Renewable Energy sector given boost by Spending Review

 

 

 

Speaking at the announcement, Chris Huhne said, “In the Spending Review the Government was able to confirm the good news that the Renewable Heat Incentive will go ahead in June 2011. I am thrilled to be here today with LC Energy to visit Surrey University, one of the many sites they supply with renewable and low carbon energy.

 

The £860 million Renewable Heat Incentive will be key to meeting the UK’s target of 15% of energy being renewable by 2020, thus saving carbon, improving energy security and creating green jobs.”

 

Mark Lebus from LC Energy said, “The RHI is great news for both the commercial and domestic market. The end user can now be secure in the knowledge that the capital costs associated with the set up of a biomass boiler will now be offset by not only the grants currently available but also the payments the Government will now make towards each kWh produced. The RHI is a huge boost to the renewable energy sector and one which LC Energy fully supports, as we develop the fuel supply and ESCo markets.”

 

According to the Department of Energy and Climate Change (DECC), the RHI Scheme is the first of its kind in the world and will therefore be a world-leading scheme to provide long term support for renewable heat technologies. The RHI will represent a more-than-tenfold increase of renewable heat over the coming decade and shifting renewable heat from a fringe industry firmly into the mainstream.

 

The biomass boiler at Surrey Sports Park is fuelled by 300 tonnes of woodchip annually, which is sourced and delivered by LC Energy from woodlands less than ten miles away. It is estimated by the Forestry Commission that, sustainably managed, there is enough woodlands in the south east alone to generate over 500,000 tonnes of woodchip each year.