Innovative Feed-In Tariff Designs that Limit Policy Costs

摘要: Feed-in tariffs (FITs) are the most prevalent renewable energy policy used globally to date, and there many benefits certainty offered in marketplace reduce development risks associated financing costs grow industry. However, concerns over escalating jurisdictions with FIT policies have led increased attention on cost control design. In recent years, mechanisms for containing become more refined, allowing policymakers exert greater outcomes resulting ratepayers. As regulators United States begin explore use of FITs, careful consideration must be given ways which design can balance policies' advantages while bounding its costs. This report explores that implemented limit If designed clearly transparently, such align policymaker market expectations project deployment. Three different tools evaluated: (1) caps, (2) payment level adjustment mechanisms, (3) auction-based designs. The employs case studies strengths weaknesses these three containment tools. These then evaluatedmore » a set criteria including predictability potential unintended consequences.« less