Hundreds of small green gas plants across the UK are expected to close by 2031, resulting in a loss of 2 terawatt hours of clean electricity, enough to power around 500,000 homes. This closure forecast comes from a survey conducted by the Anaerobic Digestion and Bioresources Association (ADBA), which represents the green gas sector in the UK, reported Envirotec Magazine.
The shutdowns will unfold over the next few years as the old support schemes for green gas, such as the Feed-in Tariff (FITS) and Renewable Obligation Certificates (ROCs), come to an end. As a result, operators are finding it increasingly difficult to justify the cost of maintaining and replacing outdated equipment like combined heat and power (CHP) units.
“These closures will make the Government’s 2030 clean power goal even harder to achieve,” said Chris Huhne, chairman of ADBA and former Secretary of State for Energy and Climate Change. “Energy Secretary Ed Miliband will find himself running up a down escalator. His department must now focus on finding ways to keep these plants operational and producing clean electricity.”
As per the media report, ADBA has projected the number of green gas plants that will be affected by the expiration of support schemes over the next decade. According to Dr. Gareth Mottram, ADBA’s Policy Lead, some plants have already shut down before the end of their support period, as operators could not justify the investment needed to replace expensive equipment, such as CHP units or refurbish digester tanks. A new CHP unit can cost more than £250,000, and without a reasonable return on investment, businesses are unable to afford these upgrades.
With the end of support schemes approaching, the rate of closures is expected to accelerate dramatically. ADBA’s figures show that more than 160 plants will lose support in the next five years, and over 400 in the following five years. The Department for Energy Security and Net Zero (DESNZ) seems to be recognizing the issue, as a survey of scheme participants has been launched to assess their plans for when support ends. Dr. Mottram urges the government to introduce transitional measures to prevent a sudden collapse of these plants once the ROCs and FITS end.
The challenges facing the anaerobic digestion and green gas sector will be a key topic at the ADBA National Conference in London on December 11, 2024.
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