Post by cye on Mar 24, 2011 18:12:34 GMT -5
DETI minister sheds some light on whether NI may see a scheme similar to the GB RHI scheme (where I think 'feed in'/generation type tariffs were recently introduced for the likes solar thermal etc). Whilst we'll never see the highly attractive PV feed in tariffs here that are currently available in GB, there is still some chance we may get a useful heat incentive scheme.
HMT has allocated £25m in the current spending review to NI for RHI, and if DETI doesn't spend it all on consultants, consultations, impact assessments and subsidising the lifestyles of commercial heating engineers, there may yet be something left by way of real assistance to the average householder for some form of renewable heating.
Found this in the assembly archives
Arlene Foster, in the Assembly, 14th March 2011....
I beg to move
That this Assembly agrees that the UK Parliament should consider amendments to the Energy Bill to provide powers for the Department of Enterprise, Trade and Investment to establish a scheme to facilitate and encourage renewable generation of heat, including the administration and financing of the scheme.
We are here today to consider extending primary legislative powers for renewable heat to Northern Ireland to ensure that my Department can bring forward proposals to incentivise this important market in the near future. Ensuring a more diverse, sustainable and secure supply of fuel for Northern Ireland is one of the key priorities for my Department.
Northern Ireland is overly dependent on imported fuel, leaving customers vulnerable to price fluctuations that are beyond our control. That is especially true in the heat market. Heat energy accounts for close to half of all the energy consumed in Northern Ireland; however, 98% of our heating fuels are imported.
In order for the Northern Ireland heat market to become more sustainable, it is vital that renewable fuel sources are developed and that the uptake of renewable heating technologies is encouraged. The strategic energy framework includes a target for Northern Ireland to achieve 10% renewable heat by 2020. That is an ambitious and stretching target, especially when we consider that only 1·7% of our heating demand is met from renewable sources.
In order to reach that target, it is essential that support mechanisms are developed to encourage the uptake of renewable heat technologies in the domestic, commercial, industrial and public sectors. The Department of Energy and Climate Change (DECC) has made clear plans to incentivise the renewable heat market in Great Britain through a renewable heat incentive.
Northern Ireland’s heat market is very different to that of Great Britain. Northern Ireland is largely dependent on oil with a developing natural gas market, whereas in Great Britain, the gas market is well established and is the predominant fuel source. There are also differences in fuel prices between Great Britain and Northern Ireland and the amount of people’s income that goes towards heating their homes and businesses. As a consequence, the levels of fuel poverty tend to be higher.
Finally, Northern Ireland’s geography is very different to that of Great Britain, with Northern Ireland being more rural, having fewer larger cities and, therefore, having a very different heat density. All of those factors have meant that it has been appropriate for separate consideration to be given to how the heat market here might be encouraged and incentivised, so that a Northern Ireland solution can be developed for the Northern Ireland context.
In September 2010, I announced that my Department would seek to support the renewable heat market in Northern Ireland by developing a renewable heat incentive scheme similar to the Great Britain proposals, but specifically designed and tailored to incentivise the local market. Work on that is already under way.
In response to that announcement, Her Majesty’s Treasury has allocated £25 million for the spending review period for a Northern Ireland renewable heat incentive, should one be introduced. That is a significant level of funding, which will have a positive impact on the emerging industry. In order for an incentive scheme to be introduced in the future, the Department for Enterprise, Trade and Investment (DETI) requires appropriate legislative powers to create tariff structures, set eligibility standards and make payments. At present, DETI does not hold any primary powers in that area of work. DECC took primary powers for renewable heat via last-minute amendments to the Energy Act 2008. Those are general, enabling powers that, in turn, will allow the GB renewable heat initiative to be designed and implemented through specific secondary legislation. I now seek the Assembly’s consent to enable DECC to amend the current Energy Bill to provide powers for DETI to introduce and administer a Northern Ireland renewable heat incentive in due course.
Taking those powers through that route will allow my Department to introduce an incentive scheme via detailed subordinate legislation in a timely manner. If that opportunity is missed, there could be significant ramifications for the date on which an incentive scheme could be introduced, which, in turn, would have a negative impact on the local market and result in the loss of an element of the funding that is provided by Treasury. The Executive are content with the course of action that we are taking today.
I should stress that the powers to be taken by DETI will be general, enabling powers for renewable heat similar to those in section 100 of the Energy Act 2008, which grant DECC with the necessary primary powers. A future renewable heat incentive for Northern Ireland will require secondary legislation in due course. In addition, there will be a full public consultation on the design of the renewable heat incentive in advance of implementation. It will be vital that consumers, industry, local representatives and, indeed, other relevant stakeholders get a chance to contribute to the policy-making process.
Financial incentives have already been successful in the Northern Ireland renewable electricity market. Since the introduction of the Northern Ireland renewables obligation (NIRO) in 2005, the level of electricity that has been generated from renewable sources has increased from 3% to around 9%. It is now important for a similar commitment to be made to the renewable heat market. I am confident that by supporting and developing the renewable heat market there will be positive opportunities for Northern Ireland to reduce its dependence on imported fossil fuels, cut carbon emissions and develop the emerging renewables industry with new green jobs. I ask the House to pass the legislative consent motion to allow us to take a further important step in that process.
