As part of Government Decision (S180/20/10/2704) adopting sectoral emissions ceilings, it was agreed to introduce a Renewable Heat Obligation (RHO) to ensure the increased use of renewable fuel types across the full heating sector with the primary aim of supporting the achievement of Ireland's heating and cooling targets at EU level.
Under current proposals, the RHO will obligate suppliers of all fossil fuels used for heating purposes to ensure a proportion of the energy they supply is renewable. As such, all renewable fuels used for heat that satisfy the sustainability criteria of the Renewable Energy Directive will be considered eligible for certification under the scheme.
The development of the RHO is a key priority for Government and a draft RHO high-level scheme has now been finalised. As part of the scheme development process, and in consultation with industry and key stakeholders, an extensive examination of the heat sector and the potential cost and availability of renewable fuels to meet the obligation has been carried out.
My Department is now preparing the draft RHO Heads of Bill for submission to Government shortly alongside the draft RHO high-level scheme which will set out the introductory obligation rate across all fuel types in the first two years of the scheme. It is envisaged that a full review of scheme's performance, including in relation to the cost and availability of fuels to meet the obligation, will be carried out ahead of any rate increase after year two.
