DECC hints at subsidy-cuts for UK bio-power plants

AD-power

The Dept for Energy (DECC) consultation on subsidies for anaerobic digestion power (AD-power) and micro-combined heat and power projects closes on Thursday, 14 July.

DECC is, in effect, seeking to scale back subsidies for AD-power schemes after higher than expected supply from industry.

Almost a third more biogas energy is being produced in the UK compared to this time last year, according to the latest annual figures from industry trade body, the Anaerobic Digestion and Bioresources Association, which show that the UK now has 617 MWe of biogas capacity.

A DECC spokesman said: “Deployment of AD-power under the FITs scheme has exceeded expectations. “While this shows the success of the scheme in attracting investment in small-scale renewable electricity deployment, this has come at a cost to the bill payer, with the scheme projecting to spend beyond its initial projections.

“When the scheme was launched in 2010, we projected 100 installations equating to 160-MW of installed capacity by 2020-21.

“However, by the end of March 2016, the number of installations accredited under the FITs scheme was 250, with an installed capacity of 177 MW.

“In contrast, mCHP has not seen a sustained level of deployment, with only 501 installations deployed since the scheme started in 2010.

“This consultation seeks input on the future level of support for these technologies, and builds on proposals in the previous consultation on sustainability for AD-power.”

Any new generation tariffs for AD-power are likely to be imposed in 2017.

To make a submission, write by post or email to:

ADmCHPreview@decc.gsi.gov.uk

FITs Review Team
Clean Electricity Directorate
Department of Energy & Climate Change
4th Floor Area D
3 Whitehall Place
London
SW1A 2AW

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