PARLIAMENTARY WRITTEN QUESTION
Renewable Heat Incentive Scheme (4 November 2014)

To ask the Secretary of State for Energy and Climate Change, what recent estimate he has made of the overall budget for Renewable Heat Incentive in the next comprehensive spending review needed to meet the 2020 renewable heat target.

Asked by:
Jonathan Reynolds (Labour)

The UK is committed to meeting our obligation to increasing the use of renewable energy by 2020, and we are on track to meet the 2013/14 interim target of 5.4% of final energy consumption from renewables. Renewable heat has a key role to play in meeting the overall target of 15% by 2020, however it does not have a specific sub-target.

The Impact Assessment of the Renewable Heat Incentive scheme published in December 20131 suggests that plans for the Renewable Heat Incentive could deliver between 29-59 TWh by 2020/21 (including a baseline of 15TWh) with a central range of 41-47TWh.

Such deployment would cost between £1.3 – 2.4 billion (in 2014 prices) annually from by 2020/21, with an average annual expenditure of £0.8 - 1.4billion (in 2014 prices) over the period 2016/17 to 2020/21. These cost estimates assume current tariff rates continue.

[1]https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263581/Impact_Assessment_RHI_Tariff_Review_Extensions_and_Budget_Management_Dec_2013.pdf

Answered by:
Amber Rudd (Independent)
11 November 2014