Ofgem data released on Friday (12 February) revealed that a new “cap” on deployment of anaerobic digestion plants filled up 15 minutes after it opened at midnight on Monday (8 February).
The current cap period lasts until 31 March, but pre-accreditation applications reached the total permitted level of 5.8MW just after 00:15, the Anaerobic Digestion and Bioresources Association (ADBA) has pointed out.
Applications can still be submitted but will be “queued” and not approved until there is space in a new quarter’s cap. By the end of the first day almost 15MW of applications had been submitted. Those not in the first quarter of an hour will have to wait until capacity becomes available in a new quarter to be approved, and will also face reduced tariffs.
ADBA Chief Executive Charlotte Morton said: “Surpassing the first quarter’s FIT cap in just 15 minutes – and almost three times over by the end of the day – shows just how much more green energy we could deliver if we weren’t being held back”
A further update will be released by Ofgem this Friday, 19 February.
Commenting, ADBA Chief Executive Charlotte Morton said: “Surpassing the first quarter’s FIT cap in just 15 minutes – and almost three times over by the end of the day – shows just how much more green energy we could deliver if we weren’t being held back.
“DECC has said that they will look again at deployment caps alongside the forthcoming review of AD tariffs this year.
“This can’t be soon enough – while we wait much needed baseload capacity is on hold.”
Cost Control Measures
The Department of Energy and Climate Change (DECC) opted to keep Feed In Tariffs (FiT) open beyond January 2016, following a consultation launched in August that warned the scheme would close if costs could not be controlled.
These new measures include a new tariff for domestic-scale solar of 4.39p /kwh and deployment caps will be set to limit new spending on the scheme to £100m up to the end of 2018/19.
It will also paused new applications to the FiT scheme from 15 January to 8 February, to allow time for the implementation of cost control measures.
The new tariffs and a capped budget will, Government believes, allow deployment to come forward whilst providing significantly better value for money to bill payers. The scheme will remain under review to ensure it continues to achieve its objectives until generation tariffs end in 2019.
ADBA, however, said the cap would have a “disastrous affect” on investor certainty and therefore any further deployment.