Strike price for anaerobic digestion rises to £150 in Contracts for Difference scheme


The Government has raised the strike price in its Contracts for Difference scheme to £150/MWh for anaerobic digestion.

In the consultation in July, the strike price for anaerobic digestion was consulted on at £145/MWh for new plants from 2014/15 falling to £140 in 2017/18 and £135 in 2018/19 based on 2012 prices.


But today the Department of Energy and Climate Change has revealed that the strike price for AD will be £150 until 2016/17 then falling to £140 until 2018/19.

Advanced conversion technologies such as gasification and pyrolysis will also see an improved strike price under the Feed-in Tariff Contracts for Difference subsidy.

Although until 2017/18, the strike price for these technologies remains the same as consulted on, DECC has decided that a strike price of £140 will be offered in 2017/18 instead of the £135 proposed in July. The strike price will begin at £155 for these technologies.

Dedicated biomass (with CHP) has been increased to £125 for the period from £120 proposed earlier this year, and biomass conversion remains on £105.

However, energy from waste (with CHP) and landfill gas have both been reduced. The strike price in the July consultation was £90/MWh for the entire period of the scheme to 2018/19, but this has been reduced to £80, while landfill gas has been lowered to £55 from July’s proposed £65.

Energy and Climate Change Secretary Ed Davey said: “This package will deliver record levels of investment in green energy by 2020. Our reforms are succeeding in attracting investors from around the world so Britain can replace our ageing power stations and keep the lights on.

“Investors are queuing up to express their interest in these contracts. This shows that we are providing the certainty they need, our reforms are working and we are delivering ahead of schedule and to plan.

“With sixteen new renewable projects progressing in our ‘go early’ stage, we are delivering ahead of schedule and are able to begin the move to the worlds first low carbon electricity market faster than expected.”

Strike prices Contracts for Difference Energy