15th February 2017


Anaerobic Digestion Support under the Feed in Tariff Summary February 2017

Following the announcement from BEIS on 8th February 2017 regarding the Feed in Tariff Consultation, we have produced a summary of what the report entails:

 

 

Tariffs:

 

 

The government has decided to implement a revised generation tariff from the 1st April 2017, as shown below:

 

[Table sourced from BEIS report: Review of Support for Anaerobic Digestion and Micro-Combined Heat and Power under the Feed-In Tariff Scheme]

 

 

Sustainability and Land Criteria:

 

 

• The government has decided to introduce a sustainability criteria and feedstock restrictions which will apply to all new AD installations from 1st May 2017. The same criteria and restrictions shall also apply to RHI applications made on or after this date. Where the applicants are accredited to both schemes, the sustainability and land criteria need only be reported to RHI rather than duplicated for both.

 
• The government has decided that every feedstock consignment must meet the minimum greenhouse gas (GHG) emission threshold, currently 66.7CO2e/MJ of electricity generated and comply with the land criteria. Feedstock that is made up wholly of waste will not have to comply with the above GHG emissions limit. This is already the case for RHI applications.

 

 

Feedstock Restrictions:

 

 

• The government has decided to limit payments to where electricity has been generated through the anaerobic digestion of feedstocks that are not wastes or residues to 50% of the total biogas generated per annum (As opposed to the original proposal of 50% per quarter).

 
• Electricity generated above the 50% threshold from non-waste or residue feedstocks will not be eligible for incentive claim.

 

 

Fair Hearings for Generators:

 

 

• The government will introduce provisions to ensure that generators are given a fair hearing before having tariff payments withheld permanently. For example, if there were non-compliance with the sustainability criteria, the generator has exceeded the 50% limit or late reporting. The details of this is still yet to be confirmed.

 

 

Deployment Caps:

 

 

• The government will review the balance of deployment caps and publish their findings later this year.

 

 

In Conclusion:

 

Essentially the price per kWh of electricity generated is going up. All tariff bands will remain supported under the consultation outcome. This allows for plants that are 500kW or greater to continue to be eligible to receive the Feed in Tariff, however it will be at a lower rate.

 

In order to be eligible to receive the tariff, plants must also limit the annual biogas generated from non-waste or residue feedstocks to no more than 50%. This, as well as sustainability and GHG reporting, is also in line with recent RHI consultation outcome.

 

 

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If you would like more information, please contact our Policy Expert, Carys Bate via the following email address: carys.bate@ad4energy.com

 

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