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Feed-in tariffs as a policy instrument for promoting renewable energies and green economies in developing countries

This report is intended as a resource for policymakers in developing countries to make informed policy decisions about the ‘whether,’ ‘when,’ and ‘how’ of feed-in tariffs and to support nationally appropriate policy measures to scale up renewable energy. It also aims to improve understanding of the potential benefits and challenges for developing countries in designing feed-in tariffs, as well as the factors influencing their success. The report also analyzes the funding and capacity implications. Rather than identifying a set of rigid best practices, it attempts to outline the range of possible designs that developing country policymakers may wish to pursue, and to identify the different drivers that may guide their decisions. Chapter 2 provides a general overview of feed-in tariff policies and design elements, and compares them with other instruments; chapter 3 provides guidance on drafting feed-in tariff laws; chapter 4 explores how to fund feed-in tariff policy; and chapter 5 examines the human, technological, regulatory, and institutional capacity needed to implement such policies.

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