Farming News - Biogas and biomethane excluded from RHI review

Biogas and biomethane excluded from RHI review

Reacting to the news from DECC today 26 March that the RHI tariffs for biomethane and biogas are not be reviewed, Charlotte Morton, Chief Executive, ADBA said:
 
"DECC is right to exclude biomethane and biogas from the review of the RHI tariffs, as we have suggested to them since they announced the potential for reviews in January.
 
"There is a significant number of projects in the pipeline, and these do not need further reviews of tariff levels, but rather consistency and certainty in government policy.
 
"The government's focus should now be on issues which are holding back projects, such as the lack of preliminary accreditation for biomethane, the 200 kWth limit on support for heat from biogas combustion, and clarity on overall RHI budgets after 2015."

In a statement today the Government set out the next steps to ensure affordable, secure, low carbon heating plays an important role in the nation's energy mix.

Over 80 per cent of heating used in UK homes, businesses and industry is produced by burning fossil fuels, and over a third of the UK's carbon emissions coming from the energy used to produce heat.


Energy Secretary Edward Davey said:

"Many homes and businesses across the UK have already switched away from fossil fuels and are using kit like biomass boilers, heat pumps and solar thermal panels to provide heat, thanks to Government support, and I want to ensure even more householders and organisations get on board.”

Today's action plan looks at the potential to cut emissions from heat across the whole UK economy and focuses on a number of key actions to spur on the move to low carbon heating alternatives and drive forward green growth, including:

  • A £9million package to help local authorities get heat network schemes up and running in towns and cities across the country, with a new Heat Networks Delivery Unit to sit within the Department of Energy and Climate Change (DECC) providing expert advice.
  • £1million for the cities of Manchester, Leeds, Newcastle, Sheffield and Nottingham to help them develop heat networks
  • 100 green apprenticeships to be funded primarily for young people in small scale renewable technologies
  • Up to £250,000 for a new first come first served voucher scheme for heating installers to get money off the cost of renewable heating kit installation training, with up to £500 or 75 per cent of the cost of the training course per person
  • Working with individual industrial sectors to design long term pathways to cut carbon across UK industry

 

There are also a number of helpful low carbon heat case studies in the action plan, including the first ever biomethane installation accredited under the RHI in Poundbury, Dorset; Aspire Housing's work to install low carbon heating in the homes of 56 social tenants; and the gas CHP plant which provides heat to the 72 storeys of the tallest building in Western Europe, the Shard in London.
Update on renewable heat schemes

The Renewable Heat Incentive (RHI) scheme, launched for industrial and commercial customers in November 2011, is a key part of the Government's approach to cutting carbon and spurring on the uptake of renewable heating kit. As recently announced, DECC is planning to carry out a review of the tariffs under this scheme to drive forward further uptake and has today set out which technologies will be included in this review.

Energy and Climate Change Minister Greg Barker said:

"The Renewable Heat Incentive, which has been available for non domestic investors for over a year, is a key part of our approach to cutting carbon and driving forward the move to more sustainable low carbon heating alternatives.


Non domestic RHI tariff review: DECC plans to consult on increased tariffs for some technologies where the evidence suggests a change needs to be made. The full tariffs and technologies to be included in the review are available by clicking here.

 

 

Tariff/technology

In scope

Likely change implied by evidence

Current RHI non-dom tariffs

Small & medium biomass

Yes

No change

 

Large biomass

Yes

Potential for increase

 

Small and large GSHP

Yes

Increase

 

Solar Thermal

Yes

No change – due to application of vfm cap

 

Biomethane/

No

N/A