November 2014

DECC Publishes Two Eunomia RHI Reports

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DECC has published two reports undertaken by Eunomia to assess the market, renewable heat potential, cost, performance, and characteristics of the combustion of bioliquids for heat and the use of reversible air-to-air heat pumps (RAAHPs).

The core goal of the studies was to help DECC assess whether either is a suitable candidate to be included in the non-domestic Renewable Heat Incentive (RHI). These contracts formed part of a suite of work DECC commissioned to gather evidence relating to a range of methods of delivering or generating renewable heat. Alongside each individual report, DECC has also published a document, which sets out whether (and if so, how) it proposes to include the various technologies within the scope of the RHI.

Eunomia’s Head of Energy, Adam Baddeley said:

“These two reports demonstrate our ability to produce high quality techno-economic reports on behalf of DECC. We believe these reports will provide key pieces of evidence for DECC in their ongoing decision-making with regard to inclusion of further technologies and feedstocks under the Non-domestic RHI.”

On behalf of DECC, Eunomia is also currently undertaking an evaluation of the Non-domestic RHI as part of a consortium including Natcen and the Centre for Sustainable Energy.

The Government introduced the RHI scheme for non-domestic consumers in 2011. By bridging the gap in upfront, on-going, and barrier costs between renewables and fossil fuel alternatives, this policy mechanism aims to accelerate the uptake of renewable heat technologies in order to contribute to the renewables target of 20% of energy across the EU from renewable sources by 2020. It is an important measure to support the innovation and investment which will help to grow the supply chain, deliver the reduction in costs needed for renewable heat technologies to reach mass market level, and increase consumer awareness and interest in these technologies.

The non-domestic scheme supports renewable heating from large-scale industrial heating to small business and community heating projects by providing a payment for each kilowatt hour (kWh) of renewable heat generated, payable over 20 years. The forthcoming domestic scheme, to be launched later this year, supports renewable heating in the domestic sector by providing a payment for each kWh of heat generated, payable over seven years.