The seemingly unstoppable march of the feed-in tariff reached the US last
week, with four members of the House of Representatives proposing new
legislation that would guarantee small and mid-sized generators of renewable
energy an above-market rate for power they sell back to the grid.
Modelled on the German feed-in tariff – which is widely credited with
delivering a renewable energy revolution in the country, creating more than
140,000 jobs in the process – the Renewable Energy Jobs and Security Act would
provide guaranteed payments to small and mid-sized clean energy suppliers up to
20MW in size. In effect, this would guarantee an above-market price for energy
produced by both onsite microgeneration technologies and medium-sized
developments of up to 10 wind turbines.
Advertisement
The Federal Energy Regulation Commission would be charged with setting the
rates that utilities would have pay renewable-energy suppliers. Prices would
then be reduced every two years over a 20-year period, with the goal of reaching
or approaching market rate as renewable energy technologies become cheaper.
As well as proposing long-term fixed tariffs, the bill would also provide
renewable energy generators with a guarantee that their systems will be
connected to the grid.
The legislation is being proposed by democrat representative Jay Inslee and
is supported by fellow democrats Bill Delahunt, Jim McDermott and Mike Honda.
Inslee warned that the US risked missing out on billions of dollars of
cleantech investment if it does not do more to stimulate demand for such
technologies. "The cost of inaction on global warming extends well beyond the
serious ecologic and human health issues that already are taking a toll on our
environment," he said. "There is also an opportunity cost if we fail to help
America's brightest entrepreneurs to quench public demand for clean energy
technologies here in the US."
The bill's supporters said with more than a dozen states having already
enacted a feed-in tariff or considering doing so, federal legislation was also
required to help avoid a "patchwork regulatory structure" for the renewables
sector.
The bill is likely to receive widespread support from the renewables
industry, which has become frustrated over Washington's failure to secure an
extension to the existing renewable energy tax credits that are due to lapse at
the end of the year.
The news comes as the US renewables industry received a further setback,
after it emerged that the Bureau of Land Management (BLM) has issued a
moratorium on all new solar energy projects on public land as it assesses the
impact of solar farms on wildlife.
The BLM said it would continue to process 125 existing applications for
solar plants covering almost one million acres, but insisted it would defer all
new applications until after the environmental assessment is completed.
Comments
Have your say on this article