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Regulatory and policy options to encourage development of ...

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MODULE 9: RENEWABLE ENERGY: REGULATORY AND POLICY OPTIONSpage 9.143SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICASupport Mechanisms Applicable inthe Medium <strong>to</strong> Long TermFeed-in Tariffs• A minimum guaranteed price for output or• A premium on the market price for output• High degree <strong>of</strong> certainty for inves<strong>to</strong>rs• Costs <strong>to</strong> be covered by a levy per kWh (on consumers, ontaxpayers, or on both)Module 9SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICASupport Mechanisms Applicable inthe Medium <strong>to</strong> Long Term (2)Quota Mechanisms• Obligation for electricity suppliers or cus<strong>to</strong>mers• Supported by tradable green certificates• Penalty when there is non-compliance• Government sets level <strong>of</strong> output• Leaving choice <strong>of</strong> technology <strong>to</strong> the market• Incentive <strong>to</strong> comply ~ level <strong>of</strong> the penaltyModule 9

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