Advanced Renewable Tariffs

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A policy tool to sustain developments in renewable energy.


Description

"In modern Advanced Renewable Tariffs, society sets what is believed to be a fair price for each technology, that will result in profitable development. The market then functions to determine how much, where, and by whom renewables will be developed.

Advanced Renewable Tariffs are “advanced” because there is price differentiation by technology. Solar gets one price, wind another, and so on. In well-developed systems like those in Germany and France there is further differentiation, for example by project size or application. In Germany there is one price for solar mounted on the ground, and another higher price for solar on roof tops. Similarly, in France there’s one general price for solar and additional bonus for solar integrated into the building.

The beauty of ARTs is that they are transparent, comprehensible, and equitable. The door is open to everyone, from farmers to homeowners, from utility company subsidiaries to independent power producers to cooperatives. Everyone can participate. Everyone going in knows the price they will be paid per kilowatt-hour of generation and they know how long they will be paid that tariff. If the venture isn’t profitable, they won’t build it.

If the technology doesn’t work as projected, the investors go broke, but the electricity consumer is held harmless. Producers only get paid for their generation. That’s the grand bargain. If the projects works as planned over the long haul, the producers make a modest profit and consumers get a clean source of renewable generation today - not in some distant tomorrow." (http://www.worldchanging.com/archives/005730.html)