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ePaper created 2015-01-29, 17:46:37 | version 1.34.01
| 60 potential to identify the most cost-effective project development plans. By allowing developers to bid against each other, a well- designed auction policy allows for projects to be built at minimal costs. Unlike the early development of policy mechanisms such as the FIT, which were centred primarily in industrialised countries, the initial uptake in tendering for renewables is being led primarily by developing countries and emerging economies. Auctions can be designed to award projects utilising a specific technology or can be made technology-neutral, allowing various technologies to compete. In the ECOWAS region, both Burkina Faso and Cabo Verde have utilised renewable energy auctions for project allocation, and Nigeria has promoted a voluntary auction programme through the Nigerian Electricity Regulatory Commission (NERC). Quantity instruments can also play a key role in the deployment of renewable energy technologies. To date, these mechanisms have not been as widely adopted as price-based mechanisms. RPS or quota policies mandating the use of renewable energy by power utilities have been adopted by two ECOWAS countries. Ghana’s Renewable Energy Act mandates the Public Utilities Regulatory Commission to develop quotas for the purchase of renewable power by electricity distribution companies and bulk consumers.41 However, as of early 2014, the Commission had not achieved the mandated renewable energy share.42 In addition, Senegal mandates that the national electric company, SENELEC, deploy renewables in its concession areas, though no official quota exists.43 TABLE 16 | Renewable Energy Support Policies in ECOWAS Member States Source: see endnote 20 for this section. Regulatory Policies Fiscal Incentives and Public Financing Renewableenergytargets Feed-intariff/premiumpayment Electricutilityquotaobligation/RPS Netmetering Biofuelsobligation/mandate Heatobligation/mandate Tradablerenewableenergycredits Tendering Capitalsubsidy,grant,orrebate Investmentorproductiontaxcredits Reductionsinsales,energy,CO2 , VAT,orothertaxes Energyproductionpayment Publicinvestment,loans,orgrants Benin x x Burkina Faso x x x x Cabo Verde x x x x x x Côte d’Ivoire x x The Gambia x Ghana x x x x x x x x x Guinea x x Guinea-Bissau x x Liberia x Mali x x x x Niger x x Nigeria x x x x x Senegal x x x x x Sierra Leone x Togo x x