Global Energy Markets
The Feed-in tariff (FIT) is a government-backed, and usually consumer-funded, financial instrument to ensure price parity for renewable energy producers compared to largescale power producers. FITs have proven to be the most effective government incentive program for renewable technologies: countries which have adopted FITs have been shown to have the largest growth rates in renewable energy technology deployment.
Half of the world’s PV installations are due to FITs (Peters & Weis, 2008). FITs for PV are being utilized around the globe: in early 2009, 45 countries and 18 states/provinces/territories had FITs (REN21, 2009). In Germany, a FIT program has been offered to PV operators for nearly two decades. The tariff is altered throughout the years to spur innovation and effectively stimulate the market (EEG, 2007).
The success of the FIT enabled Germany to reach its goal of having a 12.5% renewable energy supply three years early, in 2007 (EEG, 2007; Peters & Weis, 2008) and encouraged 18 other EU countries to adopt similar programs (EEG, 2007). Another country to successfully pursue FITs was Spain: in 2008, Spain saw a five-fold increase in PV capacity from the previous year. Germany and Spain possessed 5.4 and 3.3 GW of PV power capacity in 2008, representing the majority of the world’s 13 GW total (REN21, 2009). Other countries/regions with FIT programs in include California, Ireland, Portugal, the Slovak Republic, Switzerland, Turkey, Bulgaria, Greece, France, Kenya, the Philippines, Poland and South Africa (REN21, 2009).
Country Installed capacity (31.12.15) (MW) Net generation (2015) (GWh) Austria 404 820 Belgium 3068 3000 Bulgaria 1041 1400 Switzerland 756 -/- Czech Rep. 2067 2200 Germany 38411 35200 Denmark 781 600 Spain 6967 8263 France 6192 7400 Greece 2444 3665 Italy 19100 23900 Netherlands 1429 100 Portugal 429 800 Romania 1249 2000 Slovenia 263 200 Slovakia 532 500 UK 9000 7500