By Global Markets Institute at Goldman Sachs and Center for Environmental Markets
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Additional info for Alternative Energy: Global Public Policy & Regulatory Challenges Fall 2007
Feed-in Tariffs: Eighteen EU member states have adopted some form of feed-in tariff. 72 Tariffs vary by technology, plant size, and location. , Finland), but the tariffs remain the primary incentive. Exhibit 21 shows policies in various jurisdictions in Europe and elsewhere. 078 Source: Renewable Energy Tariffs in Europe and elsewhere, compiled by the Ontario Sustainable Energy Association. The German government has actively employed feed-in tariffs. First enacted in 1991, they required utilities to purchase renewable power at 90% of the retail rate for electricity.
73 Tax Credits: Although the EU favors feed-in tariffs and targets, tax incentives are also utilized in various member states. Exhibit 25 provides examples of some existing policies. Exhibit 25 Select Tax Incentives in EU Nations France “New House Tax Credit” - A tax credit for renewable energy equipment in new residences that covers 15% of eligible expenses. Germany “Eco-Tax Reform” - In 2002, biofuels were exempt from nationwide oil taxes until the end of 2008, thus making the fuel more competitive in the marketplace.
Alt e r n at i v e E n e r g y: A G lo b al S u r v ey RFS: The Renewable Fuels Standard; it mandates the use of an increasing volume of biofuel in the United States. UNEP: United Nations Environment Programme. 51 per gallon tax credit, and a tax credit of up to 30% of the cost of alternative refueling. WRCI: Western Regional Climate Initiative, launched in February 2007. , 2007. 2 Wind power converts energy from wind into electricity through the use of wind turbines. Solar energy, which includes photovoltaic and solar thermal, uses manufactured components and materials to convert sunlight to electricity.