Friday, 22 February 2013

Update on Renewable Heat Incentive (RHI) - Feb 2013

Here is our latest snapshot on the progress being made by the Renewable Heat Incentive.

Total installations are now approaching 1,000.  The first bio-gas and bio-methane installations are now online, including the country's first RHI accredited bio-methane plant at Poundbury on the Duchy of Cornwall estate.  Installed capacity is now at 213 megawatts.

If we look at data from previous months we can see that the rate of uptake is steady and it has taken roughly five months for the number of accredited installations to double.  This rate of progress, whilst modest, is probably a good thing for the scheme overall as more rapid acceleration (or sudden step changes) could affect Ofgem's ability to manage the scheme.

The red dotted line in the figures above and below is a simple linear trend line.  At this stage the rate of progress remains steady and the scheme should reach 350 MW of installed capacity by August 2013.

The actual heat generation from the current installations is shown in the pie chart below.  Biomass still accounts for the vast majority of all output.  

Note that the single bio-methane installation (anaerobic digestion) is already the fifth largest heat generator - a hint at the enormous potential of this technology.  It will be interesting to see how many bio-methane and bio-gas installations can be supported by the RHI given the fixed annual budgets and cost control mechanisms that are in place.

A video of the J V Energen plant at Poundbury can be viewed below.  More information can be found here.

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