Foster recognises importance of renewable heat incentive

Energy Minister Arlene Foster has today published the main findings from a significant study examining the potential for renewable heat in Northern Ireland.

The study has concluded that Northern Ireland has the potential to obtain 10% of its heat energy from renewable sources by 2020. It has provided a firm evidence base to allow decisions as to how the market can be most appropriately encouraged and developed.

Commenting on the conclusion of the study, Arlene Foster said: "I recognise the contribution that an increased renewable heat market in Northern Ireland could have, not only on wider energy policy goals such as fuel security and reduced carbon emissions, but also the tremendous opportunities this sector presents for green jobs."

Great Britain is currently planning to reward renewable heat installations from April 2011 through a Renewable Heat Incentive (RHI). Decisions on the final design of the RHI will be taken as part of the Government’s spending review.

The Department of Enterprise Trade and Investment study examined the need for a similar scheme and has concluded that a RHI which takes into consideration the specific Northern Ireland heat market should be developed, providing it is economically viable.

The Minister continued: "The renewable heat industry in GB has been bolstered by the Government’s recent commitment to introduce an incentive scheme. I hope that my announcement today will give similar confidence to the renewable market in Northern Ireland.

"The Northern Ireland heat market is very different to the market in GB and therefore a specific renewable heat incentive scheme needs to be developed here to take into account our unique circumstances. I believe an RHI model that would support renewable heat installations from September 2010, could work for Northern Ireland as it has the potential to provide long-term stable support and confidence for the market to invest.

"In light of the current financial constraints that government is facing, it is important that a full appraisal is carried out on a Northern Ireland specific RHI to ensure that it is viable, economic and could be appropriately funded in the future.

"My Department will start this work as soon as possible."

Notes to editors:

1. Renewable Heat is heating space or water through renewable sources or technologies. The most common domestic applications of renewable heat are biomass boilers, solar thermal hot water heating and ground source and air source heat pumps. On a larger scale heat can be created though the process of anaerobic digestion (AD) where biogas is produced and can be used to generate heat directly or can be injected into the gas network. Another example of large scale renewable heat technology is Combined Heat and Power ('CHP') technology, under this process electricity and heat is produced by and be therefore be captured and used.
2. The Executive Summary of the report can be found on the DETI website
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