Environmental Engineering Reference
In-Depth Information
•
The introduction of a
feed - in law
where different renewable energy generation technologies
are paid a fi xed price for their output and suppliers/distributors are obliged to take that
output.
•
A
quota system
whereby suppliers/distributors are obliged to source a certain fraction of
their energy from renewable energy sources. This is facilitated by the issuing of green
certifi cates to renewable energy generators which can be traded with the energy or as a
separate entity.
•
A
carbon tax
on conventional energy generation, making renewable energy generation
more attractive.
•
Carbon trading
(as described above).
•
Tax relief
on the investment in renewable energy generation plant.
This section will discuss the implementation of these schemes by looking at two
European countries, namely the UK and Germany, who have implemented all of these
measures in some way. An analysis is then made of the value of green certifi cates under a
quota system followed by a brief discussion of the selling of green electricity as a
' product ' .
7.6.2 Feed - in Law
Germany, like the UK, set a target in 1998 for 10% of electricity to be generated from renew-
able energy sources by 2010. Since 1991, a law has been in force which gave a legal obliga-
tion for utilities to take off all electricity generated by renewable energy generators at a fi xed
price depending on the technology. This law was subsequently amended such that the local
grid operator took on this obligation instead of the local utility. Table 7.8 shows the tariffs
payable to renewable energy generators.
Table 7.8
Tariffs paid to renewable energy generators under the Renewable Energy Sources Act as
of 1 January 2002. (Note that the minimum amount paid to wind farms reduces by 1.5% annually for
all installations built after 1 January 2002.) (Reproduced from Reference [21] )
Technology
Tariff (
€
/MW h)
Small hydro, landfi ll gas, mines, sewage gas < 500 kW
76.7
Biomass < 500 kW
101.0
Biomass 500 kW - 5 MW
91.0
Biomass > 5 MW
86.0
Geothermal < 20 MW
89.5
Geothermal > 20 MW
71.6
Onshore wind (fi rst fi ve years)
At least 90.0
Onshore wind (after fi ve years)
At least 61.7
Offshore wind (fi rst nine years)
At least 90.0
Offshore wind (after nine years)
At least 61.7
Photovoltaics
481.0
