Renewable Energy Policies: Feed-in Tariffs and Renewable Portfolio Standards

Question 1

What is a defining characteristic of feed-in tariffs?

Accepted Answer

Guaranteed payment for renewable energy produced

Answer

Certificates traded to meet renewable energy goals

Answer

Competitive bidding for project selection

Answer

Taxation of non-renewable energy sources

Question 2

Which key design feature of feed-in tariffs supports the financial viability of renewable energy projects?

Accepted Answer

Fixed price for renewable energy, higher than the prevailing wholesale electricity price

Answer

Legal requirement for utilities to buy a specific amount of renewable energy

Answer

Tax incentives for renewable energy developers

Question 3

Which of the following is a defining characteristic of a feed-in tariff (FIT)?

Accepted Answer

Guaranteed price for renewable energy generation

Answer

Mandatory renewable energy targets

Answer

Net metering requirements

Answer

Tax incentives for renewable energy installations

Question 4

What is the primary objective of a renewable portfolio standard (RPS)?

Accepted Answer

Increase the share of renewable energy in the electricity grid

Answer

Reduce greenhouse gas emissions

Answer

Promote energy efficiency

Question 5

Which of the following is NOT a potential advantage of FITs?

Accepted Answer

High up-front investment costs

Answer

Stabilize renewable energy prices

Answer

Stimulate investment in renewable energy technologies

Answer

Reduce dependence on fossil fuels

Question 6

What is a key challenge associated with RPS implementation?

Accepted Answer

Balancing cost-effectiveness with concerns about price volatility

Answer

Lack of technological maturity of renewable energy sources

Answer

Public resistance to renewable energy projects

Question 7

How do FITs differ from RPSs in terms of risk allocation?

Accepted Answer

FITs shift risk primarily to utilities, while RPSs shift risk primarily to generators.

Answer

FITs shift risk to consumers, while RPSs shift risk to investors.

Answer

FITs and RPSs allocate risk equally among all stakeholders.

Question 8

Which of the following is a potential unintended consequence of FITs?

Accepted Answer

Overinvestment in renewable energy projects

Answer

Reduced innovation in renewable energy technologies

Answer

Increased energy poverty

Answer

Environmental degradation

Question 9

How do RPSs foster competition among renewable energy sources?

Accepted Answer

By setting technology-neutral targets, enabling various renewable sources to compete based on cost and performance.

Answer

By providing subsidies specifically for emerging renewable technologies.

Question 10

Which of the following factors is crucial for the effectiveness of RPSs?

Accepted Answer

Strong enforcement mechanisms and transparent reporting systems

Answer

Public demand for renewable energy

Answer

Low renewable energy costs

Question 11

Which of the following is a defining characteristic of feed-in tariffs (FITs)?

Accepted Answer

Guaranteed payments for electricity generated from renewable sources

Answer

Penalties for non-compliance with renewable energy goals

Answer

Voluntary targets for renewable energy production

Question 12

What is the primary objective of RPS?

Accepted Answer

To increase the proportion of renewable energy in the electricity supply

Answer

To create employment opportunities in the renewable energy sector

Answer

To reduce greenhouse gas emissions from energy generation

Question 13

What is the purpose of renewable energy certificates (RECs) in RPS?

Accepted Answer

To represent the environmental attributes associated with renewable energy generation

Answer

To track the amount of renewable energy consumed by electricity customers

Answer

To provide direct financial incentives for renewable energy producers

Question 14

Which of the following is a defining characteristic of a feed-in tariff policy?

Accepted Answer

Guaranteeing a fixed price for renewable energy generated

Answer

Requiring utilities to purchase a specific proportion of renewable energy

Answer

Offering rebates for the installation of renewable energy systems

Answer

Providing tax credits for renewable energy development

Question 15

What is the primary objective of a renewable portfolio standard (RPS)?

Accepted Answer

To drive an increase in the adoption and use of renewable energy technologies

Answer

To minimize greenhouse gas emissions

Answer

To incentivize energy efficiency practices

Question 16

Which of the following is a defining characteristic of feed-in tariffs (FITs)?

