Eunomia has recently been appointed by DECC to undertake an assessment of the market, renewable heat potential, cost, performance, and characteristics of two forms of heat generation. These are combustion of bioliquids and use of reversible air-to-air heat pumps (RAAHPs). The core goal of the studies is to help DECC assess whether either is a suitable candidate to be included in the non-domestic Renewable Heat Incentive (RHI) in future. These contracts form part of a suite of work DECC is commissioning to gather evidence relating to a range of methods of delivering or generating renewable heat.
The Government introduced the RHI scheme for non-domestic consumers in 2011. By bridging the gap in upfront, on-going, and barrier costs between 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 will be important 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 7 years.
For more information on the RHI, please click here.