| Sourced From Gerson Lehrman Group |
Implications: The article in power-technology.com, describes the experience in Germany of an innovative feed in tariffs as one of the well tried measures, consequent to which, there has been a healthy growth in renewable energy projects, to the extent that Germany is even considering phasing out nuclear by 2021. Feed in tariff is linked to performance and results unlike other measures like capital subsidies or tax incentives. It is easier to administer and simple unlike carbon credits which can become complex involving costly expenses like consultant surveys,analysis, approvals, monitoring or management etc and can become daunting a constraint to small generators. The feed in tariff has helped numerous small generators who play an important role in balancing the energy supply from central generating stations with consequent reduction in transmission and distribution losses, and avoiding costly network upgrades. This pioneering effort in Germany has now been adopted in over 30 countries.
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