Feed-In Tariffs: From Certainty To Uncertainty

Published 17 March 2011

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Feed-In Tariffs: From Certainty To Uncertainty
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Business Monitor International's special report `Feed-In Tariffs: From Certainty To Uncertainty'highlights trends and patterns that have recently arisen in the developed and developing world with regard to Feed-In Tariffs (FITs). The report focuses on the recent reduction of pecuniary commitment to green resources in a number of developed countries as well as on the changes on developing countries' schemes.

The report also examines what this means for the growth prospects of the renewable energy industry globally.

Key Findings

  • Difficulties in identifying correct long-term FITs payments can be observed globally, due to the rapid change in technology costs and the laboriousness of calibrating FIT levels.
  • The unexpected and repeated changes in FIT schemes have significantly increased the level of uncertainty in the industry, tainting the reputation of this type of mechanism.
  • Project sponsors in developed countries will be the most affected by the rising level of uncertainty and will most probably hold off from commitments to major projects.
  • The outlook appears rosier in developing countries but utilities' caution is likely to have an impact also on developing countries, especially since they present a number of specific political, economic and regulatory risk factors.