Best Practices and Design Options for Feed-in Tariffs

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Introduction.....1

2 Overview.....2

2.1 Definition of renewable energy sources.....2

2.2 Present status and historic development of RES-E in the EU.....2

2.3 Motivation to support RES-E and Member State targets.....5

2.4 Instruments to support RES-E....7

2.5 The International Feed-In Cooperation....8

3 Feed-in tariff design options....10

3.1 General conditions of a FIT design....11

3.1.1 Determining the support level....11

3.1.2 Revision of tariffs....21

3.1.3 Purchase obligation.....23

3.2 Stepped tariff designs.....24

3.2.1 Tariff level depending on location.....28

3.2.2 Tariff level depending on plant size.....34

3.2.3 Tariff level depending on fuel type.....36

3.2.4 Evaluation of a stepped tariff design.....38

3.3 Incorporating technological learning in RES-E policy....39

3.3.1 The concept of experience curves....39

3.3.2 Tariff degression......40

3.3.3 Evaluation of a tariff degression.....43

3.4 Premium versus fixed tariff design.....44

3.5 Net Metering.....54

3.6 Additional incentives for innovative features....56

3.6.1 Additional premiums for RES-E generators.....56

3.6.2 Additional premium for repowering.....58

3.6.3 Demand orientation.....59

3.7 How to increase the local acceptance of RES.....62

4 Burden sharing......64

5 Grid integration and stability of power supply of fluctuating RES.....69

5.1 Costs for grid connection....69

5.2 System integration and forecast obligation.....73

6 Summary, conclusion and policy recommendations.......76

7 Appendix A......78

8 Appendix B.......82

References.....84


References

  1.  "Evaluation of different feed-in tariff design options – Best practice paper for the International Feed-In Cooperation"