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22nd SEPTEMBER 2015

GREEN TUESDAY • Data Management • Legislation • Compliance

A Unique Perspective

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A Unique Perspective | Green Tuesday | 22.09.2015

UK: FITs: government response to consultation on pre-accreditation removal published and Order made On 9 September the Department of Energy and Climate Change (DECC) published the government response to its consultation on removing preliminary accreditation under the feed-in tariffs (FITs).

On 22 July 2015, the DECC launched a consultation on the removal of feed-in tariffs (FITs) preliminary accreditation

Background: consultation on pre-accreditation of FITs On 22 July 2015, the DECC launched a consultation on the removal of feedin tariffs (FITs) preliminary accreditation (pre-accreditation). The preliminary accreditation was introduced in 2012 to give certainty to generators applying for FITs and to mitigate the effect of the degression mechanism, which reduces tariff levels at intervals in line with deployment. Preliminary accreditation gives generators a guaranteed tariff level in advance of commissioning their installation (without risking tariff reduction) provided they can show planning consent and a grid connection agreement (and, for hydro installations, environmental permits).

A version of preliminary accreditation called pre-registration is available to community groups and schools with solar PV installations not exceeding 50kW

It is currently available for: • Solar photovoltaic (PV) and wind projects above 50 kilowatts (kW). • All hydro and anaerobic digestion (AD) projects. A version of preliminary accreditation called pre-registration is available to community groups and schools with solar PV installations not exceeding 50kW.

Government response to consultation On 9 September 2015, DECC published the government response to its consultation on the removal of preliminary accreditation for FITs. The government response shows that:

On 9 September 2015, DECC published the government response to its consultation on the removal of preliminary accreditation for FITs

• It will no longer be possible to pre-accredit or pre-register for FITs from 1 October 2015 (this will apply only to new applications). Projects that have already been granted preliminary accreditation are not to be affected.

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A Unique Perspective | Green Tuesday | 22.09.2015

• Depending upon the outcome of the wider feed-in tariffs review consultation, DECC may consider reintroducing preliminary accreditation, either for all groups or on a more limited basis, provided it can keep FITs costs under control. DECC considers that the removal of a tariff guarantee, alongside its cost control proposals in the wider FITs review, are critical to ensuring overall value for money from the FITs scheme and limits the impact of rising policy costs on consumer bills. DECC’s wider FITs review proposes an overall budget for the future spend.

DECC considers that the removal of a tariff guarantee, alongside its cost control proposals in the wider FITs review, are critical to ensuring overall value for money from the FITs scheme

DECC also recognises that this decision will introduce considerable short-term insecurity, but considers that it is necessary to safeguard the FITs spend while it is carrying out the wider FITs review. DECC received over 2,300 responses with the majority disapproved the proposed changes. Respondents particularly highlighted the impact of withdrawal on community energy projects, which typically involve longer leadin times and greater difficulties in raising finance. Respondents also argued for reintroducing preliminary accreditation for specific technologies with complex and long construction times. Consequently, DECC indicates that it will consider reintroducing pre-accreditation for such projects, subject to the outcome of the wider Feed-in Tariffs review.

DECC received over 2,300 responses with the majority disapproved the proposed changes

Next steps: Pre-register for FITs until 30 September 2015 If you want to pre-accredit or pre-register for FiT you have time until 30 September 2015. If this is something you have in mind please get in touch with EnergyQuote JHA.

EU: EU states fall short of sustainability goals In a few weeks, the international community will set new Sustainable Development Goals (SDGs) for the period to 2030. A number of EU states are struggling according to a preliminary SDG “stress test”.

In a few weeks, the international community will set new Sustainable Development Goals (SDGs) for the period to 2030

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A Unique Perspective | Green Tuesday | 22.09.2015

Most industrialised countries are not ready for the post-2015 agenda. For example France, Germany, Greece and Hungary are far from reaching their overall targets. World leaders will meet later this month to finalise the new agenda. On 8 September, the Bertelsmann Foundation published its findings from its “stress test” according to which it is not just a question of industrialised countries doing more to fight poverty in developing regions. There is also demand in their own countries, especially regarding sustainable production and consumption patterns. Furthermore, their economic systems often exacerbate the gap between rich and poor.

On 8 September, the Bertelsmann Foundation published its findings from its “stress test”

At the end of September, the UN General Assembly will adopt 17 primary targets, known as Sustainable Development Goals. They will replace the Millennium Development Goals. In addition to fighting hunger and eradicating poverty, the SDGs also address the issues of sustainable economy and gender equality. The Bertelsmann study compared the 34 OECD countries (Convention on the Organisation for Economic Co-operation and Development), using 34 indicators within the sphere of the 17 SDGs to reach its findings. The five countries that are most likely to reach the UN targets include four of the Nordic countries: Denmark, Finland, Norway and Sweden, with Switzerland completing the list. The study praises Sweden in particular, for its efforts in reducing greenhouse gas levels, which are currently about a third lower than what they were in 2006, in comparison with GDP.

The Bertelsmann study compared the 34 OECD countries using 34 indicators within the sphere of the 17 SDGs to reach its findings

The United States, Greece, Chile, Hungary, Turkey and Mexico failed the “stress test”. The US ranked among the lowest in terms of social inequality, malnutrition and CO2 emissions.

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Need more info? Email: s.poleac@energyquote.com or call Simona Poleac on: +44 (0)20 7605 2362

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Š EnergyQuote JHA. All rights reserved. EnergyQuote JHA is the trading name of Energy Management Brokers Limited (Registered No: 2500956). Registered Office: 66 Hammersmith Road, London, England W14 8UD. EQ0353.09.2015.


Green Tuesday 22.09.15  

Your weekly update on carbon news for the UK and the EU

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