SmartestEnergy, the UK's largest purchaser and supplier of independently generated electricity, has announced it will become a voluntary Feed-in Tariff (FiT) provider from today.
The Feed-in Tariff rates will be offered to qualifying grid-connected sites in SmartestEnergy's portfolio of existing generators as well as to new qualifying projects. SmartestEnergy will also offer feed-in tariff payments to businesses developing their own eligible on-site power generation projects to lower their corporate energy bills.
Steve Armitage, Vice President of Commercial at SmartestEnergy, said: "We are offering all of our qualifying existing sub-5MW generators the option of feed-in tariff payments as well as all new generators signing up with us.
“We are under no obligation to offer FiTs but are doing so as we believe that it offers greater security and stability for the independent project developer, with guaranteed levels of payments for generation and a minimum price for export, compared to the full market volatility of the Renewables Obligation.
"It also offers greater security for those businesses thinking of developing on-site generation to reduce or stabilise their corporate energy bills. Under the FiT arrangements, they will earn a generation tariff for the energy they produce even if they use it on-site. We think the FiT will encourage more people to see the business opportunities available in renewable project development and the creation of a new class of energy-entrepreneurs throughout the UK."
The Feed-in Tariffs, which will be introduced from today, April 1st 2010, offer payments of up to 41.3 pence per kWh for generated power and an additional minimum 3 pence per kWh for exported power. These tariffs are index linked and guaranteed by the Government for up to 25 years at levels designed to give a 5 - 8% return. Long term power-purchase agreements provide project developers and operators the guaranteed incomes necessary to raise finance and see the project through to fruition.
The Feed-in Tariff only applies to wind, hydro, solar and anaerobic digestion projects of up to 5MW.
Armitage commented: "At the upper end of the FiT scale, where tariffs are less generous (above 1.5MW in the case of wind), many projects may opt for a Power Purchase Agreement backed by ROCs over a Feed-in Tariff. SmartestEnergy’s flexible approach means we can easily accommodate and advise on either option."
SmartestEnergy works with energy entrepreneurs at every stage of project development to help them achieve their goals and build long-term business partnerships.
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