Progress on renewable technologies in the UK is favouring biogas; the Department for Energy and Climate Change has promised an uplift to small-scale biogas tariffs. However, the NFU has pointed to the government’s track record for reneging on deals for renewable energy tarrifs, claiming its decision to cut feed-in tariff payments to solar farmers earlier in the year was a real knock to the confidence of farmers wishing to explore the possibilities of on-farm renewables. image expired

Earlier in the year, after the government’s ‘fast-track’ review of Feed-In Tariffs, the results of which were announced in June, the NFU voiced disappointment at the government’s decision to cut between 42per cent and 72per cent of funding for solar schemes over 50 kilowatts, into which category many on-farm schemes fall.

The Department for energy and climate change did, however, announce an extra 1-2p per kilowatt-hour would be paid to smaller-scale biogas plants. Initially intended to come into effect from 1st August, the biogas increase was made conditional on EU state aid approval which delayed progress for two months; the European Commission has now rubber-stamped the new tariffs.

The changes to the generation tariffs take effect immediately and will apply to AD installations with an eligibility date from 30th September this year. Details are as follows:

Anaerobic digestion plant up to 250 kilowatts – 14p/kWh

Anaerobic digestion plant 250-500 kilowatts – 13p/kWh

These represent a 16 and a seven per cent increase, respectively, on the previous 2011-2012 tariff of 12.1p/kWh.

Commenting on the changes, NFU chief adviser on renewable energy Dr Jonathan Scurlock said, “We hope that some previously marginal on-farm AD projects will now progress, although these tariffs alone are unlikely to result in the rapid growth in farm-based AD that we need to deliver multiple environmental benefits.”

He also warned of further cuts which could affect on-farm solar projects, “We have also heard about the possibility of another big cut to the future levels of solar PV tariffs, to take place sooner than the anticipated reduction in FITs planned for April 2012. With the uptake of solar electricity this year vastly exceeding previous government predictions, pressure to manage the FITs budget could result in drastic reductions to tariff rates earlier than expected, this time hitting the small-to-medium scale (under 50 kilowatts).”