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Common errors in applications for the Non Domestic RHI Tom Crawford 19/06/2014.

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Presentation on theme: "Common errors in applications for the Non Domestic RHI Tom Crawford 19/06/2014."— Presentation transcript:

1 Common errors in applications for the Non Domestic RHI Tom Crawford 19/06/2014

2 Principles for you and your customers 2 Accreditation involves meeting a number of eligibility criteria, which must be verified by Ofgem To ensure this can be achieved readily: Understand the RHI eligibility requirements Plan for the RHI requirements as part of the design and installation process Obtain and retain documentation from manufacturers and installers Complete the application fully, with the correct evidence and level of detail, seeking support from a third party (e.g. installer) if appropriate Ofgem can help – Enquiry service, Easy Guides, Comprehensive Guidance by Topic, Summary Applicant Guidance Notes

3 Common areas needing clarification Main categories identified at review stage and at audit: System capacity Metering eligibility/installation (Class 2 heat meter) Eligibility of heat use Metering arrangements Heat loss assessments Emissions certificates Letters of Authorisation (LoA) 3

4 More frequent errors 1)System capacity Conflicting information between the capacities of the name plate, air quality certificate, commissioning certificate and IRMA report. 2)Metering eligibility/installation Wrong orientation and other meter installation issues; location incorrect; no evidence provided for a ‘class 2 heat meter’. 3)Eligibility of heat use Building not wholly enclosed 4)Metering arrangement Ineligible heat uses in the system not identified 4

5 System Capacity and Commissioning Information QuestionDoAvoid Installation capacity (HA120) Support this with a clear photo of boiler nameplate displaying capacity and serial number Clarify this where this may appear inconsistent with other sources (e.g. where boiler model name e.g. ‘XX 200’ does not match nameplate capacity e.g. 199kW Inconsistency with boiler plate, IRMA, Commissioning Certificate, Emissions Certificate Using a non-peak capacity (e.g. if boiler is 195kW with chip, 220kW with pellet, we must consider as 220kW Wrong units (W or MW or btu etc)) Commissioning date (HC110) Support this with a commissioning report - or where this is not possible, provide a case with invoices and photos to demonstrate plant was not commissioned prior to the relevant date (often 15 July 2009). Inconsistency with commissioning report, invoices, IRMA, meter readings and dates Providing installation date rather than commissioning date 5

6 System Capacity and Commissioning Information QuestionDoAvoid Replaced plant (HJ170) Provide details for plant removed from the system If these are the same technology, give a clear statement that all integral equipment has been replaced and is new – and attach evidence to support this (e.g. an invoice) Including plant still connected to the system – these are described elsewhere in the application Including decentralised or isolated plant Description of installation (HK120) Give a comprehensive description 6

7 7 Emissions Certificates QuestionDoAvoid Certificate upload (HL121) Upload a certificate in the latest Ofgem format where possible, which matches make, model, and capacity of the installation (or its constituent plant) Certificates not in line with the type testing range PM and NOx emissions values (HG ) Ensure these match the emissions certificate values Inconsistency with the values on the certificate Fuel type and moisture content Ensure the tested fuel type is consistent with the fuel type and moisture content that will be burned Using a certificate for a standard fuel type where a non-standard or contaminated fuel will be used

8 8 Air Quality and Moisture Content Edmund Ward 19/06/2014

9 9 A.Background and policy intent B.The air quality requirements C.December amendment D.Experience so far E.Where we are now F.Advice for completing certificates

10 10 Air Quality - Background The RHI is incentivising the burning of biomass which means there will be an increase in pollutants The intention to introduce air quality standards has been in the public domain since March The biomass tariff takes into account the cost of abatement After the regulations completed their passage through Parliament in July they came into force on 24 th September 2013 following stakeholder feedback not to introduce these requirements early. All biomass boilers affected for applications that submit from 24 th September onwards (unless a preliminary accreditation was received before this date)

11 11 Policy Intent Limit pollutants to reduce the impact on air quality Ensure evidence provided for emissions is robust Monitor actual emissions to feed into assessment of suitable limits Ensure that participants continue to remain within the emission limits by placing obligations on fuel use, regarding type and moisture content

