The Department for Energy and Climate Change is proposing to remove the opportunity for Pre-accreditation for the Feed In Tariff (FIT). This is likely to have a huge impact on the Community Energy Sector in Wales.
The announcement on the 21st of July that the UK Government are proposing the removal of Pre-liminary accreditation under the Feed in Tariff (FIT) will have a massive impact on any developer looking to develop a Renewable energy project over 50Kw that will require payments via the FIT. The related pre-registration option available to Schools and community groups is also under threat. Details of the announcement can be found here
Currently any developer with planning consents and a grid connection agreement (and environmental permits for hydro) can gain pre-accreditation in advance of commissioning. Community Groups received a further 6 months on the validity periods for pre-accreditation and pre-registration. This means that they can receive certainty on what price they will get for the electricity they generate through the FIT.
This could have a massive impact on Community Energy Schemes as without the guarantee of the tariff for a given scheme raising finance from share offers and loans will be much more difficult. With the possibilitry of FIT degressions right up to the commissioning date it will have a big impact on investor confidence in the schemes.
DECC have clearly recognised the impact for particular groups or sectors such as Community Energy and have set up a consultation with a specific question asking ‘Are there groups or sectors where it may be appropriate to reintroduce pre-accreditation in the future?’ Community Energy Wales will be responding to this consultation recommending that the Community Sector should be protected from these changes. However, we would urge any group affected by this to respond to the consultation or feed into our consultation response.
You can do that here the deadline is the 19th of August.
To feed into our response please e-mail Robert@communityenergywales.org.uk
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