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The government is announcing more funding for industrial-scale renewable energy projects, having reduced feed-in tariffs for solar projects, after the uptake was much better than anticipated; a decision which affected many farmers. Some have said that this latest decision could also impact upon smaller scale energy projects on farms.

Deputy Prime Minister Nick Clegg this week unveiled a government plan for financial support for big renewable projects. Clegg said he hoped this would result in a surge in investment in green energy in the UK. However, farmers and landowners who ‘grow energy’ in small projects have expressed fears their support will be affected.

It is clear the UK needs to invest more in renewable energy; In the UK there are currently 65 anaerobic digestion plants, whereas Germany boasts 2,500 AD plants, which turn waste into power.  Acknowledging this fact, Energy minister Charles Hendry said there is a need to support projects of all sizes if the UK hopes to successfully promote uptake of renewables.  

Hendry said, “We need to see a significant growth in anaerobic digestion, which is why we have increased the feed-in tariffs to encourage that to happen. At the same time we have other schemes to support smaller-scale projects, the Renewable Heat Incentive, for example, which at this stage we have set out the details for commercial projects and industry; we are going to be setting out the details shortly for domestic schemes. That is where smaller-scale, farm-based schemes, will get their support from.”

However, Hendry’s example of the Renewable Heat Incentive, which was postponed pending EU approval hours before it was due to launch, may seem like a twist of the knife to farmers who are still awaiting news on the scheme.

Controversial support for energy crops

 He also said the government plans to give further support to farmers wishing to grow energy crops such as miscanthus and willow, as these crops take around three years to become profitable and are perennial. Such ideas have been criticised, as lucrative subsidies may encourage more farmers to grow fuel which still pollutes rather than food. Amid rising awareness of the need to address climate change and issues of food security, critics say such moves would be unwise.

Hendry countered this by saying he hoped that for some of the energy crops grown, part could be a food crop; he gave maize as an example of this. He maintained the government is making ongoing efforts to balance funding for large and small-scale projects. Nevertheless, the NFU has complained that the increase in feed-in tariffs announced for AD plants had been a third of the amount it had anticipated.