Decc to review RHI for biomethane

Feb. 28

A review of the Renewable Heat Incentive (RHI) biomethane injection tariff will be conducted by the Department of Energy and Climate Change (Decc).

The reassessment will take place to address concerns within the industry that there is a risk that large biomethane to grid plants are over compensated under the current regime.

Decc said that because the larger scale plants benefit from the economies of scale, making them more efficient generators or renewable energy and that their costs “may not justify support at current levels”.

A consultation on the RHI regime is set to take place in the summer if the government conclude any changes are needed.

The review was welcomed by the Anaerobic Digestion and Biogas Association (ADBA) and said the early announcement of the review “should help to provide certainty for the industry, allowing early sight of forthcoming changes”.

Charlotte Morton, chief executive of ADBA, said: “The industry needs tariffs which will fairly incentivise all scales of biomethane injection, and biomethane support needs to be on a long term footing to give certainty to developers and investors.”

Source: http://www.utilityweek.co.uk/news/decc-to-review-rhi-for-biomethane/983152?#.UxCb2_l5MrU