Central ScotlandWoodfuel Forum meeting

13th February, 2014, Glasgow

Minutes of meeting

Attendees:

Amy Stewart, FCS, Peter Rogers, West Lothian Council, Mike Smith, Rural Energy, Neil Harrison, Reheat, Iain Stewart, Stewart Timber, Sarah White, Carter Jonas, Claire Chapman, Scottish Water, Paul Cairns, VG Energy, Neil Holland, BalcasBrites, Jamie Farquhar, Confor, Thomas Pye, NHS Health Facilities Scotland, Martin Bair, Ofgem, Alice Mitchell, Ofgem, Stuart McAllister, HWEnergy, David Lewington, HWEnergy, Alastair Stewart, Angus Biofuels, John Keenan, NHS Greater Glasgow & Clyde, John Farrell, RWE Innogy UK, Rory McLeod, Moray Estates, Duncan MacKinnon, UPM Tillhill, Stephanie Clarke, Scottish Renewables, Dan Gates, Off The Grid Engineering, Virginia Harden Scott, RDI, Keith Wishart, Forestry Commission Scotland, Matthew Cooper, SAC Consulting, Antonia Boyle, North Lanarkshire Council, Struan Robb, Fraser Robb, Neil Phillips, Positive Solutions, Sam Selwyn, NHS Greater Glasgow and Clyde, Steve Luker, Steve Luker Associates.

Presentations:

Renewable Heat Incentive Update: Martin Baird and Alice Mitchell, Ofgem

Forestry Commission Scotland Update: Amy Stewart, Forestry Commission Scotland

Additional information to supplement Ofgem presentation:

Note, please see updated presentation from Ofgem for answers to questions raised in this session, click here to access.

  • 207 Applications processed Jan 2014. 322-350 applications being received each month. Peak in Sept 2013 due to imminent amendments to the scheme which came in at the end of 2013.
  • UK renewable heat capacity Jan 2014 710MW, Scotland accounted for 22% Dec 2012. Solid biomass accounted for 90% of this Dec 2012.
  • Sustainability Criteria to be introduced Autumn 2014
  • Ofgem have seen 400 Unique Air Quality certificates for boilers
  • Metering arrangements: Installations are now classified as using either a ‘standard’ or ‘multiple’ metering arrangement for RHI payment purposes during the application process depending on how many ‘quantities’ must be measured to calculate the associated eligible heat output (EHO). A ‘quantity’ relates to the measurement, using one or more meters, of the heat generated (eligible or ineligible) or heat used (eligible or ineligible) on the heating system to calculate the EHO. Your installation will be defined as using a ‘standard’ metering arrangement if only one ‘quantity’ is required to be measured or metered to calculate the EHO. This ‘quantity’ could be either the eligible heat generated where there are no ineligible heat uses; or the eligible heat used where there is no ineligible heat generation plant.Your installation will be defined as using a ‘multiple’ metering arrangement if two or more ‘quantities’ are required to be measured or metered and then combined to calculate the EHO. These would be the eligible heat generated, the eligible heat used and either the total heat generated (including ineligible heat generation) or the total heat use (including ineligible heat used). Please Refer to the flowcharts and examples in RHI Metering Placement Examples to determine which category your installation falls under.
  • Heat loss calculations: For heat loss calculations, any below ground pipework is considered not properly insulated. Therefore, if you have buried pipe work you will need to carry out a non-properly insulated calculation which produces a heat loss figure. For further information on heat loss calculations see the Heat Loss Assessment User Guide
  • For the domestic RHI applications will be assessed online at time of submission.For the non domestic RHI there are degression cycles every quarter. DECC assess these to see whether degression will be applied to the next quarter. Thenext tariff degression cycle period begins 15th March.

Q&A/Discussion session

  • D.Gates stated there was a rumour that the RHI tariff for sub 200kW + over 1 MW will be lowered. M.Baird stated information would be available on the 15th March. Ofgem have subsequently provided the following response: “Tariffs are currently being consulted on by DECC who set the policy agenda. For more info see:Non Domestic RHI - Improving Support Increasing Uptake. Existing tariffs have also been adjusted on the 1/4/14 for RPI, click here to access the information.”
  • T Pye requested clarification on what payment level the tariff received is based on- is payment based upon the date of accreditation/award or subsequent commission date of the installation?
  • D.Lewington asked if there were energy performance standards attached to the Domestic RHI. - Everyone except self-builders will have to have agreen deal assessment(including legacy applicants). This records the energy performance of your property, and will give you a list of measures that you could consider installing to increase its energy efficiency. It will include guidance as to how much they are likely to cost, and what savings they will generate on your energy bills. If loft and/or cavity wall insulation are recommended by the assessment you will have to install them and obtain an updated energy performance certificate (EPC) before applying for the RHI. If installing them is not feasible, you will need to present valid evidence of why not. Self-builders will have to get an EPC on completion of the property, and the deemed heat load figure will be taken from that.
  • N.Posol asked how you could calculate the RHI figure over the life time of a project. The response from Ofgem was that potential applicants need to perform their own analysis to determine ROI and lifetime RHI value. For information on how payments are calculated, please see their website, click here to access.
  • N.Posolasked whether Barrie Hudson’s Woodfuel Demand and usage report takes into consideration Procurement Scotland’s projections on uptake of woodfuel? The answer is no.
  • Martin Baird asked whether we have any data on end users in England buying wood from Scotland.The answer is no.
  • T.Pye asked if there was a figure of millions of tonnes Co2 equivalent for current use of woodfuel and how this compared with Government targets- check with EST on figures for Scotland.-VH awaiting answer on this
  • J.Farrell- voiced concern that upcoming sustainability criteria will allow the use of waste wood in small scale installations. Action -A.Stewart is to relay concerns to DECC.
  • C.Chapman- asked why Ofgem asks for quarterly readings. D. Gates replied that the industry had asked for quarterly payments, which require quarterly readings.
  • T.Pye asked if you are you allowed electronic readings for the non-domestic RHI andM.Baird confirmed this was possible.
  • J.Farrell asked whether Forestry Commission Scotland will provide assistance for small woodland owners to get sustainability certification, otherwise it will be difficult for woodfuel projects to source woodfuel. A.Stewart replied that there is nothing currently in place.
  • N.Harrison commented that there is a training requirement for installers to help inform them on good practices and currently there is a lack of information and support. Ofgem has a large amount of data that the public should be party to. M Baird stated that Forums are being held with consultants and installers, including a consultation on independent metering. Ofgem stated they are actively looking for consultation opportunities. N Harrison stated that it is about encouraging the right kind of installations, not just encouraging installations on the whole. There is an increasing drive by professional installers to increase standards as cowboys are damaging the reputation of the industry. Incorrect heat loss figures in particular are being given to clients. Increased installer training and information is key and Ofgem should be working on this.
  • D.Gates stated that if he was a potential domestic RHI customer he would assume that if his product was Micro Generation Certificate accredited it would be eligible for the domestic RHI, but this is not the case and this is having a significant impact on the confidence in, and potential uptake of the domestic RHI. The industry requires a list of eligible installations and this does not yet exist.
  • S.Luker stated that there is no quality information on what installations exist on the ground and what is in planning, stating that there is a need for accurate information on this as the supply chain needs time to react to possible future fuel supply and maintenance demands. The industry would also benefit from a report on lessons learnt to date from installations.
  • T.Pye reported a total of 30 NHS woodfuel installations to date (15-16 of which were commissioned in 2013) representing a total of 17-18MW of heat output.
  • J.Farquhar stated that the biomass industry did not currently threaten the timber industry as a whole.