Ernst & Young Find Feed-in Tariffs Cheaper Than Trading System
Ernst & Young Find Feed-in Tariffs Cheaper Than Trading SystemOctober 6, 2008
The international accounting firm, Ernst & Young, has concluded that Germany's system of feed-in tariffs delivers more renewable energy at lower cost to consumers than Britain's Renewable Obligation and its certificate trading system.
The conclusion turns on its head the common misperception that feed-in tariffs cost consumers more than so-called "market-friendly" polices, such as tendering and certificate trading systems.
Ernst & Young clearly show their allegiance to the British trading system when commenting on their surprise at the findings, "Although a feed-in tariff may be culturally incompatible in the UK, there is an argument that the ROC [Renewable Obligation Certificate] system needs a review if it is to deliver the required capacity in a cost effective manner, . . .
The findings were contained Ernst & Young's Renewable energy country attractiveness indices for the first quarter of 2008, page 13. They concluded that Germany generated more renewable energy at lower costs than Britain.
Despite the significantly better wind resource in Britain, Germany produced four times more renewable energy than Britain at one-fifth the relative (per kWh) cost.