Replacing Oil

While the United States is still considering feed in tariffs, First Solar has signed a contract with Chinese government officials to build a staggering 2 GIGAwatt photovoltaic farm in the Mongolian desert.

The plant will operate under China’s feed-in tariff. Power companies are required to purchase electricity from the installation for a certain number of years. Since the projected costs for the massive installation are about 6 billion USD. A guarantee of return on investment in the form of the feed in tariff legislation is very likely the single most important factor that makes this degree of clean energy generating project possible.
More about this solar megaproject and China’s feed in tariff program here.

Nearly a decade ago Germany passed a Renewable Energy Sources Act that basically gave smaller renewable energy projects priority access to power grids. At the same time smaller scale energy producers were able to sign extended contracts to provide energy at a higher rate than standard fossil fuel burning energy production. The imposed rate is subsidized by tax dollars and reduced each year to encourage increased efficiency.

This gives alternative energy start-ups a fighting chance and their investors some breathing room. And while I’m no fan of protecting industry, even to save the world, it’s hard to ignore the runaway success its had in Germany. They’ve not only met their carbon emissions reduction targets years ahead of schedule, but they outproduce the United States in solar 6 to 1!

While the Senate makes huge waves trying enforce caps and trades whatever they are, Reps. Jay Inslee of Washington and Bill Delahunt of Massachusetts are preparing a feed-in tariffs bill that’s much easier to understand, and enforce.

Unfortunately it’s worked in Europe, and you know what that means. I can’t wait to hear the 24 hour news nitwits hollar “Socialism!”