Biomethane subsidy certainty welcomed by industry
Thu 18 December 2014
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The Government has proposed the introduction of tiered subsidies for biomethane plants which should lead to more consistent returns for suppliers. The proposals have been broadly welcomed by the industry.
Following a formal consultation period launched in May 2014, The Department for Energy and Climate Change (DECC) has published its response to feedback from stakeholders. The response is part of DECC's review of the biomethane injection to grid tariff under the Renewable Heat Incentive (RHI), a Government programme that provides financial incentives to encourage the uptake of renewable heat.
DECC believes the new tiered system will lead to a consistent return for suppliers as subsidies should decrease alongside production costs. The policy aims to ensure the growth of biomethane supply at the lowest cost to the public purse..
An REA spokeperson said: "Biomethane is one of the success stories of the RHI and has a major role to play in greening the gas grid. From almost nowhere two years ago, we now have 10 projects operational, with more still in the pipeline."
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