Renewable Energy Policy FiT Analysis: Installed Capacity and Targets to 2020

Countries worldwide are planning to promote renewable energy in one way or the other in order to reduce dependency on fossil fuels. Hence, mandatory renewable energy targets are being laid down by the governments to ensure that the power producers produce certain proportions of the total electricity generation from renewable energy sources. For instance, the EU and the U.S. have set a base line renewable energy target of 20% by 2020. As of 2015, 164 countries around the world have adopted at least one type of renewable energy target. In order to meet these targets and also to increase the adoption of renewable energy technologies, governments have framed policies and are providing incentives, such as feed-in tariff.

Solar is the fastest growing renewable energy generation technology
In terms of renewable energy installation, by technology, wind is the most widely used renewable energy source, followed by solar, bio energy, and geothermal. However, in terms of adoption rate, solar is being widely adopted and deems to be a promising technology in the near future. China alone added approximately 15,150 MW of capacity to its solar energy in 2015. Moreover, in 2015, China surpassed Germany to become the largest installer of solar Photovoltaic (PV). The country aims to reach a renewable energy target of around 100 GW of solar PV capacity by 2020. In 2015, the largest capacity addition of geothermal and bio energy technology was observed in the U.S. and Brazil respectively.

Feed-in Tariff – an effective energy supply policy
Feed-in tariff is a performance-based incentive, promoting rapid deployment of renewable energy technologies. Well-designed feed-in tariff policies can positively impact job creations and economic growth. These policies are successful world over, especially in the European countries. Feed-in tariff policies can be implemented to support all renewable technologies including wind (onshore and offshore), solar (PV and thermal), geothermal, bio energy (biogas and biomass), fuel cells, and tidal & wave power. Feed-in tariffs are generally awarded as long-term contracts set over a period of 10 years to 20 years. Currently, there are seven U.S. states such asCalifornia and Washington that mandate feed-in tariffs. .

Organizations present in the renewable energy value chain
Some of the leading organizations present in the renewable energy value chain includes Ministry of Environment, Energy and the Sea (France), Ministry of New and Renewable Energy (India), Ontario Power Authority (Canada), Office of Gas & Electricity Markets, U.K. Government (U.K.), Ministry of Economy, Trade and Industry (Japan), Dominion Virginia Power (U.S.), Tennessee Valley Authority (U.S.), Los Angeles Department of Water & Power (U.S.), Orcas Power & Light (U.S.), Green Mountain Power (U.S.), and Eugene Water & Electric Board (U.S.), among others.

Source: Prnewswire