Recently in Energy Category

The government has published its draft Energy Bill, which sets out measures to deliver a “secure, affordable and low carbon economy”.

The Bill includes a number of proposals, such as long-term incentives for companies to invest in low carbon generation, transition arrangements for investment under the Renewables Obligation scheme, and policies to ensure the security of the electricity market.

But the Renewable Energy Association said any policies should ensure fair treatment for renewables, small and mid-scale players and consumers. With energy bills forecast to keep rising because of increasing gas prices, any reforms should limit price increases and not be the cause of higher electricity bills, REA chief executive Gaynor Hartnell said. Go to www.decc.gov.uk for more.

A new brokerage service has been launched to help farmers access funding for renewable energy projects.

ReEnergise Finance is offering packages from £75,000 to £5m for projects involving renewable technologies such as biomass, solar, wind or heat pumps, as well as traditional technologies that improve energy efficiency.

Unsecured asset finance, secured commercial loans and individual project finance is available.

“What is apparent is that different technologies require different forms of finance with different terms,” said Adam Hewson, director, ReEnergise Finance. “We believe many traditional lenders are reluctant to back projects that involve the introduction of renewable technologies such as biomass and AD…the trick is finding fit [finance] and working with a partner that will get you the right deal.”

Anyone constructing a new agricultural building should consider maximising additional income from a roof-mounted solar installation, says Strutt & Parker.

The firm has just opened one of its first solar barn projects at EW Davies Farms in Thaxted, Essex (pictured below) and says that even with the lower Feed-in Tariffs a solar barn should pay for itself in around 20 years.

The Essex barn, which cost £265,000 to build, measures 4,800 sq ft and incorporates four 20 ft bays, roller shutter doors and mono-pitch roof with a 50kW solar PV installation. It was finished ahead of the cuts to FiTs last December and should pay for itself (building and PV) in 17 years. Energy generated supplies the new farm building and other grain stores on the site, with the remainder transferred into the grid.

S&P says performance of solar PV on similar sites is approximately 35% above expectations, partly due to 2011 being 10% brighter than average years.

Want to find out how to save money for your farm business by improving energy use and cutting greenhouse gas emissions? If so, then head to Oxfordshire next Monday (27 February) for the “Save money…saving emissions” conference.

The practical event will outline the pressures facing farmers and show how simple and strategic changes can improve your business. It will feature speakers from the industry, plus workshops led by farmers outlining what actions they have taken on their own farms.

Tickets cost £35 for farmers. See www.farmcarboncuttingtoolkit.org or call Adam Twine on 01367 700 616 for more information.

Mole Valley Renewables has joined forces with the renewable electricity supplier Good Energy.

The company has been chosen as the Feed-in Tariff licensee for Mole Valley’s Farmers Power Station, which pays members with installations of over 30kW for the electricity they produce.

The Farmers Power Station was created last year and is a “virtual power station” made up of individual renewable energy generators combining their power production to maximise the unit price for energy export. Its energy projects currently generate 1.5MW, with a further 3MW in orders and 14MW in the pipeline.

There was an interesting take on the “food versus fuel” debate at last week’s ‘Power of 3’ event at Stoneleigh, Warwickshire.

Addressing the issue of the increasing feedstock required to supply more anaerobic digestion plants, Masstock’s Roger Hellawell suggested land had already become available due to the decline in cattle numbers.

Defra census figures showed cattle numbers had fallen by 300,000 head over the past five years, which at a stocking rate of two per hectare, equated to around 150,000ha of land. At a grass yield of 40t/ha freshweight, that gave a potential 6mt of grass, enough to supply about 90 250kW AD plants, he said.

The figures may have to be taken with a pinch of salt, but they at least illustrate the potential that already exists to meet the growing demands from renewables.

Look out for FWi's new tax tips where farm accountancy specialists from Old Mill Group offer advice on choosing the correct business structure.

The tax pitfalls and opportunities of the renewable energy sector also come under scrutiny. In the race to get a project up and running, tax can sometimes be an afterthought but as so often, a little planning could yield a far better financial outcome.
 
There is food for thought for tenants too, including a look at the tax treatment of compensation for tenancy surrender. Approached it in the correct way, Entrepreneur’s Relief can be used to cut the Capital Gains Tax rate on these payments from 28% to 10%. As ever, the timing is crucial.

The Renewable Energy Association has set up a campaign urging government to support the generation of heat and power from biomass.

Timed to coincide with the Renewables Obligation banding review, the “Back Biomass” campaign says future support and policy must be sufficient to stimulate investment in biomass technology.

A number of large projects - including two from Drax Power - are in the pipeline, and provided support levels are maintained, they should make a big contribution to meeting UK renewables targets, the REA’s Gaynor Hartnell said. See http://www.backbiomass.co.uk/index.php

Animal feed use and human consumption of cereals in the EU will grow only slightly this decade but overall use is forecast to rise by about 9%.

This will take total consumption from 276m tonnes to almost 301m tonnes by 2020, with production rising at around 6% over the same period from 294.2m tonnes to 312.9m tonnes.

“Demand for cereals within the EU is being driven by a growing biofuels sector,” says HGCA’s Sarah Nightingale.

“While official targets have been set for renewable fuels, the sector has been affected by third country competition and the high price for raw materials this season. Over the next 10 years, cereal demand by this sector is expected to more than double.”

Record high energy costs mean farmers should consider fixing electricity and gas prices now - there are plenty of deals to be had if you shop around, says rural surveyor Tom Rattray of Savills.

“Wholesale energy prices have jumped by 30% since December, and all the major suppliers are warning of imminent price hikes. People who have not checked their contract recently could find that they are paying significantly more than expected.

“Variable rates may look the cheapest right now, but with further price rises on the cards, farmers may prefer to minimise risk and opt for a fixed rate contract instead.”

“Some people may be locked into existing contracts - but most suppliers will let you change tariff without incurring a fee, as long as you stick with them. In some cases we have been able to cut energy costs by 22%, with suppliers paying any fees so our clients are not out of pocket.”