The Renewable Heat Incentive (RHI) provides support for eligible renewable heating installations in England, Wales and Scotland, in the form of payment of a subsidy for every kilowatt hour thermal (kWhth) of renewable heat generated.
Feed-In Tariffs (FITs) were introduced by the Department of Energy and Climate Change (DECC) in 2010 with the aim of encouraging private investment in low carbon electricity generation by providing a guaranteed price for every unit of electricity generated and every unit exported to the grid, avoiding the uncertainties of fluctuating energy prices.
Scotland has a favourable topography and climate for hydro power, and a proud engineering tradition for hydro schemes, both large and small. In recent years, the availability of Feed-in Tariffs for schemes with a capacity of 5 Megawatts or below has led to a growth in the number of schemes being consented and constructed.
The trade in consented onshore renewable energy projects has been emerging, although it is fair to say that the sector is constrained by a lack of stock. Operational projects provide attractive revenue streams for investors as there is limited exposure to operational issues such as ongoing employment problems. There are also scenarios where SIPP investment may be possible.
Joint ventures or shareholders agreements are entered into for a number of commercial reasons in connection with renewable energy projects. Those reasons include tax planning (primarily Inheritance Tax planning), funding issues, reasons concerning the siting of the project or access to it.
Scotland has a favourable topography and climate for hydro power and, bolstered by the availability of Feed-in Tariffs for hydro schemes with a capacity of 5 Megawatts or below, there has been an increase in recent years in the construction of small scale hydro electric schemes by landowners. This briefing note discusses several of the issues which may arise for a landowner developing a hydro electric scheme.
Scottish Ministers announced on the 6th of January 2010 that the controversial £350m Beauly to Denny power line upgrade had been approved.