Electricity Feed Laws, Feed-in Tariffs, and Advanced Renewable Tariffs



While not exhaustive, this site contains an extensive collection of articles on Feed Laws, Feed-in Tariffs, and Advanced Renewable Tariffs. Learn more about feed laws and how they have been successful in Europe, and how they can benefit North Americans by following the links below.--Paul Gipe


What are ARTs or FITs?

Electricity Feed Laws, Feed-in Tariffs (FITs), or Advanced Renewable Tariffs (ARTs) are the world's most successful policy mechanism for stimulating the rapid development of renewable energy. Feed Laws are also the most egalitarian method for determining where, when, and how much renewable generating capacity will be installed. Renewable Tariffs enable homeowners, farmers, cooperatives, and First Nations (Native Americans) to participate on an equal footing with large commercial developers of renewable energy.

Electricity Feed Laws permit the interconnection of renewable sources of electricity with the electric-utility network and at the same time specify how much the renewable generator is paid for their electricity. In the United States, feed laws have been described as PURPA on steroids because the price is specified. (In 1978 PURPA permitted interconnection of renewable energy generators with the grid but didn't specify the price, only the means for calculating the price.) Feed Laws are widely used in Europe.

Advanced Renewable Tariffs (ARTs) are the modern version of Electricity Feed Laws. ARTs differ from the simpler feed-in tariffs in several important ways. Tariffs are differentiated by technology. There is one price for wind energy, another price for solar, and so on. Tariffs within each technology can also differentiated by project size or, in the case of wind energy, by the productivity of the resource. Tariffs for new projects are also subject to periodic review to determine if the program is sufficiently robust. For example, programs are reviewed every two years in France and Ontario, and now every three years in Germany.

What are Tariffs?

Tariffs are the price paid per kilowatt-hour of electricity consumed, or in this case, generated. The term is commonly used in North America's electric utility industry. The term is also commonly used in Europe. Tariffs are not taxes nor in this context customs duties on goods crossing international borders.

Renewable Energy Tariffs by Country

Renewable Tariffs Overview

The Economic Case

Reviews of Books on Feed-in Tariffs

Links to More on Feed-in Tariffs

Copyright © 2003 by Paul Gipe. All rights reserved.
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