PhD Thesis - Energy Systems Research Unit - University of Strathclyde

Whilst keeping the price of LPG constant at the current price (1.187 € per kg),the electricity tariff used to calculate the cash flow of each individualscenario was varied between ± 50% of the current tariff (at different intervals:± 10%, ± 25% and ± 50%) as shown in Table 4.5 [23]; andWhilst keeping the electricity tariff constant at the current tariff, the price ofLPG was varied between the current high (1.187 € per kg +24%) and low(1.187 € per kg -14%) retail price in Malta, at different intervals.Table 4.5 - Electricity tariff bandsTariffbandCumulativeconsumption(kWh)-50% Currenttariff(€ per kWh)Current tariff(€ per kWh)+50% Current tariff(€ per kWh)1 0 - 2,000 0.0805 0.1610 0.24152 2,001 - 6,000 0.0865 0.1730 0.25953 6,001 - 10,000 0.0945 0.1890 0.28354 10,001 - 20,000 0.1800 0.3600 0.54005 20,001 & over 0.3100 0.6200 0.9300Assuming an appropriate Feed-in Tariff was quite a problematic aspect. In mostEuropean countries the concept of a FIT is quite an established procedure. InGermany for example, FIT rates for micro-cogeneration have been established forquite some time and are specified in national legislation, based on whether thecogenerated electricity produced is exported (0.125 € per kWh) or used to satisfy theown demand (0.115 € per kWh) [24]. In certain cases these tariffs may also beaugmented by other fiscal incentives such as grants on the investment costs and fueltax exemptions. In Malta, so far the only experience with FIT is as explained earlierin Section 4.1.1, related to the production of electricity from domestic photovoltaicsystems and which is paid at a rate of 0.25 € per kWh exported (guaranteed for 7years) [1]. Again this FIT is (in some cases) augmented by a grant payable on thecapital investment.Assuming no other fiscal incentive (such as rebated fuel or investment grants) but the157