Feed-in tariff (FIT, standard offer contract, advanced renewable tariff or renewable energy payments):
Feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies. It is a payment made to households or businesses generating their own electricity through the use of methods that do not contribute to the depletion of natural resources, proportional to the amount of power generated.
How can we generate power by ourselves or for our own company?
There is plenty of positive evidence on the possibility of achieving this through a sustainable way. However this is another major topic that we will discuss in a further stage.
What if we are producing energy so that we meet our energy needs and we even have a surplus?
What options do we have for selling this surplus of energy?
How can we take the real control over our energy surplus and even so, how can we invest wisely using this power?
- We have to be aware of the buy/sell prices of the energy charged by the current producers and distributors.
- According to the Eurostat an overview of average electricity (buy) prices in euro per kilowatt-hour (EUR per kWh) for the last three years (first half of each year) is presented in Table 1.
- It is recommended to be aware of alternative power utilities charges (incorporate private sector).
- We have to search for alternative, prospective energy buyers.
- We have to consider the pricing fluctuations in the electricity market.
On the one hand we have “secondary material” category. Let’s assume that conventional commodities (such as currency) or cryptocurrency fit into the above mentioned category.
But, on the other hand we have the “raw material” category which is simply the energy. Without this produced energy we can’t negotiate the prices in EUR, GBP, USD, etc.
Therefore if we consider the buy/sell prices, the different types of renewable sources, the target markets and the fluctuations (DEMAND/SUPPLY), we can ask ourselves the following:
What if we sell the energy to our neighbour, to the owner of the neighbouring factory, in a specific time and in a negotiable price?
If we want to generate more electricity than we consume, or install sufficient overcapacity to use intermittent sources for most of the peak production, we have to find places to store enough of the excess off peak, so that it can be used when the intermittent sources are not available.
This is actually a challenging engineering as well as social movement. Ιn this effort, the latest, advanced technologies can be helpful.
One of the most recent solutions, proposed to take advantage of this opportunity, will be analyzed in subsequent articles..