The Renewable Energy Association (REA) has said that it is disappointed that the Government has decided not to review the Feed-in Tariff (FIT) for small- and mid-size anaerobic digestion (AD) plants.
The Government has confirmed to REA that it will not review the tariff for AD this year, despite Energy Minister Greg Barker writing in a letter to the AD industry in November that he had “asked my officials to consult on measures, including a tariff review, in January”.
Along with ADBA and the AD industry, REA has been pushing 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.
REA head of policy Paul Thompson 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.”