George Osborne confirmed today that the RHI has survived the Comprehensive Spending Review. We're still seeking confirmation on the details, but the budget allotted to 2014 is (£860million) seems in line with expectations. The Incentive will be introduced 'in 2011/12' so no commitment has been given as to the exact start date.

However positive today's announcement is, most of the key details remain to be finalised. The Government plans to publish a 'decision document' over the next few weeks as well as the draft RHI Order. The REA will be holding an RHI meeting to discuss these details, once they have been published on Friday 10 December 10am - 1pm at CMS Cameron McKenna, Mitre House, 160 Aldersgate Street, London, EC1A 4DD.

Jo Greasley, the head of DECC's RHI team will present the Government's plans and answer questions. Please email Eleanor Simon esimon@r-e-a.net if you would like to attend.

FEED IN TARIFF

Today's announcements will also be a relief to members involved with the Feed in Tariff. There was huge pressure to scale back the tariffs, and it looks like this has been fought off. More details and analysis to follow but the headlines are:

  • No planned changes to the FIT now or in 2011
  • Degression for some tariffs will apply as planned, and any changes to rates should be saved for the planned review in 2013
  • There is still the threat of some kind of cap if deployment significantly exceeds expectations.

FINANCE GROUP

The Comprehensive Spending Review also announced more details on the Green Investment Bank. This will be backed initially by £1billion, with the intention to add more from Government asset sales and by leveraging private finance.

There remains a significant gap between the finance needed to deliver on renewables (and the decarbonised economy in general) and that available.