AD - Feed in Tariff Banding
Peter
Digester output.
As I understand it........
<500kW - 11p + minimum of 3p export tariff
>500kW - 9p + minimum of 3p export tariff
Does this mean that all the electricity produced by a plant with an
output of 510kW would be at the 9+3p rate or is it the first 500kW
would be at the 11+3p rate and output and from 500kW up would be at
9+3p rate.
It seems to me that they should pay at the 11+3p rate for the first
~4380000kWh (500kW*365days*24hrs) whatever the plant and then drop to
the 9+3p rate.
I am of the opinion that there should have been an additional lower
band at a higher rate. But I guess we are too late for that.
Best regards
Peter
Peter Hough
pe...@regreen.co.uk
www.regreen.co.uk/Weltec.html
01822 870473
Regreen Ltd
Agent for WELtec BioPower®
Karen Murray
My understanding is that the banding relates to installed capacity.
Therefore, if the installed capacity of the plant is 510kW, it would
fall into the 9p + export tariff band.
I have reproduced paragraph 31 of The Government Response to the
Consultation on Feed-In-Tariffs for info:
"Definition of an installation / site
31. Given that the Energy Act 2008 places a total capacity limit on
individual FITs installations, and that the tariffs will be banded by
technology and total installed capacity, we recognise the need to
establish how an individual installation is defined in order to verify
capacity limits per installation. We aim to avoid creating perverse
incentives such as under-sizing plants or registering two
installations by splitting one installation artificially into two in
order to benefit from FITs or a higher tariff within FITs (e.g. a 6MW
wind farm made up of four 1.5MW turbines “split” into two 3MW wind
farms made up of two 1.5MW turbines). However, we believe that the
structure and levels of FITs and their interaction with the RO are
such that the risks of this behaviour will be small. The draft licence
modifications and the FITs order will set out provisions to minimise
these risks. The key provisions are:
• if a generator installs two different technologies on a single site
(e.g. a PV panel and a wind turbine) they will be classed as two
different installations;
• if the generator has multiple installations of the same technology,
they will be classed as a single installation site when determining
the tariff;
• site is defined in relation to a number of factors including
address, map reference and electricity meter identification;.
• any expansion of an installation within 12 months (of the same
technology) will be treated as an increase in the capacity of the
installation; if an expansion takes place more than one year after
confirmation in the Central FITs Register, the expansion will be
treated as a separate station - the original installation will be
treated as having continued in the same class, while the new
installation will be rated at the capacity of the aggregate of the two
stations."
The full Response is on the DECC website:
http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/policy/feedin_tarriff/feedin_tarriff.aspx
You'll need to scroll down to near the bottom of the page to open the
linked document.
I hope this is useful
Best Wishes
Karen Murray
Peter
To clairfy my view
The FiT incentive payments and banding for AD are insufficient and
incorrectly structured and too low to encourage significant
agricultural take up.
I believe that there should be a <250kW band.
The structure of the banding should be amended as follows
For the first 250kWh of output - 13.5p + 3p
For next 250kWh up to 500kWh of output - 11.5p + 3p
For all output after 500kWh 9p + 3p
It should be possible to buy electricity at best price or at the
export tariff rate. I think it is possible to buy back at the export
rate - do we know?
Depending on where the producers plant falls in the banding; paying
per unit of capacity rather than output risks diminshing the value of
an incentive that is already too low. For a vareity of reasons AD
plants do not always run to capacity.
The structure set out above offers a gradually diminishing value based
on output that will more accurately reflect the benefits that accrue
to scale.
I repeat again.......
The FiT incentive payments and banding for AD are insufficient and
incorrectly structured and too low to encourage significant
agricultural take up.
Best regards
Peter
Peter Hough
pe...@regreen.co.uk
www.regreen.co.uk/Weltec.html
01822 870473
Regreen Ltd
Agent for WELtec BioPower®
> The full Response is on the DECC website:http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix...
> > Agent for WELtec BioPower®- Hide quoted text -
>
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