The Renewable Energy Association (REA), a UK-based renewable energy trade body, has issued a new report calling on the UK government to support on-site anaerobic digestion (AD).
In its new report, entitled 'REA paper on support for small scale AD Feb 2016', the REA states that AD can provide supplementary income for hard pressed dairy farmers and help to decarbonise the UK's food supply chain.
In a statement, the REA said: "The last government created a degression system for the Feed-in Tariff Scheme (FITs) that discriminated against smaller-scale AD and was not reflected by actual deployment.
"The new cost FITs control mechanism introduced on 8 February, 2016, will compound the situation and penalise small-scale AD even further, due to extremely tight caps and high levels of degression that will occur each quarter, combined with a very narrow differential between tariffs across the different scales of AD."
The trade body said it was now seeking the provision of enhanced support for a limited period with "a degression mechanism that is well understood (without unfair expenditure caps making it even harder to develop the on-site market)".
The REA added: "Support is needed because such plants lack economies of scale available to larger plants, so it is harder to develop projects and secure funding."
This article was written by Liz Gyekye, editor at Bioenergy Insight.