As part of the Sectoral Emissions Ceilings Decision S180/20/10/2704, the Government agreed to the introduction of an obligation on the heat sector to require suppliers of fossil fuels used for heat to ensure a proportion of the energy they supply is renewable.
Development of the Renewable Heat Obligation (RHO) scheme is a key priority as the RHO will support achievement of our renewable energy targets, help reduce our reliance on imported fossil fuels, and strengthen our energy security. Identified as a key demand side support in the National Biomethane Strategy, the RHO will also support the delivery of the Government target of 5.7TWh of indigenously produced biomethane by 2030.
Given the impact the RHO will have on fuel producers, suppliers and end consumers, careful consideration of the necessary scheme parameters is required, and accordingly extensive market engagement has been central to the scheme design process. In this regard, my Department has carried out a number of stakeholder engagement activities to ensure a robust evidence base will inform final decisions in relation to the scheme and support its successful introduction.
Following a final public consultation on the draft RHO high-level scheme, which will be launched shortly, it is intended to bring the proposed scheme to Government for approval.