The Government is committed to ensuring a secure, affordable and sustainable energy system for all consumers. The reliance of our heating sector on fossil fuels is a significant contributor to Ireland’s high energy import dependency and carbon emissions, and introduction of the Renewable Heat Obligation (RHO) is a key objective for me, as Minister, to help address these challenges.
Given the potential impact the RHO could have on end consumers, energy affordability and the impact on household energy bills were key considerations in developing the scheme.
As such, a number of scheme parameters have been designed to allow flexibility to obligated parties in meeting their obligations which will, in turn, reduce the overall burden on the end consumer.
Identified in the National Biomethane Strategy as a key mechanism to create a demand side incentive, the RHO will also support the development of an indigenous biomethane sector.
The RHO General Scheme includes a multiplier for each unit of indigenously produced biomethane surrendered under the scheme. The use of this multiplier will help levelise the cost of domestically produced biomethane with biomethane produced in the wider EU market.
In December, my Department formally notified the European Commission of the use of this multiplier to ensure no discriminatory practices, or fragmentation of the EU single market.