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The Low Carbon Economy Ltd

06 Nov 2008 05:11:43

Renewable heat incentives announced



Renewable heat incentives announced
Renewable heat producers of all sizes will receive incentives for generating energy under the terms of an amendment to the Energy Bill.

Like electrical microgeneration installations, which will be eligible for premium rates, or feed-in tariffs, creators of renewable heat could receive above-market payments.

In the third reading in the House of Lords of the Energy Bill, Lord Hunt explained that the incentives would apply to renewable heat generators at every scale and that it would be funded by a levy on fossil fuel providers.

He said: "Under this initiative, owners of plants for the generation of renewable heat will be entitled to receive financial support. This could entail a set rate for each unit of renewable heat energy that they produce."

According to the Department for Business, Enterprise and Regulatory Reform (BERR), 49 per cent of all energy used in the UK is in the form of heat and 47 per cent of the UK's carbon emissions are created in its generation.

BERR highlights biomass, heat from waste and microgeneration heat technologies such as solar thermal and air and ground source heat pumps as the key technologies.

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