Renewable energy bodies have warned that biogas projects are likely to be cancelled after the UK Government ruled out a review of the feed-in tariff (FiT) for anaerobic digestion (AD) this year.
Energy Minister Greg Barker had written to members of the biogas industry in November, revealing that he had asked his staff to consult on a tariff review in January.
But the Department of Energy & Climate Change (DECC) has now confirmed that the review will not go ahead.
Members of the industry had called for a tariff review because “under current policy steep tariff reductions are being triggered by ‘preliminary accreditations’, making small and mid-scale AD − below 500kW − uneconomic”, according to trade bodies.
Paul Thompson, Head of Policy at the Renewable Energy Association (REA), said:
“This is a bitter disappointment. We have worked hard with industry colleagues and DECC officials on proposals to fix the FIT for small and mid-scale AD, so it is extremely frustrating that this has not been done.
“The Government has kicked this issue into the long grass, leaving several projects and companies in the sector at extreme risk.
“Small-scale AD will be hit the hardest. Much of this takes place on farms, turning farm wastes and residues into self-supplied green energy and fertiliser, strengthening rural businesses, creating jobs and reducing emissions.
“We will continue to state the case to Government for AD at all scales and work to secure a viable solution as soon as possible.”