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Spotlight PlusMay 2018
Welcome to the May issue of Spotlight Plus, which ensures all members are kept up to date with the work and activities of the association and the wider hydropower industry.
BHA Hydro Network – The best hydropower networking event you can attend this summer! 28th June This year we have a full conference programme with 20 speakers focusing on many of the current industry issues, plus a technical exhibition.
The BHA Hydro Network provides the opportunity to network with a wide range of businesses and business leaders involved in the sector, including from Welsh Government, Natural Resources Wales, and the Environment Agency, Welsh Water, Limejump, National Trust, Ofgem, National Grid, Western Power, Colliers International, Dulas and many more.
All the details and how to register can be found at this link www.eiseverywhere.com/eho m e/323721?t=8264f93af548b94e75f423ff5b9f0b8d
So don’t delay, book your place today!
Spotlight magazine – summer editionThis year we will be publishing a summer issue of the BHA magazine, Spotlight. The deadline for submitting your stories, articles and photos is the 29th of June and it will be sent to members in mid-July.
Don’t forget this is your BHA membership magazine and we want to hear your stories, hear your news and enjoy your photos and articles, so please send us your copy to be considered for this summer edition by this deadline. Please submit your copy in Word format (maximum of 1000 words) with images as individual .jpg files (min 300 dpi) to Simon Hamlyn at [email protected] Free advertising for members - All members are entitled to submit an advert for consideration, so if you wish to do so, please send your advert to [email protected] in hi-res pdf with all fonts embedded (dimensions are 87mm wide x 120mm deep).
2018 Hydropower status report BHA members, the International Hydropower Association has recently published its 2018 Hydropower Status Report.
This report provides information and statistics for installed capacity and estimated generation by region and country. It also provides insights and key trends on the sector
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and features highlight results from the Hydropower Status Survey on the future of hydropower.A few of the key headlines include -
An estimated record 4,185 terawatt hours (TWh) in electricity was generated from hydropower in 2017, avoiding approximately 4 billion tonnes of greenhouse gases and a 10 per cent rise in global emissions from fossil fuels and industry, as well as harmful pollutants.
Worldwide hydropower installed capacity rose to 1,267 gigawatts (GW) in 2017, including 153 GW of pumped storage. During 2017, 21.9 GW of capacity was added including 3.2 GW of pumped storage.
Growth was fastest in East Asia and the Pacific, with 9.8 GW of capacity added in 2017, followed by South America (4.1 GW), South and Central Asia (3.3 GW), Europe (2.3 GW), Africa (1.9 GW) and North and Central America (0.5 GW)
To download the full report, please go to this link - http://news.hydropower-mail.org/NLI/ViewHtmlEmail.aspx?a=ACCAE33E698A0689610490FF3C36D45D&b=C9216BDE693D4DCD4944AB3572BC8A27
Environmental Regulation [Scotland] Charging Scheme 2018As previously reported, from the 1st of April SEPA confirmed that schemes from 0.1 - 0.5MW will have a single annual charge of £196 and schemes from 0.5 - 2MW will be charged based on an abstraction formula of 50% of the winter permitted abstraction and 25% of the summer permitted abstraction using the charging calculations issued during the consultation. All charges will be phased in over three years on the following basis - 33.3%, 66.6% and 100%.
There will now be a further review of the work that SEPA have put into hydropower and therefore the resultant charging. This review will include representatives from the BHA and in particular generators.
Business rates update
Wales
Grant scheme for hydropower schemesAs previously reported the Welsh Government has announced a cap on the increase in non-domestic business rates liability for hydropower, to 10% or £1,000 for those projects which previously had a zero liability under the 2010 revaluation.
If you are eligible, but have not applied for your grant, please go to this link where members will find all the scheme information:https://gov.wales/topics/environmentcountryside/energy/renewable/non-domestic-business-rates-support-for-hydropower/?lang=en
This cap applies to all hydropower schemes with an annual rateable value up to £50,000 once any existing reliefs are included. This is for 2017-18 (retrospectively) and for 2018-19. There is also 100% rate relief for all community owned hydropower schemes.
