WWF & Green Alliance Say Feed-in Tariffs Best for UK Because They “Employ Competition”–Proposal to Cut Electricity Consumption 40% or 155 TWh per year . . .
Energy Efficiency & Energy Conservation
Energy efficiency feed-in-tariffs (FiTs) are a potential alternative approach to striking a better balance between efficiency and energy supply markets. In a way, they are the obverse of energy savings obligations. Instead of establishing the quantity of energy savings desired and letting the market (i.e., via the obligated energy companies, or otherwise) determine the price of achieving them, they establish a price that will be paid for efficiency savings and let the market determine the quantity of savings that will be delivered. . .
To reduce energy use and costs most effectively, we propose a counterintuitive policy approach: pay for demand reduction, even if rational electricity consumers are already incentivised to reduce demand by the cost savings that such reduction would bring, because this is cheaper than the alternative of paying for new power stations. The [British] government could most easily pursue this approach by creating a demand reduction feed-in tariff to mirror supply-based feed-in tariffs. . .
While feed-in tariffs are most often associated with the generation and sale of electricity produced by generators using renewable … Read more