FiT Export Aggregation
Most small-scale generation in recent years has benefited from the feed-in tariff (FiT) incentive scheme. Alongside generation payments, this mandates energy suppliers to offer set terms for power which is exported to the local network. This is remunerated at the relevant export tariff, currently 5.24p/kWh for most installations.
But generators who can access the market – those typically above 250kW – are typically able to derive higher revenues for the power which they export – potentially as much as 30-50% higher in some cases. Mechanisms such as the e-POWER offtake auctions allow green generators to sign short-term PPAs on set terms, with many suppliers bidding into each auction. However, smaller generators are much less attractive in these auctions.
Pixie Energy is therefore partnering with e-POWER to help smaller generators to access these superior revenues by aggregating sites together and entering them into the auction as a single lot. We are currently recruiting participants for the January 2019 auction, which will set prices for generation from April 2019 for either a six or 12 month-period (although longer terms are available).
Participants only need to collect a small amount of export metering data to be eligible. All participants will be protected by a reserve price to ensure that they receive better revenues than the FiT or they are under no obligation to commit, in which case they are able to continue taking FiT export revenue from their existing supplier.