Government consultation concerns proposals for changes to the support for biomass Combined Heat and Power (CHP) plant offered under the RHI scheme
The overall shape of the reformed RHI was announced just before Christmas (see our summary here) and the reforms will be introduced in the Spring. However, there are a number of areas in this document that were identified as requiring further analysis or policy development by BEIS. The first of these is in relation to the introduction of efficiency thresholds for biomass CHP systems. The government currently have a live consultation that proposes to introduce a threshold that would mean that to receive the full CHP payment rate for all heat generated then at least 20% of the energy generated must electrical energy. This mirrors the government’s previously proposed level but is an increase of the current 10% rate that applies. If electrical efficiency is less than this 20% rate then the payments are pro-rata reduced. If anyone has any questions about this consultation or wishes to discuss what it means for their project then please contact us.
Other forthcoming areas at UK level will be a review of support for woodchip drying and for aquaculture but there is no information yet as to when any such reviews will take place. For drying or aquaculture projects prompt action would be beneficial so please contact us to discuss.