, Feed-In Tariff was Based on Resource type to fit demand, Rates Decrease Annually
o Doubled Supply of Renewable Energy, met 2010 goals in 2007
o Created 280,000 jobs
U.S. Inslee Billo 20yr contracts with mandatory purchase requirements,
guaranteed interconnection, open to all facilities beyond PURPA.
o FERC in charge of setting minimum national rate, based on 10% rate of return and delineated based on resource type. States would then have authority to implement these standards.
o “National Benefits Charge” for utilities’ rate recovery – creates RenewCorps which would be overseen by FERC and would reimburse utilities by imposing Benefits Charge on each U.S. customer. RenewCorps would reimburse for avoided costs, plus any interconnection and network upgrade costs
o Currently only Feed-In Tariffs are found in Vermont and Oregon, but legislation on the table in 15 states. Gainesville, Florida also implemented a similar feed-in tariff.
What does the opposition say?
o http://www.youtube.com/watch?v=KC6CYz92XEc
o “Anti-Competitive”
o “Tax”
Legal Issue
• Do FERC regulations of PURPA preempt a state’s rate-making authority?
• No.
• Ruling issued by FERC on October 21, 2010
o http://voicethread.com/#q.b556669.i2974944