12 12 Air Quality – what are the requirements Imposes limits on levels of pollutants – 150g/GJ oxides of nitrogen (NOx) and 30g/GJ particulate matter (PM) Evidence required for accreditation is either a RHI emission certificate or an environmental permit An RHI emission certificate must be issued by a testing laboratory and contain all the information specified in the templatetemplate Ongoing obligations are to only use the fuel types and fuel moisture contents permitted on the emission certificate, and operate the boiler in accordance with manufacturer’s instructions in relation to the control of PM and NOx emissions

13 13 Working with applicants, manufacturers and test labs Applicants simply want a certificate with all the information provided and suitable permitted fuels We’re keen to work closely with manufacturers and test labs to ensure the requirements are understood Reduction in processing time for applicants More certificates ‘right first time’

14 14 The December amendment Received feedback from industry that some of the requirements were very difficult to comply with for boilers 500kW and under Confirmation that testing was carried out in accordance with BS EN 14792:2005 in respect of NOx and BS EN :2002 or BS ISO 9096:2003 in respect of PM Regulations amended and came into force 13 th December 2013 now, either comply with EN 303-5, or: (i) testing was carried out in accordance with: - EN 14792:2005 in respect of NOx emissions, and; - EN :2002 or ISO 9096:2003 in respect of PM emissions 3 ; and (ii) emissions of PM represent the average of at least three measurements of emissions of PM, each of at least 30 minutes duration; and (iii) the value for NOx emissions is derived from the average of measurements made throughout the PM emission tests.

15 15 Air Quality – December 2013 amendment If the new certificate template is used (v2.1 or v2.2) then either 4a or 4b must be confirmed.

16 16 Air Quality – December 2013 amendment If the original template is used (v1.0), we need confirmation of either: 4a 4b + 4d 4c + 4d

17 17 Air Quality – December 2013 amendment How do we treat affected* applications now? If 4a is confirmed and 4d states ‘no’ (or anything else), the applicant must provide new meter readings from 13 th Dec onwards 4d states ‘yes’ or ‘yes (basically applied)’. The applicant can choose between: Providing a test lab statement and keeping original effective date Not providing a test lab statement and providing meter readings from 13 th Dec onwards It doesn’t matter how long it takes to provide a certificate with all aspects verified, the effective date can still be from 13/12/2013 for affected applications – or submission date for non-affected applications – as long as it was a properly made application * ‘affected’ = boiler of 500kW and under, and submitted before 13/12/2013

18 18 Experience so far Some statistics: – Over 1100 biomass applications submitted since 24/09/13 – 382 unique certificates – Issued by 30 different test labs – 63 different boiler manufacturers – 124 certificates definitely affected by drafting error – 155 certificates not affected by drafting error – 191 certificates ok (irrespective of non-drafting error) – 153 certificates with other non-drafting error issues

19 19 Where we are now? Versions of Ofgem’s RHI Emissions Certificates: 1.Consultation version – published July 2012, in annex BConsultation version 2.Version 1.0 – published 3 September 2013Version Version 2.1 – published 18 th December 2013Version Version 2.2 – published March 2014 The Ofgem template is not mandatory But must contain all the information listed in the Ofgem template (taken directly from Schedule A1 of the Regulations) It must be issued by a testing laboratory and signed Test lab must be accredited to ISO if the testing after 24 th September

20 20 Other issues with certificates Type testing range: – producing a separate certificate for each boiler tested in the range which individually do not satisfy 2:1 ratio – Including boilers above and below 500kW on one certificate and not clear which standards tested to Date of test – given as a month or a series of dates Max moisture content – referring to EN303-5 Note: non-drafting error aspects of a certificate don’t affect the effective date - it only delays them getting accredited

21 21 Updated certificate The updated certificate includes clarifications and advice as well as the December changes The advice has been added based on common errors we have been seeing since September so mistakes will hopefully reduce over time New certificate commissioned should be in template version 2.1 or 2.2 Certificates in template version 1.0 and without any others issues continue to be valid for applications submitted subsequent to drafting error being resolved It has been sent directly to testing laboratories and manufacturers as well as being updated on our website

