Introduction

Scottish Biomass Heat Scheme

Successful Applications Under the Final Round have been announced

The Scottish Government aims to build a commercially viable, diverse renewable heat industry in Scotland in support of our 2020 renewable energy target of 11% of heat demand to come from renewable sources. With this in mind, the Scottish Biomass Heat Scheme was launched on 6 October 2008.

The £3.3 million Scottish Biomass Heat Scheme is Scotland-wide, funded by Scottish Government, Forestry Commission Scotland and the European Regional Development Fund (ERDF). Of this, £1.3 million is available in the Highlands & Islands area and £2 million in the Lowlands & Uplands Scotland area.

The successful projects under the final round of the Scottish Biomass Heat Scheme were announced on 23 December 2010. The results of the first, second and third rounds are also available for viewing.

The projected capacity for projects awarded grant under the SBHS is about 14 MWth, with annual CO 2 savings of over 14,000 tonnes.

Renewable Heat Incentive

On 20 October 2010, as part of the Spending Review, the UK Government announced that the Renewable Heat Incentive (RHI) will be launched in June 2011. Further details on the scheme are yet to be announced. However it is very likely that in order to comply with state aid rules, installations that have received a grant from 15 July 2009 will have to pay the grant back in order to be eligible for the RHI unless the type and total amount is allowed under EU state aid rules. This is similar to the eligibility criteria for the Feed in Tariff. Further guidance on this will be provided once more details become available.

The programme is delivered by funds from the Scottish Government, European Union and Forestry Commission Scotland