To meet the 2020 15% renewable energy target, DECC need to develop new ways of generating renewable energy in all sectors, including heat. Heat generated from renewable sources accounts for approximately 1% of total heat demand – this may need to rise to 12% to hit our binding EU targets.
On 1st February 2010, DECC published a consultation on the proposed design of the Renewable Heat Incentive (RHI) scheme, which it aims to introduce in April 2011. The consultation sought views on a number of aspects of the proposed scheme, including tariff levels. The consultation period closed on the 26th April 2010.
Details on wider heat policy can be found on our Heat webpage.
Following research published for the Renewable Energy Strategy consultation last year on the prospects for renewable heat in the UK, DECC commissioned further research by NERA and AEA on the UK supply curve for renewable heat. The purpose of the analysis was to validate and expand existing analysis on the potential deployment for renewable heat technologies leading up to 2020 and to look into the potential contribution of the industrial and commercial/public sectors. The data resulting from this study has played a key role in helping DECC design the structure of the Renewable Heat Incentive. The report has now been published and is also available on the Renewable Energy Strategy web pages. The Impact Assessment, which accompanies the RHI consultation document, is also available on the RHI consultation web page.