News analysis Feed-in tariffs
Policy Key aspects of the proposed
Renewable Heat Incentive:
• RHI payments to be claimed by, (in kilowatt hours). At the small
and paid to, the equipment owner. and medium scale, the amount of
Installations completed after heat generated by the equipment
15 July 2009 should be eligible; will be estimated in most cases;
• The RHI will remain open to new • For large installations and
projects until at least 2020. Its process-heating, heat output
design and tariffs will be reviewed should be metered, and the total
from time to time for new projects; annual support calculated from
• In small- and medium-sized the actual energy generated,
installations, both installers and multiplied by the tariff level; and
equipment are to be certifi ed • Ofgem will administer the
under the Micro-generation RHI scheme, making incentive
Certifi cation Scheme (MCS); payments to recipients and taking
• Payments are to be calculated on responsibility for auditing and
the annual amount of heat output enforcing the programme.
‘Achieving the government’s 80 metered and paid as a guaranteed
per cent emissions reduction target amount, or, in the case of small-scale
requires a combination of energy renewable generation, additional
effi ciency measures, lower carbon metering will not be required. For
intensity of grid electricity, and on- exported electricity, participants can
site low carbon sources.’ either choose to receive a guaranteed
He argues that a 30 per cent payment of 3p/kWh, or they can
reduction in emissions in grid energy sell their electricity on the open
supply, energy effi ciency, behaviour market. Once FiTs are introduced,
change, and on-site low and zero- renewable micro-generators will not
carbon generation would give a 76 be supported by the RO.
per cent reduction in emissions from DECC expects the tariffs to
a notional building. ‘The target is deliver between a fi ve and eight per
daunting and requires large-scale cent return on an initial technology
interventions – at present rates of investment. They will last up to 25
uptake it won’t be met. Perhaps FiTs
will contribute, but more radical
change is required.’
Technologies covered by FiTs
Studies show that
include new anaerobic digestion (a
process that produces a methane-
small-scale renewable
and carbon dioxide-rich biogas for
systems often
energy production); hydro; solar
and photovoltaic (PV); and wind, all
generate far less in
with a maximum power capacity of
practice than originally
5MW. As part of a pilot programme,
the scheme will also support 30,000 anticipated
micro combined heat and power
– Doug King
(mCHP) plants, with a maximum
power capacity of 2kW or less.
However, according to the years and will reduce during this time
DECC report, the scheme will not to refl ect decreases in technology
initially fund solid or liquid biomass. costs, although the generation tariffs
However, these will continue to be will rise with infl ation.
supported through the Renewables According to DECC, power from
Obligation (RO), a scheme that solar panel technology alone could
binds UK electricity suppliers to earn a business or householder
source a proportion of electricity £900, on top of the £140 reduction
from renewable sources. on household energy bills a year, and
FiTs will involve two types of ministers claim the move could see
payment: the ‘generation tariff’ up to 300 additional green energy
will be paid to anyone generating jobs created. But scepticism remains
electricity via renewable means, in the industry as to whether these
whether it be consumed on-site or schemes will do enough to kick-start
exported to the grid. The amount a revolution in renewables – and
paid will differ depending on the type whether micro-generation will meet
of technology used and its size. the UK’s targets on emissions. ●
The second type of payment will Visit www.decc.gov.uk and click on
be an ‘export tariff’ that will either be ‘Consultations’ to fi nd out more.
www.cibsejournal.com March 2010 CIBSE Journal 15
CIBSEmar10 pp14-15 newsanalysis.indd 15 2/25/10 5:33:13 PM
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