This week, Ofgem published new official Feed-in Tariffs (FiTs) deployment statistics relating to sub-250kW and 250-500kW anaerobic digestion (AD) and biogas developments. As of April 2014, projects of this size will see a 20% degression – reductions in the tariff levels as the cost of the particular technology used get cheaper – in the FiTs deployed.
Projects which apply for pre-accreditation by 31 December 2013 however can claim this year’s FiTs rates (provided all other criteria required for pre-accreditation is satisfied). Given project completion times for some developers degression may be unavoidable. A recent article on AD subsidies (Link: http://www.mrw.co.uk/could-ad-subsidy-meddling-put-off-funders/8654273.article) suggested that these future degressions could increase risk and also deter investors.
All of this follows announcements by the Department of Energy and Climate Change (DECC) to reassure the waste industry that FiTs for energy-from-waste and AD projects are not at risk of being modified or scrapped. David Cameron had proposed rolling back green charges levied on household gas and electricity bills to pay for low carbon energy sources and clarification was sought by the renewables industry. We will be interested to see how these positions are balanced going forward.
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