WIREDGOV

The Government’s Renewable Heat Incentive (RHI) policy announced this week, aiming to “revolutionise the way heat is generated and used in buildings and homes” will provide long-term financial support to renewable heat installations to encourage the uptake of renewable heat.

The scheme will be introduced in two phases, the first focusing on large scale heat users in the industrial, business and public sector, followed by a domestic scheme next year.

Commenting on the announcement, Daniel Guttman, Director, Renewables & Clean tech, PwC commented:

“The RHI was much anticipated and it is good news for the market that its coming through now.

“It will be a boost for a large number of businesses in manufacturing as well as in installation and maintenance, and ultimately will help create new jobs.

“Heat is a much neglected source angle to pursue in lowering carbon intensity in Europe and the RHI will help do this. However this needs to go hand in hand with passive measures such as better insulation or draft proofing for example.

“It makes sense to start with big heat users first in terms of quick impact, but households must not be neglected. To that end a simple and understandable policy will be necessary to avoid slow take-up due to confusion between the RHI, the Renewable Heat Premium Payment and Green Deal.

“The Feed in Tariff review launched recently means that the UK is on probation with regards to renewables and micro-generation in particular. It will be crucial for the UK to keep the RHI steady and not to initiate any changes or reviews.

Commenting on the implications for energy from waste schemes, John Gibbs, partner, PwC said:

“The RHI should provide welcome momentum to the wider application of Anaerobic Digestion technologies producing biogas from waste. It will also provide support to Energy from Waste (EfW) projects designed to generate combined heat and power from municipal solid waste (MSW) and solid recovered fuel (SRF) derived from MSW.

“While this support is welcome, the RHI does not extend to EfW facilities generating heat from solid recovered fuel sourced from other waste streams. This restriction will significantly limit the RHI's impact in the waste sector given the current interest in developing semi and fully merchant energy from waste plants based on commercial and industrial waste streams.”

For more information contact:
Rowena Mearley
Corporate PR Senior Manager, PwC
Tel:020 7213 4727
Mobile:07841 563 180