RHI grace period to be extended following industry campaign
In the United Kingdom (UK), the Department for Business, Energy & Industrial Strategy (BEIS) has announced an extension to the Renewable Heat Incentive (RHI) grace period deadline following a coordinated industry campaign. The deadline has been extended by one year, from January 31, 2020, to January 31, 2021, a move that has been welcomed by the Renewable Energy Association (REA).
Under previous Renewable Heat Incentive (RHI) regulations, all plants with a Tariff Guarantee would have needed to commence injection of biomethane by January 31, 2020, or 183 days after the date on which the applicant expected the injection to commence.
In a joint industry letter from the Renewable Energy Association (REA), Anaerobic Digestion & Bioresources Association (ADBA), Energy Networks Association (ENA) along with representatives of the biomethane sector sent to BEIS and resulting discussions, the REA highlighted that this deadline was extremely tight.
When taking into account build times of biomethane projects and the time needed by the gas networks to verify that the commissioning followed appropriate procedures. The REA warned the government that a number of biomethane plant developers and funders could abandon their investments and projects unless a swift decision to extend the deadline was made.
The RHI extension is fantastic news for the industry and incredibly rewarding for the REA who has dedicated a lot of time and effort to this campaign over the last few months. The extension will encourage new development and sends a positive message to the sector that Government is committed to fostering green gas and advancing the decarbonisation of the gas grid, said James Court, Policy & External Affairs Director, REA.