Feed-In Tariffs and Renewable Energy

Feed-in tariffs (FITs) are used throughout the world to promote renewable energy technology. States and municipalities are increasingly turning to FITs to promote the development of new power resources. Counsel to renewable energy producers and utilities must understand the key challenges involved. A threshold challenge is in proper structuring. Several issues come into play that impact the FIT: the reverse auction vs. single price clearing mechanism, inclusion of publicly and investor-owned utilities, the size and type of projects, and discrimination against out-of-state projects. Another critical challenge is raised by preemption. FERC recently issued the first order ruling on its role in a state-approved feed-in tariff, identifying conditions under which federal law governing wholesale electricity sales in interstate commerce would not preempt California’s feed-in tariff. Listen as our authoritative panel of energy attorneys examines the issues of preemption and integration with renewable energy standards, discusses recent developments at both the state and federal level, and offers guidance for using the renewable program.