v
vOK to start
small (Mauritius started with 1 to 2 MW units) which allows a learning
experience and sorting out the kinks. Can set an initial target of up to 5% installed capacity. Higher prices can be justified on
basis of importance of diversity, elimination of
transmission costs & increased through rural electrification – over time prices can come down
with the right incentives
v
vEasier to
convince Governments/utilities to act.
Thereafter, it is possible to expand exponential and initiate large initiatives.
v
vFeed-in
tariff is key in promoting co-generation
as it provides a strong signal to private sector
and financing institutions
v
vNot wise to
leave it only to Regulators. Parliament
can play an important role.
v
vAn important addition to feed-in tariff is a standard ÒPower Purchase Agreement (PPA)Ó between agro-industry and
power utility. Simplifies negotiations (which can take as long as 7-10years) and
removes a major barrier to co-generation
investments.
v
vRevenue
sharing mechanism which ensures that
large majority of population saw tangible
benefits was key to maintain policy support.