The British Hydropower Association is in a state of “shock and disbelief” after the UK government’s decision on feed-in tariffs on 17 December.
The BHA said that, despite independent evidence, DECC has increased the target rate of return for hydro to 9.2% from 9.0%, while at the same time cutting the FiT rate further than originally planned and halving the maximum deployment levels for hydro.
The association employed consultancy Poyry to review the tariff levels originally released for consultation in August. Poyry concluded that the levels were not high enough to deliver the then 9% rate of return target for hydro.
BHA said the new FiT represents a 50% reduction from the levels indicated as required by Poyry.
BHA chief executive Simon Hamlyn said: “This is a very sad day for the hydropower sector, which supports jobs in rural areas.
“Whilst we welcome the re-introduction of pre-accreditation, we are at a complete loss as to how the government have cut tariff levels further in the light of independent evidence we submitted to them.”
Image: the Cruachan hydro plant in Scotland (Wikimedia Commons)
