Mario Ragwitz, Arne Klein, Anne Held Fraunhofer Institute Systems and Innovation Research (Fh-ISI)

3rd Workshop of the International Feed-in 3rd Workshop of the International Feed-in CooperationCooperationMadrid, November 23rd 2006Madrid, November 23rd 2006

Key factors of feed-in tariff systemsbest practices of design options

and comparison to other alternatives

Mario Ragwitz, Arne Klein, Anne HeldFraunhofer Institute Systems and Innovation Research

(Fh-ISI)


Present status and historical development of RES-E Present status and historical development of RES-E penetration penetration

Dominating support schemes for RES-EDominating support schemes for RES-E Feed-in tariff design optionsFeed-in tariff design options

- Tariff levelTariff level- Stepped tariffsStepped tariffs- Tariff degressionTariff degression- Premium tariffsPremium tariffs- Extra premiums for innovative featuresExtra premiums for innovative features

ConclusionConclusion

OutlineOutline


Present status and historical development of RES-E Present status and historical development of RES-E in the EUin the EU

RES-E penetration in the EU-25 Member States excluding large-scale RES-E penetration in the EU-25 Member States excluding large-scale hydrohydro

0

50

100

150

200

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Ele

ctric

ity g

ener

atio

n [T

Wh/

year

]

Wind offshoreWind onshorePhotovoltaicsGeothermal electricityBiowasteSolid biomassBiogasHydro small-scale



0

20

40

60

80

100

AT BE CY CZ DK EE FI FR DE GRHU IE IT LA LT LU MT NL PL PT SK SI ES SE UK

Ele

ctric

ity g

ener

atio

n [T

Wh/

year

]

Large-scale hydro Small-scale hydro BiogasSolid biomass Biowaste Geothermal electricityPhotovoltaics Wind on-shore Wind off-shore

Breakdown of RES-E generation in the EU-25 Member States in Breakdown of RES-E generation in the EU-25 Member States in 20052005



0%

10%

20%

30%

40%

50%

60%

70%

80%

AT

BE

DK FI FR DE

GR IE IT LU NL

PT

ES

SE

UK

CY

CZ

EE

HU LA LT MT

PL

SK SI

1997 2004 EU-target by 2010

RES-E share in gross electricity consumption in the EU-25 Member RES-E share in gross electricity consumption in the EU-25 Member StatesStates






OutlineOutline


Dominating support schemes for RES-EDominating support schemes for RES-E

1. Feed-in tariffs (FIT) Renewable electricity can be fed into the grid at a guaranteed

tariff for a determined period of time The electricity output depends on the support level price-based FITs may also consist of premium tariffs paid in addition to the

market price (e.g. in Spain) stronger market orientation

2. Quota obligation with tradable green certificates (TGC) Determination of quota target Renewable electricity is sold at the market electricity price Additional revenue from selling TGCs Certificate price depends on predefined quota target and is

determined on the market quantity-based


Dominating support schemes for RES-EDominating support schemes for RES-E

3. Tender procedures A predefined target of additional capacity or generation is set In a bidding round projects with the lowest generation costs can

obtain financial support i.e. in form of long-term feed-in tariffs quantity-based

4. Fiscal incentives/investment grants Tax incentive: Reduction or exemption of tax payment price-based Investment grants: Reduction of capital costs price-based

Price-based mechanisms Quantity-based mechanisms Feed-in tariff Fiscal incentives Investment grants

Quota/TGC Tender schemes

Classification of policy measures


Feed-in tariff and Quota / TGC

Feed-in tariffQuota / TGC

Tax incentives / Investment grants Other system

SE

FI

LALT

PL

CZ

HUAT

DE

DK

UKIE

ESPT

IT

MTCY

GR

FR

NLBE

LU

EE

BE

SI

SK

Dominating support schemes for RES-E in Dominating support schemes for RES-E in the EUthe EU

A clear majority of EU countries uses feed-in tariffs as main A clear majority of EU countries uses feed-in tariffs as main instrumentinstrument


Correlating the average annual profit with the Correlating the average annual profit with the effectiveness indicatoreffectiveness indicator

FI BE-Flanders

BE-WalloniaFR

DE

IE

IT

ES-Market Option

ES-Fixed Price

SEUK

AT

0%

5%

10%

15%

20%

0 1 2 3 4 5 6 7

Annual expected profit [€ Cent/kWh]

