The Government has launched a consultation on Feed-in Tariffs with a closing date for comments of 15th October 2009.
This article carries the details of that consultation, together with the supporting documents.
This consultation seeks views on two mechanisms to provide financial incentives for the generation of low-carbon and renewable electricity; the renewables obligation (RO) and feed-in tariffs (FITs).
The RO is currently the main financial support scheme for renewable electricity in the UK. In order to ensure that the RO stimulates deployment of new renewable generation to the extent needed to meet our 2020 target for renewable energy, we plan to make certain changes to the RO by means of the next Renewables Obligation Order (ROO) which will come into effect on 1 April 2010. In summary, these are:
- Extension of the life-time of the RO to at least 2037;
- Introduction of a 20 year limit on support under the RO;
- Removal of the 20 Renewable Obligation Certificate (ROC)/100MWh limit in the RO;
- Retention of the existing fixed targets until 2015/16, with a headroom only mechanism after that date;
- An increase in the level of headroom from 8% to 10%; and
- Opening up the RO to include renewable generation outside the UK that meets specific criteria to help meet our EU target in the most cost effective way.
We are also consulting on whether to introduce, at a later date, a mechanism to reduce or remove the risk of fluctuations in the wholesale price of power (and possibly the ROC price).
The 2008 Energy Act contains powers for the introduction of FITs in Great Britain to incentivise renewable electricity installations up to a maximum capacity of 5 MW. We intend to implement FITs by April 2010 and this consultation sets out how we intend the FITs scheme to work, including the proposed tariff levels. These proposals have been developed with input from our stakeholders - energy industry trade associations, energy suppliers, Ofgem and NGOs - and this consultation constitutes a more formal opportunity for all interested parties to have their say on the details of the FITs mechanism.
Elements of the consultation include:
- Scheme design;
- Tariff setting;
- Supplier Issues; and
There is also a section within the consultation that covers aspects that overlap between these two incentives and other policies relating to small-scale renewable electricity.
As with the changes to the RO, these proposals are contingent on obtaining State Aid approval from the European Commission and parliamentary approval.
The deadline for responses to this consultation is 15 October 2009. Details about submitting a response, including the relevant e-mail and postal addresses, can be found in the ‘How to Respond’ section of the consultation document.
The following links include documents related to this consultation - impact assessments for FITs and the RO and reports prepared during the development of our proposals.
The original source for this information is available on the DECC website