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GSR 2015

88 04 POLICY LANDSCAPE generating capacity targets upwards, and, as of early 2015, the country aimed to deploy 150 GW of wind, 70 GW of solar PV (35 GW of utility-scale and 35 GW of distributed), and 330 GW of hydropower by 2017; it also aimed to install 17.8 GW of solar PV during 2015.9 India established an overall goal of 170 GW of renewable energy by 2022; increased its solar power target to 100 GW by 2022, which is five times the original goal; and also inaugurated the National Mission on Small Hydro, which includes hydropower targets.10 St. Lucia raised its renewable power generation target from 20% to 35% by 2020.11 Turkey added cumulative capacity targets for biomass (1 GW), geothermal (1 GW), hydropower (34 GW), and solar PV (5 GW) to its existing wind energy target (20 GW), all to be met by 2023.12 At the sub-national level, the emirate of Dubai increased its renewable electricity target from 5% by 2030 to 15% by 2030.13 While other countries increased their targets, Saudi Arabia pushed back its target to source 33% of its electricity from solar power by eight years, from 2032 to 2040.14 Feed-in policiesi have long been the most popular form of renewable energy regulatory support policy worldwide. (p See Figure 30.) As of early 2015, feed-in policies were in place in 73 countries at the national level and in 35 states/provinces in Australia, Canada, China, India, and the United States. Feed-in tariff (FIT) policies continued to be adjusted in response to shifting market conditions and policy priorities. Many FIT pay- ment rates were adjusted downwards (some retroactively), and some FIT designs have integrated elements of other policy types (e.g., competitive bidding or on-site consumptionii ). (R See Reference Table R16.) Trends and developments related to feed-in policies vary from one income group and region to the next. (p See Figure 31.) Countries in Africa have turned increasingly to feed-in policies to promote renewable energy deployment. A decade ago, Algeria was the only country on the continent with a feed-in policy in place, whereas, as of early 2015, eight African countries had enacted such policies.15 (p See Figure 32.) Egypt was the only country to introduce a new feed-in policy in 2014. The country adopted solar power (solar PV and CSP) rates that differ based on installation size (with ranges set in five different categories and capped at 50 MW), and wind power rates that are determined by total hours of production.16 Elsewhere in Africa, Algeria revised its FIT programme to provide additional support for the deployment of wind and solar PV projects.17 As of early 2015, new FIT policies also were under discussion in The Gambia, Senegal, and Zimbabwe.18 In Asia, Kazakhstan’s 2013 FIT came into force in 2014, and several other Asian countries revised existing policies. Existing FIT programmes were expanded to include new technologies in both China (small-scale distributed PV and offshore wind) and Vietnam (waste-to-energy).19 New lower rates were introduced in China (a reduction in tariffs for onshore wind) and the Philippines (for hydro, biomass, wind, and solar power).20 Japan doubled the consumer surcharge placed on all consumers’ electricity bills to fund the FIT scheme, expressed its intention to revise eligibility requirements, and reduced rates for solar PV (starting in April 2015).21 Malaysia’s FIT was expanded to cover new regions, while degression rates were revised downwards in early 2014 and subsequently raised later in the year.22 By early 2015, India’s new government was considering abandoning the country’s tendering scheme in favour of FITs in an effort to increase investment and to scale up deployment of solar power.23 A number of countries in Latin America and the Caribbean had feed-in policies in place by early 2015. The US territory of the Virgin Islands adopted a new feed-in policy to support solar PV systems 10–500 kW in size.24 Costa Rica, which utilises a hybrid FIT and tendering-based mechanism, revised its FIT in 2014 and approved FIT rates for PV systems in early 2015. Costa Rica provides differentiated payments for excess electricity exported to the grid from self-consumption installations up to 1 MW in size, as well as for plants operated by independent power producers (IPPs) of up to 20 MW.25 In North America, feed-in policies continue to be found only at the sub-national level. For the second year in a row, no US states added new FITs, and the number of states with feed-in policies remained at five. No Canadian provinces added FITs in 2014, although Ontario completed its third round of applications under its FIT programme.26 European countries—at the forefront of the development of feed-in policy mechanisms—continued their recent trend of revising existing policies. Unlike in recent years, however, these changes are now being formalised in a continent-wide shift away from FITs through guidance from the European Commission. The Commission’s new State Aid guidelines, issued in 2014, instruct EU countries to begin using tendering to allocate support to new renewable energy projects in 2015–16, with all new project support to be allocated through renewable energy tenders by 2017.27 (pSee Sidebar 6 for more details on tender mechanisms.) Meanwhile, EU countries enacted a host of revisions to existing FIT schemes in 2014. Denmark and Poland established new tariffs to support the development of small-scale wind projects (up to 25 kW in Denmark and up to 10 kW in Poland).28 In response to a 2013 European Commission ruling that France’s FITprogrammeconstitutedillegalstateaidunderEUregulations, France revised the text of its FIT to remain in compliance; as a result, its previously suspended wind tariffs were permitted to resume.29 Also in 2014, many European countries at the national level— including Bulgaria, Germany, Greece, Italy, and Switzerland— made FIT rate cuts, with most reductions focused primarily on solar PV and wind power.30 In a small but growing number of cases, including in Greece and Spain, these revisions were made retroactively. In addition, Malta approved a slate of new seasonally adjusted solar PV FIT rates, and Russia enacted domestic content requirements, with reduced tariffs for systems not including 70% local content.31 At the sub-national level, FIT rates were reduced in Crimea. Degression mechanisms are now in place in some European countries, including Germany, Italy, and Switzerland. In the United Kingdom, the minimum degression rate of 3.5% was triggered for all new renewable power installations as of January 2015 (the total volume of installations failed to trigger the higher automatic reduction rates).32 i - See Glossary for policy definitions. ii - On-site consumption refers to mechanisms, such as taxes and fees, governing electricity consumed at the site of generation.

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