On-farm projects face cancellation as policy fix delayed to 2015 at the earliest
The Government has confirmed it will not review the Feed-in Tariff (FIT) for anaerobic digestion (AD) this year, despite Energy Minister Greg Barker saying in a letter to industry last November "I have asked my officials to consult on measures, including a tariff review, in January" . The REA, ADBA and industry colleagues had been pushing hard 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."