SEAI Report – Potential Biomass Prices in Ireland

The price that solid biomass will be available at in Ireland is a key assumption underpinning the formulation of heat incentive tariffs. As part of efforts to ensure that the RHI in Ireland is designed to meet the target for renewable heat at least cost, SEAI have sought advice from Ricardo Energy and Environment on the price and availability of biomass resources for use in the heat sector in Ireland. The report highlights key information gathered, and important considerations around biomass supply chains, energy security, infrastructure, and sustainability which need to be taken into account when setting a price to use in analysis of the tariff. It is important that the price reflects as accurately as possible the price that biomass developers will see in the marketplace as schemes become operational, if the assumed price in the tariff analysis is lower than is actually seen in the marketplace then uptake is likely to be lower than forecast as switching to biomass will not be an attractive option. Conversely, if the assumed price is higher than is seen in the marketplace, then operators will potentially be over subsidised. The proposed SSRH is unlikely to be operational for several months, and potential applicants to the scheme will be considering the biomass price which they will face in the initial years of operation. Potential applicants may find this report useful in assessing viability, view here (Published 26 Oct 2017