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The end of the Feed-In Tariff

Feed-In Tariff – what next?Following the reassuring news in June 2018 that the RHI announced a tariff of 5.6p/KWh will be fixed for the next 20 years, PRM expected to see a ripple of excitement across the industry when we attended the Anaerobic Digestion & Bioresources Association show in July. 

However, after attending the show we were interested to find that this was not the case. In general, we felt that farmers were grateful for the increase, but did not see it as the pivotal landmark we expected.

New plants in the pipeline

PRM are looking forward to seeing this increase result in new plants, but we anticipate it will take 12-18 months before we start seeing any real impact. Medium term predictions are for a fairly large increase in potential due to the current availability of investment money (which can only be a positive result).

The agricultural sector is likely to see the biggest increase in plant builds overall. However, the industry has been met with a new blow, which could be catastrophic for many new plants and potentially established ones too.

The end of the Feed-In Tariff (FIT)

The government has confirmed it will close the Feed-In Tariffs Scheme that offers vital support to small-scale, low-carbon installations generating renewable energy. It plans do this in just nine months, leaving very little time for new applications before the scheme ends.

The ADBA wrote in response to this decision, that; “the FIT has been vital in helping to decarbonise the farming sector. Its baffling decision to have no new low-carbon electricity levies until 2025 risks creating a valley of death that small-scale technologies such as AD could easily fall into.”

One thing is certain; nothing stands still in the anaerobic digestion industry.

Can PRM help your business?

If you’re concerned about the proposed closing of the Feed-In Tariff Scheme, please contact the PRM team today.

 

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