Ernst & Young Find Feed-in Tariffs Cheaper Than Trading
October 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
, 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.