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Climate TagsFeed-in tariff
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  • This executive summary analyzes the Incentive Program to Alternative Sources (PROINFA), a feed-in tariff (FiT) implemented in Brazil in the early 2000s. While the program successfully increased installed wind capacity from 29 MW in 2004 to 2,010 MW in 2012, the authors find that flaws in contract design led to systematic misreporting of capacity factors (CF) by project developers. This misreporting resulted in overpayments and a shortfall in delivered energy, suggesting that simple design changes, such as interest rate penalties on overpayments, could improve the cost-effectiveness of similar renewable energy policies.

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    Themes: wind powerfeed-in tariffrenewable energy policycapacity factor
    Climate Policy Initiative

    Document type: Executive summary

    Regions: Brazil
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