Tuesday, August 28, 2012

New German study claims Replacing FITs with RPS would save 52 Billion Euros

Germany's policy  of guaranteeing prices through feed-in tariff (FIT) contracts is once again being questioned, and this time there are rumours the German government is more attentive to the argument.  Renewable Portfolio Standards (RPS, or RES) are superior to FITs from the consumers standpoint as they share risks among suppliers and purchasers - a FIT contract being more like winning a lottery win than a market mechanism.

RWI: Market-Oriented Renewable Funding Scheme Would Save EUR 52 Billion « German Energy Blog:
... a new study by the economic research institute Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI) on the most cost-effective support scheme for renewable energies can be summed up. RWI proposes to replace the Renewable Energy Sources Act (EEG) that currently promotes renewable energy through fixed feed-in tariffs by a “Wettbewerbsmodell Erneuerbare Energien” (WEE) that would oblige utilities to buy certain quota of renewable energy. This would lead to savings of up to EUR 52 billion over the next eight years, RWI claims.

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1 comment:

  1. It’s hard to find knowledgeable bloggers on this topic, but you seem like you know what you’re talking about! Thanks.