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(Figures below based on Ofgem reports published 7 July 2016 for schemes which have completed accreditation. The current report inludes 43 schemes <=100kW and 13 schemes >100kW which were omitted from Ofgem's report for the FiT period ending 30 March 2016)   Ofgem are now publishing details of the queue of applications for accreditation. The report is presented in a Microsoft Excel spreadsheet. The 16 May 2016 report can be viewed here as a .pdf file for Hydro 100kW and under. There are no applications in the queue for this period for schemes over 100kW.
Ofgem have published the new rates from 1 April 2016 here. Although one pre-accrediation application (17 March) was withdrawn before 31 March 2016 bringing the 0-100kW deployment below the degression cap, the rates have nonetheless been reduced by 10%.  The latest degression caps report is available here  The latest position on degression caps (i.e. whether and by how much they have been breached) is usually available on the Ofgem website here but the website is down at the time of writing.
The BHA have pointed out that there is currently only 24kW of the 1.1MW capacity available for this quarter in the sub-100kW FiT band for hydro. If the maximum band capacity of 1.1MW is reached before the end of March, then a 10% contingent degression would be triggered which would lower the FiT rate for any future new schemes. If you attempt to pre-accredit a scheme which is greater than the remaining capacity you will both trigger the degression and suffer the 10% reduction for your scheme. If you wait until April when new capacity is available you will only suffer a very small default degression. (Figures below based on Ofgem reports published 8 January 2016 for schemes which have completed accreditation. (errors in 2010/11 figures in original post)   The Impact of Feed in Tariff Review on Micro Hydro-electric Projects
The Micro Hydro Association (MHA) is shocked by the totally unexpected reduction in FIT for smaller schemes, especially for <100 kW installations. The MHA cannot compute how the new tariffs will yield a 9.2% financial return on investment, as stated by DECC. The proposed FIT will not allow hydro development to be financially viable. The collapse in base price of electricity and the complexity of direct supply does not allow ‘Renewable, no carbon electricity’ to be priced at its worth, leaving the FIT as the only mechanism through which hydro can currently be brought to market. Without a reasonable FIT this industry cannot survive. This will result in the loss of potential sustainable no carbon electricity together with the loss of a highly skilled nascent workforce and valuable working knowledge. In light of the COP21, the MHA is dismayed that the Government are essentially withdrawing support for the Hydro industry. Hydro-electricity schemes can operate for up to 100years. Given this longevity, start-of-life financial support offers better whole life value for money than any other form of energy generation. There are still hundreds of potential hydro sites and weirs around the British Isles which could provide sustainable energy and continue our long tradition of harnessing the power of water, but with the reduction in FIT for hydro, these Micro hydro projects will now be un-viable. DECC’s underpinning reasons for tariff cuts:
Ofgem confirm ending of pre-accreditation and the community tariff guarantee: see open letter
DECC have published an 8 week consultation on their proposals to financially cap or end the Feed-in Tariff scheme altogether. There are four papers:
The consultation Impact assessment Review of evidence Cost Update (Parsons Brinkerhoff) This consultation closes at23 October 2015 11:45pm |
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