Feed In Tariffs

Under the Renewable Energy Act the PURC is responsible for the following:

  • Rates chargeable for the purchase of electricity from renewable energy sources by public utilities
  • Charges for grid connection
  • Rates Chargeable for the wheeling of electricity from renewable energy sources

FEED IN TARIFF SCHEME
A feed in Tariff Scheme has been established by the Renewable Energy Act for the purpose of guaranteeing the sale of electricity generated from renewable energy sources. The Feed-in tariff scheme consists of:

  • Renewable Energy purchase obligation
  • The Feed In Tariff Rate
  • A connection to transmission and Distribution systems

FEED IN TARIFF RATES
An electricity distribution utility shall not negotiate a Power Purchase Agreement with a generator of electricity, buy power from a generator of Electricity from a Renewable Energy Source without the written approval of the Public Utilities Regulatory Commission

The Public Utilities Regulatory Commission (PURC) shall prepare and provide public utilities with guidelines on the level of rates that may be charged by the public utility for electricity generated from renewable energy sources.

The Commission shall take into account the following:

  • Technology being used in the renewable energy industry
  • Operating norms for the specific technology under consideration
  • Costs associated with construction, commissioning, operation, and maintenance of the plant
  • The reasonable rate of return
  • The Balance between the interest of the consumer and the investor
  • The Feed in Tariff rate fixed for electricity from renewable energy sources shall be guaranteed for a period of ten years and subsequently be subject to review every two years
  • The Public Utilities Regulatory Commission shall in determining the mechanism for the regulated electricity market factor into the Tariff the price differential between the purchase price of electricity generated from renewable energy sources and the price of electricity purchased from other sources

APPROVAL OF FEED IN TARIFF RATES

  • A Public Utility shall not demand a feed - in - Tariff rate for electricity generated from renewable energy sources unless the feed In Tariffs rates chargeable has been approved by the Public Utilities Regulatory Commission
  • A Public Utility shall not directly or indirectly demand or receive a feed in tariff rate approved by the Public Utilities Regulatory Commission in relation to Electricity generated from Renewable energy sources
  • Despite the above provision a public utility may demand and receive from a consumer a higher feed In tariff rate agreed to by both the public utility and the consumer with the written permission of the Public Utilities Regulatory Commission

PUBLICATION OF FEED IN TARIFFS
Feed- in Tariff Rates approved by the Public Utilities Regulatory Commission for electricity generated from renewable energy sources shall be published by the Public Utilities Regulatory Commission in the Gazette and in at least one daily newspaper