Climate change minister Greg Barker has confirmed that DECC will launch a review of the Feed-in Tariff (FIT) for small scale anaerobic digestion (AD) in January. The AD industry has been calling for a review because the policy as currently designed will trigger a tariff reduction for small scale AD in April, even though hardly any plants have actually been built at this scale.
The REA and ADBA have been working together closely to make the case to the government, along with great efforts from the CLA, NFU, NNFCC, RASE and several of our member companies. Industry has worked hard to develop solutions to this problem for small scale AD which avoid undermining investment at other scales.
REA chief executive Dr Nina Skorupska said: “Industry has been united in calling on Greg Barker to commit to a review of the AD FIT before Christmas, so we warmly welcome this letter from the minister. It is very encouraging ahead of the Autumn Statement to see ministers and officials really listening and responding to industry concerns.
“The simple fact is that if this situation isn’t resolved, the on-farm AD industry will grind to a halt. The timely announcement of the review gives government a good chance of fixing the situation quickly enough to preserve the majority of existing projects and keep the door open for further growth.”