Small hydro | Nail in the coffin
A nine-fold cost increase by the Environment Agency has been described as the ‘final nail in the coffin’ for the small hydro industry in England.
The British Hydropower Association says that this negates on government commitments to Net Zero and urges the agency to rethink its decision
Above: Simon Hamlyn, Chief Executive of the British Hydropower Association, says the unprecedented and unaffordable hike in charges is appalling, incompetent, and flies in the face of government commitments to Net Zero. He adds that it also shows a complete misunderstanding and misrepresentation of hydropower
THE FUTURE OF NEW, small hydropower development in England could be at risk following an almost 900% increase in licensing fees by the Environment Agency, the British Hydropower Association (BHA) has warned. The trade membership association for the UK hydropower industry described the “unaffordable £12,000 cost increase” as the “the final nail in the coffin of the small hydro sector” and for those wanting to build a carbon-free hydroelectric power scheme in England. Published by the Environment Agency on 9 March 2022, the BHA says “the absurd plan” comes less than 48 hours after Prime Minister Boris Johnson promised “much more use of renewables” and a fresh UK energy supply strategy to reduce reliance on Russian oil and gas, as a result of the war in Ukraine. The new abstraction charges were set to come into force on 1 April – giving potential hydro developers absolutely no time to avoid an unaffordable hike in costs. Simon Hamlyn, BHA’s Chief Executive says: “This
Below: Small hydro in the Lake District National Park in England
unprecedented and unaffordable hike in charges for those simply applying for a licence to build a small hydro scheme is not only a sign of appalling inefficiency within the Environment Agency but flies in the face of the government’s commitment to Net Zero and the Prime Minister’s promise just two days ago. “The agency is actively slamming the final nail in the coffin of an important renewable energy source which should be a key focus for the government as energy prices soar. This unwarranted hike in cost of 895% is a staggeringly senseless move which will deter landowners, community groups and small businesses from developing new hydro schemes. We urge the
Prime Minister to intervene and the Environment Agency to urgently rethink their decision.”
Cease development The cost of new abstraction licences for hydropower
will increase from the current fee of £1500 up to £13,392, depending on the size of the scheme. The application fee had already increased 11-fold in 2014 from £135 to £1500. The BHA says that since March 2020, 75 small hydro developments in England would have been deemed unfeasible as a direct result of these new costs, and that it will “certainly cease almost all new hydropower development in England for good”. In November 2021, the BHA responded in the
strongest possible terms to the EA’s consultation on the proposed changes to abstraction charges and met with ministers and agency staff to warn that the charges act in direct opposition to existing government policy, published regulatory standards, and urgent Net Zero ambitions. The EA says that the new charging framework will
protect the environment and England’s long term water supply for people and wildlife. However, BHA argues that as hydropower is non-consumptive and switches off when water levels are low it has absolutely no impact on water supply or drought conditions. It believes the huge fee increase for hydropower licences “has nothing to do with investment and is purely paying staff salaries”. “For 97% of schemes the Environment Agency’s
proposed charges for applying for a new hydropower licence/permit represent an increase of 895% (from £1500 to £13,431) since 2014. We cannot support proposals that are counterproductive in the race to achieve net zero,” BHA says. “It is right for the government to address security of supply and drought risks but to do this at the particular expense of renewable electricity generation - which reduces the impacts of climate change - would be indefensible.”
Net Zero Olly Paish, Director at Derwent Hydro Developments,
in Derbyshire, which assists those developing new hydro schemes, says: “Since September 2021 when energy prices were starting to soar, the level of interest in hydro has gone up significantly. As a result of these ludicrous new costs proposed, interest will plummet. No one will go any further. It is a massive financial disincentive at a time when we need newer, greener energy sources.”
He added that the government is actively putting
in place a financial barrier which will hinder climate progress, and that “it’s a 180 degree about turn from Net Zero”.
24 | April 2022 |
www.waterpowermagazine.com
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