1 / 16

Session ‘ Effect of FiT on small hydro ’ Adrian Loening Director: M ór Hydro Ltd

Session ‘ Effect of FiT on small hydro ’ Adrian Loening Director: M ór Hydro Ltd. M ór Hydro. Micro Hydro development; Investor Technical Design Project Management Due Diligence 2012 Workload 3 Schemes under construction 1 Scheme refurbishment 2 Schemes in development

kathleen-weaver
Download Presentation

Session ‘ Effect of FiT on small hydro ’ Adrian Loening Director: M ór Hydro Ltd

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Session ‘Effect of FiT on small hydro’ Adrian Loening Director: Mór Hydro Ltd

  2. Mór Hydro • Micro Hydro development; • Investor • Technical Design • Project Management • Due Diligence • 2012 Workload • 3 Schemes under construction • 1 Scheme refurbishment • 2 Schemes in development • Developed from Carbon Trade Ltd – 20 years experience in biogas and hydro development

  3. Feed in Tariff • So far so good!

  4. Feed in Tariff • Degression • Proposal – 5% reduction on; • April 2014 OR when capacity is 55MW • April 2015 OR when capacity is 73MW • Descision • Baseline degression of 5% per year from 2014 • Predicted Annual Deployment • Lower degression of 2.5% if less than 75% of Predicted • Higher degression of 10% if greater than 150% of Predicted • Even greater degression of 20% of greater than 300% of Predicted

  5. Feed in Tariff - Degression • Predicted deployment is 16.66MW annually

  6. Feed in Tariff - Degression • When is Degression triggered? • For <50kW sum of DNC Recorded on MCS Database • For >50kW sum of TIC recorded on Renewables and CHP database • Note: in neither case is a project necessarily accredited for FiTs. • Early trigger also if deployment exceeds 2/3rds of annual predicted in first 6 months of each year BHA Annual Conference, 2012

  7. Feed in Tariff – Pre-accrediation • As promised Hydro schemes can be pre-accredited for FiTs • Requires; • Planning Consent • CAR Licence • Acceptance of a ‘Firm’ Grid connection offer • What is a ‘firm’ grid connection offer? • Without transmission constraints? • Paid the deposit? • Pre-accredited projects count towards degression triggers BHA Annual Conference, Glasgow

  8. Feed in Tariff – Pre-accreditation • Projects must pre-accredit by 1st Jan in any year • Pre-accreditation between 1st Jan and 31st Mar are given FiT rate for the following year (inc. any degresssion) • Do not yet know the exact process of pre-accreditation but assume ROO-FIT form minus. • Pre-accreditation lasts for 2 years • Pre-accreditation may be withdrawn • Decrease in capacity allowed – increase is not • Pre-accredited projects count towards degression triggers BHA Annual Conference, 2012

  9. Pre-accrediation • Page 108 para. 4 “Tariff lifetimes will apply from the eligibility date.” • Page 108 para. 5 “Tariff lifetimes will still apply from the installation’s commissioning date” BHA Annual Conference, 2012

  10. Is it a better FiT? • So has this made the FiT better or easier? • Yes and No! • More games to play! • Some certainty / some confusion • Pre-accreditation triggers degression • So we don’t want lots of pre-accredited projects • Do cancelled pre-accredited projects ‘un-trigger’ degression? Example: BHA Annual Conference, Glasgow

  11. Example: • Year 2014 • Installed capacity in year is at 22.6MW • ‘Abighydro’ project 3.5 MW additional is pre-accredited before 1st Jan 2015 • Year 2015 • Tariff reduced by 10% instead of 5% • A further 16MW Accredited / Pre-accredited during year • Year 2016 • Tariff reduced by further 5% BHA Annual Conference, 2012

  12. Example • 2016 – ‘Abighydro’ is cancelled or pre-accreditation lapses • 16MW of ‘2015’ vintage hydro have lost 5% of FiT payments. • @40%load factor and £115/MWh FiT around £322K has been lost through no fault. • My guess is there will be no correction for this. BHA Annual Conference, Glasgow

  13. New Questions / New Tricks? • What happens if you pre-accredit in one band but final commissioned size is lower band? • Cancel pre-accreditation and re-accredit – lose the pre-accreditation benefit • What happens at two year limit without commissioning? • Cancel pre-accreditation and re-apply for pre-accreditation • Better still: Pre-accredit on 1st Jan, cancel and re-pre-accredit on 31st Dec • Both potentially adds to degression twice! BHA Annual Conference, Glasgow

  14. Old Tricks • Has the new FiT band stopped down-sizing? • Some projects >500kW are being downsized • No projects = 100kW have been upsized? • Unless you know better! • Is the new FiT band a good thing? • Broadly yes – it is what we have been asking for • Does the new FiT mechanism solve uncertainty? • Not for marginal projects • Not for ‘long development’ projects BHA Annual Conference, 2012

  15. Now for something completely different • Scottish Government targets for low carbon transport • Many Hydro projects are near public roads (typically at bridges) • The Energy Saving Trust will grant up to £10,000 to businesses installing Electric Vehicle Charging • Please consider applying for this. • See www.EVA-Scotland.Org or http://www.energysavingtrust.org.uk/scotland/ BHA Annual Conference, Glasgow

  16. Thanks Adrian@morhydro.com

More Related