Following the Government's plans to abolish subsidies to the wind and solar electricity production sector, Star Renewable Energy is calling for heat pump funding for heating technology to continue.
Star Renewable Energy director, David Pearson, is concerned that the technology “may die before it had a chance” if much needed subsidies are withdrawn on the cusp of the renewable heat revolution.
The company has delivered over 30MW of renewable heating around Europe and has been named among the companies putting Scotland at the forefront of low carbon innovation in foreign markets. However, the technology is still far from becoming understood in the UK.
Professor Paul Younger of Glasgow University said: 'As it is so often the case, other countries saw the light earlier than us and heat-pump technology built on the Clyde is now heating other European cities by extracting thermal energy from rivers. Meanwhile our rivers flow by, delivering their renewable thermal content to the open ocean unused while so many people in the UK cannot afford to heat their homes'.
While the Government has not yet confirmed that it will be targeting the Renewable Heat Incentive, through which this technology is supported, it has not mentioned any plans to extend the subsidy beyond March 2016.
This lack of subsidy clarity around the future of the RHI has been a factor in Star Renewable Energy withdrawing from a key project and losing out on £1m of support from the Department of Energy and Climate Change.
Developed to demonstrate the viability of harvesting heat from surface water while simultaneously selling cooling, Star Renewable Energy says the project, in Islington, north London, would have marked a new era of sustainability for homes and businesses around the Regents Canal area. The water heat pump was expected to supply cheaper, more eco-friendly heating locally. Drawing on heat from the local Regent’s canal, the Islington water source heat pump project would have simultaneously warm local homes and businesses, as well as cool a local data centre server room.
Star Renewable Energy was on-track to lead Phase 2 of the project, but with potential heat pump funding cuts on the horizon it has been forced to withdraw from the tender as commissioning beyond March 2016 would have resulted in no RHI application.
While the tender withdrawal was a major disappointment, it has inspired the company to continue advocating for change and urge the Government to lay out another four years of Renewable Heat Incentives, as well as removing project risks such as the inability to pre-qualify for funding.