22 22 We are engaging with test labs and manufacturers directly to obtain additional information need to accept current certificates We have dedicated topic specialists to ensure consistent and informed responses Collating feedback on the certificate for future updates Directly contacting test labs and manufacturer with updates regarding requirements: max moisture content, drafting error Manufacturers are encouraged to contact us if they have any queries before commissioning certificates Ofgem actions

23 23 Resolution to common issues 1.Max moisture content – DECC have confirmed that it is acceptable for maximum moisture content to be based on ranges given in EN (and by extension EN14961), if testing carried out in accordance with EN Supporting documents – Acceptable in some circumstances where it is required to clarify information provide on the RHI Emissions Certificate. – Must be issued by the same testing lab and must not contradict any of the information provided on the RHI Emissions Certificate – E.g. the original test report is provided to show testing was done on one occasion.

24 24 3.Type testing range Must follow the ratio rules: ratio between smallest and largest plant must be no more than 1:2 (or 500kW if smallest boiler is over 500kW), with at least one boiler within that range tested However if several tested boilers are included on one certificate, the type testing range can exceed 1:2 as long as each tested boiler covers a 1:2 range, e.g.: type-testing range contains boilers: A(20kW), B(30kW), C(50kW), D(60kW), E(100kW), F(200kW) and G(400kW) tested boilers: B (30kW) covers boilers A and B D (60kW) covers boilers C and D E (100kW) covers boiler E F (200kW) covers boilers F and G

25 25 4.Certificate with tested boilers above and below 500kW If one certificate covers boilers, some tested to different standards EN303-5 but some not. If none fully complied with the standards EN14792 and EN13284, then it is affected by the drafting error. The boilers tested to EN303-5 will meet the requirements under the Amended Regs, but those not tested to EN303-5 will not. However if everything else with the certificate is ok it will be valid for those boilers that were tested to EN Capacity If the tested plant is not listed in the type-testing range, the certificate can apply to any plant that is the same model, even if the installation capacity is different The capacity provided for the tested plant should be the peak heat output capacity The capacity of any models in the type-testing range should be included

26 26 Advice for completing certificates Certificate reference number (question 1c) – unique reference number and date of issue for the certificate itself, not the original test report it was based on. If a certificate is amended and reissued, a new reference number should be used Details of boiler tested – use the details as shown in manufacturer’s literature and use maximum capacity Date of test – provide the actual date of testing the emissions at nominal output. If several boilers tested, please specify which date relates to which boiler. If a boiler has not been tested but is included in the type testing range, it should be included in question 2g on the certificate for the tested boiler(s). It should not be issued on a separate certificate.

27 Wood stores and moisture

28 The new risk New non-compliances may arise where fuel is wetter than allowed for in emissions certificates In such cases we will have to stop payments Poorly designed outdoor stores may result in water condensing inside the store and dripping onto the wood Wood stores can get so wet that grass grows on them – or they catch fire

29 Technology Strategy Board Review of renewables in operation Looked at over 50 buildings with renewables Of which 23 were biomass systems

30 Early stage reviews Many biomass systems working as specified - but School 1 – biomass boiler hadn’t worked properly since commissioning – School authorities concerned about risk of CO in wood store – Maintenance costs and fuel costs discouraged use School 2 – Significant periods of non-operation – Auger/Screw feed size incorrect – Unconfirmed reports of flue gases circulating in nearest classroom

31 Other school issues School 3 – Boiler not used due to problems – Original issue was sprinklers soaking fuel store School 4 – Biomass boiler with supporting gas boilers – Biomass rarely operational in first year – Underlying cause, moisture problems caused by complex design of access system to store which allowed water ingress

32 32 Biomass Sustainability DECC intend to introduce new sustainability criteria for existing and new participants of the RHI in autumn 2014 to ensure installations using biomass fuels meet the Government’s environmental objectives. All RHI participants using biomass feedstocks in their installation will need to comply with the sustainability requirements from the date the criteria come into force. For the non-domestic scheme the main method to meet the sustainability criteria is: Sourcing woodfuel from the Biomass Suppliers’ List (BSL) [BSL is administered by Germserve] We would encourage you to make your supplier aware that they should register on the list as soon as possible, or register yourself if you are self-supplierregister This is based on information provided by the Department of Energy and Climate Change – who have provided a factsheet with further information which is included in your packs.information

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