Feed-in Tariffs
Feed-in tariffs are agreements that guarantee electricity producers fixed prices for the electricity they feed into the grid. They are offered by national governments as inducements to promote investments in certain forms of electricity production – most typically to encourage the use of renewable energy sources or locally available fuels as alternatives to imported fossil fuels. Many EU member states already offer feed-in tariffs for wind power and certain other forms of renewable energy. The prices and coverage of the various national tariff schemes vary considerably.The Finnish government has so far only offered feed-in tariffs to support the use of locally sourced peat to generate electricity in combustion-based power plants. The present feed-in tariff scheme for peat commenced in 2007 and will run until the end of 2010, when a new scheme may be initiated after consultation with the EU Commission. Finland has plentiful reserves of peat, but peat is not classed as a renewable energy source.
