Policy

As expected by solar industry observers and trade groups, Germany’s cabinet of Chancellor, Angela Merkel has approved plans proposed by Economy Minister Philipp Roesler and Environment Minister Norbert Roettgen to drastically curtail the feed-in tariff in an attempt to limit future PV installations, after a record 7.5GW was installed in 2011.

Solar PV capacity in the Ukraine is set to double in 2012, as a result of generous renewable incentives. Europe’s second-largest country currently hosts Europe’s biggest photovoltaic plant, a 100MW behemoth installed by Activ Solar GmbH last year, and is set to benefit from continued investment due to the scaling back of feed-in tariff schemes across Europe.

Updated: Due to an aggressive FiT cut of between 20% for residential and 30% for large-scale PV installations, the German government will introduce the FiT cuts from March 9, 2012 to eliminate a rush of installations to beat the tariff change. However, this would first need to be ratified in the cabinet and parliament, which could be sanctioned next week.

In addition to the 8% FiT cuts made in January, effective March 1 the Swiss Federal Department of Energy (DETEC) will further reduce the FiTs for PV power plants by 10% for new facilities.

The Chinese Ministry of Finance has announced that it has changed certain FiT regulations, claiming this will speed up domestic large-scale applications of PV power generation and promote sustained and steady development of the PV industry. This will apply to grid-connected PV installations.

Spain has made the controversial decision to cease renewables subsidies for new solar, wind, co-generation and waste incineration plants in the face of an ever-growing government budget deficit of €24 billion. The power-system borrowings have been backed by the state but it appears that revenue generated by state-controlled energy prices has not been covering the high costs associated with delivering power, including the payment of renewables subsidies that have been put in place.

Over a year and a half ago, Japan brought its grievances against FiTs in the Canadian province of Ontario to the World Trade Organisation (WTO). The EU has now joined the fray and the WTO Dispute Settlement Body has committed itself to establishing a panel to hear the EU’s claims against the apparent discriminatory nature of Ontario's FiTs. Formal panel proceedings, however, are not expected to start before the end of March.

Tensions in German chancellor Angela Merkel’s government continue over the future of feed-in tariffs. Economy minister Philipp Roesler is calling for an overhaul to the country’s subsidy system for renewable energy, created in the 1990s to ensure the clean-power industry remains competitive.

India-based, thin-film PV manufacturer Moser Baer has installed a 5MW solar farm, equivalent to powering 70,000 households, covering an area of 60 acres in Tinwari, Jodhpur district, India. This is part of the US$1 billion the company has promised the Indian states of Gujarat, Orissa, West Bengal and Rajasthan, for projects worth 300MW. The farm was built under the solar subsidy scheme, the Jawaharlal Nehru National Solar Mission (JNNSM). The opening ceremony was attended by the renewable energy minister Dr. Farooq Abdullah and Ashok Gehlot, chief minister of Rajasthan.

Following the Canadian government’s announcement to reduce FiT prices for new projects, The Green Energy Act Alliance and Shine Ontario Association have joined forces by releasing the Ontario Feed-in Tariff 2011 Review: More Jobs, Affordable, Clean Energy, and a Brighter Future for Ontario report. The groups represent Canada’s leading environmental and energy groups, as well as the key players in Canada’s solar industry.