Hereford Times - 7th January 2016 - Page 50

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Hereford Times - 7th January 2016 - Page 50

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Date 07/01/2016
Type
Format
Language English
Area Hereford Times
Collection Holder
Date of Publication 7th January 2016
Transcription 50 THE HEREFORD TIMES
Thursday. January 7, 2016
herefordtimes.com
Where Next for Renewable
Energy? asks Harriet Murray
Jones, head of Energy and
Renewables at Harrison
Clark Rickerbys
THE last few years have
seen an explosion of busi-
ness in the renewable en-
ergy sector, allowing farm—
ers and landowners lots of
opportunities to diversify
into a number of different
technologies.
This has created jobs for
developers and the supply
chain. but it has also been
a period of much uncer-
tainty due. to the frequency
of policy changes from the
government.
Despite the Autumn
Spending Review. there
is ongoing uncertainty
about the FiT review this
autumn, speculation about
the future of the Renew-
able Heat Incentive (RHI)
beyond April 2016, con—
tinuing tariff degression
and delays to the next Con-
tracts for Difference (CfD)
auction. All this has led a
number of commentators
to consign diversification
into renewables to a by‘
gone, golden era.
While potentially less lu-
crative than in the past.
farm~based renewables
still remain an excellent
opportunity for diversifi-
cation.
There has been a race to
complete existing solar
projects, but what about
new projects?
The government seems to
remain committed to roof-
top solar and so for those
with suitable farm build-
ings it is anticipated that
these will continue to ben-
efit from FiT support.
There may also be oppor-
tunities for those devel-
oping larger community-
based schemes, or with
solar developers who are
looking to secure funding
via the Cfl) auction system.
The government
seems to remain
committed to
rooftop solar and
so for those with
suitable farm
buildings it is
anticipated that
these will continue
to benefit from FiT
support
And of course there have
been considerable cost re-
ductions in solar that seem
likely to continue and that
could make it competitive
with traditional forms of
energy.
There are few signs of
new projects Within the
AD sector, but with legally
binding heat targets to
meet, there is an expecta-
tion that the RHI will re-
main in some form beyond
2016.
Wind is likely to remain
very tough. Changes to
planning and the end of
subsidies have seen a mas-
sive withdrawal from this
sector.
While prices may come
down and turbines will
become more efficient, the
costs are unlikely to de-
crease dramatically.
For those who want a
smaller turbine, planning
can be easier, though. As
long as landowners are
prepared for a longer pay-
back, Wind may still pre-
sent an opportunity.
The other area which has
been a major sticking point
is” that of grid connection,
but as some projects in-
evitably fall by the wayside
this does free up grid ca-
pacity for other renewable
developments.
Distribution Network
Operators (DNOs) are in-
creasingly looking to re-
claim grid offers where de-
velopers fail to show that
projects areadvancing.
Despite the uncertainty
renewables remain a di-
versification opportunity
for the right project.
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Newspaper name Hereford Times
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