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Why is the payment for some biomass lower than for wind?

April 26, 2017Biomass lower payment wind

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Why is the payment for some biomass lower than for wind?

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The FIT Program prices cover the typical costs to install the specific technology plus a reasonable rate of return. Each renewable technology has different costs and provides different amounts of energy in different timelines. Wind and biomass projects have different prices since their cost components and performance characteristics differ. The intent is not to favour wind over biomass – the intent is to provide an incentive for each of these technologies. Prices are set so that each technology can earn the same reasonable rate of return on their investment.