John’s Climate Change Blog
John Findlay expresses his views and opinions on climate change, the potential impact on the way we live and the arguments surrounding the climate change debate.
Renewable Heat; Where Are We Now?
Although FITs (Feed-in Tariffs) are now well established for renewable power generation, the timing and scope of the Renewable Heat Incentive (RHI) for heat generation is less clear.
The RHI is intended to provide financial support to encourage a switch from fossil fuel to renewable technologies; such as heat pumps. The Department for Energy and Climate Change (DECC) consultation on the RHI earlier this year was aimed at an April 2011 launch. Many companies linked with the installation of renewable heat systems had ‘budgeted’ on this happening.
Heat generation dominates energy use in the UK and is responsible for nearly 50% of our entire carbon emissions. In February of this year, the government announced aims to meet 12% of the UK’s heat demand through renewables by 2020. The RHI was to be a major driver toward this goal. Since the new government formed in mid-May, there has been no decisive comment with regard to the RHI - and so the rumour mill has been in full swing!
Chris Huhne (DECC) in his first major speech in June, referred indirectly to tariffs. He said DECC "would step up support for renewables" and that the government’s new Green Deal would be supported by new green building standards as well "triggers and incentives". In a press release on 12th July Greg Barker (DECC) outlines plans for a new micro-generation consultation process. Barker says; “By becoming more self sufficient we can create sustainable local energy economies. People and communities can save money on their fuel bills at the same time as generating an income and cutting carbon.”
Funding of the RHI is likely to be in part at the cost of gas and electricity users; a political hot potato! If the UK is truly committed to meeting its targets on carbon emission reduction, and making real progress toward a ‘green economy’ then the RHI is a necessity.
Will the RHI become a reality? On balance, we say yes - but it may fall victim to the current round of austerity measures. The original plan was for the RHI to provide a 12% return on investment. This number could well be revised. As to whether the new government will favour one renewable heat technology over another? That’s a big question for another time!