The end of the Feed-in-Tariff (FiT), and the closure of the Renewable Obligation Certificate scheme (ROCs) means there is an increasing need for renewable energy projects to reevaluate how the electricity they produce is sold to the wider market, and what the cost implications of connecting to the electrical grid are on the financial viability of the project. Today, across large areas of Scotland, the existing electrical grid is constrained and, without significant works, cannot accommodate increases in generation capacity, which means for many community groups an expensive Schedule of Works to allow connection to the grid and a lengthy connection date.
There are an increasing number of different ways that renewable energy projects can be commercially structured and technically designed to be financially viable. To improve financial viability the community group may want to consider alternative revenue streams due to the end of the FiT and UK Government set export tariff rate, and an expensive connection or constrained grid availability.
