Clean Energy Cash Back Feedin tariffs for small scale low carbon electricity

1
Clean Energy Cash BackFeed-in tariffs for
small scale low carbon electricity
John Moriarty Office of Renewable Energy
Deployment
2
Overview

• The UK Renewable Energy Strategy
• Feed-in tariffs for small scale low carbon
  electricity generation
• Background
• Consultation
• Next steps
• QA

3
The UK Renewable Energy Strategy

• Published in July 2009
• Outlines how we plan to deliver our share of the
  2020 Renewable Energy targets 15
• Covers electricity, heat and transport

4
What could 15 renewables look like?
5
Action Plan to 2020

• Finance deployment
• Enable deployment
• Planning
• Supply-chain
• Grid
• Innovate
• Engage

6
Feed-in tariffs background

• More suitable than RO for non-expert
  households, communities, non-energy businesses
• But needs to work alongside the RO for large
  scale projects
• Needs to deliver simplicity and certainty
• Up to 5MW (and microCHP to 50 kW) so will deal
  with anything from domestic to commercial/industri
  al

7
Feed-in tariffs consultation

• Published alongside RES
• Available from DECC Consultations website
• Outlines proposals for FITs structure, tariff
  levels and transition
• Seeks views and feedback

8
Feed-in tariffs structure

• A payment for every kWh generated
• Generation tariff
• An additional payment for every kWh exported /
  spilled to the local electricity network
• Export tariff
• Additional benefit from usage of electricity
  onsite
• Avoided costs

9
FITs in practice
Avoided costs
Generation tariff
Export tariff
10
Proposed generation tariffs

• Tariffs paid for 20 years (25 for PV)
• Tariffs fixed for new installations
• Tariffs degress for some technologies for new
  installations

11
Proposed generation tariffs

• E.g. 50 Degression
• Year 1 installation 100p
• Year 2 installation 50p
• Year 3 installation 25p

12
FITs estimations

• Tariffs forecast to bring on over 850,000 FITs
  installations by 2020
• 800,000 domestic scale installations
• Will generate 8TWh renewable generation in 2020
• Cost to consumers of 7.9bn to 2030

13
FITs eligibility

• Support mechanisms available
• lt50kW FITs
• 50kW 5MW FITs or RO
• gt5MW RO
• Eligibility criteria
• lt50kW MCS where applicable
• MCS accredited products
• Installed by MCS registered installers
• Otherwise RO eligibility applies

14
Transition to FITs
15
Other issues

• Definitions of a site
• Installations on one site in different years
• Banding
• FITs payments to other bodies
• Setting the export tariff
• Micro combined heat and power (mCHP)

16
Feed-in Tariffs Next steps

• Consultation closes 15 October 2009
• Licence modification discussions / consultation
  now - Autumn 2009
• Supply and distribution licences and relevant
  codes
• Government response to consultation late 2009
• Parliamentary process for licence modifications
  late 2009 / early 2010
• FITs implemented April 2010

17
Contacts at DECC

• John Moriarty
• Feed-in tariffs policy development
• john.moriarty_at_decc.gsi.gov.uk
• 0300 068 6156
• Consultation responses and queries
• By 15 October 2009
• rfi_at_decc.gsi.gov.uk

18
Diolchand welcome any questions!
john.moriarty_at_decc.gsi.gov.uk 0300 068 6156