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Feed-in Tariffs – the renewable energy way to go

Feed-in Tariffs the Way Forward for Renewable Energy, Peter Lynch with an introduction by Andrew DeWit, 28 Nov 11 Peter Lynch, an expert on the renewable energy sector, offers a concise introduction to the central role of feed-in tariffs (FITs) in fostering the ongoing transition from conventional, carbon-laden sources of generating electricity to renewables such as solar, wind and geothermal. As the author points out, FITs guarantee markets and prices for renewable power, and drive down their cost through deployment and the encouragement of yet more technical advance. FITs thus offer much hope to a world that seems unable to reach any sort of global agreement on cutting emissions which have continued to spiral since the 1997 Kyoto Protocol.

Last year, according to figures from Bloomberg New Energy Finance (link), investment in new generation capacity from renewable energy sources (excluding hydro) totaled USD 187 billion, outpacing the USD 157 billion new investment in natural gas, oil, and coal-fired generating capacity. This rapid ramping up of deployment of existing technologies is key for renewables, as Bloomberg notes. For example, since the mid-1980s each doubling of wind generation capacity has led to a 14% reduction in cost through technical improvements in production, better materials, learning by doing, and the like. Advances have come so rapidly that the Bloomberg New Energy Finance researchers “expect wind to become fully competitive with energy produced from combined-cycle gas turbines by 2016 in most regions offering fair wind conditions.”

The article highlights the role of the German FIT in driving this energy revolution. It notes that a decade ago Germany targeted a 12.5% share of electricity from renewables for 2010, but blew through the target in 2007 to achieve a 15.1% share……..

Feed-in Tariffs: The Proven Road NOT Taken…Why?

Peter Lynch……. http://japanfocus.org/-Peter-Lynch/3654

November 28, 2011 - Posted by Christina Macpherson | 2 WORLD, renewable