FiT cuts to hit SWW’s £18m renewables plans

South West Water (SWW) has warned that the government’s proposed cuts to the Feed-in Tariff (FiT) could put “significant pressure” on its £18 million renewable energy investment plans.

The water utility has a target to increase the amount of energy it generates from renewable sources from 6 per cent to 20 per cent by 2020, and its 2015-20 business plan outlines measures to achieve this, such as the development of three new advanced anaerobic digestion plants, and additional wind and hydro generation schemes.

A spokesperson told Utility Week the company is also investigating the viability of private wire solar opportunities with external developers and community energy groups.

Wind, solar and hydro account for £11 million of the total £18 million investment planned. However, SWW warned that the proposed closure of the FiT to new applicants by January 2016, or a cap on new FiT expenditure, would put significant pressure on its future investment plans.

SWW has 1,800 operational sites across the region with 80,000 assets, and consumes approximately 260GWh energy a year.

The company has so far installed solar arrays at 35 of its operational sites, totalling 2MW of installed capacity, with most being single 50kW arrays, a couple are bigger (100kW to 150kW), a couple smaller (30kW). The biggest array the company owns and operates is a roof-mount (220kW) at its head office.

A 250kW solar array in the field next door to its Camborne sewage treatment works is currently being constructed, to be owned and operated by SWW itself.

SWW has one 100kW wind turbine installed at its Lowermoor water treatment works in Cornwall, generating approximately 60 per cent of the site’s power needs, and is now “progressing its plans” to install a further seven small- and medium-scale turbines on or near operational sites across the region. It has also invested in developing hydro-electric schemes at Colliford Dam and Avon Dam.

Onsite renewable generation would reduce the amount of power SWW would have to buy from the grid, and income from the FiT would lower energy costs.

However, at the end of August the Department of Energy and Climate Change (Decc) suggested it would close the FiT to new applicants by January 2016 if cost control measures are not implemented or prove to be ineffective. A cap of up to £100 million placed on new FiT expenditure by 2018-19 is another option being looked at.

Decc stated it is also still considering removing FiT pre-accreditation to limit the impact on bill payers of deployment surges in smaller scale renewable technologies.