Sustainable Energy Facts October - December 2018

Sustainable Energy Facts October - December 2018 What you need to know about sustainable energy now

Support Schemes – Tariffs as at 1 October 2018 Feed in Tariffs (FiTs) Technology

Wind

Solar PV

Anaerobic Digestion (AD)

Scale

Tariff (p/KWh)

<50kW

8.31

50kW - 150kW

4.91

100kW - 1.5MW

1.72

1.5MW - 5MW

0.52

<10kW

3.86

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

4.11

50kW - 250kW

1.75

Biomass CHP

All

250kW - 1MW

1.38

Ground / Water Heat Pumps (HPs)

All All

2.69

<200kWth

10.75

>1MW

0.20

Standalone

0.08

<250kW

4.53

Air to Water HPs

250kW-500 kW

4.30

Solar Thermal

31 December 2018

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

1.55

<100kW

8.04

100kW-500 kW

6.46

500kW - 2MW

6.46

Small Biogas

<200kWth

4.64

>2MW

4.73

Med Biogas

3.64

Micro CHP

<2kW

14.52

200kWth 599kWth

Large Biogas

> 600kWth

1.36

All - Exportff

All

5.24

Deep Geothermal

All

5.38

Hydro

31 December 2018

Tier 1: 5.60

kW

> 500

Applicable until

Biomethane

All

Tier 2: 3.29 Tier 3: 2.53

31 March 2019

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

The figures in blue have risen due to either CPI or RPI inflation.

Market Update

Technology

Scale

Tariff (p/KWh)

Ground & Water HPs

<45kWth*

20.46

Air Source HPs

<45kWth*

10.49

Biomass Boilers

<45kWth*

6.74

Solar Thermal

<45kWth*

20.66

Applicable until

31 December 2018

Q2 2018 Renewable Energy Quick Stats (from BEIS) • • • • • • • •

A record 31.7% of electricity was supplied by renewable sources in Q2.

The supply from wind remained similar to 2017.

Solar PV supplies grew by 10% driven by increased sunshine hours and improved capacity on previous years.

Hydro generation fell by 4.5% due to low rainfall.

Coal generation represented just 1.6% of the electricity supplied – a new record low. The UK is scheduled to phase out coal by 2025.

Net imports of electricity rose over the period to 6.8%.

The number of interconnectors between Britain and the continent/Ireland is expected to increase to 12 (from 4 currently) in the coming years.

Reduced trading efficiencies as a result of Brexit threaten to impact on electricity supply and costs.

Reducing reliance on grid supplies through well planned sustainable energy projects can help businesses insulate themselves against future market volatility. To discuss this further call one of our team.

IPCC Report The latest report from the IPCC (Intergovernmental Panel on Climate Change) released this month (October 2018) has set out the need for rapid and far reaching changes in order to restrict global temperature increases to 1.5°C. It identifies a need to source 49-67% of all energy from renewable sources with 97% of electricity coming from renewables by 2050. The report also outlines changes in agricultural practices that would be needed to both mitigate temperature rises and adapt food production to new warmer climates including soil conservation, application of biotechnology and reducing food waste, amongst others. Even before the report was published the Labour Party has set out how it would put clean energy and efficiency at the heart of its plans for government. If and how the current government interpret the advice from the IPCC and respond to Labour’s policy challenge on energy remains to be seen, but it is hoped the report could be a shot in the arm for renewable energy deployment and the transition to an electric transport system. The full report can be seen here: http://www.ipcc.ch/report/sr15/ .

FIT Consultation The Government consultation seeking views on the closure of the FIT scheme to new applications after 31 March 2019 has now closed. It ran from 19 July 2018 to 13 September 2018 and we now await a response from Government. Fisher German worked with the Renewable Energy Association (REA) and other industry bodies to respond to the consultation. There remains a narrow window of opportunity for projects to accredit to the FIT and solar PV offers the easiest short-term win with panel prices expected to fall further due to excess supply and reduced demand. Offsetting onsite consumption remains critical to project viability. If you have a large electricity consumption and want to safeguard against future electricity price rises, please contact one of our team.

Electric Vehicles (EVs) The Government has thrown its weight behind EVs in the UK having recently held the world’s first zero emission vehicle summit in Birmingham (11-12 September). EVs have also been included as an element of the industrial strategy. EV take-up in the UK continues to grow apace with industry data showing that 3,981 plug-in EVs were registered in August 2018, bringing the total number registered in 2018 to 37,893. This is an increase of 147% on 2017.

The growth of EVs will necessitate a network of charging points across the UK. This is likely to provide opportunities for property and land owners with existing generation, especially those with attractions such as farm shops or open gardens, where visitors can charge their vehicles whilst parked. The full impact of EVs on the existing grid infrastructure is unclear but the capability of charge points to deliver high speed charging in both urban and rural areas will be critical. Herein lies an opportunity.

Grants for energy projects Funding from the Rural Development Programme for England (RDPE) is available for improving farm productivity to help towards the cost of some types of on farm energy projects including battery storage for electricity. The funding is aimed at making better use of existing generation and heat systems, for example installing batteries to increase self-consumption from an existing PV array. It does not cover new investment in renewables.

Battery projects up to 1MW in capacity can be supported with projects assessed on a competitive basis with farm productivity and resilience amongst key priorities. The minimum level of funding which can be applied for is £35,000 for 40% of the project cost meaning the minimum total project cost eligible for the grants is £87,500. Applications for the funding must be received by 3 December 2018. Details of the funding, eligibility and application process can be found via the handbook available at https://www.gov.uk/guidance/countryside-productivity-scheme.

Fisher German team news We are delighted to announce that Tom Beeley has joined the Fisher German Sustainable Energy team. Based in Market Harborough, Tom brings with him a wealth of experience in the sector having previously worked as the CLAs Renewable Energy Policy Adviser for 5 years and prior to that offering energy efficiency and sustainability advice with the Carbon Trust. With the governments future energy policy currently in a state of flux, Tom’s understanding and knowledge will help ensure Fisher German clients get the best advice available.

fishergerman.co.uk 01858 410200 sustainableenergy@fishergerman.co.uk

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Please do not use this as all the advice needed to make decisions.