Sustainability requirements in the RO, Domestic RHI and Non-Domestic RHI

Transcription

1 Sustainability requirements in the RO, Domestic RHI and Non-Domestic RHI A summary of the requirements and how to comply Nicola Percival, Policy Manager, Ofgem E-Serve 15 October 2015

2 Presentation Aims Introduction RO, Domestic RHI and Non-Domestic RHI sustainability requirements and how to comply What information is available

3 Introduction The Non-Domestic RHI scheme provides a subsidy to eligible, non-domestic renewable heat generators and producers of biomethane for injection based in Great Britain. The Domestic RHI scheme provides a subsidy to homeowners, landlords and tenants who submit eligible applications. It s for households both off and on the gas grid. The Renewables Obligation (RO) is one of the main support mechanisms for renewable electricity projects in the UK. It places an obligation on UK electricity suppliers to source an increasing proportion of the electricity they supply from renewable sources. All three schemes are administered by Ofgem E-Serve; governed by specific Regulations which the Department of Energy and Climate Change (DECC) are responsible for as policy makers. Ofgem E-Serve also administers the separate Northern Ireland Renewable Heat Incentive scheme under arrangements with the Department of Enterprise, Trade and Investment (DETI).

4 Summary of sustainability requirements Under the RO, bioliquids have had to meet the criteria since 2011, whereas solid and gas fuels only had to report. From 1 December 2015 solid and gas fuels (for stations 1MW) will have to meet the criteria to be eligible for support. Came into force on 5 October 2015 for both Domestic and Non-Domestic RHI Applies to all new and existing participants generating heat (or heat and power) from biomass or biogas and to those producing biomethane for injection Fuel being sustainable is based on fuels meeting two criteria: lifecycle greenhouse gas (GHG) emissions land criteria DECC are aiming to make a 60% saving on carbon compared with the equivalent use of fossil fuels

5 Land criteria Non-woody biomass: Land criteria prohibits sourcing biomass from certain land types (uses reference date of January 2008) Energy Crops being deemed as meeting the Land Criteria if supported under the Energy Crop Scheme (ECS) (Scheme closed Aug-13) Woody biomass: Wood fuels advice note gives information about how to comply with the RO and RHI land criteria

6 GHG emissions criteria Account for the life cycle GHG emissions of the fuel Option 1: use default values where applicable (in legislation) Option 2: use the Carbon Calculator available via Ofgem website to support this Owned and managed by DECC Technical queries handled by Typical Value or Actual Value method

7 Sustainability and the Domestic RHI New biomass sustainability requirements came into effect on 5 October All applicants with a biomass system will need to have been using an approved fuel from a supplier listed on the Biomass Suppliers List (BSL), which is administered by Gemserv: These requirements affect both those yet to apply, and those who are already accredited on the scheme with a biomass system. If you are a supplying your own fuel you will need to register this fuel on the BSL and list yourself as a self-supplier. See our FAQs on biomass sustainability in the Domestic RHI:

8 Sustainability and the Domestic RHI - compliance How we will check applicants are using an approved fuel: All members of the scheme with biomass systems will have to declare the fuel they are using in their annual declarations. The member will have to enter the BSL authorisation number for the fuel they are using, which will have the format: BSLXXXXXXX-XXXX. We request all members keep a record of all their fuel receipts showing their fuel authorisation numbers. If an application is selected for an audit check, we may request copies of these fuel receipts.

9 Sustainability and the Non-Domestic RHI New requirements came into force on 5 October 2015 for biomass, biogas and biomethane injection Affects all existing participants as well as new applicants All fuel used from 5 October must be sustainable: meets the land and GHG emissions criteria 3 routes of compliance (with different conditions for each): Biomass Suppliers List, administered by Gemserv (or other approved list) Includes self-suppliers Self-reporting directly to Ofgem (completely different to self-supplying) Demonstrating compliance with the RO

10 Sustainability and the Non-Domestic RHI - compliance All participants will need to tell us every quarter how they complied with the requirements, and declarations associated with this. This is done at the same time as submitting meter readings on the Non-Domestic RHI Register. All evidence needs to be retained to support your declarations. See our recently updated Main Guidance: Includes Volume 1, Volume 2, Fuel Measurement and Sampling (FMS) guidance and questionnaires, sustainability self-reporting guidance, sustainability audit guidance and biomass & biomethane apportioning tool New Easy Guide to Sustainability :

11 Sustainability and the RO - compliance All operators have to report monthly to Ofgem on the fuels used. All bioliquid stations and stations 1MW using solid biomass or biogas fuels have to submit an annual sustainability audit report at the end of the year. This is where an independent auditor verifies the sustainability information that has been reported monthly. The operator needs to ensure they have the appropriate evidence to support their claims.

12 Contacts If you have any questions, please contact us: Non-Domestic RHI: Domestic RHI: RO: Visit our stand! Thank you for listening!

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