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UK Gov’t grants RHI extension in boost for bioenergy projects

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Several UK bioenergy projects under the Non-Domestic Renewable Heat Incentive (RHI) will be granted a 12-month extension, in a move that supports the nation’s decarbonisation goals.

The Department for Business, Energy, and Industrial Strategy has increased the budget cap for non-Tariff Guarantee Extensions under the Non-Domestic RHI.

Welcomed by the Association for Renewable Energy and Clean Technology (REA), the move will see the government reallocate existing money within the RHI scheme to oversubscribed pots. The increase will mean that several projects affected by COVID-19 delays will be granted a 12-month extension.

However, the REA said that with 25 large-scale applications remaining in a queue, the government must reconsider the decision not to grant budget to projects that are still waiting.

“We have consistently made the case to government over the past few months to reallocate existing money within the scheme to oversubscribed pots.

“This increase ensures that the majority of projects within this pot will be granted a 12-month extension to account for COVID-19 delays. All of these projects will help progress towards the government’s targets to decarbonise heat, once again showing the strength of the scheme in delivering carbon savings cost-efficiently.

“However, this increase does not cover all projects that remain in queues now the scheme has closed to new applicants. There are still 25 large-scale Tariff Guarantee applications, including biomass CHP and biomethane, which remain in a roadblock and will not be processed unless government increases the budget.

“We urge the government to reconsider the decision to not grant budget to these projects and unlock the further carbon savings these projects can deliver.”