Effe

ctiv

enes

s in

dica

tor

Feed-in tariffs Tender Quota/TGC Tax incentives/rebates

The case of wind energy in the year 2004. COM (2005) 627)






OutlineOutline


Feed-in tariff levels – wind onshoreFeed-in tariff levels – wind onshore

Support level varies significantly among FIT-countriesReason: different resource conditions but also different efficiency of support

Level of remuneration wind power onshore

0

2

4

6

8

10

12A

TC

YC

Z fix

CZ

prem

ium DK

EE

FR DE

GR

HU IE LT LU NL

PT

SK

SI f

ixS

I pre

miu

mE

S fi

xE

S p

rem

ium

Rem

uner

atio

n [€

Cen

ts/k

Wh]


Feed-in tariff levels - biomassFeed-in tariff levels - biomass

Large set of different special features existing in the biomass sector!

Level of remuneration solid biomass

0

5

10

15

20

25A

T

Cyp

rus

CZ

fix

CZ

prem

ium DK

EE

FR DE

GR

HU IE LT LU NL

PT

SK

SI f

ix

SI p

rem

ium

ES

fix

ES

pre

miu

m

Rem

uner

atio

n [€

Cen

ts/k

Wh]


Feed-in tariff levels – hydro powerFeed-in tariff levels – hydro power

Level of remuneration small-scale hydro

0

2

4

6

8

10

12

AT

CY

CZ

fix

CZ

prem

ium EE

FR DE

GR

HU IE LT LU NL

PT

SK

SI f

ix

SI p

rem

ium

ES

fix

ES

pre

miu

m

Rem

uner

atio

n [€

Cen

ts/k

Wh]


Feed-in tariff design optionsFeed-in tariff design options

1) Equal burden sharing with exceptions for consumers with a high demand.

Country Stepped tariff

Tariff degressi

onPremium

optionExtra

premiumsEqual

burden sharing

Forecast obligatio

nAustria x - - - x1) -Cyprus x - - - x -Czech Rep. x - x - x -

Denmark x - x (wind) Repowerin

g x1) -

Estonia - -x

(new draft)

- xx

(new draft)

France x x (wind) - Various x -

Germany x x - Repowering, PV x1) -

Greece x - - - x -Hungary - - - Demand x -


Feed-in tariff design optionsFeed-in tariff design options

2) Each consumer contributes the same amount of money, irrespective of the electricity consumption

CountryStepp

ed tariff

Tariff degressi

on

Premium

optionExtra

premiumsEqual

burden sharing

Forecast obligatio

nIreland x - - - x -

Italy x x (PV) - PV: net metering x -

Lithuania - - - - x -Luxembourg x - - - x -

Netherlands x - x - 2) -

Portugal x - - Demand x -Slovakia x - - - x -Slovenia x - x Demand x xSpain x - x - x x






OutlineOutline


Stepped tariff designStepped tariff design

Electricity generation costs may vary due to: Electricity generation costs may vary due to: Local conditions (wind yield, solar radiation)Local conditions (wind yield, solar radiation) Power plant sizePower plant size Fuel type (biomass and biogas) Fuel type (biomass and biogas)

A stepped tariff design takes the different costs A stepped tariff design takes the different costs into accountinto account


Stepped tariffs – Determining the tariff Stepped tariffs – Determining the tariff levellevel

Example: electricity generation costs for wind energyExample: electricity generation costs for wind energy

Assumptions: Investment: 1067 €, Lifetime: 20 a, Interest rate: 6.6%, O&M costs: 3% of investment

0

2

4

6

8

1015

00

1700

1900

2100

2300

2500

2700

2900

3100

3300

3500

3700

Full-load hours [h/a]

Gen

erat

ion

cost

s or

tarif

f [€

Cen

ts/k

Wh]

Generation costs

Producer profit 2

Tariff level 2

Producer profit 1

Tariff level 1


0

2

4

6

8

1500

1700

1900

2100

2300

2500

2700

2900

3100

3300

3500

3700


Pro

fit [€

Cen

ts/k

Wh]

0

2

4

6

8

10

1500

1700

1900

2100

2300

2500

2700

2900

3100

3300

3500

3700


Cos

ts o

r rem

uner

atio

n [€

Cen

ts/k

Wh]

Stepped tariffs – Level depending on local Stepped tariffs – Level depending on local conditionsconditions Case study Netherlands Case study Netherlands

