Hydro projects up to 10MW are set to benefit from a recent decision by the UK Department of Energy and Climate Change (DECC) to increase the feed-in-tariff limit for community projects to 10MW.

In a recent statement, the DECC said aspiring communities across the UK will be able to receive Feed-in Tariff (FITs) payments for energy generated by larger community energy projects up to 10MW. The FITs scheme pays householders, businesses and communities for the electricity generated by a range of renewable energy technologies including solar PV, wind, hydro projects and anaerobic digestion. There is also money on offer for excess power exported back to the grid.

Support for community renewable projects over 5MW is currently available under the Renewables Obligation (RO). In response to feedback from community groups on the type of financial incentive that works best for them, DECC is planning to increase the threshold for community projects under FITs to enable larger projects to benefit.

The proposed changes to the FITs rules will be made as part of the Energy Bill process. Once this Bill comes into force, the Government will consult on what this will mean in practice for community schemes.


Image: courtesy Wikimedia Commons.