Thursday 30 April 2020

UK Government consults on future of low carbon heat support

UK Government consults on future of low carbon heat support

The Department for Business, Energy and Industrial Strategy has launched a consultation to explore what support for low carbon heat is likely to look like beyond the Renewable Heat Incentive (RHI).

New proposals aim at accelerating the decarbonisation of the UK’s heating systems and the consultation backs the replacement of the Renewable Heat Incentive (RHI) with a new Clean Heat Grant, which will provide support for heat pumps and biomass through upfront capital to help address the barrier of initial purchase costs.

BEIS calls for proposals on a Green Gas Support Scheme with the aim to increase the proportion of cleaner gases in the grid through support for biomethane injection, as well as proposals regarding the financial management of spending proposals for green gas, building technologies and participant compliance.

It suggests offering an extension to the domestic RHI until 31st March 2022 and on projects holding a tariff guarantee, until at least mid-March 2021.

Additionally, it will introduce a third allocation of flexible tariff guarantees under the non-domestic RHI.

Richard Burrell, CEO of AMP Clean Energy, said: “AMP Clean Energy welcomes the announcement by BEIS to extend Tariff Guarantees for the RHI until 2022. This will allow a number of large industrial heat decarbonisation projects to progress as well as stimulate much needed new activity in the heat sector. 

We also look forward to engaging with BEIS in response to the consultation to examine ways to replace or extend the existing RHI scheme to ensure that progress on heat decarbonisation can be maintained.  We welcome the opportunity to shape these important policies that will create jobs and demonstrate that the government is committed to its net zero ambitions which will be crucial to driving economic activity as we move beyond Covid-19.”

Written by

Bruna Pinhoni

Trending Articles