Reproduced from Friday’s Herald..
THE UK government’s review of feed in tariff (FIT) energy payments is estimated to have stalled £100 million of hydropower investment in Scotland. The British Hydro Association claims dozens of small and medium-scale developments have been halted and left in limbo since the Department of Energy and Climate Change announced a review of the FIT process last year.
While changes to payments for solar schemes have already been announced, no date has been set for a consultation into the hydro sector where Scotland is thought to hold up to 90% of the UK’s resource.
At the moment, hydro projects can get up to 21p per kilowatt hour generated through the FIT scheme. David Williams, chief executive of the British Hydro Association, said: “If the tariff isn’t too badly affected then hopefully these schemes which have been stopped will go ahead.
“But if it does get knocked down then some of them could fall by the wayside. We are just hoping and praying the review doesn’t hit the hydro tariff adversely.”
Scottish Renewables said the uncertainty meant several of its members had been unable to complete projects.
“Companies across Scotland, both large and small, are being affected by the delays and we must ensure that any future reviews are carried out in a much more transparent way that gives increased certainty to the industry.”
Another example is the £638,000 Bunavoneader scheme, by the North Harris Trust, which had its bank funding put on hold in the middle of last year due to the concerns.
The 100 kilowatt river scheme has the potential to generate £100,000 a year, which would be used for regeneration projects.
David Wake, energy development officer at North Harris Trust, said: “It is terribly frustrating.
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