Accepted Answer

Guaranteed long-term price for renewable energy.

Answer

Mandatory targets for renewable energy production.

Answer

Direct subsidies to renewable energy generators.

Question 17

What is a key advantage of feed-in tariffs over renewable portfolio standards?

Accepted Answer

Provides a more stable revenue stream for renewable energy generators.

Answer

Lower administrative costs.

Answer

Greater flexibility for electricity suppliers.

Question 18

What is the purpose of a carve-out within a renewable portfolio standard?

Accepted Answer

To guarantee a specific share of the target for a particular renewable technology or sector.

Answer

To exclude certain technologies from the standard.

Answer

To adjust the target in response to market conditions.

Question 19

How does a renewable portfolio standard with tradable renewable energy certificates differ from one with physical compliance?

Accepted Answer

Allows compliance through the purchase and sale of certificates rather than direct generation or procurement.

Answer

Uses a centralized registry to track compliance.

Question 20

What is the primary purpose of a renewable energy target?

Accepted Answer

To establish a specific goal for the amount or share of renewable energy in electricity generation.

Answer

To establish market mechanisms to promote renewable energy development.

Answer

To provide financial incentives to renewable energy generators.

Question 21

What is a defining characteristic of a feed-in tariff (FIT) program?

Accepted Answer

Guarantees a set price for electricity generated from renewable sources.

Answer

Offers tax breaks to renewable energy producers.

Answer

Provides subsidies for purchasing renewable energy equipment.

Question 22

What does a renewable portfolio standard (RPS) primarily aim to achieve?

Accepted Answer

Mandates a specific percentage of electricity to be generated from renewable sources.

Answer

Determines the price utilities can charge for renewable energy.

Answer

Sets the maximum amount of subsidies available for renewable energy projects.

Question 23

Which of the following is NOT considered a potential benefit of feed-in tariffs?

Accepted Answer

Increased competition among fossil fuel energy providers.

Answer

Increased investment in renewable energy technologies.

Answer

Reduced dependence on fossil fuels.

Question 24

What is the purpose of a 'grandfathering' clause within an RPS?

Accepted Answer

Allows existing power plants to continue operating without having to meet the RPS requirements.

Answer

Gradually increases the RPS target over time.

Answer

Imposes penalties on utilities that fail to meet the RPS target.

Question 25

Which of the following is a potential drawback of feed-in tariffs?

Accepted Answer

Could lead to higher electricity costs for consumers.

Answer

Increases dependence on foreign energy sources.

Answer

Reduces investment in renewable energy research.

Answer

Limits job creation in the renewable energy sector.

Question 26

Renewable energy certificates (RECs) are commonly used in conjunction with which policy tool?

Accepted Answer

Renewable portfolio standards.

Answer

Feed-in tariffs.

Answer

Carbon taxes.

Answer

Energy efficiency standards.

Question 27

What is a key factor influencing the effectiveness of a feed-in tariff program?

Accepted Answer

The level of the guaranteed price for renewable energy.

Answer

The specific type of renewable energy technology used.

Answer

The number of renewable energy projects in a particular region.

Answer

The availability of government subsidies for renewable energy projects.

Question 28

What does the 'compliance period' refer to in an RPS?

Accepted Answer

The timeframe within which utilities must meet the RPS target.

Answer

The duration of subsidies for renewable energy projects.

Answer

The time needed for a renewable energy project to become operational.

Question 29

In a 'market-based' RPS, utilities typically meet their renewable energy obligation by:

Accepted Answer

Purchasing renewable energy credits (RECs) from other entities.

Answer

Building their own renewable energy facilities.

Answer

Receiving government subsidies for renewable energy projects.

Question 30

Which of these is a potential disadvantage of renewable portfolio standards?

Accepted Answer

May result in higher electricity costs for consumers.

Answer

Reduces job creation in the energy sector.

Answer

Limits investment in renewable energy research.

Answer

Increases dependence on foreign energy sources.