Estimating the Amount of a Global Feed-in Tariff for Renewable Electricity

We present a simple model to estimate the subsidy cost embedded in a global feed-in tariff (GFIT) to simultaneously stimulate electrification and the take-up of renewable energy sources for electricity generation in developing countries. The GFIT would subsidize developing countries for investments they make in generation capacity for renewable electricity up to a threshold level of electricity consumption per capita. Between 2010 and 2025, countries below this threshold strive to bridge the gap by 2025, when subsidies—based on the difference between the costs of renewable technologies and conventional energy sources—end.