Support for onshore wind energy in the NL Support for onshore wind energy in the NL ((For plants approved For plants approved before summer 06)before summer 06):: 7.7 € Cents/kWh plus electricity price for the first 18,000 FLH or for 7.7 € Cents/kWh plus electricity price for the first 18,000 FLH or for 10 years 10 years

*

Flat tariff

Stepped tariff

Generation costs

Producer profitProducer profit flat

Producer profit stepped


-2

0

2

4

6

8

1500

1700

1900

2100

2300

2500

2700

2900

3100

3300

3500

3700


Pro

fit [€

Cen

ts/k

Wh]

Stepped tariffs – Level depending on local Stepped tariffs – Level depending on local conditionsconditions Case study France Case study France

0

2

4

6

8

10

1500

1700

1900

2100

2300

2500

2700

2900

3100

3300

3500

3700


Cos

ts o

r rem

uner

atio

n [€

Cen

ts/k

Wh] Flat tariff

Stepped tariffGeneration costs

Producer profitProducer profit flat

Producer profit stepped

Support for onshore wind energy in FR:Support for onshore wind energy in FR: 8.2 € Cents/kWh for 10 years8.2 € Cents/kWh for 10 years Between 2.8 and 8.2 € Cents/kWh for the remaining 5 yearsBetween 2.8 and 8.2 € Cents/kWh for the remaining 5 years (depending on the electricity yield during the first 10 years)(depending on the electricity yield during the first 10 years)


Stepped tariffsStepped tariffs

Tariff level depending on plant size Tariff level depending on plant size Electricity generation costs tend to decrease with the capacity of a power plant Electricity generation costs tend to decrease with the capacity of a power plant Reason: Economies of scaleReason: Economies of scale Different tariffs may be paid according to the plant sizeDifferent tariffs may be paid according to the plant size

Applied in many EU countries by using different tariff levels for different capacity Applied in many EU countries by using different tariff levels for different capacity rangesranges


Stepped tariffs – Level depending on plant sizeStepped tariffs – Level depending on plant size Case study Luxembourg Case study Luxembourg

M:M: Remuneration per kWh Remuneration per kWh P:P: Plant capacity Capacity Plant capacity Capacity

0.00

2.00

4.00

6.00

8.00

10.00

12.00

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

1000

0

Plant capacity [kW]

Rem

uner

atio

n [€

Cen

ts/k

Wh]

63.250095.175.0

P

M

Biomass and biogas

Wind and geothermal


Stepped tariffsStepped tariffs

Tariff level depending on fuel typeTariff level depending on fuel type Electricity generation costs may vary due to the typeElectricity generation costs may vary due to the type

of biomass or biogas usedof biomass or biogas used Biomass grown with the purpose of electricity generation hasBiomass grown with the purpose of electricity generation has

a higher price than certain wastes or residuesa higher price than certain wastes or residues Electricity from landfill and sewage gas is remunerated Electricity from landfill and sewage gas is remunerated

with a lower tariff in some countrieswith a lower tariff in some countries When waste with a large biogenic fraction is burnt, electricityWhen waste with a large biogenic fraction is burnt, electricity

and heat can be generatedand heat can be generatedApplied for example in Austria, Germany, Spain and PortugalApplied for example in Austria, Germany, Spain and Portugal


Stepped tariffs – Level depending on fuel Stepped tariffs – Level depending on fuel typetype

Support for electricity from biomass in AustriaSupport for electricity from biomass in Austria

Plant capacity

Pure solid biomass

[€ Cents/kWh]

Waste with large biogenic fraction [€ Cents/kWh]

Group 1(FIT reduction:

20%)

Group 2(FIT reduction:

35%)

Group 3

≤ 2 MW 16.00 12.80 10.40 2.702 - 5 MW 15.00 12.00 9.75 2.70

5 - 10 MW 13.00 10.4 8.45 2.70

> 10 MW 10.2 8.16 6.63 2.70Group 1: Residues from wood where a biological utilization is not preferable or possibleGroup 2: Other residues from wood (where a biological utilization is preferable or possible)Group 3: Other types of waste with a large biogenic fraction


Stepped tariffs – Level depending on fuel Stepped tariffs – Level depending on fuel typetype

Support for electricity from biomass in GermanySupport for electricity from biomass in Germany

