The launch of the widely announced Renewable Heat Incentive (RHI) for non-domestic generators, which was planned for 30th September 2011 following earlier delays, has been postponed again. It cannot go ahead without state aid and the European Commission has expressed concerns that the large biomass tariff is set too high.
Changing the large biomass tariff will require the RHI regulations to be amended and submitted to Parliament for approval. Adding further delays to the RHI launch, Whitehall’s Department of Energy and Climate Change (DECC) must then wait for written confirmation from the Commission before making an announcement about what this means for the large biomass tariff and the timing of the launch. See:
Francis Ogilvy, owner of Chalmers & Co East Lothian estate agents and land agents, comments:
“This demonstrates that reliance on subsidy is as risky it seems, perhaps more so than reliance on the market! Better to stick to sound business principles of working for customers and selling at a margin over the cost of production – time to get our own canoes out and start paddling!”
Renewable Energy Production Drop in Scotland
Disappointing Statistics from DECC indicate that the total amount of renewable energy produced from wind and hydro power schemes in Scotland fell last year.
Low rainfall meant that hydro fell by a third and despite a sharp increase in the number of turbines installed, there was only a 6% increase in the amount of power they produced.
More positive news on renewable energy is that using wood as a fuel is on a strong growth trend in Scotland.
Chalmers & Co, land agents and estate agents, is a fan of using wood as a fuel as long as it is sourced from sustainable forestry. The firm was one of the first high street offices in the UK to convert its heating system to a biomass one fuelled with wood pellets.