Response to Weitzel on our paper 'Comparing the feed-in tariff incentives for renewable electricity in Ontario and Germany' by Mabee, Mannion, and Carpenter

摘要

In his comment on a recent paper [see Mabee, W., Mannion, J., Carpenter, T., 2012. Comparing the feed-in tariff incentives for renewable electricity in Ontario and Germany. Energy Policy 40 (1), 480-489] that compared Ontario and Germany's feed-in tariff (FIT) programs, Weitzel has identified the fact that we incorrectly assumed that the German FIT incentives were degressed within contracts. The implications of this misapprehension are explained. While savings within single projects are not as dramatic, the Ontario model is still significantly more expensive than the German model, as it includes an adjustment for inflation which applies to biomass- and wind-to-electricity projects. We stand by the assertion that adding a degression factor in the case of Ontario's FIT rate would lead to significant cost savings while maximizing return to producers during the early parts of the contract, and suggest that Weitzel's discussion on degression offers more insight into the manner in which FIT programs might be reformed.