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As I noted inthis story, feed-in tariffs are not a subsidy, they are a different regulatory regime than spot market prices which allow for revenue stability for fixed cost (i.e. investment intensive) technologies and thus permit investment in something other than gas-fired plants.
you essentially agree with Thomas:
The main tool used to clean up electricity generation lately has been to guarantee certain minimum price levels for power generated with specific technologies. These feedin tarrifs have varied from "not that much more than typical production costs for baseload" (wind) to "insanely high" (solar), but they have all been aimed at getting specific green generating technologies manufactured and deployed, and forcing utilities to buy the power they produce, in the hope that this would help transform electricity production into a clean, reliable grid.
The key charge levelled by Thomas against feed-in tariffs is
There is a number of problems, however. These tarrifs have gotten quite considerable amounts of renewable capacity built, but because the tarrifs were set per technology, rather than simply being a fixed rate for any low-carbon generation, they amounted to politicians dictating technology choice. Badly.


tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Fri Jan 6th, 2012 at 04:21:13 AM EST
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