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04 POLICY LANDSCAPE predetermined USD 9.22 billion (EUR 6.7 billion)i maximum support level was reached, and offered current operators the option to extend financial support for existing projects for an additional seven years, but at a reduced rate.30 The Netherlands revised technology support categories for the existing FIP support scheme and, separately, suspended support for new solar PV projects after the budget cap was reached in August 2013.31 Elsewhere in Europe, new steps were taken to weaken or remove feed-in policies. The Czech Republic passed legislation to remove FIT support for all renewable technologies as of January 2014; Greece enacted FIT cuts to be enforced retroactively as of June 2013, with an additional round of retroactive cuts proposed in early 2014; and Lithuania reduced FIT rates significantly in early 2013.32 Portugal abolished the FIT system for new projects.33 In addition, the scheme for existing wind facilities was revised such that operators can choose to provide an annual contribution— USD 6,900–8,000 / MW (EUR 5,000–5,800 / MW) over the period 2013–2020—in exchange for an extension of FIT terms from five to seven years. In late 2013, Portugal also reduced its 2014 rates for existing small-scale solar PV by an additional 60%.34 Slovakia halved preferential support for renewables, reducing the cap under its FIT from 10 MW to only 5 MW of grid-connected capacity; however, the full incentive remains available for wind power.35 Spain removed support for existing capacity that qualified for the FIT prior to the moratorium on new projects, which was set in 2012; the country replaced FIT payments with market prices backed by a guaranteed pre-tax return of 7.5%.36 Ukraine required that, in order to qualify under the feed-in policy, projects use technologies with a domestically sourced share of 30% as of January 2013, and 50% as of January 2014.37 China amended its existing solar PV FIT to allow for three regionally differentiated support schemes with reduced rates for ground-mounted solar PV projects in solar-rich regions.38 Japan reduced solar PV FIT rates by 10% in 2013, and by an additional 11% in early 2014.39 As of early 2013, the degression rate for Malaysia’s FIT was set to 8% for plants smaller than 24 kW, and to 20% for larger plants.40 A few countries with feed-in policies increased their tariffs and extended support during 2013. Denmark introduced a higher FIP tariff for small-scale solar PV and raised the revised wind tariffs from USD 0.04 / kWh (EUR 0.03 / kWh) to rates capped at USD 0.11 / kWh (EUR 0.08 / kWh).41 France raised FIT rates for rooftop solar PV systems by 5%, and enacted a 10% FIT bonus for systems manufactured in Europe. Despite an initial ruling by the European Court of Justice that France’s wind FIT constituted unlawful state aid, the European Commission upheld its legality.42 Ireland introduced FITs to support the development of 30 MW of ocean energy capacity.43 In the U.K., the 5 MW project capacity cap was doubled in order to extend FIT support to community projects of up to 10 MW in size.44 In Asia, China adopted a new incentive that provides distributed solar PV projects with an additional USD 0.07 / kWh (CNY 0.42 / kWh).45 Indonesia expanded its FIT scheme to include support for solar PV projects that meet a 40% local content requirement.46 Japan raised FIT rates for offshore wind by 63%.47 Thailand introduced a new FIT category to support distributed solar generation, with the goal of installing 200 MW of rooftop solar PV in 2013; extended the contract term for FIT support from 10 to 25 years; and defined a three-tiered FIT rate system (based on building size and classification) to support residential and commercial solar PV installations.48 Figure 29. Share of Countries with Renewable Energy Policies by Income Group, 2004 – Early-2014 Figure 29. Share of Countries with Renewable Energy Policies by Income Group, 2004–Early 2014 80 70 60 50 40 30 20 10 0 in % High Upper- income middle income Lower- middle income Low income Early 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 Countries according to annual GNI per capita levels, per World Bank, 2014. 78 i - All exchange rates in this section and elsewhere in the GSR are as of 31 December 2013, and are calculated using the OANDA currency converter (http://www.oanda.com/currency/converter/).PDF Image | About ElectraTherm
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