Kuala Lampur, Dec. 24 -- Feed-in-Tariff schemes are used worldwide to incentivise electricity generation using renewables. The aim is to decarbonise electricity generation. It is through such Feed-in Tariff (FiT) schemes that the development of renewables, especially solar and wind, has been impressive.

Thanks to such FIT programmes, coupled with the relevant R&D, the costs of solar photovoltaic and wind have come down significantly.

Implementing FIT schemes, however, presents a multifaceted array of challenges.

Overly generous tariffs can strain public finances or utilities, leading to higher electricity prices for consumers and sparking political and social resistance. Setting rates too low, on the other hand, fails to attract invest...