Sustainable Energy Facts July - September 2018

Sustainable Energy Facts July - September 2018 What you need to know about sustainable energy now

Renewable Energy Support Schemes – Tariffs as at 1 July 2018 Feed in Tariffs (FiTs) Technology

Wind

Solar PV

Anaerobic Digestion (AD)

Hydro

Scale

Tariff (p/KWh)

<50kW

8.39

50kW - 150kW

4.94

100kW - 1.5MW

1.92

1.5MW - 5MW

0.59

<10kW

3.93

Renewable Heat Incentive (RHI) Phase 1 / Non-Domestic Applicable until

Technology

Scale

Small Biomass

<200kWth

Medium Biomass

200kWth 1MWth

Large Biomass

>1MWth

Tariff (p/KWh)

Tier 1: 3.05 Tier 2: 2.14 Tier 1: 3.05 Tier 2: 2.14 Tier 1: 3.05

10kW - 50kW

4.17

50kW - 250kW

1.79

Biomass CHP

All

250kW - 1MW

1.43

Ground / Water Heat Pumps (HPs)

All All

2.69

<200kWth

10.75

>1MW

0.25

Standalone

0.12

<250kW

4.56

Air to Water HPs

250kW-500 kW

4.34

Solar Thermal

30 September 2018

Tier 2: 2.14 4.42 Tier 1: 9.36 Tier 2: 2.79

1.57

<100kW

8.06

100kW-500 kW

6.48

500kW - 2MW

6.48

Small Biogas

<200kWth

4.64

>2MW

4.73

Med Biogas

3.64

<2kW

14.52

200kWth 599kWth

Large Biogas

> 600kWth

1.36

Deep Geothermal

All

5.38

Micro CHP All - Exportff

All

5.24

30 September 2018

Tier 1: 5.60

kW

> 500

Applicable until

Biomethane

All

Tier 2: 3.29 Tier 3: 2.53

30 September 2018

Renewable Heat Incentive (RHI) Phase 2 / Domestic NB: the figures in red have decreased since our April - June 2018 edition of Sustainable Energy Facts as a result of degression.

The figures in gold have risen.

Market Update Consultation on the FIT Scheme On 19 July, the Government launched its consultation proposing to close the export tariff alongside the generation tariff on 31 March 2019.

Stakeholders have until 13 September 2018 to respond. The consultation document can be found in full, here: https://www.gov.uk/government/ consultations/feed-in-tariffs-scheme. Our team have been working alongside industry bodies including the Renewable Energy Association (REA) to ensure a meaningful and measured response.

Biogas & RHI news Following the introduction of the Tariff Guarantee scheme under the new RHI regulation there are reportedly 46 AD plants that have received Tariff

Technology

Scale

Tariff (p/KWh)

Ground & Water HPs

<45kWth*

20.46

Air Source HPs

<45kWth*

0.49

Biomass Boilers

<45kWth*

6.74

Solar Thermal

<45kWth*

0.66

Applicable until

30 September 2018

Guarantees and could now be built out by January 2020. This could therefore create another surge of new builds which is positive for the industry.

Renewables instead of Nuclear A new report from the National Infrastructure Commission published in July urges the UK to ditch nuclear in favour of renewables. The Assessment recommends that the UK should derive half of its power from renewable sources by 2030 and indicates that this could be achieved at no additional cost to the consumer. It further urges the Government to change course from nuclear deployment to green technologies. The Government is required to formally respond to the recommendations made â&#x20AC;&#x201C; so watch this space.

Did you know?

• • • • • • • • • • • • • • • • •

A third of farmers now have a renewable energy project.

30% of all electricity in 2017 came from renewables.

From 21-28 June solar PV exceeded 8GW each day with a peak of 9.39GW on Friday 22 June 2018.

Over the weekend of 30 June – 1 July the UK’s solar output topped that of any generation technology in the UK (inc. gas) at almost 28% of supply.

Offshore wind at £57.50/MWh is 40% cheaper than nuclear at £92.50/MWh. The Government expects offshore wind capacity to double by 2030 to 14GWs. 127,000 people are employed in the renewables sector, up just 0.9% on 2016.

36 million electric vehicles (EVs) are predicted by 2040. This is double the number predicted last year.

Shell, BP and Total have started investing in renewables, including EV recharging companies.

Next Capacity Auctions of over 50GWs in January and February 2019. Energy storage can bid.

500MWs of battery and STOR energy projects will have been built by the end of 2018.

There are 550 operational AD projects, and 85 are supplying gas directly into the grid.

All coal fired power stations are to be closed by 2025.

Interconnectors (4 cables under the sea) provide 4GWs (5%) of electricity, this could increase to 23GW by 2040.

The US has the world’s largest reserves of oil at 80 billion barrels, the UK only has 700 million barrels.

The first solar park without subsidy was built in 2017 in Bedfordshire.

The first wind farm in the UK without subsidy is going to be built in Yorkshire in 2018.

Fisher German successes Our team of experts were recently ‘Highly Commended’ for Best AD Support at the ADBA (AD & Bioresources Association) Awards in Birmingham, on 11 June. The awards ceremony celebrated excellence in the global biogas industry and the Support section covered the legal, accounting and consulting professions. As testament to this award, in a multi-million pound deal we have recently sold a 24-acre gas to grid AD facility on the Ilse of Wight to a London Investment Fund.

Business opportunities in the Energy Sector Battery storage – the de-rating of the support price for batteries in the Capacity Market auctions has meant this market has not taken off as well as expected. It is hoped that there will be a Government announcement this autumn on how the storage market will be supported. Getting grid capacity remains a big issue although projects with a low grid connection cost are being built. CAPEX costs need to be £500,000 per MW or less for projects to be viable.

STOR energy – another grid balancing mechanism similar to batteries, these projects utilise gen-set engines running on mains gas and sell their electricity to the grid. There is currently more demand for them than battery projects as they are not de-rated in the Capacity Auctions. There can be noise issues with the engine and separation from residential property is required.

Subsidy free wind & solar – there is renewed interest in projects with a cheap grid connection and CAPEX cost.

AD – following RHI price increases there is a limited opportunity to develop gas to grid AD projects. The key thing to establish is whether there is a suitable gas main to connect into. We offer initial investigation on the local gas infrastructure, free of charge.

Grid upgrade – for farmers on a single-phase grid line or using generators, it is now possible to utilise batteries to produce a viable 3-phase electricity supply. Contact us for more details.

Project sales – there is currently a very strong demand for operational energy projects at all stages of development, particularly single turbines and solar parks. For advice on selling your project, please contact us.

fishergerman.co.uk 01858 410200 renewables@fishergerman.co.uk