Renewable Energy is becoming increasingly cost competitive
Renewable Energy is becoming increasingly cost competitive. Governments globally need to start planning how they will phase out subsidies when they are no longer required. Popularised by the Germans in 1990, Feed-in-Tariffs (FiT) have been a driving force behind the adoption of renewable energy around the world. More than 40 countries have implemented some form of FiT scheme to provide financial support for the industry that not too long ago was considered too expensive or a technological dead-end. Despite the enormous success of the FiT regime to date, the conditions surrounding the renewable energy sector are vastly changed which has led to the development of a new mechanism spearhead by the British, Contracts-for-Difference (CfD). We contrast each method and conclude the time is right to start thinking about how we should encourage the renewable energy sector going forward. (VIEW LINK)
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