DECC was planning to launch the Renewable Heat Incentive (RHI) for non-domestic generators on 30 September 2011. State aid approval is a necessary condition for the scheme to go ahead. As part of that process, the European Commission expressed concerns that the large biomass tariff was set too high.
The Commission has now given State Aid approval to the RHI subject to the large biomass tariff being reduced from 2.7p per kWH to 1p per kWH. Revised regulations have now been re-laid in Parliament to reflect the required amendment to the tariff for large scale biomass. DECC hope to open the scheme to applications by the end of November 2011, subject to Parliamentary approval.
The drastic reduction in the large biomass tariff is being followed up by severalindustry voices including the REA as this has a major impact on planned large biomass installations.
Further information is also available on DECC's website.