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OREP Policy Digest
March 2011

Welcome to the inaugural issue of the OREP Policy Digest, from Oregonians for Renewable Energy Policy (OREP). Feed-In Tariff (FIT) policies for renewable energy (RE) have enabled millions of utility customers around the world to get paid for producing electricity from renewable resources. Now used in over 60 countries, FITs have proven the fastest and cheapest way to deploy RE, have created enormous numbers of jobs and are responsible for 75% of the world’s solar energy and 45% of its wind.
 
In this and future issues we will examine how FITs are working around the globe and what makes them so effective; the challenges we face implementing FITs in the U.S. and Oregon and how to meet these challenges. OREP supports an economically just Feed-In Tariff in Oregon that attracts local investment in RE to create living wage jobs in a stable and flourishing RE industry, and to reduce our dependence on fossil fuels, thus avoiding their future price volatility. 
 
Our goal here is to provide Oregonians with facts and to point readers to resources and commentary on FITs and related renewable energy policies. We invite you to share this information and send us your feedback, as well as contributions to future issues of the OREP Policy Digest.
 
The OREP Team
info@OregonRenewables.com
www.OregonRenewables.com

 

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FITs AROUND THE GLOBE
 

  • STATUS OF FEED-IN TARIFFS IN EUROPE 2010 — Feed-In Tariffs are the predominant policy for renewable energy in the EU. Most wind and biogas and all solar developed with FITs. Read online at: click here.

 

  • ITALIAN FITS DRIVE 3X AS MUCH SOLAR PV INSTALLATION AS THE US IN  2010 — substantially exceeding industry estimates, Italy installed 1,850 MW of new solar PV systems installed in 2010. Read online at: click here.

 

  • UK USES FIT TO PROMOTE ENERGY CONSERVATION — "Enlightened Energy" says the Financial Times of London, reporting that the UK's Feed-In Tariff, begun April 2010, is first to use FITs to promote energy conservation by paying a bonus of 3p/kwh on top of a 41.3p/kwh payment for each kWh a customer generates in excess of their consumption. Online at: click here.

 

  • BRITISH FITs COULD POWER HOUSING — Solar panels to be fitted to thousands of council homes in Wrexham. The ambitious 25-year project – among the first of its kind in the UK – would lead to massive savings on power bills for tenants and drastically cut the borough’s carbon emissions. FITsne at: click here.

 
FIT PROGRESS IN NORTH AMERICA
 

  • FIT FOR ONTARIO — Ontario signaled its intention to become a world leader in renewable energy a year ago when it launched a Feed-in Tariff program. The most comprehensive in North America, it offers guaranteed, long-term prices for renewable energy producers and provides reasonable rates of return to increase investor confidence and to make it easier to finance projects. Read at: click here.

 

  • ONTARIO FITs RAPIDLY CREATING SOLAR JOBS: COST ONLY A "DONUT PER MONTH" — Using a measure Canadians understand, a provocative new report says the impact of Ontario's feed-in tariffs for solar PV, which will create 70,000 jobs, is no more than one Tim INVESTMENTut per month, create 12x more jobs than nuclear and save ratepayers 20%. Read at: click here.

 

  • ONTARIO AWARDS FIT CONTRACTS FOR $9 BILLION IN PRIVATE INVESTMENT WITH NEARLY 19% OF CAPACITY GOING TO COMMUNITY AND ABORIGINAL GROUPS — The Ontario Power Authority’s program may simply be the single largest green initiative in North America as the province races ahead with a plan to close its coal-fired power plants by 2014. Equally as significant is Ontario's intent on sharing the investment opportunity with its own citizens. Uniquely in North America, OPA has awarded contracts and connections for some 460 MW of projects to be owned by community and aboriginal groups. Online at: click here.

