Feed-in Tariffs–The Economic Case

There are a number of myths surrounding Feed-in Tariffs (FITs) and how they work because FITs fly in the face of conventional neoliberal economic policy. In conventional neoliberalism, the market sets the price. In FITs, price is set administratively and the market determines the volume. FITs are a market mechanism that can create rapid growth without subsidies and other incentives. Setting prices administratively is nothing new. Electricity prices have been set administratively–and still are–in most countries for a century or more. The links below touch on this and related issues.

Deutsche Bank: Paying for Renewable Energy: TLC at the Right Price


Mark Fulton

Germany in particular stands out and is able to demonstrate many benefits that come with a strong volume response while being responsive to significant market developments. In a North American context, the province of Ontario has many features of a strong policy design. . .

Spreadsheet Analysis of Feed-in Tariff Program Costs


Paul Gipe

  The movement for feed-in tariffs in North America has finally chalked up a few victories, and, as a result, …

The cost of wind, the price of wind, the value of wind


Jérôme Guillet

An excellent primer on why wind energy (and solar PV) needs feed-in tariffs. . .

Going Green: Why Germany Has the Inside Track to Lead a New Industrial Revolution


Wharton Business School

Wharton Business School on the success of Germany’s EEG. . .

Arne Kildegaard on the Merit Order Effect


Presentation explaining how the Merit Order Effect works and what it means to ratepayers. . .