Design and Payment Structures
- South Africa: Introduced FITs in 2009 with 1.25 ZAR/kWh (€0.104/kWh) for wind energy and 2.10 ZAR/kWh for concentrating solar power, guaranteed for 20 years. These rates were among the most competitive globally at the time.
- Germany: Known for pioneering FITs, though specific rates for South Africa’s wind energy surpassed Germany’s early offers.
- Spain: Had higher solar FITs than South Africa, but phased out generous incentives post-2010s due to cost concerns.
Geographical Adoption
- EU Countries: As of recent data, 20 of 27 EU member states use FITs with variations. Examples include stepped tariffs (rates differing by project size/location) and tariff degression (annual rate reductions to encourage cost efficiency).
- Global Spread: By 2016, over 100 countries had adopted FITs or premiums for renewables. However, many nations now combine FITs with auctions or quotas.
Trends and Adjustments
- Premium Options: Some EU countries (e.g., Austria) allow adding market-price premiums to FITs to balance grid costs.
- Degression Mechanisms: Used in countries like Germany to gradually lower FITs as technology costs decrease.
- Obligations: Policies vary—some countries (e.g., Bulgaria) enforce purchase obligations, while others do not.
Challenges
- Overcompensation Risks: Led Spain and others to reduce FITs after rapid renewable uptake.
- Regulatory Complexity: Differing national rules (e.g., forecast obligations, burden-sharing) create market fragmentation.
Data highlights the shift from fixed FITs to hybrid models (e.g., premiums + auctions) as renewables mature.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-feed-in-tariffs-fits-compare-between-countries/
