Archive for July 24th, 2012

Key REA concerns addressed in DECC consultation to improve operation of the RHI

Tuesday, July 24th, 2012

The REA has welcome the publication of the latest consultation on the Renewable Heat Incentive.


REA Head of Policy Paul Thompson said: “We welcome the fact that DECC has listened to industry and has made a number of sensible proposals to improve the operation of the scheme.

“There are clearly many details still to resolve on the cost control mechanism, and we are disappointed to see no firm proposals on tariff guarantees to protect project developers from the risk of tariff reductions. We look forward to working closely with our members and Government to make the case for this over the coming months.”

The REA also welcomed a number of proposals in the latest RHI consultation, including:

  • Pragmatic approaches to regulating biomass air quality and sustainability
  • Basing the cost control mechanism on capacity triggers rather than automatic degression
  • Simplifying metering arrangements to remove unnecessary burdens
  • Bringing the treatment of biomethane injection into line with the rest of the RHI
  • Allowing relocated equipment to be eligible for the RHI

The consultation also confirms DECC’s commitment to introducing further proposals in September to expand the scheme.