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This document is the government response to the ‘Review of support for Anaerobic Digestion and micro-Combined Heat and Power under the Feed-in Tariffs scheme.’
It summarises the responses and sets out policy decisions and next steps.
The Feed-in Tariffs (FITs) scheme is the Government’s subsidy scheme for generation of renewable electricity from small-scale installations. The UK is obliged by our EU State Aid notification to consult on the performance of the scheme every three years. The core FITs Review consultation in 2015 did not seek views on whether generation tariffs for anaerobic digestion (AD) or micro-combined heat and power (mCHP) continue to give investors an appropriate rate of return and prevent overcompensation.
This consultation therefore seeks input on the future level of support for those technologies and builds further on proposals put forward in the previous consultation on sustainability for AD. The proposals on future support levels in this consultation continue the principles set out in the core review of 2015 – to ensure value for money for consumers in delivering our renewable energy targets.
Update – 4 July 2016
The Impact Assessment was updated on 4 July 2016 to correctly express the operating costs in Table 19 of Annex B. The correct value of operational expenditure is used elsewhere in the document, for example Table 17 of Annex A. This does not impact the policy proposals, nor the analysis or the generation tariffs proposed.
Update – 6 July 2016
Consultation extended to 14 July 2016 following update to Impact Assessment on 4 July.