In the UK, we all pay approximately £45/MWh in non-commodity costs on our energy bills. Around half is designated as support for green and renewable technologies: Biomass, Wind, Solar, Biogas, etc. In the UK in 2014 the ‘green’ charges alone amounted to about £12Bn which is available to support projects.
Energy efficiency may yield capital benefits
Ameresco recommends strategies that suit our clients’ business risk profile and can be implemented quickly and consistently.
Renewable Incentives are subsidies given by the government to nurture nascent and adolescent technologies along to maturity. As the technology prices come down, the supporting incentives reduce over time. Solar PV is the highest profile of these technologies where tumbling module prices overtook the various support regimes for a period, making the technology extremely lucrative for nimble companies who invested early and were able to act fast. These companies have benefited from lower bills and guaranteed payments for decades to come.
By understanding and using these support mechanisms to your advantage, your company can become significantly more competitive.
The reality of the grid today is that network charges are rising to cope with the upgrades required to transition our old grids from a centralised to a decentralised structure.
There are significant financial opportunities within this transition. Incentives exist for sites able to help the grid meet its peak output and stability obligations: Demand side management, Balancing, Load shifting, Firm Frequency response, can all give you a healthy injection of cash if you can use your assets to tap into the pot of incentive money available.
At Ameresco we ensure we know the specifics, cut-off dates and nuances of each technology and it’s corresponding incentive matrix, such that when we come to analyse your site, we are best able to define the risks and rewards posed by each technology and lay out options for you in the clearest manner possible.
Is your company making use of all renewable incentives on offer? Do you need help integrating a particular incentive into your business case? Are you looking for more information on degression mechanisms in the UK, EU biomass sustainability standards, or someone to manage your compliance with the CfD?
Incentive schemes we advise on in the UK include:
- Renewable Obligation Certificates
- Contract for Difference
- Renewable Heat Incentive (non-domestic)
- Enhanced Capital Allowance
- Combined Heat & Power Quality Assurance (biomass)
Additionally, we have indepth knowledge of dozens of incentive schemes across the globe, having supported our multinational clients with renewable deployment in North America, Asia, Australia, Africa and most countries in the EU.