The NFU previously reported that the government had embarked upon a rapid consultation to revise biomethane tariffs for gas-upgrading anaerobic digesters, causing consternation among AD project developers - who feared that an early tariff cut would drive away financial backers, rendering many biomethane projects uneconomic.
We coordinated our response with the other trade associations and highlighted the opportunities for NFU members to respond, both formally and through open meetings with DECC officials.
NFU President Meurig Raymond wrote to Energy Minister Greg Barker last month, and the minister has now provided reassurance (in a letter and a published statement) that tariff changes will not be implemented before 1st December 2014, and that the 7.5p tariff will apply to all biomethane plants registered before that date.
This addresses the financial uncertainty that the consultation had created, without waiting for the formal DECC response, and effectively protects those gas-to-grid projects which are already at an advanced stage of development.
- Click here to read the published statement...
- ...and herefor the Minister's letter.
The letter and statement both make it clear that although DECC cannot pre-empt the conclusions of the consultation, government officials must consider the robust feedback already received in their considerations on tariff levels and structures.
The minister goes on to conclude that there is indeed a "bright and sustainable future for the biomethane to grid industry". Further information on the consultation will appear here.