Katy Read

The RHI

Transcript

1. Katy Read Technical Manager, RHI, Ofgem
2. Renewable Heat Incentive How to speed through to receiving RHI support Energy Now Expo, 13 February 2013 Katy Read Technical Manager RHI, Ofgem E-Serve
3. www.ofgem.gov.uk • A world-first financial incentive to promote the generation of renewable heat • £860m for RHI over four years confirmed spend • Payments made quarterly over 20 year period on basis of metered heat generation (p/kWh) • Estimated 1m participants by 2020 • Went live November 2011 • Ofgem responsible for administration – DECC responsible for policy The RHI
4. Technologies currently supported www.ofgem.gov.uk • Solid biomass, e.g. wood chip • Municipal Solid Waste •Solar thermal (below 200kWth) • Biogas (below 200kWth) • Ground/water source heat pumps (not air) • Geothermal • Biomethane injection to the gas grid Technologies currently supported
5. Generation Technology Scale (installation capacity) RHI tariff payment/kWh (p) Biomass Small commercial (< 200kWth) 8.3/2.1 Medium commercial (200kWth < 1MWth) 5.1/2.1 Large commercial (>= 1MWth) 1.0 Heat pumps/deep geothermal Small commercial (< 100kWth) 4.7 Large commercial (> 100kWth) 3.4 Solar collectors < 200kWth 8.9 Biomethane and biogas combustion < 200kWth 7.1 RHI tariff rates
6. Ofgem E-Serve’s role in the RHI • The RHI is a DECC initiative (£860M) • Ofgem E-Serve is the Administrator • Our role includes: Handling enquiries Evaluating eligibility and processing applications Holding data Making payments Fraud and compliance, including audits Xx www.ofgem.gov.uk One Off Repeated RHI Process
7. • Application figures: • 1600+ submitted applications • 900+ installations accredited • 90% solid biomass • 5 applications rejected (grants) • Poor quality applications • Poor quality installations Early experience
8. Key eligibility criteria Speedy accreditation • Accreditation involves meeting a number of eligibility criteria, which must be verified by Ofgem • To ensure this can be achieved readily: • Understand the RHI eligibility requirements • Plan for the RHI requirements as part of the design and installation process • Obtain and retain documentation from manufacturers and installers • Complete the application fully, with the correct evidence and level of detail, seeking support from a third party (e.g. installer) if appropriate • Ofgem can help – Enquiry service, Comprehensive Guidance by Topic, Summary Applicant Guidance Notes [links at end of presentation]
9. Key eligibility criteria • Installed and first commissioned on or after 15 July 2009 •Equipment new at time of installation • Grants not received for purchase/installation of certain equipment (‘the installation’) • Medium of heat transfer must be liquid or steam - i.e. no direct air heating • MCS or equivalent EN45011 if installed capacity is 45kW or under – a requirement for solid biomass, heat pumps, and solar thermal •Biomass boilers must be designed to use biomass as the primary fuel source •No single domestics at present Definition of domestics: “single self contained premises used wholly or mainly as a private residential dwelling where the fabric of the building has not been significantly adapted for non-residential use” Key Eligibility Criteria
10. Eligible heat uses U s e s • In a building for… • Space heating, hot water or carrying out a process (not electricity) • Definition of building • “permanent or long-lasting building or structure of whatever kind and whether fixed or moveable which, except for doors and windows is wholly enclosed on all sides with a roof or ceiling and walls” • NB: must not generate heat for predominant purpose of increasing payments Eligible Heat Uses
11. Do any of following apply? - Heat delivered by steam - Combined Heat and Power (CHP) plant - More than one building involved in the heating system - ‘Ineligible heat uses’ on the heating system COMPLEX Need to meter all of: -Heat generated by eligible installation -Total eligible use of heat on system -Heat generated by all plants on heating system SIMPLE Only need to meter: -Heat generated by eligible installation No – none apply Yes – one or more apply Simple or Complex Metering? Simple or complex metering?
