The Atlantic Chapter has recently produced a white paper on the renewable energy production program called the Feed in Tariff (FIT). Some organizations in the U.S. and Canada refer to the program as the Clean Local Energy Accessible Now (CLEAN) program. The program requires utilities to enter into standard contracts with renewable energy producers.
Energy producers can include individuals, small businesses, and farmers, as well as larger suppliers. Contract rates are determined by the cost of installation of the renewable project (solar panels, wind power generators, etc.) plus a reasonable profit of usually 5 to 10 percent per year. These are long-term supply contracts, generally 20 years in length, which insures a fair return to the renewable energy producer. These contracts spur project loans from banks and investors who know they will be guaranteed a return. New contract rates are adjusted annually depending upon costs and energy needs.
By early 2011, 61 countries and 21 states, provinces and local jurisdictions had established feed in tariffs. Germany, for example, has had remarkable results: 370,000 jobs in renewable energy, including many good manufacturing and construction jobs, billions of Euros per year in investments, 20% of its electricity being produced from renewables with a goal over 35% by the year 2020, a substantial reduction in greenhouse gases and better health for the citizens and environment.
Ontario, Canada, began a CLEAN program in 2009, and currently has 20,000 jobs in renewables. The province is predicting 50,000 clean energy jobs by the end of 2012 as project placements ramp up.
To find the white paper click here for the pdf. The paper is titled “CLEAN-FIT, A Program to Unleash Renewable Energy and Create Jobs in New York State.”
Bob Ciesielski, a member of the Niagara Group, chairs the Chapter’s Energy Committee.