ADBA unhappy with feed-in-tariff revision
The Anaerobic Digestion and Biogas Association in the UK says it is pleased the review of feed-in-tariffs has finally been published although it is concerned about the proposed tariffs for anaerobic digestion (AD).
The government says that plants with installed capacity of more than 500kW will get given £0.09 (€0.107)/kWh from October, which is £0.009 less than what they would have received previously. However, plants that produce up to 250kW will receive £0.147/kWh and plants producing between 250-500kW will get £0.137/kWh.
These rates will remain the same until 2014 when they will be lowered each year. However, this could happen sooner if the sector experiences faster growth than the government predicted.
This announcement comes after a delay because of the legal proceedings surrounding the drop in tariff for solar PV, which was specified last year.
ADBA chairman Lord Redesdale says: ‘The same financiers who have had certain problems with solar PV are the ones who are financing AD. It is extremely difficult to get any debt financing or equity financing for AD at the moment. This is of particular concern regarding the statement that if certain trigger points are met, there would be a retroactive reduction in the feed-in-tariff for anything coming on stream at that point. If we were nearing those targets that would have a major implication for financiers financing schemes because they would not know which band tariff they would be under.’
ADBA CEO Charlotte Morton adds: ‘It is a relief that the feed-in-tariff consultation has finally been published, but the ambition for AD is disappointingly low given the potential of the industry. Assuming all food waste were separated out and prioritised for AD, the industry would deliver over 10% of the UK’s total gas demand. Achieving that could result in 35,000 jobs. ADBA will be consulting with members on the tariff levels which have been proposed, including the suggested reductions.’