Thursday, May 19, 2016

Germany decided to replace feed-in tariffs with energy auctions to cut costs of renewables

Feed-in tariffs worked well in the past, when renewable energy was still relatively expensive and number of installations was comparatively low. Germany went from 6 percent renewables share in 2000 to more than one-third in 2015, while photovoltaic solar costs, for example, dropped by 80 percent.
Government realized that feed-in tariff is locking country into expensive power contracts and there is a need for more cost-effective incentives for renewable energy. In an auction system, the government issues a call for a given capacity of renewable energy and developers then submit bids for the price per unit of energy that they can complete the project. Read more at