INSTITUTE for ENERGY RESEARCH
July 15th, 2010
Europe has implemented Feed-In Tariffs. Shouldn’t We Learn from their Experience?
Europe’s feed-in tariffs have led to higher electricity prices without having positive impacts on emissions reductions, employment, energy security, or technological innovation. In Spain, the feed-in tariff has helped create a rate deficit so great that it imperils the sustainability of Spain’s electricity system. Despite these real-world experiences, some believe we should implement the same policies in the U.S. Recently ClimateWire carried the following item, with opening language provided:
…Germany’s principal mechanism of supporting renewable technologies through feed-in tariffs, in fact, imposes high costs without any of the alleged positive impacts on emissions reductions, employment, energy security, or technological innovation….
Keep in mind Germany is the “poster child” for renewable energy success stories. They’re often touted by the likes of CanWEA and other industry groups. Most recently, here.
Germany – with a population six times that of Ontario and a land mass one-third the size – has already installed more than 20 times as much wind energy capacity as Ontario; and has set aggressive targets to significantly increase that number by the year 2020.