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Likewise, the Ontario Energy Board claimed in April 2012 that the highest generator of the increased cost of electricity is guaranteed payments to nuclear generators, followed, by gas, coal, and hydro generation. [22]
In the United States, FIT policies guarantee that eligible renewable generators will have their electricity purchased by their utility. [11] The FIT contract contains a guaranteed period of time (usually 15–20 years) that payments in dollars per kilowatt hour ($/kWh) will be made for the full output of the system.
In 2006, the Thai government enacted a tariff paid on top of utility avoided costs, differentiated by technology type and generator size and guaranteed for 7–10 years. Solar received the highest amount, 8 baht/kWh (about US$0.27/kWh). Large biomass projects received the lowest at 0.3 baht/kWh (at about 1 US cent per kWh).
The highest subsidy price that was still awarded was 6.00 ct/kWh. [111] In a bid for onshore wind farm projects, an average payment of 5.71 ct/kWh was achieved, and 4.29 ct/kWh in a second bidding round. In 2019, there were bids for new offshore wind farms in the United Kingdom, with costs as low as 3.96 pence per kWh (4.47 ct). [112]
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[1] [2] PPAs may last anywhere between 5 and 20 years, during which time the power purchaser buys energy at a pre-negotiated price. Such agreements play a key role in the financing of independently owned (i.e. not owned by a utility) electricity generators, especially producers of renewable energy like solar farms or wind farms.
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