UK launches renewable feed-in rates
The UK is getting greener with its launch of renewable energy tariffs starting from April.
The Department of Energy & Climate Change (DECC)’s system will offer a comprehensive system of tariffs for biogas injected into natural gas pipelines, and renewable heat.
Renewable heat technologies meet just 0.6% of UK heat demand, but by 2020 the government aims to meet 12% or more of the UK’s heat demand through renewables, the Renewable Energy Association says.
The UK will also fully index the tariffs with inflation. This often overlooked aspect of the UK programme will boost earnings by protecting investors from inflation.
Canada has experienced a similar rapid movement. Ontario implemented its system of Advanced Renewable Tariffs, the most comprehensive in North America, in less than eight months, including public consultations and tariff price-setting.
However, critics charge that DECC has set its sights too low. The Anaerobic Digestion and Biogas Association (ADBA) expressed bewilderment at DECC's decision to reduce the level of support for anaerobic digestion from the figure of 11p/kwh published in the summer of 2009 consultation document to 9p/kwh (€0.10) (for plants above 500kW), which is less than the current trading value for anaerobic digestion (AD) under the Renewable Obligation Certificate (ROC) scheme.
Despite extensive consultation with ADBA and other industry organisations, the feed in tariff (FIT) level for small scale AD plants (less than 500kW) remains unchanged at 11.5p/kWh.
At this level of support there is no incentive for AD operators to move from the current ROC scheme to the new FIT, which was supposed to support smaller scale plants (less than 5MW) looking for a simpler alternative to ROCs.
But the UK further finds itself in an unenviable position. Heat is needed and the UK is at the end of the continent's natural gas pipelines. Coupled with the country's disastrous experiment with so-called market deregulation, the UK is vulnerable to gas shortages during the heating season.
The Department of Energy & Climate Change (DECC)’s system will offer a comprehensive system of tariffs for biogas injected into natural gas pipelines, and renewable heat.
Renewable heat technologies meet just 0.6% of UK heat demand, but by 2020 the government aims to meet 12% or more of the UK’s heat demand through renewables, the Renewable Energy Association says.
The UK will also fully index the tariffs with inflation. This often overlooked aspect of the UK programme will boost earnings by protecting investors from inflation.
Canada has experienced a similar rapid movement. Ontario implemented its system of Advanced Renewable Tariffs, the most comprehensive in North America, in less than eight months, including public consultations and tariff price-setting.
However, critics charge that DECC has set its sights too low. The Anaerobic Digestion and Biogas Association (ADBA) expressed bewilderment at DECC's decision to reduce the level of support for anaerobic digestion from the figure of 11p/kwh published in the summer of 2009 consultation document to 9p/kwh (€0.10) (for plants above 500kW), which is less than the current trading value for anaerobic digestion (AD) under the Renewable Obligation Certificate (ROC) scheme.
Despite extensive consultation with ADBA and other industry organisations, the feed in tariff (FIT) level for small scale AD plants (less than 500kW) remains unchanged at 11.5p/kWh.
At this level of support there is no incentive for AD operators to move from the current ROC scheme to the new FIT, which was supposed to support smaller scale plants (less than 5MW) looking for a simpler alternative to ROCs.
But the UK further finds itself in an unenviable position. Heat is needed and the UK is at the end of the continent's natural gas pipelines. Coupled with the country's disastrous experiment with so-called market deregulation, the UK is vulnerable to gas shortages during the heating season.
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