The Renewable Heat Incentive Scheme Regulations 2018

Interpretation

56.  In this Part—

“assessment date” means 31st January, 30th April, 31st July or 31st October in any year;

“average load factor”—

(a)

in respect of a relevant installation which is a large biomass plant, means—

(i)

if the relevant installation uses or is expected to use heat for the same category of eligible purposes as 10 or more relevant installations which are large biomass plants in respect of which periodic support payments have been received, the average of the load factors of all such installations; or

(ii)

if the relevant installation does not use or is not expected to use heat for the same category of eligible purposes as 10 or more relevant installations which are large biomass plants in respect of which periodic support payments have been received, the average of the load factors of all relevant installations which are large biomass plants in respect of which periodic support payments have been received;

(b)

in respect of a relevant installation, except a relevant installation within paragraph (a), which falls or is expected to fall within a tariff category which fewer than 20 accredited RHI installations in respect of which periodic support payments have been received fall within, means the average of the load factors of all accredited RHI installations;

(c)

in respect of a relevant installation, except a relevant installation within paragraph (a), which falls or is expected to fall within a tariff category which 20 or more accredited RHI installations in respect of which periodic support payments have been received fall within (“sister installations”) means—

(i)

if the relevant installation uses or is expected to use heat for the same category of eligible purposes as 20 or more of the sister installations (“twin installations”), the average of the load factors of all the twin installations;

(ii)

if the relevant installation does not use or is not expected to use heat for the same category of eligible purposes as 20 or more of the sister installations, the average of the load factors of all sister installations;

“category of eligible purposes” means any one of the following—

(a)

heating a space;

(b)

heating water;

(c)

heating a space and water;

(d)

any other eligible purpose or combination of eligible purposes;

“estimated additional biomethane spend” in relation to an assessment date and any additional biomethane registered on a particular date in respect of which a relevant producer has received a periodic support payment means—

where—

(a)

A is the flow rate for additional biomethane registered on that particular date;

(b)

B is the number of hours in the 12 month period commencing with the assessment date; and

(c)

C is the initial tariff or subsequent tariff for the additional biomethane;

“estimated energy from biomethane”, in relation to an assessment date and a relevant producer as expressed in kWh means—

where—

(a)

FR is the estimated flow rate;

(b)

T is—

(i)

if the relevant producer is a participant, has made an application for registration or is a proposed producer of biomethane for injection in relation to which there is a pending tariff guarantee, the number of hours in the 12 month period commencing with the assessment date;

(ii)

where sub-paragraph (i) does not apply but an application for preliminary registration has been made by the relevant producer, the number of hours in the period—

(aa)

commencing on the later of the assessment date or the date identified by the applicant as the date on which injection is expected to commence; and

(bb)

ending 12 months after the assessment date; and

(c)

P is the proportion of biomethane which is calculated as follows —

where—

(i)

E is the amount of eligible biomethane in kWh injected by all producers of biomethane who have been registered and in relation to which periodic support payments have been received; and

(ii)

B is the amount of all biomethane in kWh injected by such producers in the quarterly periods for which periodic support payments have been received;

“estimated flow rate”, in relation to an assessment date and a relevant producer, means—

where—

(a)

B is the volume in cubic metres of biomethane that the relevant producer has declared as being the amount which that relevant producer expects will be produced for injection each year once injection has commenced (or if more than one declaration has been given, the volume identified in the latest declaration) or 0 if no such declaration has been given; and

(b)

H is the total number of hours in the 12 month period commencing with the assessment date;

“estimated heat”, in relation to an assessment date and a relevant installation as expressed in kWhth means—

where—

(a)

LF is—

(i)

if a periodic support payment has been received in respect of the installation, the load factor; or

(ii)

in any other case, the average load factor applicable in respect of that installation;

(b)

T is —

(i)

if the relevant installation is an accredited RHI installation, an eligible installation for which an application for accreditation has been made, or a plant in respect of which there is a pending tariff guarantee, the number of hours in 12 month period commencing with the assessment date;

(ii)

where paragraph (i) does not apply but the relevant installation is a plant for which an application for preliminary accreditation has been made, the number of hours in the period—

(aa)

commencing on the later of the assessment date or the date identified by the applicant as the date the plant is expected to be commissioned; and

(bb)

ending 12 months after the assessment date;

(c)

C is the installation capacity of that relevant installation;

“estimated original biomethane spend” in relation to an assessment date and any original biomethane in respect of which a relevant producer has received a periodic support payment means—

where—

(a)

A is the flow rate for original biomethane;

(b)

B is the number of hours in the 12 month period commencing with the assessment date; and

(c)

C is the relevant initial tariff or subsequent tariff calculated in accordance with regulation 59;

“estimated residual energy from biomethane” in relation to a proposed producer of biomethane for injection in respect of which there is a pending tariff guarantee, means—

where—

(a)

B means estimated energy from biomethane in excess of 250GWh;

(b)

M means the number of hours in the period commencing on the later of the assessment date or the date identified by the applicant as the date on which injection is expected to commence, and ending 12 months after the assessment date; and

(c)

Y means the number of hours in the 12 month period commencing with the assessment date.

