Inspirit Energy Holdings PLC UK Government consultation re Feed in Tariff (6908Z)
May 31 2016 - 3:13AM
UK Regulatory
TIDMINSP
RNS Number : 6908Z
Inspirit Energy Holdings PLC
31 May 2016
31 May 2016
Inspirit Energy Holdings Plc
("Inspirit" or "the Company")
UK Government consultation regarding the Feed in Tariff scheme
for microCHP technologies
Inspirit Energy Holdings plc, the AIM listed developer of micro
combined heat and power boilers, notes the publication on 26(th)
May 2016 by the Department of Energy and Climate Change ("DECC") of
a combined consultation regarding the feed in tariff scheme for
anaerobic digestion and microCHP technologies following its
announcement in December 2015 to issue such a consultation 'early
in 2016'.
(https://www.gov.uk/government/consultations/review-of-support-for-anaerobic-digestion-and-micro-combined-heat-and-power-under-the-feed-in-tariffs-scheme).
Inspirit notes that the consultation is open for responses by
all interested parties until 7 July 2016 and confirms that it will
submitting its own response. Inspirit believes the Feed In Tariff
scheme can help with the development of a thriving and diverse mCHP
market in the UK for smaller residential applications and will be
responding accordingly. Inspirit is hopeful that a structure can be
created where multiple participants in the market emerge providing
the widest consumer choice.
Whilst targeted stimulation of the market through support, such
as a Feed In Tariff scheme, is always welcome, Inspirit would like
to remind shareholders that its flagship Inspirit Charger 3.0
product will be targeted initially at the commercial market where
it will provide an attractive return on investment. With a 3kW
electrical output the Inspirit Charger 3.0 has never sought to rely
on, nor has ever been eligible for, the feed in tariff scheme. The
new consultation does not therefore impact Inspirit's core business
strategy.
Inspirit has previously announced its intention to launch the
Inspirit Charger 2.0 alongside the Inspirit Charger 3.0. Both
appliances are suitable for large homes with high heat demand and
the 2kW unit will be eligible for the feed in tariff scheme, where
one of the requirements is a maximum electrical output of 2.0kW.
The Inspirit Charger 2.0 is a derivative of the Inspirit Charger
3.0 and therefore requires only very limited additional investment
by the Company to bring it to market.
The DECC consultation proposes a limit of 3.6MW of installed
capacity under the feed in tariff scheme up until the end of March
2019. Inspirit considers this to be an incentive for customers
interested in the Inspirit Charger 2.0 to register their interest
as soon as possible via its website, so as to take advantage of
this limited availability whilst it lasts.
John Gunn, Executive Chairman and CEO of Inspirit,
commented,
"Clearly George Osborne's fiscal responsibility will deal a
heavy blow to those mCHP developers whose appliances are sub 2kW
electrical output and who rely on the feed in tariff to make their
case to customers. The flagship Inspirit Charger is 3kW electrical
and 15kW thermal has therefore always been outside of the scope of
the feed in tariff. We have never relied on the feed in tariff to
demonstrate our superior payback as the feed in tariff is only
applicable for appliances of 2kW and below.
"I have always been quite critical of developers that have
relied on the tariff to argue their long-term business case where
it has always been known that it is limited in its availability.
The consultation shows this availability could be reduced even
further and this will negatively impact those who are reliant on
this subsidy.
"For Inspirit it highlights that our superior electrical output
will position us as one of the only mCHP appliances that will make
economic sense for both the domestic and small commercial market,
which is considerable in size. If the DECC's preferred option
proceeds I suspect our competitors need to adjust their strategies
accordingly, whilst Inspirit will continue as planned to deliver on
our goal of having both a 2kW and 3kW appliance for the domestic
and overseas markets available shortly."
More information on Inspirit Energy can be seen at:
www.inspirit-energy.com
Contacts:
Inspirit Energy Holdings
plc
John Gunn, Chairman and
CEO +44 (0) 207 048 9400
Nilesh Jagatia CFO +44 (0) 207 048 9405
Stockdale Securities
Limited
(Nominated Advisor and
Joint Broker)
Antonio Bossi / David
Coaten +44 (0) 207 601 6100
Peterhouse Corporate
Finance
(Joint Broker)
Lucy Williams / Duncan
Vasey +44 (0) 207 469 0930
Cadogan Leander
(Financial Public Relations)
Christian Taylor-Wilkinson
/ Alex Walters +44 (0) 207 520 9267
About Inspirit Energy Holdings Plc
Inspirit Energy Holdings plc, is developing and commercialising
a highly efficient micro combined heat and power (mCHP) boiler for
commercial applications. The boiler is specifically designed to
meet the challenge of reduced carbon energy supply and is capable
of running on natural gas, LPG and Bio Fuels. The appliance
produces hot water (for tap water or central heating) and
electrical output simultaneously. The installation can be of single
or multiple configuration and its high operating efficiency
together with the off-set of electricity costs provides a very
attractive investment payback proposition.
Inspirit intends to explore opportunities to license out the
underlying technology and the Directors believe that, in some
instances, the patents owned by Inspirit may be also used in the
development of products other than a mCHP appliance. A prototype of
the appliance has been independently tested and shown to be capable
of simultaneous generation of up to 15kW thermal and up to 3kW
electrical output. Once development of the appliance has been
completed and commercialised, the Directors expect that the
appliance will initially be marketed in the UK and Europe and
eventually worldwide. Additional revenue streams may be possible
through product licensing, sales of warranties and further
development of the product.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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