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Independent review of the non-domestic rates Welsh Government has also implemented an independent review of the non-domestic rates valuation methodologies for hydropower with the following objectives –
Provide briefing on the methodologies used to calculate the rateable value for hydropower schemes.
Provide an independent perspective on whether there is a need to address the valuation methodology of these projects, or the broader business model underpinning the sector.
Provide recommendations on solutions to address the impact on desired policy outcomes.
2 companies within BHA membership have been commissioned by Welsh Government to undertake this review.
Scotland
Renewable Energy Generation ReliefAs you will know from previous BHA communications, on the 1st of April the Scottish Government put in place a business rates relief scheme.
Where the rateable value of a hydropower generating station/s does not exceed £5 million operators may be entitled to a rates reduction of 60% for 2018-19.
This is referred to as ‘Renewable Energy Generation Relief’ and an application form is required to apply which is available from your local council. This requires the property reference number (to be found on the rates bill), the rateable value and address details, including postcode. There will also be a declaration that will need signing by the owner, tenant, or representative / agent.
Details of the legislation is at this link - www.legislation.gov.uk/ssi/2018/64/contents/made
Tretton ReviewScottish Government has also implemented an independent review of the non-domestic rates valuation methodologies for hydropower chaired by David Tretton. The key objective of this review is to consider the present law governing rating valuation of plant and machinery for hydropower schemes in Scotland; and to recommend any legislative changes required in respect of the extent of rateable property for such schemes, having regard to the financial and other considerations involved.
The first meeting of this group, held last month, was constructive which is encouraging and we look forward to a positive outcome from the review which we believe needs to produce rateable values of no more than 10% of gross turnover.
England In the longer term, the work being undertaken by Welsh Government as reported previously, in addressing the fundamental flaw in the methodology for calculating RVs for hydropower may well have an effect on the way by which RVs in England are calculated.
If you are unhappy with your RV you should make an appeal at the following link - https://www.gov.uk/guidance/how-to-check-your-rateable-value-is-correct
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If you’ve any queries on this matter, please call Simon Hamlyn on 07788 278422 or email [email protected] or contact our rating adviser from Colliers International, Guy Richardson [email protected]
Environment Agency - Strategic Review of Charges Consultation 2018The Environment Agency new Charges Scheme has been approved by the Government and came into force on the 1st of April. The Consultation Response Document is available to view at this link https://www.gov.uk/government/consultations/environment-agency-charge-proposals-from-april-2018
Disappointingly the EA chose to ignore the concerns that were raised by the BHA in our consultation response, in particular the Flood Risk Permit which has recently replaced Flood Defence Consent. This has increased the bureaucracy (more forms, longer forms, more supporting information) and this is now followed by the current proposal to hugely escalate the costs of this permit.
Yet again the EA have not listened to the concerns of the hydropower sector and have ignored all of the concerns raised. The EA is now repeating their mistake from 2014 with the enormous price increases that are totally unacceptable.
Environment Agency message to members operating in EnglandWe appreciate that applicants want us to make decisions on permits as quickly as possible, in particular because this will reduce the risks relating to pre-accreditation. We therefore encourage applicants to talk to us at the earliest opportunity.
Increasingly, we have found developers wanting to bring forward schemes that fall outside our guidance, some significantly so. This inevitably increases the timeframes for permit determination and hence the risk that the pre-accreditation window will be missed. Permits will be issued most quickly for schemes that follow our guidelines.
We recognise that our guidance is no longer accessible through the Gov.UK website, but will always send developers a copy when they contact us at the pre-application stage or on request. The BHA publish our guidance on their web-site so that it can be accessed at all times at this link www.british-hydro.org/
If we do issue permits for schemes that depart from guidance, the conditions we set for environmental mitigation are likely to be more onerous the greater the degree of departure from our guidance.
Natural Resources Wales – charging consultation outcomesNRW has now completed the consultation on their charging plans to which the BHA submitted a response.
Their main proposal affecting hydro is to retain the existing charging structure for schemes up to 250kW, but introduce a new higher tier for schemes over 250kW at a cost of £1,500 plus an hourly rate for time in excess of this due to the level of technical assessment or sensitivity of the location.
The BHA concerns have been ignored as this proposal has been approved by the NRW board it now and means higher costs for those wishing to develop a scheme at this scale.