Plant capacity Pure solid biomass

Premium for untreated biomass

CHP premium

Premium for innovative

technologies≤ 150 kW 11.16 6.0 2.0 2.0150 kW - 500 kW 9.61 6.0 2.0 2.0

500 kW - 5 MW 8.64 4.0 2.0 2.05 MW - 20 MW 8.15 - 2.0 -Exceptions:Exceptions: Combustion of waste wood: 3.78 € Cents/kWhCombustion of waste wood: 3.78 € Cents/kWh Combustion of wood (500 kW - 5 MW): Tariff level is increased by 2.5 € Combustion of wood (500 kW - 5 MW): Tariff level is increased by 2.5 €

Cents/kWh Cents/kWh (Premium for untreated biomass is not applicable)(Premium for untreated biomass is not applicable)

Landfill and sewage gas: 7.44 € Cents/kWh (Landfill and sewage gas: 7.44 € Cents/kWh (≤ 500 kW); 6.45 € Cents/kWh 500 kW); 6.45 € Cents/kWh ( 500 kW – 5 MW)( 500 kW – 5 MW)


Stepped tariffs – EvaluationStepped tariffs – Evaluation

Advantages:Advantages: Differences in power generation costs can be taken into accountDifferences in power generation costs can be taken into account Risk of over-compensating very efficient plants is minimizedRisk of over-compensating very efficient plants is minimized Costs for consumer of RES-E support are reducedCosts for consumer of RES-E support are reduced

Disadvantages:Disadvantages: May lead to high administrational complexityMay lead to high administrational complexity Many different tariff levels may reduce transparencyMany different tariff levels may reduce transparency Overall efficiency of the system may be decreased (if tariffs for Overall efficiency of the system may be decreased (if tariffs for

small plants are significantly higher than for larger plants, it small plants are significantly higher than for larger plants, it could be profitable to construct two small plants instead of a could be profitable to construct two small plants instead of a large one)large one)






OutlineOutline


Tariff degressionTariff degression

Tariff degression:Tariff degression: Annual reduction of the tariff level for new power plantsAnnual reduction of the tariff level for new power plants Ideally cost reductions due to the experience curve effectIdeally cost reductions due to the experience curve effect

are reflectedare reflected Main reasons for the cost reductions: Main reasons for the cost reductions:

- Learning processLearning process- Economies of scaleEconomies of scale- Technical progressTechnical progress- RationalizationRationalization

Applied in Applied in Germany (between 1 and 6.5% depending on the Germany (between 1 and 6.5% depending on the technology), France (2% for wind turbines from 2008 on) and Italy technology), France (2% for wind turbines from 2008 on) and Italy (2% for PV devices from 2007 on)(2% for PV devices from 2007 on)


Tariff degression – Case study GermanyTariff degression – Case study Germany

10

100

10 100 1,000 10,000 100,000

1990

19962000

2004

5.00

6.00

7.00

8.00

9.00

10.00

11.00

1990 1995 2000 2005Year

Experience curve for onshore wind Experience curve for onshore wind energyenergy

Support for onshore wind energySupport for onshore wind energy

Reduction of 53% from 1990 – 2004 (5% annually) High decrease in costs between 1991 and 1996 Lower decrease since 1997

Cumulative installed capacity [MW]

Turb

ine

price

per

el

ectri

city

yiel

d [€

Cen

ts/(k

Wh/

a)]

Reduction of 23% from 1991 – 2005 Tariff degression of 2%

StrEG

EEG


Tariff degression – EvaluationTariff degression – Evaluation

Advantages:Advantages: Investment securityInvestment security Incentive for technological improvementsIncentive for technological improvements Lower producer profit and lower costs for RES-E supportLower producer profit and lower costs for RES-E support

Disadvantages:Disadvantages: A fixed degression rate may reduce the flexibility of a systemA fixed degression rate may reduce the flexibility of a system Changes in input prices or plant designs are difficult to predictChanges in input prices or plant designs are difficult to predict






OutlineOutline


Premium tariff designPremium tariff design

Premium tariff:Premium tariff: RES-E is sold directly on the marketRES-E is sold directly on the market Premium is paid on top of the market pricePremium is paid on top of the market price Typically no purchase obligation is providedTypically no purchase obligation is provided