“estimated spend” in relation to an assessment date and—

(a)

a relevant installation (except a relevant installation to which paragraph (b) applies), means the estimated heat in relation to that installation multiplied by the initial tariff or subsequent tariff;

(b)

a relevant installation which is a large installation in respect of which no periodic support payment has been received and for which the owner has given a declaration as to the total heat in kWhth which that installation is expected to generate each year for eligible purposes (or if more than one declaration has been given, the total heat identified in the latest declaration), means—

(i)

where the relevant installation is a plant for which an application for preliminary accreditation has been made (but sub-paragraphs (ii) and (iii) do not apply)—

where—

• A is the total heat identified in the applicant’s declaration;

• B is the number of hours in the period—

(aa)

commencing on the later of the assessment date or the date identified by the applicant as the date the plant is expected to be commissioned; and

(bb)

ending 12 months after the assessment date;

• C means the number of hours in the 12 month period commencing with the assessment date; and

• D is the initial tariff or subsequent tariff;

(ii)

where the relevant installation is a plant for which an application for accreditation has been made (but sub-paragraphs (i) and (iii) do not apply), the total heat in the applicant’s declaration multiplied by the initial tariff or subsequent tariff; or

(iii)

where there is a pending tariff guarantee in relation to a plant (but sub-paragraphs (i) and (ii) do not apply)—

(aa)

the total heat up to 250GWh multiplied by the initial tariff or subsequent tariff applicable to that heat; and

(bb)

in respect of any further heat—

where—

• A is that further heat;

• B is the number of hours in the period—

  (aa)

  commencing on the later of the assessment date or the date identified by the applicant as the date the plant is expected to be commissioned; and

  (bb)

  ending 12 months after the assessment date;

• C is the number of hours in the 12 month period commencing with the assessment date; and

• D is the initial tariff or subsequent tariff applicable to that further heat;

(c)

a relevant producer who has not received a periodic support payment or has received three or fewer periodic support payments, means—

(i)

except where paragraph (ii) applies, the estimated energy from biomethane in relation to that relevant producer multiplied by the initial tariff or subsequent tariff; or

(ii)

in relation to a proposed producer of biomethane in respect of which there is a pending tariff guarantee—

(aa)

biomethane up to 250GWh multiplied by the initial tariff or subsequent tariff applicable to that energy; and

(bb)

the estimated residual energy from biomethane, if any, multiplied by the initial tariff or subsequent tariff in relation to that energy; or

(d)

a relevant producer who has received four or more periodic support payments, means the sum of the estimated original biomethane spend and any estimated additional biomethane spend;

“financial year” means a 12 month period commencing on 1st April and ending with the following 31st March;

“flow rate”, in relation to biomethane, means—

where—

(a)

B is the amount of eligible biomethane in kWh for which periodic support payments have been received commencing with the third periodic support payment; and

(b)

H is the total number of hours in the period commencing with the first day of the first quarterly period in which that biomethane was injected and ending with the last day of the last quarterly period in which that biomethane was injected;

“forecast for expenditure”—

(a)

in relation to an assessment date and a relevant installation which falls or is expected to fall within any tariff category means the sum as at that assessment date of the estimated spend for each relevant installation which falls within that tariff category;

(b)

in relation to an assessment date and a relevant producer, means the sum as at that assessment date of the estimated spend for each relevant producer;

“forecast for total expenditure”, in relation to an assessment date, means the sum as at that assessment date of—

(a)

the estimated spend for each relevant installation; and

(b)

the estimated spend for each relevant producer;

“increase in expenditure forecast” means a figure determined under regulation 58(3)(d);

“large biomass plant” means a plant which generates heat or heat and power from solid biomass (including solid biomass contained in waste) with an installation capacity of 1MWth or above, and which is not a new solid biomass CHP system;

“load factor” in respect of an accredited RHI installation means—

where—

(a)

M is—

(i)

in the case of a shared ground loop system, the sum of the amounts of heat in kWhth for which periodic support payments have been made in respect of each of the ground source heat pumps which form part of the shared ground loop system; or

(ii)

in all other cases, the amount of heat in kWhth generated by that installation during all quarterly periods in respect of which it has received a periodic support payment;

(b)

C is the installation capacity of that installation; and

(c)

H is the total number of hours in all the quarterly periods in respect of which it has received a periodic support payment;

“pending tariff guarantee” means a tariff guarantee which has been granted in accordance with regulation 35(7) but does not include a case where—

(a)

the plant in respect of which the tariff guarantee was granted is accredited or the producer of biomethane for injection in respect of which the tariff guarantee was granted is registered;

(b)

an application for accreditation or registration has been made in respect of such a plant or producer of biomethane for injection;

(c)

a tariff guarantee has been revoked; or

(d)

regulation 35(11)(c) applies;

“relevant installation” means—

(a)

an accredited RHI installation;

(b)

a plant for which an application for accreditation or preliminary accreditation has been made, but does not include a plant where—

(i)

the application has been rejected by the Authority; or

(ii)

the application has been withdrawn by the applicant; or

(c)

a plant in respect of which there is a pending tariff guarantee;

“relevant producer” means—

(a)

a participant who produces or proposes to produce biomethane for injection;

(b)

a person who produces or proposes to produce biomethane for injection who has made an application for registration or preliminary registration but does not include a person who has made an application—

(i)

which has been rejected by the Authority; or

(ii)

which has been withdrawn by the applicant; or

(c)

a producer of biomethane for injection in respect of which there is a pending tariff guarantee;

“tariff category” means one of the following tariffs or groups of tariffs—

(a)

plants which generate heat from solid biomass;

(b)

CHP systems;

(c)

ground source heat pumps and shared ground loop systems with an installation capacity of 100kWth or above;

(d)

ground source heat pumps and shared ground loop systems with an installation capacity of below 100kWth and air source heat pumps;

(e)

plants which use solar collectors;

(f)

plants which generate heat from biogas with a capacity below 600kWth;

(g)

producers of biomethane for injection and plants which generate heat from biogas with a capacity of 600kWth and above;

(h)

deep geothermal plants.