Feed-in Tariff (FiT) to be issued by March 2011

February 16th, 2011 No Comments   Posted in feed-in tariff

Feed-in Tariff (FiT) to be issued by March 2011

The government thru the National Renewable Energy Board (NREB) is targetting to come up with the feed-in tariff (FiT) rate scheme by the end of March this year (2011), a top Department of Energy (DOE) official said.

The FiT is the price per kWh sold that will be paid to all renewable energy (RE) developers and power generators for puting up these intermittent power generation plants. It shall be fixed for 15 years and shall be subject to review every 3 years with the possibility of lowering the FiT as technology and economy of scale improves. It is, however, prospective, and applies only to future RE projects, thus protecting the earlier RE investments from regulatory and pricing risks arising from technological improvements. The RE technologies being intermittent are thus considered must run and will be dispatched when available and transmission and distribution system operators are obliged to ensure that investments are made to ensure their safe and stable connection into the grid. More »