Paul Thissen: Innovation in Action

Renewable energy payments can increase energy security and economic development from the renewable energy industry in Minnesota.  The problem is that existing incentives for renewable energy depend on Congressional action to renew, and these incentives inhibit community-based projects – the ones with the best economic benefits for Minnesota communities.  Renewable energy payments provide a stable market for renewable electricity development from wind, solar and other technologies by providing a 20-year, fixed price contract for any renewable energy producer. 

The Problem
Existing incentives for renewable energy are largely in the form of tax credits.  This format rewards renewable energy production, but only by those who have big tax bills.   Cities, counties, non-profits, and cooperatives are prohibited from contributing toward the development of renewable energy.  Furthermore, these incentives have regularly expired, as Congressional debates have held up their renewal. 

The Solution
Renewable Energy Payments can energize broad-based development of renewable power and maximize the state’s economic benefits from renewable power.  Unlike federal incentives, these payments require no annual legislative review, do not expire, and are overseen by the Public Utility Commission.  Furthermore, they encourage community-based energy development by creating an “all in” payment that allows non-taxable entities and small developers to compete on an even field to supply renewable power to the Minnesota market.  Renewable energy payments have helped renewable power in European countries capture more than 10% of the market and have created hundreds of thousands of jobs in green energy industries. 

For more on renewable energy payments (also known as feed-in tariffs), see this report on feed-in tariffs  from the Institute for Local Self-Reliance.