Applied in Spain, the Czech Republic and Applied in Spain, the Czech Republic and Slovenia as an alternative to the fixed tariff Slovenia as an alternative to the fixed tariff designdesign


Premium tariff designPremium tariff design

RES-E sales and electricity market price in SpainRES-E sales and electricity market price in Spain

0500

10001500200025003000350040004500

Jan-

04

Mar

-04

May

-04

Jul-0

4

Sep

-04

Nov

-04

Jan-

05

Mar

-05

May

-05

Jul-0

5

Sep

-05

Nov

-05

Jan-

06

Mar

-06

May

-06

Jul-0

6

Elec

tric

ity g

ener

ated

[GW

h]

0.01.02.03.04.05.06.07.08.09.0

Elec

tric

ity m

arke

t pric

e [€

Cen

ts/k

Wh]

Premium Option Fixed Option Market price

RD 436


Premium tariff design – Case study SpainPremium tariff design – Case study Spain

Share of RES-E sold with the premium optionShare of RES-E sold with the premium option

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%Ja

n-04

Mar

-04

May

-04

Jul-0

4

Sep

-04

Nov

-04

Jan-

05

Mar

-05

May

-05

Jul-0

5

Sep

-05

Nov

-05

Jan-

06

Mar

-06

May

-06

Jul-0

6

Shar

e of

ele

ctric

ity s

old

thro

ugh

the

prem

ium

opt

ion

Wind Biomass Residues Small hydro Treatment of Residues PV

RD 436

In March 2004 a new premium option was introduced by the RD In March 2004 a new premium option was introduced by the RD 436436


Premium tariff design – Case study SpainPremium tariff design – Case study Spain

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Jan-

04

Mar

-04

May

-04

Jul-0

4

Sep

-04

Nov

-04

Jan-

05

Mar

-05

May

-05

Jul-0

5

Sep

-05

Nov

-05

Jan-

06

Mar

-06

May

-06

Rem

uner

atio

n [€

Cen

ts/k

Wh]

Remuneration premium option Remuneration fixed option premium paid on top of market price

Remuneration for premium and fixed option wind energyRemuneration for premium and fixed option wind energy


Premium tariff design – EvaluationPremium tariff design – Evaluation

Advantages:Advantages: Higher compatibility with the liberalised electricity marketHigher compatibility with the liberalised electricity market Match between supply and demand may be facilitatedMatch between supply and demand may be facilitated The market price for electricity sets a signal for RES-E The market price for electricity sets a signal for RES-E

dispatchingdispatching

Disadvantages:Disadvantages: Causes typically higher costs for consumers due to additional Causes typically higher costs for consumers due to additional

market risks to be borne by RES-E suppliersmarket risks to be borne by RES-E suppliers Wind and solar energy can hardly be controlled Wind and solar energy can hardly be controlled Less investment security therefore higher risk premiumLess investment security therefore higher risk premium






OutlineOutline


Extra premiums for innovative featuresExtra premiums for innovative featuresAdditional premiums are paid for:Additional premiums are paid for: Technologically innovative power plant designTechnologically innovative power plant design

Energy efficient power plants (FR)Energy efficient power plants (FR) Building integrated PV devices (DE, FR)Building integrated PV devices (DE, FR) Regular production during winter time Regular production during winter time

(hydro power FR) (hydro power FR) Premium for methanisation of biogas (FR)Premium for methanisation of biogas (FR)

Repowering of wind turbines (DK, DE)Repowering of wind turbines (DK, DE) Electricity generation during times of high demand (SI, HU)Electricity generation during times of high demand (SI, HU)


Extra premiums for innovative featuresExtra premiums for innovative features

France:France: Extra premiums are paid, if certain conditions are Extra premiums are paid, if certain conditions are

fulfilled fulfilled

Technology ConditionsLevel of premium

[€ Cents/kWh]Biomass energy efficiency 0 – 1.2Biogas,

geothermal energy efficiency 0 – 3.0

Biogas with methanisation

extra premium for methanisation 2.0

PV energy building integrated plants 25.0

Hydro power extra premium for regularity of production during winter time 0 – 1.52


Extra premiums for repoweringExtra premiums for repowering

Repowering:Repowering: Old power plants are replaced by modern more efficient Old power plants are replaced by modern more efficient

ones, usually with a higher capacity ones, usually with a higher capacity This concept is especially important for wind This concept is especially important for wind

powerpower not only important to support new turbines, with not only important to support new turbines, with

increasing capacity repowering is an option to exploit increasing capacity repowering is an option to exploit higher potentialshigher potentials


