Postponed renewable heat scheme back on track

The government’s disagreement with EU policy makers over a subsidy for renewable heat has been resolved, according to DECC. In September, objections from the European Commission forced the energy department […]

Register now!

By Vicky Ellis

The government’s disagreement with EU policy makers over a subsidy for renewable heat has been resolved, according to DECC.

In September, objections from the European Commission forced the energy department to push back the opening of the Renewable Heat Incentive.

The surprise postponement to the scheme infuriated many environmental campaigners, who worried it would put more hurdles in front of potential investors in the fledgling industry.

But DECC says this barrier has now been overcome, after revising the amount of money available for larger biomass projects. The tariff for projects over 1MW is being reduced from 2.7p per KWh to 1p per Kwh.

A DECC spokesperson said today: “We appreciate that this is frustrating, however without this change the scheme would not have been able to proceed.”

Once the regulation change has been approved, DECC hopes to open the scheme before the end of November.