 

  • SOLAR IN ONTARIO: 2011 PREVIEW — 2009 saw the introduction of the Green Energy and Economy Act that produced a favorable Feed-In-Tariff (FIT) program. 2010 was a landmark year thanks to the approval of several hundred MWs of solar projects through the FIT program and innovative microFIT program for projects under 10KW (click here). 2011 is the year where it will become clear whether the Ontario market will be a flash in the pan or gain the momentum to become a long-term sustainable industry. Read at: click here.

 

  • NREL ISSUES "A POLICYMAKER'S GUIDE TO FEED-IN TARIFF POLICY DESIGN” — "Feed-in tariffs (FITs) are the most widely used renewable energy policy in the world,” says massive report by a team of researchers at the National Renewable Energy Laboratory (NREL). An extensive analysis of FIT policies around the globe, the report focuses on how they can be used in the US, offering American policy makers a guide to best practices and the advantages and disadvantages of each design element. Online at: click here.

 
OREGON’S “DEVELOPING’ FEED-IN TARIFF EFFORT
 

  • HOW OREGON’S SOLAR PILOT PROGRAM WORKS — The solar pilot program that pays utility customers for electricity from solar PV launched July 1, 2010. It has been well received and capacity reservations have sold out in minutes. But the program has several flaws and will need considerable improvement to achieve its true economic and environmental potential. See May 28th entry at: click here.

 

  • WORLD FUTURE COUNCIL GRADES NORTH AMERICAN FEED-IN TARIFF PROGRAMS: ONTARIO AND VERMONT PASS--CALIFORNIA & OREGON FAIL — Using ten criteria found critical in creating successful renewable energy policy, North American FIT programs were compared to those in Germany, France, and Spain, which are considered the gold standard of FIT design, and known to work well.  Online at: click here.

 

  • WHY OREGON’S SOLAR PILOT PROGRAM IS NOT A GENUINE FEED-IN TARIFF: WHY THIS IS IMPORTANT AND WHAT WE CAN DO — OREP Commentary:  click here.

 

  • HOW TO PARTICIPATE IN OREGON’S SOLAR “PAYMENT FOR POWER” PROGRAM — Oregon’s 5-year Solar Pilot Program, launched on July 1st, 2010, pays a fixed price per kWh over 15 years to customers of investor-owned utilities, for the solar electricity they produce and consume. While not yet a genuine Feed-In Tariff, it enables those without a state tax liability to get paid to produce clean energy. For how to participate see: click here.

 
SOME FAQs ABOUT FITS:

  • What are feed-in tariffs?
  • Why are they important?
  • Why should we use feed-in tariffs?
  • Are feed-in tariffs the same as tax credits?
  • Are feed-in tariffs just another subsidy?
  • Are tariffs taxes?
  • Who pays for feed-in tariffs?
  • Do feed-in tariffs hurt the poor?
  • See answers at: click here.

 

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  • Many thanks to FIT expert Paul Gipe for permission to share materials on Feed Laws from his excellent website at: click here.
  • Oregonians for Renewable Energy Policy (OREP) is a sponsored project of the Alliance for Democracy.
  • OREP promotes FIT policies that produce good economic, environmental and social outcomes at reasonable costs.
  • To request a speaker, volunteer or make a donation to our work, please visit us at www.OregonRenewables.com.
  • To join OREP’s list serve and receive monthly issues of the OREP Action Bulletin and the OREP Policy Digest, please email: Judy Barnes, Oregonians for Renewable Energy Policy at info@OregonRenewables.com

Shaping Oregon's energy future together,

Judy Barnes               Teddy Keizer               Mark Pengilly

Kathleen Newman               Ray Neff

 

Oregonians for Renewable Energy Policy
www.OregonRen
ewables.com

 

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OREP's Vision for a Sustainable Energy Future:

  • Solar panels on neighborhood homes, small businesses, churches, and schools
  • Average Oregonians producing solar energy and earning a return on their investment
  • Local lenders financing solar projects in rural and urban Oregon, to keep money circulating locally
  • A stable and flourishing solar industry with living wage jobs
  • Widespread support among voters for a renewable energy policy they can participate in and benefit from directly

 


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