Advantages and disadvantages of Feed-in Tariffs

Abstract

Feed .in tariffs (FiT) are an important and successful steering instrument to facilitate the use of renewable energies. In many countries of the world feed]in tariffs play a fundamental part to rise the commercial interest of investors concerning geothermal electricity production. In 20 EU]countries, in USA, east africa, central america, overall more than 30 countries FITs for all kinds of renewable energy support the energy change. About 15 countries created a feed]in tariff for geothermal electricity. Some countries, notably France and Germany, use a system of bonus payments or adders to encourage certain kinds of geothermal development, for example, district heating. Successful feed]in tariffs are typically based on the "cost" to generate electricity and not on its "value". Germany uses a multiple bonus system. There has been a bonus payment for project completion before 2016, another bonus for district heating, and a third for developing Enhanced Geothermal Systems, such as hot dry rock. Germany has decided new tariffs beginning in 2012 and geothermal tariffs have increased substantially to .0.25 /kWh ($0.36/kWh).