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  4. Governments signal shift to efficiency in meeting renewable energy goals

Governments signal shift to efficiency in meeting renewable energy goals

20 Sep 2012
  • New dedicated CHP tariff proposed for the Renewable Heat Incentive
  • Proposed tariff of 4.1p/kWh makes heat production in CHP a viable alternative to power-only generation
  • New arrangements will maximise progress towards renewable targets and deliver greater value for consumers

The government has signalled its intention to drive the efficiency of renewable energy schemes with the announcement of a dedicated Renewable Heat Incentive (RHI) tariff for biomass and bioliquid combined heat and power (CHP) plant. This follows shortly after a decision by Scotland to focus its Renewable Obligation payments for large biomass generators exclusively on high efficiency plant.

The Department of Energy and Climate Change (DECC) has proposed a tariff level for biomass CHP plant of 4.1p/kWh, up from the standard heat-only biomass rate of 1p/kWh available previously. This change in approach for renewables support will not only accelerate the deployment of renewable CHP in the UK, it also marks a new focus on the efficiency of heat and power generation.

Tim Rotheray, Head of Policy at the CHPA commented:

“These proposals stand to have a major impact on the viability of renewable CHP projects. Increasingly we can see renewable CHP playing a key role in securing jobs in UK manufacturing and delivering affordable energy to communities across the country.

“Efficiency must lie at the heart of our energy system, including in our support for renewables. With these moves from both DECC and the Scottish Government we can see a practical way of using our limited bioenergy resources to maximum effect in reaching our renewables targets. It also means that our renewable policies will offer that much better value for hard-pressed energy consumers.”



Notes to editors:

About CHP
Combined heat and power (CHP), integrates the production of usable heat and power (electricity), in one single, highly efficient process. Delivering a minimum of 10% energy savings, it makes the very best use of renewable and fossil fuels. This efficiency means less stress on precious fuel resources and lower carbon emissions.

CHP works by recovering heat from the power generation process and putting it to work in industry, buildings and homes, often delivering significant cost and CO2 savings. CHP currently provides 7% of UK electricity and in 2010 provided emissions savings of 13 million tonnes of CO2. For more information about CHP, click here.

Renewable Heat Incentive
On 20 September, DECC announced three consultations on the RHI scheme, covering domestic and non-domestic projects, as well as energy from waste and air source heat pumps. The proposal to create a dedicated CHP tariff for large scale biomass plant can be found in the non-domestic RHI consultation here.

Renewables Obligation Scotland
The Scottish Government last week published results of the banding review for its Renewables Obligation scheme. From 2015, biomass power stations larger than 10MW will only be eligible for payments if they capture their waste heat and operate as Good Quality CHP. More details are available here.

About the CHPA
The Combined Heat and Power Association (CHPA) is the leading advocate of an integrated approach to delivering energy services using combined heat and power and district heating. The Association has over 100 members active across a range of technologies and markets and is widely recognised as one of the leading industry bodies in the sustainable energy sector.