News from GGCS

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DECC announce changes to the RHI biomethane tariff structure

Posted: 10 December, 2014. Written by Ciaran Burns

DECC announce changes to the RHI biomethane tariff structure.  

Today DECC published outcome of the RHI Biomethane Injection to Grid Tariff Review Consultation which opened in May 2014. The review was launched in response to concerns that larger projects would be over compensated. The consultation received considerable input from across the industry and the original proposals were altered. In summary the tariffs are now structured into three tiers as shown in the table below

	Tariff p/kWh1 (FY 2014/15)	Tier Break (Output at which tariff changes) – MWh per annum of eligible biomethane injected	Approximate biogas plant capacity that produces an annual output equivalent to tier break - MW
Tier 1	7.5	40,000	6
Tier 2	4.4	80,000	12
Tier 3	3.4	> 80,000	> 12

DECC are intending to implement these changes for new plants registering on the RHI scheme from  February 2015, subject to parliamentary approval. More information on the restructuring can be found on the DECC website here.

This publication is in addition to DECC announcements for RHI tariff degression of 10% which will take effect from 1st January. More information on the tariff degression can be found on the Ofgem website here.