Government to review FiTs reduction for AD

Fears that FiTs will be reduced for small-scale AD plants from next April have been temporarily allayed after the government announced it would launch a tariff review in January.
Concerns were raised in October that a 20% reduction in tariffs for AD plants smaller than 500kw would be triggered. This follows government policy, which currently imposes progressive cuts to support over an annual 9MW threshold generated from all AD plants under 500kW.
In a written response to the Anaerobic Digestion and Biogas Association (ADBA), Mr Barker acknowledged the current arrangements were resulting in “unintended consequences” and that “action may well need to be taken to avoid the risk of damage to the genuine small-scale AD sector.
“I have asked my officials to consult on measures, including a tariff review, in January. This will have the aim of closing the current loopholes and providing a long-term, stable investment framework for small-scale AD,” he said.
The NFU described the move as a potential “lifeline” for farmers, who could not afford to develop AD plants if current plans remained as they were. Charlotte Morton, chief executive of ADBA said, “smaller scale anaerobic digestion has huge amount to offer – using slurry and farm wastes mitigates methane emissions on farms, generating employment in rural communities and creating a UK manufacturing sector with strong export potential.
A coalition including the NFU, ADBA, Renewable Energy Association, CLA, National Non-food Crops Centre, and the Royal Agricultural Society lobbied the government on the FIT.
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