A study of renewable energy policies "feed-in tariff" and "renewable energy certificate" on photovoltaic systems based on Hong Kong situation

Abstract

Feed-in tariff and renewable energy certificate are significant policy instruments for promoting the renewable energy development, especially for solar photovoltaic technologies. They offer financial incentives for utilizing renewable energy and thus promote deployment of solar photovoltaic systems in countries and cities. However, the effective design options of feed-in tariff and renewable energy certificate in crowded and compact cities, like Hong Kong, remains under-explored. This study compares the design options of feed-in tariff and renewable energy certificate in China, Japan, Taiwan, the USA, Italy and South Korea. Through in-depth literature review of the policy instruments in case-studied countries and region, a general design option is identified that the legislation on renewable energy development is the key for success for the deployment of solar photovoltaics. Other factors such as financial supports through subsidization or low interest rate loans, are also important for the deployment of solar photovoltaic. The comments and views of the government departments, experts from power companies and representatives of local residents and NGO of Hong Kong have been captured in this study. Through the qualitative analysis of the answers from interviews and written responses, constraints, such as, insufficient financial support on the initial cost of solar photovoltaics, confused administrative procedures as well as complicated technological requirements are identified. Based on the findings, recommendations are made to improve the newly announced feed-in tariff and renewable energy certificate system of Hong Kong. Policy implications are also helpful for the green electricity policies design in other crowded countries and cities in the future.