The Anaerobic Digestion & Bioresources Association has strongly objected to DECC’s plans to massively cut back government support for new AD plants.

 The association’s response to the review of the Feed-in Tariff is calling for the government to set out much more ambitious plans for delivering new anaerobic digestion (AD) plants.

According to the ADBA, DECC’s proposals would cut industry growth to negligible levels compared to 2014 and 2015, failing to deliver the baseload electricity generation capacity that would help keep the lights on.

The proposed ‘cap’ in capacity supported represents a budget cut of 65% for plants <500kW and 41% for plants >500kW compared to deployment in 2014.

In making the case for how government proposals threaten the industry’s development, ADBA’s Chief Executive, Charlotte Morton, explained:

“The ridiculously low deployment levels set out in DECC’s consultation threaten the industry’s ability to generate extra capacity and deliver our potential. Without continued growth in AD, the industry cannot contribute the additional baseload electricity to help keep the lights on, offer cost-effective greenhouse gas reduction or grow a domestic supply chain which could export to the world.

“DECC’s proposed deployment cap represents just 72.7MW over three and a quarter years – but to put this in context the AD industry deployed 47.9MW from 89 plants under the FIT scheme in 2014 alone. We understand government’s need to ensure value for money, but they should recognise that AD delivers much more than energy alone, and can reduce the cost of support over time if it is supported now. “

“Of course this cap comes in addition to the government’s decision to remove pre-accreditation from the FIT scheme. Given the length of time that it takes to develop AD plants, the announcement has already had a crippling impact on investor confidence – we know that £250 million of investment is on hold from two prospective investors alone. It is crucial for DECC to offer tariff guarantees early in the project development process to restore investors’ faith in government.”

The ADBA said the decisions will have a profoundly negative effect on UK energy, resource and carbon abatement costs. It also highlighted that evidence it has provided shows how AD will offer cheaper baseload energy than new nuclear by the time Hinkley Point C is delivered, providing localised generation without the risk of a single large development.

The AD industry has grown by over 600 per cent outside of the water sector over the past five years and is now moving beyond the 400 plant industry milestone announced in July.

The issue is set to come under the spotlight at the ADBA National Conference 2015 which takes place in London on 3 December 2015.

The seventh ADBA National Conference will outline a strategic vision for the AD industry for 2015-2020. This year’s agenda will pay particular attention to how key government decisions on the Feed In Tariff (FIT) and the Renewable Heat Initiative (RHI) could affect business. 

Click here for more information about the conference.