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Premium FIT option

One possible variation of a normal FIT is the so-called premium FIT. In this case, the electricity produced from renewable energy sources is sold on the spot market and the producer receives an additional premium for the "greenness" of the electricity. This premium usually consists of a tariff as in the case of a normal FIT law. 

Premium FITs are usually introduced in countries with a rather large share of "new" renewable energy capacity and the arising necessity to incorporate the "green" electricity generation into the conventional power market. Consequently, we don't recommend the establishment of a premium FIT if your region or country is a "newcomer" in the field of electricity generation from renewable sources. Premium FITs are thought to be more compatible with liberalized electricity markets, since one part of the remuneration is received from the spot market and no purchase obligation is enacted.

For example: premium FITs have been enacted in Spain and in Slovenia.

Spain

English

Royal Decree 661/2007, Article 27.1 provides that:

1. The premium referred to in article 24.1.b) consists of an additional payment to the price resulting from the organised market or the price freely negotiated by the owner or representative of the power plant.
Español

Real Decreto 661/2007, Artículo 27.1 establece que:

1. La prima a que se refiere el artículo 24.1.b) consiste en una cantidad adicional al precio que resulte en el mercado organizado o el precio libremente negociado por el titular o el representante de la instalación.

 

Slovenia

REFIT decree 2006, provides that:

Uniform annual prices for the purchase of electricity from qualified producers and uniform annual premiums for electricity, that the producers are selling individually or via agent are:
Type of QPP regarding the
primary energy source
Rank
Uniform
annual price
(SIT/kWh)
Uniform annual
premium
(SIT/kWh)
hydroelectric QPP
up to 1 MW inclusive
14,75
5,75
from 1 MW up to 10 MW inclusive
14,23
5,23
biomass QPP
up to 1 MW inclusive
22,55
13,55
above 1 MW
21,85
12,85
wind QPP
up to 1 MW inclusive
14,55
5,55
above 1 MW
14,05
6,05
geothermal QPP
 
14,05
5,05
photovoltaic QPP
up to 36 kW inclusive
89,67
80,67
above 36 kW
89,67
80,67
other QPP
 
28,97
19,97
combined QPP using RES
 
16,05
7,05
QPP or heating plant using communal waste
up to 1 MW inclusive
12,74
3,74
from 1 MW up to 10 MW inclusive
11,87
2,87
heating plant for district heating
up to 1 MW inclusive
17,50
8,50
from 1 MW up to 10 MW inclusive
16,50
7,50
industrial heating plant
up to 1 MW inclusive
17,00
-

1 EURO = 239,64 SIT