The Department for Business, Energy and Industrial Strategy (BEIS) has released its much-anticipated response to the RHI consultation.
ADBA is encouraged to see that the new ministers in BEIS remain committed to decarbonising heat in the UK and continuing to support the UK’s burgeoning green gas industry. The introduction of tariff guarantees and the raising of tariffs for both biomethane and biogas are set to stimulate the industry.
Over the coming weeks and months, ADBA will work with existing AD operators and those planning to enter the industry to ensure they are prepared for the changes ahead.
What happened?
• An increase to tariffs for both biomethane and biogas. Biomethane tariffs have returned to April 2016 levels and biogas tariffs have also been raised.
• Tariff guarantees will apply for pre-accreditation from spring 2017, when the regulations are brought into law.
• Spring 2017 will also see a revision to the degression mechanism to align triggers more resolutely with growth.
• Biomethane or biogas heat applicants that register between today and the date the regulations come into force can receive the reset tariff for their plant if they comply with new feedstock and digestate rules.
• New plants seeking support under the RHI will only be able to claim support for crop-derived biogas and biomethane for the first 50% of the gas they generate each year.
Responding to the news ADBA Chief Executive Charlotte Morton said: “We are pleased to see that tariff levels have been reset – this should support higher levels of deployment. We do not believe, however, that the restrictions on feedstock for new plants, which could have unintended consequences, are justified.
The introduction of tariff guarantees is extremely welcome and we will continue to work with the UK Government and with our members to ensure the UK AD industry keeps growing and reaches its full potential – for example by calling for urgent action on food waste collections in England.”
For more details, please visit http://adbioresources.org/
