The renewables industry in the UK has called on the government to seek clarity on Feed-in-Tariff (FiT) support system, which is slated for closure net year. In a written communication expressing their woes, a group of 10 organizations of the UK renewables industry have approached the Business, Enterprise, and Industrial Strategy secretary seeking clarification on delays to the long-awaited consultation on Feed-in-Tariff.
The FiT support system till date has supported most of UK’s small-scale low-carbon generation initiatives. By means of this, the current portfolio of energy assets is not only helping meet the country’s energy needs, but is also serving to contribute towards government’s policy ambition to create a smart, dynamic, and flexible low-carbon energy ecosystem. Apart from producing energy, decentralized generation helps to create significant socio-economic advantages, which includes engaging communities, thus, it is mostly at the forefront of innovative energy and business models.
Feed-in-Tariff Boon for Small-scale Renewable Energy Initiatives
At present, FiT supports small-scale renewable initiatives up to 5 MW, which includes wind, hydropower, photovoltaic solar, and anaerobic digestion. In addition, it also provides prices for micro combined heat and power of capacity up to 2kW. The tariff plan for 2018 that is valid up to March ranges from GBP0.019 to GBP0.0819 per kWH depending on technology type and installation size. Combined heat and power plants can obtain a flat rate of GBP0.1395 per kWh.
In the absence of a viable route to serve, the benefits of small-scale low-carbon energy initiatives are at risk of being lost. This cliff-edge situation is leading to waned investor confidence and creating considerable uncertainty, taking away developers to invest in other locations.