12. COMPLEX “We need to know the fraction of heat used that is coming from the RHI-eligible installation – we can only pay for that fraction of the heat used for eligible purposes” SIMPLE “Just meter the heat generated – we can pay for all of it” Simple or Complex Metering? Simple or complex metering? Heat generated by RHI installation Heat generated by all plant on the heating system Heat used for eligible purposes x Heat generated by RHI installation
13. • Meter standards – MID Conformity, Class 2 Accuracy; or equivalent • Appropriately calibrated and installed: – Early site audits have identified significant issues with meter installation –Exercise caution in all cases, including where meters are installed: • Install in line with manufacturer instructions – careful in the vicinity of bends, pumps or valves, or where space is tight, or being outside • On non-water-only systems (e.g. Solar thermal systems with ‘glycol’/antifreeze; steam systems) • Meter placement for RHI payments • Independent Report on Metering Arrangements (IRMA) Metering eligibility
14. • All RHI-eligible meters should be marked and labelled  For each heat meter, we need to see the placement of:  flow meter  integrator  both temperature sensors • Diagram should be clear to someone who’s never visited the site  Building boundaries (and labelled buildings)  Comprehensive key  All heat sources labelled, and matching references in application Metering Schematics
15. Where the meters need to go 15 Ineligible plant (Gas fired Boiler) Eligible Use Ineligible Use Eligible Installation (Biomass boiler) H Heligible H HRHI H Htotal Teligible in Teligible out FRHI Ftotal Feligible Treturn TRHI in Tflow TRHI out Boiler house Offices
16. Accounting for Heat Loss Between Buildings Xx www.ofgem.gov.uk
17. www.ofgem.gov.uk Ofgem Checks 1. Evidence to show ‘Installation’ is new: Invoices submitted for all components 2. Heat meters MID & class 2 or equivalent: Specific evidence i.e. a Certificate or Photo 3. Letter of Authorisation: To be written as per template (Guidance Note 2 or webpage) 4. Schematic review: Correct & must include all necessary components 5. Meter readings within effective date: Must be within 3 days of submission date 6. Evidence of existence, commissioning date and capacity: Commissioning Report or MCS certificate (<45kWth) 7. IRMA (Independent Report on Metering Arrangements): Must be done by someone competent & using the required template 8. Non-single domestic status: Multiple council tax bills, business rates bills, photos 17
18. www.ofgem.gov.uk Timescales • No decision can be made until a full review has been conducted • Approximate timescale from submission to accreditation approval or rejection notification • Does not include time ‘with applicant’ • Good quality applications are accredited more quickly!
19. c. Experience from Audits: Experience from audits 38% 30% 6% 9% 4% 2% 4% 7% Non-Compliance frequency No fuel records for biomass Meter component not installed correctly Inconsistencies between periodic data and onsite meter readings Heat produced from ineligible source contributing to RHI payments Heat losses are not being measured appropriately No notification of change to accredited installation major schematic errors No information on the effect glycol amounts have on meter calibration
20. • Metering • Air Quality • Sustainability • Degression • Technologies Future changes
21. The RHI team – Ready to help
22. Ofgem E-Serve: How we can help • Enquiries: • 0845 200 2122, RHI.Enquiry@Ofgem.gov.uk • Comprehensive published information; • Guidance on the Scheme – Volume 1 (Eligibility) – http://www.ofgem.gov.uk/e- serve/RHI/howtoapply/Documents1/RHI_Guidance_Document_Vol_On e.pdf – Volume 2 (Ongoing Obligations) http://www.ofgem.gov.uk/e- serve/RHI/obligations/Documents1/RHI_Guidance_document_Vol_Two .pdf • Overview and key guidance for application process document • Apply: https://rhi.ofgem.gov.uk/ Xx www.ofgem.gov.uk
23. Xx www.ofgem.gov.uk Metering Schematics Figure 1.8: Illustration of possible metering arrangement for a complex installation where decentralised ineligible plants (in this example, fossil fuel boilers) are located on secondary heating circuits in separate buildings. Note that the flow meter can be placed in either the flow or return pipe. Red lines denote the hot flow pipes, and blue lines indicate the cool return pipes. This schematic has been annotated with a key, a table of meter specifications, and building names/boundaries, as discussed in Section 1.4 of Volume One’s appendix