New biomethane tariffs welcomed by industry

 

Dr. Nina Skorupska
Dr. Nina Skorupska

by DARA BUTTERFIELD

The results of the Government’s biomethane tariff review have been welcomed by the Renewable Energy Association as helping to create a long-term sustainable industry.

The review was held due to fears that the Non-Domestic Renewable Heat Incentive was unfairly rewarding large scale biomethane projects, this potentially represented a value-for-money risk for the taxpayer and a potential breach of the scheme’s state aid approval.

Dr Nina Skorupska, REA Chief Executive, said: “Biomethane is one of the success stories of the Renewable Heat Incentive and has a major role to play in greening the gas grid. From almost nowhere two years ago, we have now 10 projects operational, with more still in the pipeline. The current tariff rates are already competitive with many other technologies and further cost savings are likely as the industry deploys at scale.”

“The industry has worked closely with Government over the last few months to ensure that these proposals drive a long-term sustainable industry, at ever greater value for money for the taxpayer.”

The review has approved a three tier system of tariffs of 7.5p/kWh for up to 40GWh per annum of eligible biomethane, 4.4p/kWh for up to 80GWh per annum, and 3.4p/kWh for over 80GWh per annum.

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