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Consultation on Amendments to the Renewables Obligation (Scotland)The Scottish Government has issued a consultation on proposed amendments to the Renewables Obligation in Scotland. The consultation seeks views on an amendment to the 2009 Order which would allow relevant hydro generating stations, in line with all other eligible generating stations and technologies, to increase their declared net capacity above 20MW.
In principle the BHA is supportive though it is critically important to ensure that any increase in capacity of an existing ROC scheme cannot use FiT support as this would be very damaging to the rest of the development industry. Paul Wheelhouse, the Scottish Energy Minister has confirmed that any additional capacity generated will not be eligible for FITS or ROCs.
The BHA will submit a response to the consultation by the deadline of the 12th of June.
Implementation of the EU Eel RegulationsThe EU has announced that it will be carrying out the evaluation of the Eel Regulation which will assess the measures taken for the recovery of European eel stock under the regulation.
This evaluation is due to start in October this year and the details can be found at this link http://ec.europa.eu/info/law/better-regulation/initiatives/ares-2018-1986447_en
Welsh Government meetingA conference call was held with senior Welsh Government officials to discuss the support for hydropower in Wales into the future and beyond 2019 and hoe they tend to deliver on their green energy targets with the prospect no future support from UK government.
Scottish Government [SG] meetingOn the 19th of April the BHA held a productive meeting with Paul Wheelhouse [PW] the SG Energy Minister regarding a number of issues, but mainly the support that could be expected for the industry from SG post FiT. SG is very concerned about the loss of FiT and PW met Claire Perry the UK Energy Minister at All Energy to lobby her on the future of the FiT.
Natural Resources Wales Hydropower Stakeholders Group meetingThis was held on the 22nd of May and on the agenda were updates on the recommendations from the Welsh Government Task and Finish Group Actions; Guidance review, Low risk hydropower, Permitted Development Rights, Business rates and how NRW will provide support in the event of an increase in application as we move towards the end of March 2019.
Looking ahead –
31st May – BHA Members Cumbria site visit – last chance to book your place!
This will be at the Hayeswater hydro scheme in the Lake District with the support of Beckside construction and the National Trust. www.facebook.com/BecksideConstruction
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To book a place, please contact [email protected] immediately. The cost, to cover a light buffet, is £10 for members and £15 for non-members.
31st May - Rotaheat Open Day, Derbyshire
Interested to see a Rotaheater Pico driven by a waterwheel provide zero carbon space heating? Rotaheat is hosting an Open Day, Thursday 31 May in Derbyshire.
All the details are here www.linkedin.com/feed/update/urn:li:activity:6405110929637335040
14th June - Hydropower Engineering: Technologies, Projects and Future Developments - Institution of Mechanical Engineers
This seminar features technical presentations about key projects and latest developments in hydropower, including pumped storage, tidal power, technological innovations and asset management. Speakers include those from the International Hydropower Association, Andritz Hydro, Voith Hydro, Gilbert Gilkes & Gordon Ltd, SSE Generation Development, First Hydro, Tidal Lagoon Power and other industry leaders.
BHA members can book a space at this event at the same rate as members of the Institution, by simply, selecting ‘Member, supporting organisation’ when registering online.www.imeche.org/hydropower 020 7973 1251 or email [email protected]
21st June - Gilkes Hydro Site Open Day All the details of the event at the Pattack Hydro Project on Loch Laggan can be found at this link - www.british-hydro.org/gilkes-hydro-site-open-day-21st-june-2018
28th June - BHA Hydro Network, Llandrindod WellsRegistration is now open and you can now register by going to this link www.eiseverywhere.com/ehome/323721?t=8264f93af548b94e75f423ff5b9f0b8d
5th & 6th September - ACI's Hydropower Development Zurichwww.wplgroup.com/aci/event/hydropower-development-europe/
Please pass on the message…….I hope you found this newsletter of interest - please encourage those who may not currently be BHA members to join. The following link takes you to the BHA membership section of our web site – www.british-hydro.org/join.html
All the very best and keep up all the good work. We will continue to face significant challenges, but we are much stronger together, so please continue with your support your advice and your enthusiasm …………….
Simon HamlynChief Executive Officer
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