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Are Feed-in Tariffs suitable for promoting solar PV in New Zealand cities?

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  • White, Lee V.
  • Lloyd, Bob
  • Wakes, Sarah J.

Abstract

Feed-in Tariffs (FITs) implemented by city councils in the USA have proven an effective means of stimulating installation of renewable-electricity generation capacity at a local level, and may also be effective for New Zealand cities. Though New Zealand has a high proportion of electricity generated renewably, this is mostly from centralized hydroelectricity plants. The suitability of city-level FITs for promoting solar photovoltaic panels in New Zealand is examined. Findings suggest that FITs, with rates obtained using the cost-of-generation method, could be implemented in New Zealand cities at rates comparable to those in successful FIT schemes internationally. The unique structure of New Zealand's liberalized electricity market, however, is likely to make financing FIT schemes at city-level more complex than the equivalent situation in the USA. Benefits of introducing such schemes will include the possibility for purchasers of solar PV systems to calculate returns on investment over the long term, and the streamlining of the grid connection process by reducing the number of authorities involved.

Suggested Citation

  • White, Lee V. & Lloyd, Bob & Wakes, Sarah J., 2013. "Are Feed-in Tariffs suitable for promoting solar PV in New Zealand cities?," Energy Policy, Elsevier, vol. 60(C), pages 167-178.
    • Handle: RePEc:eee:enepol:v:60:y:2013:i:c:p:167-178
    DOI: 10.1016/j.enpol.2013.04.079
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    6. Dewi Yuliani, 2016. "Is feed-in-tariff policy effective for increasing deployment of renewable energy in Indonesia?," WIDER Working Paper Series wp-2016-59, World Institute for Development Economic Research (UNU-WIDER).
    7. Dewi Yuliani, 2016. "Is feed-in-tariff policy effective for increasing deployment of renewable energy in Indonesia?," WIDER Working Paper Series 059, World Institute for Development Economic Research (UNU-WIDER).
    8. Mah, Daphne Ngar-yin & Cheung, Darren Man-wai & Leung, Michael K.H. & Wang, Maggie Yachao & Wong, Mandy Wai-ming & Lo, Kevin & Cheung, Altair T.F., 2021. "Policy mixes and the policy learning process of energy transitions: Insights from the feed-in tariff policy and urban community solar in Hong Kong," Energy Policy, Elsevier, vol. 157(C).
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    10. Lacchini, Corrado & Rüther, Ricardo, 2015. "The influence of government strategies on the financial return of capital invested in PV systems located in different climatic zones in Brazil," Renewable Energy, Elsevier, vol. 83(C), pages 786-798.
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    13. Aleksandra Lewandowska & Justyna Chodkowska-Miszczuk & Krzysztof Rogatka & Tomasz Starczewski, 2020. "Smart Energy in a Smart City: Utopia or Reality? Evidence from Poland," Energies, MDPI, vol. 13(21), pages 1-19, November.
    14. Wang, Hongwei & Zheng, Shilin & Zhang, Yanhua & Zhang, Kai, 2016. "Analysis of the policy effects of downstream Feed-In Tariff on China’s solar photovoltaic industry," Energy Policy, Elsevier, vol. 95(C), pages 479-488.
    15. Li, Hui & Yi, Hongtao, 2014. "Multilevel governance and deployment of solar PV panels in U.S. cities," Energy Policy, Elsevier, vol. 69(C), pages 19-27.
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