A Government scheme to support commercial users of renewable heat fuels, including energy crops and biogas, has received the green light under EU state aid rules, a spokesperson for the European Commission told the Irish Farmers Journal this Monday.
The Commission found that "the payments granted to beneficiaries will not lead to overcompensation" and "the scheme will contribute to the EU's energy and environmental objectives without unduly distorting competition".
It will pay users of renewable heat, including farms running temperature-controlled environments
The scheme has been in the works for over a decade and is expected to provide a market for green fuels grown on farms.
It will pay users of renewable heat, including farms running temperature-controlled environments such as pig, poultry and horticulture enterprises.
Degressive tariffs
The Sustainable Energy Authority of Ireland, which manages the scheme, previously said that degressive annual tariffs would apply.
The highest payment will be for the first 300MWh of heat generated from biomass, at 5.66c/kWh. This will decrease as output grows and stop after 50,000MWh.
For biogas plants, the highest rate is 2.95c/kWh for the first 1,000MWh. This will drop to 0.5c/kWh up to 2,400MWh and stops at that ceiling.
Strict conditions
Strict conditions will apply to ensure that each applicant is using the heat for a verifiable purpose and each project will need to go through a planning permission-like process to become eligible.
Minister for Communications, Climate Action and the Environment Richard Bruton welcomed the EU approval.
"Increasing sources of renewable heat will be a key part of the Government plan which is currently being finalised.
"Further details on the scheme, including opening date for applications, will be announced by the minister shortly," a Department spokesperson told the Irish Farmers Journal.
Read more
Green heat scheme will be restrictive to ensure 'value for money'
Questions and answers on the renewable heat scheme
Renewable heat incentive expected to commence from mid-2018
A Government scheme to support commercial users of renewable heat fuels, including energy crops and biogas, has received the green light under EU state aid rules, a spokesperson for the European Commission told the Irish Farmers Journal this Monday.
The Commission found that "the payments granted to beneficiaries will not lead to overcompensation" and "the scheme will contribute to the EU's energy and environmental objectives without unduly distorting competition".
It will pay users of renewable heat, including farms running temperature-controlled environments
The scheme has been in the works for over a decade and is expected to provide a market for green fuels grown on farms.
It will pay users of renewable heat, including farms running temperature-controlled environments such as pig, poultry and horticulture enterprises.
Degressive tariffs
The Sustainable Energy Authority of Ireland, which manages the scheme, previously said that degressive annual tariffs would apply.
The highest payment will be for the first 300MWh of heat generated from biomass, at 5.66c/kWh. This will decrease as output grows and stop after 50,000MWh.
For biogas plants, the highest rate is 2.95c/kWh for the first 1,000MWh. This will drop to 0.5c/kWh up to 2,400MWh and stops at that ceiling.
Strict conditions
Strict conditions will apply to ensure that each applicant is using the heat for a verifiable purpose and each project will need to go through a planning permission-like process to become eligible.
Minister for Communications, Climate Action and the Environment Richard Bruton welcomed the EU approval.
"Increasing sources of renewable heat will be a key part of the Government plan which is currently being finalised.
"Further details on the scheme, including opening date for applications, will be announced by the minister shortly," a Department spokesperson told the Irish Farmers Journal.
Read more
Green heat scheme will be restrictive to ensure 'value for money'
Questions and answers on the renewable heat scheme
Renewable heat incentive expected to commence from mid-2018
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