The Department for Business, Energy & Industrial Strategy has launched a new consultation on the proposed closure of the Feed-In Tariffs (FITs) Scheme, the Government’s subsidy scheme for generation of renewable electricity from small-scale low-carbon installations – which could see an uncertain future for small scale schemes including hydro and Anaerobic Digestion, without ongoing Government support.
Charlotte Morton, Chief Executive of the Anaerobic Digestion & Bioresources Association (ADBA) has already warned that the proposals could put more than 300 AD CHP plants currently in the planning pipeline “at severe risk”.
The FIT scheme currently provides support to five technologies, solar photovoltaics, anaerobic digestion, hydro, wind, and microCHP.
Among the key questions the Government is seeking comment on is whether stakeholders agree or disagree with the proposal to end the export tariff alongside the generation tariff, which would close the scheme in full to new applications after 31 March 2019.
BEIS asking for respondees to provide evidence to support their reasoning, including the impact on jobs, deployment, consumer bills and the supply chain.
Alongside the consultation the Government has also launched a separate Call for Evidence seeking views on the future of small-scale low carbon electricity generation support, and evidence on the challenges and opportunities for the sector.
Introducing the consultation, BEIS said the Government’s view is that small-scale low-carbon electricity generation should compete “independent of direct subsidy and on its own merits on a level playing field with other electricity generation technologies through competitive, market-based solutions. “
The paper says that subject to receiving clear evidence of such benefits through the call for evidence process the government could then consider what further action might be necessary to facilitate this, including options which address regulatory barriers, ensure small-scale generators are able to access additional revenue streams or that help guarantee a route to market.
The evidence gathered from the call for evidence will enable the government to decide how to proceed after the closure of the Feed-In Tariff scheme in April 2019. The call for evidence wil also seek to establish how much deployment of small-scale low-carbon generation would occur without government intervention.The paper says it is “appropriate to consider whether the same technologies should be supported in future.”
Responding to the consultation, Charlotte Morton, Chief Executive of the Anaerobic Digestion & Bioresources Association (ADBA), said:
“With the Feed-In Tariff (FIT) confirmed to close in just nine months’ time, this was an opportunity for the government to prove that it is committed to providing the investment that is absolutely critical to supporting small-scale renewables, which make a vital contribution to decarbonising and meeting increased demand for electricity in the UK. Unfortunately, this is an opportunity that has been well and truly missed.”
“With the government no longer providing direct for support for the generation of renewable electricity, on-farm AD will struggle to deliver its numerous non-energy benefits, which include reducing emissions from wastes, improving air quality and resource management, and restoring soils through the production of nutrient-rich biofertiliser. This also puts at severe risk the more than 300 AD CHP plants currently in the planning pipeline.”
“It’s therefore vital that the government rethinks its baffling decision to have no new low-carbon electricity levies until 2025, which risks creating a valley of death that small-scale technologies such as AD could easily fall into.”
“We implore the government to engage with the AD industry in developing a guaranteed route to market and a robust glidepath to reduced costs. “
Deadline to submit responses to The Feed-In Tariffs Scheme consultation is 13 September 2018 – click here to access the consultation paper.
Deadline to submit responses to The future for small-scale low-carbon generation: Call for Evidence is 30 August 2018 – click here to access the Call for Evidence
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