New RHI consultation risks further delay to crucial reforms – ADBA

The Anaerobic Digestion & Bioresouces Association (ADBA) has stressed that BEIS’s new consultation on further amendments to the Renewable Heat Incentive (RHI) must not delay the urgent passing of legislation to implement previously proposed changes to the RHI that would allow new AD plants to be built.

The new consultation includes far-reaching proposals to restrict eligible heat uses, changes to biomethane injection registration, and new rules relating to multiple installations and annual production limits that would limit very large plants. The consultation follows the commitment made in the Government’s response to its 2016 RHI consultation to undertake further detailed work on eligible heat uses and to consult on subsidy limits for very large plant.

The AD industry is still eagerly waiting, however, for the Government to pass legislation tabled earlier this year that would reset biogas and biomethane tariffs to previously higher levels and introduce tariff guarantees, both of which are crucial to the building of new biomethane plants in the UK. The consultation confirms this legislation will be put before Parliament this autumn.

ADBA Chief Executive Charlotte Morton said:

“It’s critical that this new consultation on the RHI doesn’t delay what the AD industry and the UK as a whole really needs: for the delayed RHI legislation to be passed as soon as possible so that new AD plants can produce clean, renewable biomethane that can help to increase our energy security and decarbonise the gas grid.

“We estimate that there are around 20 biomethane projects in development that are waiting for the RHI legislation to be passed in order to receive their tariff guarantee and start construction. There’s a real risk of some of these projects being further delayed or even cancelled if the reforms aren’t implemented very soon, which would not only be a huge waste of time and resource but would also hamper the UK’s ability to meet its short- and long-term renewable energy and climate change targets.”