DECC have announced the changes from 1 October and 1 December 2012 here.
I have extracted decisions relevant to micro hydro from the Government response following the consultation and added my initial comments here. Key points differing from the present arrangements are:
This is a tiny pigeon step in the right direction.
Just a small omission I'm sure - I shall be sending some questions in including this one.
Unfortunately the government have tied all the hydro bands together with regards to the degression triggers. This means that micro-hydro will face a 5% rather than 2.5% cut regardless of whether it is under-deployed if the big hydro players manage to install more then 7MW (which I assure you they will, particularly with the new band). This is a very important point because the degression reduction for under-deployed technologies is intended to foster innovation and thus bring the costs down. It is vital that each FiT band be assigned it's own degression trigger besed on the expected deployment of that scale. Not doing this will mean a great many smaller systems could become un-viable because big-money players in the 100 - 500 kW band have triggered degression before the micro-hydro industry has had a chance to grow and find the eficiencies required to keep small systems viable. I'll be writing to my MP about this, I'd strongly advise all who read this to do the same.
can you publish your letter here - for copy, paste and post purposes?
Yes - this is a considerable risk for small-scale hydro - I will be including this in my response and agree that others should write to their MP.
Good work as usual Gavin.
My clear understanding is that the degression applies only to the starting tariff for new schemes. Once a scheme has been accredited for a particular tariff, it remains in place for 20 years plus inflation at RPI. However, I agree that it is not spelt out very clearly in the Government Response, though the intention to give financial certainty is clear. There will be a draft statutory instrument in due course so that will need to be spelled out there.
Yes the bit about export at 4.5p seemed reasonably clear. One can never be too sure about government gobbldegook. Thanks.
Feed in tariff can do something awesome which no one can do basically
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