NEWS
RHI launch delayed by European ‘red tape’
l EU Commission expresses concern over large-biomass tariffs
The launch of the Renewable Heat Incentive (RHI) scheme has been postponed, leaving some participants out of pocket, it is claimed. The scheme, which will see businesses and organisations using renewable heat receiving quarterly subsidy payments for 20 years, was due to be launched in September, but has been delayed by regulators in Brussels. A statement released by the Department for Energy and Climate Change said: ‘DECC was planning to launch the Renewable Heat Incentive (RHI) for non-domestic generators on 30 September 2011. State aid approval is a necessary condition for the scheme to go ahead. ‘As part of that process, the European Commission has expressed concerns that
the large biomass tariff is set too high. We understand that the commission has given state aid approval for the RHI, subject to a reduction in the large biomass tariff, and we expect to receive written confirmation of this very soon.’ William Worsley, president of the Country Land
‘ How can the bureaucrats in Brussels have a better idea of the real costs of renewables?’
and Business Association, which represents owners of land property and businesses in rural England and Wales, said: ‘The announcement for RHI funding was made in the Comprehensive Spending Review last October, so the UK government should have ironed out the wrinkles well in advance of the launch date.’
Adding that some of the association’s members had already installed equipment to take advantage of renewable heat sources, he continued: ‘We fail to see how the bureaucrats in Brussels have a better idea of the real costs of installing large-scale renewable heat systems than our own government.’
Biomass is at the heart of EU concerns The scheme is expected to get under way
within the next couple of months, subject to the RHI regulations being amended and submitted to parliament for approval. DECC will make a further announcement as
soon as it has received written confirmation from the commission. The statement concluded: ‘We are committed to launching the scheme as soon as possible to
minimise disruption to stakeholders.’ l Renewables now provide nearly 10% of the UK’s electricity, a record high, according to new government statistics. Between April and June 2011, renewable energy sources supplied 9.6% of the UK’s electricty, up from 6.3% in the same period for 2010.
For more information visit:
www.decc.gov.uk
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