Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of MRW, please enable cookies in your browser

We'll assume we have your consent to use cookies, so you won't need to log in each time you visit our site.
Learn more

Subsidy review 'could hit 70 renewables projects'

Government plans to revise subsidies for generating renewable electricity could put more than 70 energy infrastructure projects at risk according to an industry body, endangering up to 24,000 jobs.

The Renewable Energy Association made the claim in its response to the Department of Energy and Climate Change’s (DECC) Renewables Obligation (RO) banding review consultation, which closed last week.

The REA said introducing proposed changes to bands for Advanced Conversion Technologies (ACT) such as gasification and pyrolysis “in such a short time period with very little warning or discussion prior to the publication of the consultation with industry” has added uncertainty for investors.

It said the projects at risk from the changes represented an estimated generation total in excess of 800MW, and a capital value of about £3.6bn.

The body claimed 3,000 operating jobs would be affected as well as 14,500 construction jobs and 6,500 jobs in transport, admin and manufacturing.

DECC’s proposals would see the current standard and advanced ACT bands replaced.

From 2013, ACT projects using internal combustion engines would fall into a combined advanced gasification and pyrolysis band and receive 2 Renewable Obligation Certificates (ROC) per megawatt hour - falling to 1.8 by 2017.

The new Standard ACT band would have its support cut from 1 ROC/MWh to 0.5 in 2013.

The RO banding review was published in October 2011 and put out for consultation.

DECC said the proposals would create 70-75TWh of renewable electricity in the UK by 2017, equating to 70% of the UK’s 2020 renewable energy target.

Energy secretary Chris Huhne said the proposals would “create and support the green jobs necessary to rebuild our economy, securing the UK’s position as a global leader in the renewable energy sector”.

Friends of the Earth said it opposed granting ROCs to “gasification and pyrolysis of wastes containing fossil-fuel derived materials, eg plastics”.

It added: “We consider that there is insufficient evidence of the carbon balance of these plants to be able to judge whether they have an overall climate benefit.”

The REA also disagreed with DECC’s banding level for EfW with Combined Heat and Power.

It said proposals to cut support from 1 to 0.5 ROCs/MWh were “based on flawed data and will result in little or no deployment”.  It added that the cut would not save any public money and would cause an increase in gate fees.

Banding proposals for energy from waste technologies:

TechnologyCurrent support: ROCs/MWhProposed Roc support/MWhOther proposed changes
Advanced gasification22 in 2013/14 and 2014/15;
1.9 in 2015/16 and 1.8 in 2016/17
Proposed change to definition and merger with advanced pyrolysis to create a combined advanced ACT band
Advanced pyrolysis22 in 2013/14 and 2014/15;
1.9 in 2015/16 and 1.8 in 2016/17
Proposed change to definition and merger with advanced gasification to create a combined advanced ACT band
Anaerobic digestion22 in 2013/14 and 2014/15;
1.9 in 2015/16 and 1.8 in 2016/17
 
Energy from waste with CHP10.5 
Landfill gas0.250 
Standard gasification10.5Proposed change to definition and merger with standard pyrolysis to create a combined advanced ACT band
Standard pyrolysis10.5Proposed change to definition and merger with standard pyrolysis to create a combined advanced ACT band

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.