The Biogas Feed-in-Tariff is in the news again. The UK’s Anaerobic Digestion and Biogas Community has been dealt a blow by the UK Government with its failure to carry out its promised review of the value of the Feed in Tariff (FiT) rating which will soon apply for small to medium sized Anaerobic Digestion Plants. The new rate will come into force at a rate which is a reduction on the current FiT rate, despite the UK Anaerobic Digestion industry’s request that this new rate be reviewed before its introduction and the value raised. Instead, the new rate falls well below a guaranteed electricity price considered to be needed for new plant construction viability in this Anaerobic Digestion Plant size range.
The result of this FiT change is likely to be that the long-term economics for many of the AD Plants planned to be built in this size range, will become economically unsustainable. The new FiT rate is therefore likely to be disastrous for many of these UK projects, and innovative specialist contractors encouraged by previous government policy to enter this market, may well go under.
Small Biogas Plant Feed-in-Tariff Policy “Illogical”
The UK’s Anaerobic Digestion & Biogas Association has issued a press release about this, part of which is repeated below:
“Charlotte Morton, Chief Executive, ADBA, said:
It is deeply disappointing that DECC have not been able to follow through on their commitment to ‘consult on measures, including a tariff review, in January ’, and this decision appears contrary to the government’s stated support for small scale AD on farms in particular.
Smaller scale AD has a range of environmental benefits on top of generating electricity, including encouraging better manure management on farms and reducing the use of artificial fertilisers. A range of UK businesses are also in the process of developing technology and expertise which will be lost without the early-stage support which the current FIT level provides.
The highest tariff degressions were designed to deal with ‘runaway’ deployment, but are hitting smaller scale AD despite just five sub 250kW gas engine AD plants coming online in 2013. This clearly goes against the spirit and intention of the policy, which will be hard to swallow for farmers, developers and their employees.”
There have also been a number of recent articles published which provide more details to the background to this tariff problem, and we provide details of one of them below:-
Credits: UK Government U-Turn on Biogas FiTs for Small Scale Anaerobic …
The UK government’s u-turn on the Feed-in Tariff for energy produced by biogas from anaerobic digestion has been slammed by the industry.
However, in contrast the French Government clearly has no such problems with the subsidy of small to medium scale Anaerobic Digestion installations, as is obvious from the following extract:
In late February, the French Government proposed to substantially raise French feed-in tariffs for biogas, while dropping tariffs for solar photovoltaics (PV) by an equivalent amount.
In addition, the url: www.newenergyfocus.com which was held a copy of the original Press Release has also ceased to exist, and a new website unrelated to the previous topic now resides at that domain.
Finally, we include a link below to a June 2011 quotation on the FiT provisions in the UK, when the low level of support first became apparent, below (updated November 2014):
Here’s an overview of the renewable incentives available to anaerobic digestion (AD) and biogas plants in the UK. Feed-in Tariffs (FITs) The Feed-in Tariff FIT is designed to encourage the provision of small