Energy Minister Greg Barker has confirmed that DECC will launch a review of the Feed-in Tariff (FIT) for small scale anaerobic digestion (AD) in January.
This has been welcomed by REA which argued that the policy as currently designed would have seen a FIT cut take place in April, even though few plants have been built.
It argues this would have made AD economically unviable. REA has been working with ADBA to make the case to Government along with other trade bodies and member companies.
REA chief executive Nina Skorupska said: “Industry has been united in calling on Greg Barker to commit to a review of the AD FIT before Christmas, so we warmly welcome this letter from the Minister. It is very encouraging ahead of the Autumn Statement to see Ministers and officials really listening and responding to industry concerns.
“The simple fact is that if this situation isn’t resolved, the on-farm AD industry will grind to a halt. The timely announcement of the review gives Government a good chance of fixing the situation quickly enough to preserve the majority of existing projects and keep the door open for further growth.”