DECC consults on reviewing the tariff for biomethane injection to grid under the RHI
The technology involves producing biogas through anaerobic digestion (AD) of crops, waste, slurries or sewage feedstock. The biogas is then ‘upgraded’ to remove the carbon dioxide and other impurities (known as ‘scrubbing’) and propane is added to ensure the calorific value closely matches that of natural gas. The resulting gas is then odorised and compressed and injected into the gas grid — a way of partly decarbonising the gas grid with the advantage of using existing gas infrastructure.
When DECC first introduced the ‘one-size fits all’ biomethane to grid tariff under the Renewable Heat Incentive (RHI) in November 2011, there were no full-scale biomethane to grid plants in commercial operation. The RHI kick-started the market for biomethane to grid and there are now three plants registered to the RHI and many more, of much higher capacities than the 1MW on which the original tariff was based, planned or in the pipeline. The RHI tariffs were calculated on a 12 per cent rate of return but it was recognised that they might need to be changed over time. DECC is now reviewing the tariff because there is a risk that the measure is excessive, providing significant upside for large plants and/or plants with existing assets that are converting to biomethane injection.
At present, the tariff is set at 7.5 pence per kWh. Rather than introducing degression, which DECC think would destabilise the market and investor confidence, DECC propose two new tariff options…
Click on the link below to read the rest of the Walker Morris briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
Jackson, Denton, Mitchell… anyone involved with civil litigation over the last two years will have heard these names repeatedly and will be aware of their importance to compliance with the new rules.
While a headline glance at the Supreme Court’s judgment in this long-running case might give developers some encouragement a closer look reveals that the issues in play are not quite so straightforward.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.