Feed-in Tariffs Gaining Traction in North America

North American feed-in tariff policies take off
by Ben Block – World Watch Institute – August 12, 2009

Clean energy advocates in Europe have long considered the feed-in tariff as an antidote to the industrial world’s fossil fuel dependency. Now, the United States and Canada are starting to catch on as well.

Feed-in tariffs (FITs) guarantee that anyone who generates electricity from a renewable energy source—whether they are a homeowner, small business, or large electric utility—is able to sell that electricity into the grid and receive long-term payments for each kilowatt-hour produced. Payments are set at pre-established rates, often higher than what the market would ordinarily pay, to ensure that developers earn profitable returns.

The FIT is credited for the rapid deployment of wind and solar power among world renewable energy leaders Denmark, Germany, and Spain this past decade. Similar policies have since been adopted by many other countries, leading the FIT to become the most prevalent tool for promoting renewables.

In North America, its adoption has been relatively slow. As public support for renewable energy increases, however, more governments are adopting FIT policies—often as a complement to the widely used Renewable Portfolio Standards (RPS) that require utilities to purchase minimum amounts of renewable electricity.

Several U.S. states and Canadian provinces began serious consideration of the FIT last year. More than a dozen states, one province, and numerous municipalities have since implemented some form of FIT.

“We’ve reached a tipping point where a feed-in tariff is no longer such an odd idea for America,” said Paul Gipe, the author of several books on wind energy and a FIT advocate. “In fact, it’s the best idea for rapid development of the massive amount of renewable energy that’s needed now.”

Solar: A Rich Man Only Renewable Energy?

The very last sentence of this article notes that the “Oregon legislature is currently considering a five-year pilot program to try out the [feed-in tariff] model.”  This is potentially good news but until Oregon and all other states adopt a system where energy can be sold to utility companies at a rate that is high enough to make all sizes of solar installations “profitable”,  like Germany for example, solar will continue to lag behind wind and other renewable energy sources.

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Is Solar Power Only A Rich Man’s Renewable Source?
By Rob Manning – OPB News – June 8, 2009

Turning energy from the sun into electricity is one of the keys to saving the earth, according to renewable power advocates, and if solar is going to take off in the Northwest, it will mean re-shaping our relationship with energy.

Solar energy is considered an intermittent resource, although one of the more predictable ones, since you know it produces electricity only when the sun is up.

And solar is about as renewable as it gets – when the sun comes up, the rays get captured in panels and converted into energy.

Even factoring in the cost of producing the panels, solar energy is several times more efficient than fossil fuels. And unlike wind — which can kill birds — or hydro — which can kill fish — there’s no known collateral damage from solar installations.

But right now, solar doesn’t even register as one of the seven biggest sources of electricity in Oregon.

Eugene Water & Electric Pioneers Renewable Energy Payments

EWEB a pioneer in renewable energy payment plans
By Bill Welch – Guest Viewpoint – Register-Guard – November 25, 2008

Gov. Ted Kulongoski recently unveiled his climate change goals for the 2009 Oregon Legislature. One of the goals — developing a pilot program to allow Oregonians to sell renewable power directly to their local utility — prompted a guest viewpoint by Jennifer Gleason of the Environmental Law Alliance Worldwide (Register-Guard, Nov. 18).

Gleason’s central point was that the success of a pilot program hinges on the need for a renewable energy payments policy, also known as REP. In such a policy, utilities purchase all of the output from customers’ generation systems “at a fair price for an extended period.” She correctly identified several elements to make sure a policy works.

One need not look far to find an example of a successful pilot program. That’s because the Eugene Water & Electric Board already completed a pilot program almost identical to what the governor and Gleason are suggesting. The utility also has an REP in place for customers who wish to install solar or other renewable generation systems.

The utility initiated its pilot program, the EWEB Photovoltaic Generation Program, in 2001. EWEB provided access to its electric distribution system, provided 10-year contracts to purchase all the output of photovoltaic generation systems at almost twice the average retail rate, and worked with local contractors to implement the program — all of the key elements Gleason identified.

In 2007, EWEB created a full program modeled after the pilot program. EWEB’s Photovoltaic Generation Program currently is the only one of its kind in Oregon.

Renewable Energy Payments Coming to Oregon?

Let all join in renewable revolution
By Jennifer Gleason – Guest Viewpoint – Register-Guard – November 18, 2008

Every Oregonian should be able soon to generate renewable energy from the sun and sell it to their local utility at a fair price.

Gov. Ted Kulongoski’s recently announced plan to protect the climate includes a pilot project that could make it possible for everyone in Oregon — including families, school districts, farms, vineyards, businesses and nonprofit organizations — to help generate energy from the sun.

If done well, this pilot project will be modeled on policies adopted in Europe that have made Germany the world leader in solar energy production. A well-crafted production incentive policy (known as a renewable energy payment, or REP, policy) guarantees that utilities will buy renewable energy — in this case, solar — at a fair price for an extended period.

The price is set to ensure that people generating the electricity will make a profit, but not a windfall profit.

With this guarantee, people are willing to invest in the equipment needed to produce renewable energy. Experience in Germany has shown that REP policies are the most effective and efficient way to promote the generation of electricity from renewable sources.

Feed-In Tariffs Work In Germany – Why Not Use Them in Oregon

Let all join in renewable revolution
By Jennifer Gleason – Guest Viewpoint – Register-Guard – November 18, 2008

Every Oregonian should be able soon to generate renewable energy from the sun and sell it to their local utility at a fair price.

Gov. Ted Kulongoski’s recently announced plan to protect the climate includes a pilot project that could make it possible for everyone in Oregon — including families, school districts, farms, vineyards, businesses and nonprofit organizations — to help generate energy from the sun.

If done well, this pilot project will be modeled on policies adopted in Europe that have made Germany the world leader in solar energy production. A well-crafted production incentive policy (known as a renewable energy payment, or REP, policy [also known as a feed-in tariff, or FIT]) guarantees that utilities will buy renewable energy — in this case, solar — at a fair price for an extended period.

The price is set to ensure that people generating the electricity will make a profit, but not a windfall profit.

With this guarantee, people are willing to invest in the equipment needed to produce renewable energy. Experience in Germany has shown that REP policies are the most effective and efficient way to promote the generation of electricity from renewable sources.