San Francisco, United States [RenewableEnergyWorld.com] The FIT Coalition this week announced that it intends to push for the largest comprehensive Feed-in Tariff (FIT) in North America. The group said that the campaign will focus on the bipartisan passage of FIT legislation in California that delivers on the state’s renewable energy goals while boosting the economy in a way that creates tens of thousands of jobs and stimulates billions of dollars in increased tax revenue for California.
The passage of the Renewable Energy and Economic Stimulus Act (REESA) in the California state legislature is the FIT Coalition’s top priority. The legislation calls for enacting a FIT for renewable energy projects up to 20-megawatts (MW) in size and delivering an incremental 2% of California’s delivered energy from renewables every year through 2020.
The REESA FIT unleashes the Wholesale Distributed Generation (WDG) market segment, which is comprised of 20 MW-and-under renewable energy projects that are interconnected to the distribution grid, with all energy production sold wholesale to a utility. WDG is the only market segment that is immediately scalable within California, creating near-term jobs and tax revenue; and WDG is the only market segment that can deliver enough renewable energy within the next 10 years to reach California’s mandate for 33% renewables by 2020.
The REESA is designed to fulfill the 33% Renewables Portfolio Standard (RPS) evenly over the ten-year period between 2011 and 2020. The scale of this annual requirement is massive: For example, if the 33% RPS were fulfilled entirely with solar energy, then roughly 4 GW of solar would need to be deployed every year.
Results from a ratepayer impact analysis already show that the REESA will save ratepayers billions of dollars while fulfilling the entire 33% RPS mandate by 2020. Preliminary results from an additional study show that the REESA will create tens of thousands of California jobs quickly while stimulating billions in new tax revenue. The FIT Coalition is also bringing together policymakers and industry stakeholders through a series of educational and industry alignment summits.
“The passage of the REESA would be the most significant step California could take in transitioning to a clean energy economy in a cost-effective and timely manner. It has been proven repeatedly around the world that no other policy mechanism comes close to a well-designed Wholesale DG FIT for producing steady growth in renewable energy deployments while stimulating maximum economic benefits in terms of job creation and increased tax revenue,” said Craig Lewis, executive director of the FIT Coalition.