Matt Hindle, ADBA

1. SHOULD THERE BE AD ON EVERY
FARM?
#UKADBiogas @adbioresources
CHAIR: MICHAEL CHESSHIRE, EVERGREEN GAS
PANEL:
MATT HINDLE, ADBA
NICKY CONWAY, FORUM FOR THE FUTURE
DAVID KANER, ADVANCED ANAEROBICS
DR STEPHEN TEMPLE, JF TEMPLE & SON
ROGER ABBOTT, ENERGY NOW

2. Should there be AD on
every farm?

3. Incentivising on farm AD
Current
deployment
2015 FIT
consultation
ADBA data Taking part
What
happens
next?

4. Current deployment

5. So, what’s the problem
0
2
4
6
8
10
12
14
16
18
30 September
2011 to 31
March 2014
1 April 2014 to
30 September
2014
1 October
2014 to 31
March 2015
1 April 2015 to
31 March 2016
1 October
2015 to 31
March 2016
1 April 2016 to
??
Feed-in Tariff rate (p/kWh, sub 250kW AD)

6. FIT 2015 data
Banding (kW) Current tariff (p/kWh)
From 1 October 2015
(p/kWh)
<250 10.13 9.12
>250-500 9.36 8.42

7. 2015 FIT consultation: context
• Tariff review required by state aid approval
• Scope of review is a decision for ministers
• New notification to State Aid should not be required
• Constraints imposed by the Levy Control Framework remain
• Other technologies have similar asks e.g. on pre-accreditation
• Consultation now unlikely before summer recess
Pre-accreditation Proposals
• Offer mechanism to deal with delays in approval/build outside developers’ control
• Realign degression triggers and bands
• Break direct link between pre-accredited capacity and degression

8. ADBA data: small scale tariff
£0.00
£0.05
£0.10
£0.15
£0.20
£0.25
£0.30
£0.35
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000
£/kWhe
kWe
Draft FITs required for 8% project IRR (25 June 2015). Excludes
sub-40 kWe plants.
FITs required for 8% project IRR FITs from 1 April 2015
FITs from 1 April 2015 FITs from 1 April 2015
Power (FITs required for 8% project IRR)

9. ADBA data: VfM case
£-
£50
£100
£150
£200
£250
£300
£350
Sub-100 kWe AD tariff Wind 15-100 kWe from 1 April
2015
Solar 50-100 kWe Middle Rate
from 1 April 2015
Hydro 15-100 kWe from 1 April
2015
Draft cost of CO2 mitigation
£/ MWh £/ tonne co2

10. Taking part
• Parsons Brinckerhoff data collection now closed...
• ... but DECC have not yet signed off data, so we don’t know exactly
what it says
• Our data collection is continuing – see website for latest
http://adbioresources.org/news/decc-feed-in-tariff-review-cost-data

11. What happens next?
• Consultation now unlikely to take place before summer recess, but
we may have more indication from DECC on likely dates by then
• Possible timings:
• Consultation launched in September/October, to close c.
December
• Government response in the New Year
• Earliest date for new tariffs and structures would be April 2016

12. Crystal ball...
• Cost data exercise shows tariffs at all scales are too low...
• ... but tight LCF and cost reductions in other technologies means
across the board increases unlikely
• Changes to pre-accreditation mechanism across all technologies
likely...
• ... but DECC/Treasury will want to retain strong ‘cost control’
• Gap between tariffs and costs for smaller scale AD particularly clear
• New small scale tariff plausible
• Opens discussion for other measures to recognise wider
benefits
• Clear story on future cost reduction over time would help

13. SHOULD THERE BE AD ON EVERY
FARM?
#UKADBiogas @adbioresources
CHAIR: MICHAEL CHESSHIRE, EVERGREEN GAS
PANEL:
MATT HINDLE, ADBA
NICKY CONWAY, FORUM FOR THE FUTURE
DAVID KANER, ADVANCED ANAEROBICS
DR STEPHEN TEMPLE, JF TEMPLE & SON
ROGER ABBOTT, ENERGY NOW