Provide empirical evidence of your proposed solution's success/impact at present. If your project is in the idea phase, please provide evidence that speaks to its potential impact
A Feed-in-Tariff is a renewable energy procurement mechanism that has been applied with dramatic effect in several developed countries including, Germany, Spain, and France creating 280000, 188000 and 7000 jobs respectively.* Germany's FiT program has catalysed the creation of 16,000 renewable energy businesses.** FiT programs have common characteristics. These include defined eligible technologies, tariff pricing differentiated by technology, a long term contract that guarantees payment for renewable energy delivered, and a guaranteed grid interconnection for eligible generators. The power purchase contracts are usually utility or state backed so provide revenue security which enables project proponents to access equity and debt financing through private sector channels. Compensation rates (Tariffs) are determined by scientific study and designed to yield a moderate rate of return when managed effectively utilizing state-of-the-art commercialized technology in conjunction with the renewable energy sources available locally.
Despite the increasing adoption of FiT programs around the world over the last few years, not all FiT programs are equally effective at stimulating the development of local enterprise...a key requirement in addressing the needs of less developed countries and essential in the case of a country like Haiti that must now build a resilient economy in the wake of natural disaster.
In May of 2009 the Canadian province of Ontario passed new legislation, The Green Energy and Economy Act, which changed the electricity procurement system in Ontario by introducing Feed-in-Tariffs for renewable energy. Desiring to specifically catalyse the development of local community enterprise the government introduced specific public support mechanisms to address the needs of the nascent SME sector. Additional public interventions have been tailored to overcome the barriers to participation faced by Ontario's Aboriginal peoples.
Ontario's renewable energy FiT procurement policy bolstered by targeted public sector supports to the local SME sector has triggered record breaking private investment. By December 1, 2009, the Ontario Power Authority (OPA) received more than 1,000 FiT applications. On March 10, 2010 the OPA announced 510 contracts for mid-scale FiT projects (10kW to 500kW) with a total generating capacity of 112 MW. Among these was a contract with Windfall Centre for a 2.1 kw solar system. On April 8, 2010, the OPA awarded 184 contracts under the FiT program for large-scale projects (those exceeding 500 kilowatts.) In total they will generate almost 2,500 MW of green energy. Of these 120 qualified as community projects and 16 were Aboriginal including the 20 MW Pukwis Community Wind Park.
REpower Haiti author, Brent Kopperson, through his leadership roles with Windfall Centre, the Ontario Sustainable Energy Association, the Community Power Fund, the Green Energy Act Alliance, and Pukwis Community Wind Park, has been at the centre of community power policy and project development in Ontario since 2001.
*Deutsche Bank Group
How many firms do you expect to reach?
What is the volume of private SME finance you aim to catalyze?
Haiti needs to build 550 MW of new generation now. REpower Haiti calls for 30 percent of that to be from renewable sources (165 MW).
Wind: 132 MW @ $2.5 million/megawatt = $330 million
Solar: 33 MW @ $4 million/megawatt = $132 million
Total SME finance catalysed: $462 million
What time frame will be required to reach these targets?
3-5 years depending on program design elements.
What would prevent your solution from being a success?
Lack of political will to pursue a renewable energy future with broad SME participation.