Difference Between Feed-In-Tariff And Power Purchase Agreement

Feed-in tariffs have proven to be very effective in fostering rapid and comprehensive development of SERs. B in countries such as Germany, Denmark and Spain. Feed-in tariffs (FIFs) and feed-in tariffs (FIPs) remain the most common policy for renewable energy production at the national and national/provincial levels. At the beginning of 2014, 73 countries and 28 countries/provinces had adopted an FIT/FIP (REN 21 Renewables 2014 Global Status Report). This is mainly due to the high level of investment security offered by long-term guaranteed ITAs. On the other hand, recent experience in countries such as Spain, the Czech Republic and Greece has shown that FIT can lead to overcompensation and low efficiency if it is not adapted to the reduction of UC costs. Feed-in tariffs (FIT) are fixed electricity prices paid to renewable energy producers (UC) for each unit of energy produced and injected into the electricity grid. The payment of the FIT is guaranteed for a fixed period of time, often linked to the economic life of each UC project (usually between 15 and 25 years). Another possibility is to calculate a fixed maximum amount of full-load hours of UC production for which the FIT is paid.

FIT is generally paid for by power grids, networks or market operators, often under electricity purchase contracts (AAEs). Although PPAs now guarantee the future purchase and sale of energy at an agreed price, the sale of an energy asset still needs to be managed throughout its lifespan. Although the parties may agree and sign a PPP contract for a period of 10 years, the asset concerned may continue to exist for up to 30 years. In many FIT systems, UC investors are also eligible for additional premium payments (i.e. an increase in the basic FIT) for the use of certain biomass-based fuels (e.g. B of manure), cogeneration, repowering older recompagine facilities, providing additional services for the electrical grid or specific innovative applications (z.B. improved geothermal systems). On the one hand, these bonuses can be useful in achieving certain political objectives (for example. B technological innovation) and, on the other hand, they increase the costs of the aid scheme. The energy tariff in the first phase was divided into five categories; The purchase price per kilowatt hour (KWh) for solar production in private dwellings is 0.848 EGP. For non-residential facilities with installed production capacity of less than 200 kilowatts, the price rises to 0.901 EGP/KWh.

The third category, between 200 and 500 kilowatts, is paid 0.973 EGP/KWh. The fourth and fifth categories of non-housing are paid in dollars to attract foreign investment, the fourth category, which ranges from 500 to 20 megawatts, paying 0.136 USD/KWh (15% of the tariff being linked to the exchange rate of 7.15% per dollar). The last category, which ranges from 20 to 50 MW, is paid at 0.1434 USD/KWh. On the other hand, the purchase price of wind products depends on the number of hours of operation and is more expensive than the solar tariff. It covers operating hours of 2500 to 4000 hours, with purchase rates down from $0.1148/KWh to $0.046/KWh. FITs generally offer a guaranteed sales contract for long periods (15-25 years). [1] [10] In the second phase, the solar production categories were reduced to four, with the residential rate increased to 1.0288 EGP/KWh.