RHI Grace Period to be extended following industry campaign

The government has announced an extension to the Renewable Heat Incentive (RHI) deadline from 31 January 2020 to 31 January 2021. The REA (Renewable Energy Association), as part of a coordinated industry effort, has campaigned for the extension since 2018 and welcomes it as a signal from Government that they are committed to the sector.

Under previous RHI regulations, all plants with a Tariff Guarantee would have needed to commence injection of biomethane by 31 January 2020 or 183 days after the date on which the applicant expected the injection to commence.

In a joint industry letter sent to the Government Department for Business, Energy & Industrial strategy, the REA highlighted that this deadline was extremely tight. When taking into account build times of biomethane projects and the time needed by the gas networks to verify that the commissioning followed appropriate procedures. The REA warned the Government that a number of biomethane plant developers and funders could abandon their investments and projects unless a swift decision to extend the deadline was made.

James Court, policy & external affairs director at the REA commented, “The RHI extension is fantastic news for the industry and incredibly rewarding for the REA who has dedicated a lot time and effort to this campaign over the last few months. The extension will encourage new development and sends a positive message to the sector that Government is committed to fostering green gas and advancing the decarbonisation of the gas grid.”