HMT has allocated £25m in the current spending review to NI for RHI, and if DETI doesn't spend it all on consultants, consultations, impact assessments and subsidising the lifestyles of commercial heating engineers, there may yet be something left by way of real assistance to the average householder for some form of renewable heating.
Found this in the assembly archives
Arlene Foster, in the Assembly, 14th March 2011....
I beg to move
That this Assembly agrees that the UK Parliament should consider amendments to the Energy Bill to provide powers for the Department of Enterprise, Trade and Investment to establish a scheme to facilitate and encourage renewable generation of heat, including the administration and financing of the scheme.
We are here today to consider extending primary legislative powers for renewable heat to Northern Ireland to ensure that my Department can bring forward proposals to incentivise this important market in the near future. Ensuring a more diverse, sustainable and secure supply of fuel for Northern Ireland is one of the key priorities for my Department.
Northern Ireland is overly dependent on imported fuel, leaving customers vulnerable to price fluctuations that are beyond our control. That is especially true in the heat market. Heat energy accounts for close to half of all the energy consumed in Northern Ireland; however, 98% of our heating fuels are imported.
In order for the Northern Ireland heat market to become more sustainable, it is vital that renewable fuel sources are developed and that the uptake of renewable heating technologies is encouraged. The strategic energy framework includes a target for Northern Ireland to achieve 10% renewable heat by 2020. That is an ambitious and stretching target, especially when we consider that only 1·7% of our heating demand is met from renewable sources.
In order to reach that target, it is essential that support mechanisms are developed to encourage the uptake of renewable heat technologies in the domestic, commercial, industrial and public sectors. The Department of Energy and Climate Change (DECC) has made clear plans to incentivise the renewable heat market in Great Britain through a renewable heat incentive.
Northern Ireland’s heat market is very different to that of Great Britain. Northern Ireland is largely dependent on oil with a developing natural gas market, whereas in Great Britain, the gas market is well established and is the predominant fuel source. There are also differences in fuel prices between Great Britain and Northern Ireland and the amount of people’s income that goes towards heating their homes and businesses. As a consequence, the levels of fuel poverty tend to be higher.
Finally, Northern Ireland’s geography is very different to that of Great Britain, with Northern Ireland being more rural, having fewer larger cities and, therefore, having a very different heat density. All of those factors have meant that it has been appropriate for separate consideration to be given to how the heat market here might be encouraged and incentivised, so that a Northern Ireland solution can be developed for the Northern Ireland context.
In September 2010, I announced that my Department would seek to support the renewable heat market in Northern Ireland by developing a renewable heat incentive scheme similar to the Great Britain proposals, but specifically designed and tailored to incentivise the local market. Work on that is already under way.
In response to that announcement, Her Majesty’s Treasury has allocated £25 million for the spending review period for a Northern Ireland renewable heat incentive, should one be introduced. That is a significant level of funding, which will have a positive impact on the emerging industry. In order for an incentive scheme to be introduced in the future, the Department for Enterprise, Trade and Investment (DETI) requires appropriate legislative powers to create tariff structures, set eligibility standards and make payments. At present, DETI does not hold any primary powers in that area of work. DECC took primary powers for renewable heat via last-minute amendments to the Energy Act 2008. Those are general, enabling powers that, in turn, will allow the GB renewable heat initiative to be designed and implemented through specific secondary legislation. I now seek the Assembly’s consent to enable DECC to amend the current Energy Bill to provide powers for DETI to introduce and administer a Northern Ireland renewable heat incentive in due course.
Taking those powers through that route will allow my Department to introduce an incentive scheme via detailed subordinate legislation in a timely manner. If that opportunity is missed, there could be significant ramifications for the date on which an incentive scheme could be introduced, which, in turn, would have a negative impact on the local market and result in the loss of an element of the funding that is provided by Treasury. The Executive are content with the course of action that we are taking today.
I should stress that the powers to be taken by DETI will be general, enabling powers for renewable heat similar to those in section 100 of the Energy Act 2008, which grant DECC with the necessary primary powers. A future renewable heat incentive for Northern Ireland will require secondary legislation in due course. In addition, there will be a full public consultation on the design of the renewable heat incentive in advance of implementation. It will be vital that consumers, industry, local representatives and, indeed, other relevant stakeholders get a chance to contribute to the policy-making process.
Financial incentives have already been successful in the Northern Ireland renewable electricity market. Since the introduction of the Northern Ireland renewables obligation (NIRO) in 2005, the level of electricity that has been generated from renewable sources has increased from 3% to around 9%. It is now important for a similar commitment to be made to the renewable heat market. I am confident that by supporting and developing the renewable heat market there will be positive opportunities for Northern Ireland to reduce its dependence on imported fossil fuels, cut carbon emissions and develop the emerging renewables industry with new green jobs. I ask the House to pass the legislative consent motion to allow us to take a further important step in that process.