RHI Sustainability Criteria Workshop

30.06.2015

What is the Biomass Suppliers List?

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• It is a method which will be used to provide RHI participants with a simple way to demonstrate their fuel complies with RHI standards.

• Context - DECC has always intended to introduce biomass sustainability criteria for the RHI, taking the lead in Europe ahead of any future mandatory EU criteria

- July 2012 – consultation on the introduction of biomass sustainability for the RHI - February 2013 – DECC announces intention to implement mandatory sustainability criteria, including the introduction of the Biomass Suppliers List (BSL)

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• The criteria will come into force on 5th October 2015 for both domestic and non- domestic RHI Applies to all new and existing participants generating heat (or heat and power) from biomass or biogas and those producing biomethane for injection Will apply to fuel used from the date the regulations come into force The criteria is made up of: a greenhouse gas (GHG) emissions limit of 34.8gCO2 per MJ of biomass heat generated land criteria which is aligned with the Timber Standard

Overview

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Introduction Why are the requirements being introduced? • No mandatory sustainability criteria for solid biomass at the launch of the

RHI

• This is an important factor to have assurance on • The requirements aim to:

• ensure biodiversity and other environmental impacts are protected

• contribute to DECC’s target to supply 15% of total energy consumption from renewables by 2020

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Types of Supplier

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Which type of supplier are you?

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Delivering the requirements

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Four routes of compliance:

• Buy fuel listed on the Biomass Suppliers List • Register as a self-supplier on the Biomass Suppliers List (installations

under 1MW whose fuel is woody biomass)

• Self-report on the criteria

• CHP plant which is satisfying the sustainability criteria on the RO scheme

Each route involves a different process and requirements to demonstrate the criteria have been met

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BSL and Ongoing Obligations

• The BSL is a scheme that enables suppliers to register fuels that meet the GHG and land criteria

• Open to all traders, producers and self-suppliers of biomass which is wood or wholly derived from wood, including waste-wood

• Doesn’t include energy crops or agricultural residues • Is managed through an electronic application process

• Provide quarterly declaration

• Provide BSL fuel reference number

Use fuel listed on the BSL

Submit with Periodic Data

• At audit, receipts will be checked to ensure fuel used is listed on the BSL

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Self-Supply

• Provide quarterly declaration

• Provide BSL fuel reference number Register

with the BSL Submit with

Periodic Data

• RHI participants can register as a ‘self-supplier’ if: • their installation is less than 1MWth capacity, and • they source woody biomass (which they have the legal right to source,

through ownership, rental or other relevant arrangement) from a Permitted Location or if they obtain waste wood from the place where it first becomes waste

• Installations <1MW only • Log book recording fuel use must be kept for audits

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Compliance for self-reporting

• To be used by those not sourcing from the BSL, self-supplying, using waste or RO compliant • Participants must provide their GHG emissions figure per consignment • Those over 1MW must also provide an annual sustainability audit report

• Provide quarterly declaration

• Provide GHG emissions figure

Self reporting

<1MW

• Provide quarterly declaration

• Provide quarterly Schedule 2 information and GHG emission figure

• Provide annual sustainability audit report

Self reporting over ≥1MW & biomethane

Submit with Periodic Data

• The UK Biomass and Biogas Carbon Calculator can be used to calculate GHG emission figures

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Non-Domestic RHI key points

• At application stage, applicants will need to confirm how they intend to comply with the biomass sustainability requirements

• Declaration or information requirements must be submitted every quarter with periodic data

• Payments dependent on the required information being provided and the requirements being met

• Ofgem audits will include checks of sustainability information

• Enforcement powers can be used for non-compliances related to the requirements not being met, such as withholding or recouping payments

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Domestic RHI key points

• Domestic participants must also meet the criteria from 5th October 2015 to continue to receive their payments • All Domestic RHI participants with biomass installations will be required to use fuel listed on the Biomass Suppliers List • This includes applicants who purchase fuel from a supplier and ‘self-suppliers’ who use biomass obtained from a permitted location and/or waste wood. • Self-suppliers will need to register on the BSL to be eligible for the Domestic scheme • We recommend that applicants and participants avoid entering into long term fuel purchase agreements with suppliers not on the list

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Sustainability audit reports

• Must be prepared by a person who is not the participant and is not a connected person • Submitted annually, no later than 3 months after fourth quarterly declaration • Who?

• Those self-reporting ≥ 1MW • Biomass/Biogas installations using waste or excreta ≥ 1MW • Biomethane producers

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Compliance for CHP and RO Interaction

• CHP installations are not permitted to demonstrate compliance by using listed sustainable fuel • Biomass CHP installations ≥1MW which are accredited on the RO and meeting their sustainability requirements are deemed to be compliant with the RHI sustainability requirements

• A declaration of compliance must be submitted when and how Ofgem requests it • Any heat generated by a CHP station that is accredited under the RO for which ROCs are not issued must be able to evidence that the RHI sustainability criteria have been met instead

Voluntary period

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• We are currently running a pilot programme asking participants to complete a survey on how they intend to comply with the criteria come October

• The aim is to promote awareness of the sustainability criteria and to get a measure of how people will be reporting

• RHI payments will not depend on this survey being completed

• We intend to reach all 6000 participants in four batches between April and August

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Installation type Quarterly declaration

URN of fuel(s) used per quarter

GHG emission figure

Annual sustainability audit report

Biomass/biogas sourcing from BSL (if CHP, must be <1MW)

Self supplier registered on BSL (<1MW only)

Biomass/biogas not sourcing from BSL/self-supplying/using waste/RO exempt <1MW

x

Biomass/biogas not sourcing from BSL/self-supplying/using waste/RO exempt ≥ 1MW

Biomass using waste (other than waste wood) or excreta <1MW

Biogas using waste or excreta <1MW

Biomass/biogas using waste or excreta ≥ 1MW

CHP not compliant with RO

CHP ≥1MW compliant with RO

Biomethane

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Further Information

1. BSL Guidance, info and applications http://biomass-suppliers-list.service.gov.uk/

2. BSL Helpdesk: halhelpdesk@gemserv.com 020 7090 7769

3. Ofgem Enquiries: RHI.Enquiry@Ofgem.gov.uk 0845 200 2122

4. DECC Renewables Delivery Team: deccbiomass@decc.gsi.gov.uk 0300 068 6184/6194