The Department for Business, Energy & Industrial
Strategy has published (29th January) the Government's response to
chapter 2 of the September 2017 RHI consultation, which relates to the
definition of eligible heat within the Non Domestic Renewable Heat Incentive.
In the September 2017 consultation on proposed amendment to
the scheme, the Government made a number of proposals to tighten the
rules relating to eligible uses for heat, including the proposal to remove all
drying practices as an eligible heat use for new participants. In summary in
response to consultation the Government rather than introduce a blanket ban on
drying practices has decided to:
- remove wood-fuel drying as an eligible heat use other
than where the renewable heat installation is replacing a pre-existing
fossil fuel heat source. A transition period will be included to allow
wood-fuel drying plant that are in development to be accredited;
- remove the drying, cleaning or processing of waste as an eligible heat use;
Additionally, the Government will amend RHI scheme rules so
that installations where heat is produced predominantly for a single domestic
premises will no longer be eligible under the Non-domestic RHI. These
changes will apply to new participants or existing participants who add
capacity on or after the date the reforms come into effect.
The government will consider further evidence to ensure uses
for heat are genuine and economically justifiable with a view to introducing
further possible changes in future. Support for crop drying and use of heat in
aquaculture remains. Drying of digestate will also no longer be permitted as an
eligible use of heat, as announced in reforms to the RHI outlined in December
2016.
The Government intends to implement these eligible heat use
changes alongside the implementation of the remainder of the RHI reforms
announced in December 2016. This is currently anticipated for spring
2018.
David Turley, Head of Feedstocks at NNFCC comments, "This outcome is
pretty much in line with expectations, but the announcement is welcome in
providing clarity to potential project developers, as well as the position
taken not to ban all drying operations outright, but consider individual uses
on merit."
The Government's response to the consultation can be found here.