MoPE validates FiT and net metering scheme


By Awa Macalo

The Ministry of Petroleum and Energy has validated the national feed-in tariff (FiT) and met metering scheme for renewable electricity generation with the aid from European Union Technical Assistance Facility, (EUTAF).

A feed-in tariff is a policy mechanism that encourages renewable energy investment. This usually entails offering above-market prices for energy sent to the grid by small-scale energy providers, such as solar or wind energy.


The main objective of the workshop is to review and validate the models for Feed-In Tariff, Net Metering, and Net Billing schemes for small renewable energy systems. Also, facilitate the advancement of small and distributed renewable electricity systems connected to the grid which among others will ensure grid stability.

The feed-in tariff project was established in 2013 and aims to encourage the adoption of small renewable energy systems, making the installation of the renewable electricity systems more affordable for the owners of the system.

Luca Palazzoto, infrastructure energy and water cooperation /international aid, said FiT encourages electricity consumers to become more energy efficient. “Some users directly benefit from being credited for electricity they generate that is in excess of their needs. Others become more aware of their energy usage as a result of installing their power system, and adjust their behavior to lower their energy consumption as a result,” he said.

He further added that FiT promotes the diversification and decentralization of electricity production.

“Decentralizing electricity generation makes it less vulnerable to challenges like natural disasters and maintenance issues that can disrupt the operation of a centralized power provider. Diversification also protects the electrical market against supply disruptions caused by a certain fuel source.”

Deputy permanent secretary, Alagie Manjang, said FiT delivers transparency, predictability, and security, which helps to reduce investment risks and financing costs, according to the report.

“Furthermore, because FITs are output-based, they often contribute to a more consistent and stable Renewable Energy market development by giving an incentive to increase renewable energy production,” he said.

“In many countries, they have proven their ability to stimulate rapid and large-scale renewable energy market development as well as the development of less mature. Renewable energy technologies and the participation of small and medium-scale renewable electricity producers,” he added.