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Friday, February 4, 2011

Emerging Markets in FIT



EMERGING MARKETS in Renewable Energy FITs

Solas Power as part of its global presence is currently seeking new markets and one market that has become of interest are, Turkey, Uganda and Vietnam.

No newcomer to the concept, Turkey revised their program, expanding it modestly, and added a new twist with bonus payments for "Made in Turkey" products.

This week it is the US's former military foe, Vietnam, that dipped its toe into the feed-in tariff waters by announcing a draft proposal.

But it is Uganda that will set heads spinning this week. Quietly, without fanfare, Uganda has announced one of the most sophisticated, if not the most sophisticated program in Africa.

Vietnam

Vietnam's program is il-defined and limited, providing a tariff only for wind energy. Further, the tariff is supplemented by a government subsidy, presumably paid by taxpayers in the communist country.











Uganda

Of particular interest are the highly differentiated tariffs for hydro projects from one to eight megawatts. The tariffs are in fact linear but presented in tabular form in increments of 100 kW.


Further, the Uganda program specifies capacity caps for each technology by year. This is clear policy guidance on how much the country wants of which technology.

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