The anaerobic digestion (AD) industry has today (December 4) welcomed changes to the renewable heat incentive, which it claims will safeguard greater investor confidence in future projects.
Plans to alter the incentive, which sees businesses rewarded for generating renewable heat and biomethane gas and injecting it back into the national grid, was announced by the Department of Energy & Climate Change (DECC) in its response to a consultation on expanding the non-domestic scheme in September 2012 (see letsrecycle.com story).
This includes an increase in the scope of RHI subsidies to include biogas combustion over 200kW, an increase in permitted waste feedstocks, and increased tariffs for large biomass plants.
Earlier this year the industry had expressed frustration that despite growth in gas-to-grid projects, DECC had delayed announcing the subsidy level available for combined heat and power (CHP) plants above 200kW (see letsrecycle.com story).
Commenting on todays decision, the Renewable Energy Association (REA) said the improvements showed a meaningful increase in biogas combustion, which would offset the major under deployment seen across the scheme.
REA chief executive Dr Nina Skorupska said: We welcome these improvements to the worlds first Renewable Heat Incentive. Although the scheme has under-performed in its first two years, the government deserves credit for listening to industrys concerns and implementing many of the necessary changes.
Mixed messages from government have unnerved many in the renewables sector lately, so todays RHI announcement gives a timely boost to the green economy. There is still room for improvement, but what the RHI needs most now is to be left alone for a while, so the market can develop without fear of further changes.
‘Although the scheme has under-performed in its first two years, the government deserves credit for listening to industrys concerns and implementing many of the necessary changes.’
Dr Nina Skorupska, REA chief executive
ADBA
Charlotte Morton, chief executive of the Anerobic Digestion & Biogas Association (ADBA) also welcomed the support for biogas projects over 200kW, but voiced regret that provisions would not be made for existing facilities.
She said: “We are delighted that DECC has finally confirmed support under the Renewable Heat Incentive for heat use from biogas projects with a thermal capacity over 200 kW. This is something we have long called for. AD projects using CHP have the potential to deliver heat to a wide range of potential users, including industrial processes at sites like distilleries and factories, farming processes and community or domestic buildings.
“Biogas is an extremely low-carbon energy source, and this support will help meet the infrastructure costs to make good use of heat. Although we are disappointed that support will not be available to existing plants which only use some of the heat they currently generate, it is good that those which do not make use of heat at all should now be supported.”
Future
Meanwhile, DECC minister Gregory Barker promised a further review to improve the potential of the non-domestic scheme next year, to improve the potential of the scheme and further evaluate opportunities to develop the renewable heat market.
The launch of a domestic RHI scheme is currently scheduled for early 2014.
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