FEED-IN TARIFFS IN UK

Feed-In Tariffs in UK

[Nam of the Institution]Feed-In Tariffs in UK

Introduction:

Feed-in tariffs can be set to be paid for electricity that is fed back into the electricity grid. They have gene rally been used in a number of jurisdictions in Australia and overseas, to set a rate above the market price for wholesale electricity to support the uptake of more expensive forms of electricity generation, seeking as renewable energy and / or small scale electricity generation . In 2004, what obligation placed on electricity retailers to pay a feed-in tariff to Victorian households and small businesses for electricity fed back into the electricity grid from small scale wind generators of capacity up to 100 kilowatts? In 2007 the obligation was strengthened and extended to other forms of renewable energy (solar, hydro and biomass). In 2009 the obligation was further strengthened for small-scale solar systems up to 5 kilowatts of capacity, by requiring electricity retailers to pay a premium rate. In late 2009, the Victorian Competition and Efficiency Commission recommended that the feed-in tariff should be technology neutral and extended to low-emissions technologies. The Department of Primary Industries (on behalf of the Victorian Government) has commenced a review to consider the cost effectiveness of extending the feed-in tariff provisions to low-emissions technologies. (Lauber, 2010, pp.1405-1414)

The feed-in tariff (rate of redemption) is a political mechanism to promote the adoption of renewable energy sources. It usually consists of three main provisions:

Guaranteed access to the network,

Long-term contracts for electricity,

A purchase price that is calculated on the cost of renewable energy.

As part of a mechanism for feed-in tariff, electricity companies have regional or national obligation to buy renewable electricity (electricity produced from renewable sources like solar energy, energy wind, hydro, tidal, biomass and geothermal), independently of the supplier.

A purchase price calculated on the cost of production thus allows the development of various projects (wind, solar, etc.), and give investors the profitability of their project. This principle was first introduced into German law of 2000 RES.

The rate of pay is determined by scientific studies, provided that the rates will allow a facility - it is managed effectively - to be operated profitably, based on the Using the latest technologies and according to renewable energy sources naturally available in a given geographical area.

Accordingly, the tariff may vary according to different sources of energy, the installation location (e.g. on a roof or floor), project size, and sometimes by the technology (solar, wind, geothermal, etc.) Rates are generally revised downward over time to keep pace with technology and reductions in overall cost. This is consistent with the retention time of payment levels relative to actual production costs. (Amranand, 2010, Pp. 151-178)

Discussion:

The British government need that more private individuals should invest in renewable energies. By 2020 the proportion of wind, the sun and in the total energy supply in the UK will increase by about 15 percent. The former Labor government had introduced the feed-in tariffs in the UK in early 2010 after the ...