tag:blogger.com,1999:blog-9121836870164599938.post2441242079505395241..comments2024-03-28T00:02:59.655-04:00Comments on Energy Policy Update: Maine considers renewable feed-in tariffTodd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-9121836870164599938.post-77502743657289672832013-03-27T14:33:24.776-04:002013-03-27T14:33:24.776-04:00The feed-in tariff is a European concept that has ...The feed-in tariff is a European concept that has been implemented in 65 nations globally. Many of these are based on Germany's EEG (Renewable Energy Sources Act). Under this, the dominant model, payment is based on what is calculated to be the cost of generation.<br /><br />A number of US jurisdictions have implemented policies they call feed-in tariffs, which may or may not conform to this model.<br /><br />Feed-in tariffs are based on cost of production because they are designed to promote preferred forms of generation. <br /><br />But let's be clear here - electricity generation procurement is based on more factors than levelized cost of electricity (cost per kWh). Utilities procure the source of electricity they want to best meet demand.<br /><br />For this reason, overly simplified arguments about what is a "competitive" form of generation don't match the reality of how utilities buy electricity.bardamuhttps://www.blogger.com/profile/07022029992051474825noreply@blogger.comtag:blogger.com,1999:blog-9121836870164599938.post-3492509429631357112013-03-22T10:37:03.765-04:002013-03-22T10:37:03.765-04:00Cliff, it's always hard to predict a bill'... Cliff, it's always hard to predict a bill's fate before the public hearing. I would guess that there will be support for the bill from those interested in promoting broader adoption of renewable distributed generation, but that utilities will oppose the bill on the ground that it could lead to higher costs to consumers. Another challenge arises in the interplay between the feed-in tariff and other programs designed to incentivize renewable energy, like Maine's community-based renewable energy pilot program or net energy billing. The community-based program in particular operates much like a feed-in tariff giving project developers the opportunity to get up to 20-year contracts to sell the facility’s output to a Maine transmission and distribution utility at average prices up to $100 per MWh (equivalent to 10¢ per kWh). Senator Johnson's bill would be limited to smaller projects (up to 500 kW each, as opposed to up to 10 MW for the community-based program), so there are some differences despite the potential overlap.<br /><br />Here's a write-up of the community-based renewable energy pilot program:<br />http://energypolicyupdate.blogspot.com/2011/12/community-based-renewable-energy-in.html<br /><br />For whatever reason -- possibly the success of ORPC's tidal power development -- policymakers tend to think of tidal energy before they think of wave energy. Senator Johnson might well be willing to broaden his bill to include wave power. You could approach him directly, or work with other stakeholders to do so.<br /><br />Feed-in tariffs aren't always based on the cost of generation, but many have been - such as Nova Scotia's community-based feed-in tariff (COMFIT). Here's a write-up on the COMFIT program, and the proposed schedule of rates:<br />http://energypolicyupdate.blogspot.com/2011/06/june-15-2011-nova-scotia-feed-in-tariff.html<br />Todd Grisethttps://www.blogger.com/profile/13493808805105483563noreply@blogger.comtag:blogger.com,1999:blog-9121836870164599938.post-39316068976580153252013-03-22T09:06:59.778-04:002013-03-22T09:06:59.778-04:00Todd, given the character sitting in the Governor&...Todd, given the character sitting in the Governor's mansion do you think this bill has a prayer of passage?<br /><br />Also, do you think the sponsor, state senator Christopher Johnson, would be amenable to altering the language to include wave power? How would that conversation be initiated.<br /><br />Finally, you mention that the FIT is based on the cost of generation. Is that normally the case? In other words under a FIT is there no advantage to being commercially viable?<br /><br />The Mainers paying the highest electrical rates are those living on the offshore islands. Wave power seems like a great opportunity to get them less dependent on diesel generation. Cliff Goudeyhttps://www.blogger.com/profile/07477448236348903946noreply@blogger.com