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Review of support for Anaerobic Digestion and micro-Combined Heat and Power under the Feed-in Tariffs scheme

26 May 2016

Department of Energy and Climate Change 3 Whitehall Place London SW1A 2AW Telephone: 0300 068 4000 © Crown copyright 2016 Copyright in the typographical arrangement and design rests with the Crown. This publication (excluding logos) may be re-used free of charge in any format or medium provided that it is re-used accurately and not used in a misleading context. The material must be acknowledged as Crown copyright and the title of the publication specified. SW1A 2AWTelephone:mail: [ ] The consultation and Impact Assessment can be found on DECC’s website: https://www.gov.uk/government/consultations/review-of-support-for-anaerobic-digestion-andmicro-combined-heat-and-power-under-the-feed-in-tariffs-scheme The core 2015 FITs Review consultation and Government response can be found here: https://www.gov.uk/government/consultations/consultation-on-a-review-of-the-feed-in-tariffscheme Published by the Department of Energy and Climate Change

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Contents

General information .................................................................................................................... 4 Executive Summary ................................................................................................................... 6 1.

Background ......................................................................................................................... 8 History of the Feed-in Tariffs scheme ................................................................................................. 8 The Levy Control Framework (LCF) .................................................................................................... 8 Implementation of key measures from the core 2015 FITs Review ..................................................... 9 Performance of AD and mCHP under FITs ......................................................................................... 9

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Securing Value for Money ................................................................................................. 12 Degression mechanism .................................................................................................................... 18 Caps ................................................................................................................................................. 19 Questions ......................................................................................................................................... 22

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Anaerobic digestion feedstock: sustainability and carbon cost effectiveness ................... 24 Questions ......................................................................................................................................... 30

Annex A: Full list of consultation questions .............................................................................. 32

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General information Purpose of this consultation: This consultation proposes revised support levels for anaerobic digestion and micro-combined heat and power technologies currently eligible for the Feed-in Tariffs scheme. Proposals include revised tariffs, amended degression levels, and a revision to the cap for microcombined heat and power. It also proposes other measures to ensure the scheme is more closely aligned with other DECC policy measures. Issued: 26 May 2016 Respond by: 11:45pm on 14 July 2016 Enquiries to: FITs Review Team, Clean Electricity Directorate Department of Energy & Climate Change, 4th Floor Area D, 3 Whitehall Place, London, SW1A 2AW Email: [email protected] Consultation reference: 16D/041 – Review of support for Anaerobic Digestion and micro Combined Heat and Power under the Feed-in Tariffs scheme Territorial extent: Great Britain How to respond: Your response will be most useful if it is framed in direct r