Extra premiums for repowering – Case study Extra premiums for repowering – Case study GermanyGermany

Conditions for getting the repowering bonus in Germany:Conditions for getting the repowering bonus in Germany: Old plant has started operating before 31.12.1995Old plant has started operating before 31.12.1995 New plant enlarges the capacity by at least 3 timesNew plant enlarges the capacity by at least 3 times The higher starting remuneration is paid for 2 more The higher starting remuneration is paid for 2 more

months for each 0.6% the energy yield does not months for each 0.6% the energy yield does not reach the reference yield reach the reference yield


Extra premiums for repowering – Case study Extra premiums for repowering – Case study DenmarkDenmark

Conditions for getting repowering bonus in Denmark:Conditions for getting repowering bonus in Denmark: Turbines of up to 450 kW may be replacedTurbines of up to 450 kW may be replaced New turbines have to be built between 15.12.2004 and 15.12.2009New turbines have to be built between 15.12.2004 and 15.12.2009 An extra premium of 1.6 € Cents/kWh is paid for theAn extra premium of 1.6 € Cents/kWh is paid for the

first 12,000 FLH of the new plant first 12,000 FLH of the new plant (Cap of 6.4 € Cents/kWh for premiums and market (Cap of 6.4 € Cents/kWh for premiums and market price) price)


Extra premiums for demand orientation in Extra premiums for demand orientation in SloveniaSlovenia RES-E producers can decide to receive different FITs RES-E producers can decide to receive different FITs

according to the time of day or the season of the year (70 – according to the time of day or the season of the year (70 – 140% of normal tariff level)140% of normal tariff level)

Higher daily tariff (HDT)

Lower daily tariff (LDT)

High season (Jan, Feb, Dec) 1.40 1.00

Middle season (Mar, Apr, Oct, Nov) 1.20 0.85

Low season (May – Sept) 1.00 0.70HDT: Mon – Sat, 6:00 – 13:00 and 16:00 – 22:00 o'clock (when winter time is used)

Mon – Sat, 7:00 – 14:00 and 17:00 – 23:00 o'clock (when summer time is used) LDT: Mon – Sat, 22:00 – 6:00 and 13:00 – 16:00 o'clock (when winter time is used)

Mon – Sat, 23:00 – 7:00 and 14:00 – 17:00 o'clock (when summer time is used)


Extra premiums for demand orientation in Extra premiums for demand orientation in HungaryHungary

Different tariffs are paid for electricity from Different tariffs are paid for electricity from "weather independent" RES-E technologies"weather independent" RES-E technologiesaccording to the demandaccording to the demand

TechnologyTariff level [€ Cents/kWh]

peak off-peak deep off-peak

Solar, wind 9.44 9.44 9.44Geothermal, biomass, biogas, small hydro (≤ 5 MW)

10.72 9.44 3.85

Hydro (> 5 MW) 6.90 3.45 3.45


Extra premiums – EvaluationExtra premiums – Evaluation

Advantages:Advantages: Possibility to influence RES-E producers in their behaviourPossibility to influence RES-E producers in their behaviour Provides Incentives to use the most advanced and efficientProvides Incentives to use the most advanced and efficient

technologies technologies Provides incentives to feed electricity into the grid in times of Provides incentives to feed electricity into the grid in times of

peak demand peak demand

Disadvantages:Disadvantages: Extra premiums cause additional administrative complexityExtra premiums cause additional administrative complexity RES-E generators might not be able to influence the time of RES-E generators might not be able to influence the time of

electricity generation (solar and wind energy)electricity generation (solar and wind energy)


Use technology specific tariffs

Apply a stepped tariff scheme (where appropriate)

Tariffs should decrease over time for new installations in order to account for technology learning

Options to participate in liberalised power markets can facilitate the integration into the market

A forecast obligation can facilitate the integration of electricity using fluctuating RES into the grid



Thank you for your attention!!!

Mario RagwitzMario Ragwitz

[email protected]

Mario Ragwitz, Arne Klein, Anne Held Fraunhofer Institute Systems and Innovation Research (Fh-ISI)

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Transcript of Mario Ragwitz, Arne Klein, Anne Held Fraunhofer Institute Systems and Innovation Research (Fh-ISI)