Heat Goes Renewable

As part of the comprehensive spending review, the Government today announced its commitment to the Renewable Heat Incentive with £860 million of funding in anticipation of a 10-fold growth rate in the sector. Commenting, the REA's Chief Executive Gaynor Hartnell said:

"Today's announcement is a huge relief and a very big breakthrough. Finally renewable heat moves to the heart of UK energy policy, exactly where it belongs.  Companies throughout the UK are poised to deliver on renewable heat, creating tens of thousands of green jobs over the coming decade.

"The industry is particularly grateful to Chris Huhne and Greg Barker who have clearly fought successfully to ensure the UK acts to decarbonise heat, which is responsible for 47% of UK CO2 emissions.  We are lucky to have such visionary and determined Ministers.  We also owe our thanks to the huge number of MPs and the very diverse organisations who consistently backed our case for renewable heat, particularly Friends of the Earth.

“While the announcements today are tough in many areas there is a good news story here to celebrate – the Coalition Government is putting its money where its mouth is. We need to see the details but it looks like they’re serious about supporting massive growth and employment in the UK’s renewable energy sector.

"Once in place, the RHI will enable individuals, businesses and communities to choose renewable heat and take direct control of both their carbon footprint and their energy bills.”

Although some savings will be required from the original policy, the level of funding proposed looks sufficient to enable the development needed in the sector. REA is awaiting policy details to ensure tariff rates are commercially viable for each technology.  REA will continue to press for the full range of technologies and scales to be included, such as deep geothermal and renewable liquids.

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