13 comments on Energy Journal Roundup: July 2009
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13 comments on Energy Journal Roundup: July 2009
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Feed in tariff policy in spain have been a fiasco while German policy has stimulated PV growth. This article looks at California: Is a Feed-In Tariff a good FIT for the U.S.?
Your link returns the to this same page.
>> Feed-in-tariff policy in Spain has been a fiasco.
Would you care to elaborate? I ask because Spain has used the fixed premium system (a fixed amount on top of the fluctuating market electricity price) [see for ex. PDF] instead of an agreed price. This has been in place since the 90's and as far as I can see it's working (up to 30% wind generation some days of last year --ahead of most countries --), and it has created world leaders in the renewables industry like Gamesa, Isofoton or Abengoa which compete internationally and employ a lot of people. Where exactly is the fiasco?
The problem was that the Spanish government put an (annual) upper limit of the newly installed solar capacity but grossly underestimated the demand: They had underestimated PV's economy as they put an unnecessarily high feed-in tariff, which attracted lots of investors. So the upper limit was reached much before the year's end, leading to a full stop for Spain's PV installation.
A classical example of unsustainable policy!
Sadly, some countries didn't learn from this and now also introduced a combination of high feeed-in tariffs + an installation limit...