Last-minute delay to RHI launch ‘very embarrassing’ for DECC
The Department of Energy and Climate Change has been forced to postpone the launch of the Renewable Heat Incentive at the last minute due to an objection from the European Commission.
The EC objected to the tariff level for large biomass installations in the scheme, which had been set to get under way at the end of last month.
The DECC has subsequently received state aid approval from the EU, on condition of a reduction in the large biomass tariff.
This means that the regulations of the RHI will have to be amended and resubmitted to Parliament to be approved.
The DECC now hopes to launch the scheme before the end of November, but warns it is unable to go ahead with the launch before everything is in place.
HVCA head of sustainability David Frise told H&V News it was “very embarrassing” that DECC was given just 24 hours notice of the EC veto, but also believes that “all is not lost”.
Referring to the revised tariff, he said: “This will make biomass far less attractive to some, but it will still play an important role.
“Current planning laws and the Building Regulations support the use of biomass - this means it will continue to figure highly in specifiers’ thoughts.”
Biomass has to be used in the right application, he continued, and is only sustainable if there is a good local fuel source.
“Converting to biomass from conventional systems is not cheap, so investors will need a realistically high incentive when the RHI does finally begin,” said Mr Frise.
Describing the delay as “very disappointing”, Plumb Center director of renewables Simon Allan said the government needs to provide confirmation very soon.
“Installers are investing a lot of time and money getting the correct MCS accreditation, so they and the firms manufacturing these products need to be sure the market isn’t going to disappear,” he said.
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