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Keith duncan delivering a successful gb feed-in tariff

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  • 1. Delivering a Successful GB Feed-in Tariff – An Ofgem Operational Perspective Keith Duncan 22 June 2010 1
  • 2. Overview •  Context- Government Renewable Energy Policy •  Outline of the Feed-in Tariff Scheme •  Who does what? •  Next steps 2
  • 3. Context for FITs •  EU Renewables Directive – 15% RE in UK by 2020 •  UK Renewable Energy Strategy •  30% renewable electricity •  10% renewable transport •  12% renewable heat •  Energy Act 2009 introduced primary powers for FITs •  Government introduced FITs on 1 April 2010 3
  • 4. Outline of the FITs Scheme •  Requirement on electricity suppliers with over 50,000 customers to pay a fixed tariff to eligible small generators for their kWh output •  Generation tariff – varies with technology, capacity and installation/ registration date •  Export tariff – set at 3p/kWh •  Suppliers below 50,000 customers can choose to offer the tariff •  Costs of the scheme spread across all suppliers (“levelisation”) •  PV, Wind, Hydro and AD below 5MW and CHP below 2kW eligible •  Generation must be metered; export can be deemed if below 30kW
  • 5. Approx. 3kW PV system; import tariff of 12p/kWh assumed £902 payment £180 savings £30 payment Total income/savings £1,112
  • 6. Forecast Growth in Scheme Value and Generator Numbers £800.000.000    1.000.000     Approximate Value of Scheme (£/y)  900.000     £700.000.000   Forecast Cumulative Installations  800.000     £600.000.000    700.000     £500.000.000    600.000     £400.000.000    500.000      400.000     £300.000.000    300.000     £200.000.000    200.000     £100.000.000    100.000     £0    -­‐         2010  2011  2012  2013  2014  2015  2016  2017  2018  2019  2020  
  • 7. Who Does What?
  • 8. www.ofgem.gov.uk Enquiries and Communications EST/Carbon Trust •  Basic and impartial information on technologies, suitability and FITs (Domestic/Business) MCS •  Finding MCS products and installers (microgen pv, wind and •  Direct Installers and Manufacturers hydro) Ofgem     •  List of FIT Licensees •  Only deal with ROO-FIT applicants (ROO-FIT and RO) and migrating generators DECC •  Tariff levels and cut off date •  Grants (Policy) Xx
  • 9. www.ofgem.gov.uk Next Steps Timetable Wednesday 30 June Periodic levelisation period ends/ deadline for Annual FIT Notification Thursday 1 July Central Register - Phase 2 system implementation Wednesday 7 July First levelisation report due w/c 2 August Complete levelisation process and produce first quarterly report Xx
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