|Policy status:||In Force|
|Policy Type:||Economic Instruments>Fiscal/financial incentives>Grants and subsidies|
|Policy Target:||Multiple RE Sources>All|
|Size of Plant Targeted:||Small|
|Legal References:||Law No. 27510 of 2001; Law 28307 of 2004|
The Electric Social Compensation Fund (FOSE) promotes profitable RE private investment in off-grid power in rural towns, through subsidies, as part of a social inclusion policy.
It operates as a cross-subsidy, in which the consumer only pays 20% of the actual tariff (which is based on the cost of generation). The electricity tariff for the end user is subsidised by charging a special tax on electricity bills of people whose consumption is higher than 100 kWh/month.
Last modified: Mon, 01 Jul 2013 11:14:51 CEST