The Government’s response to consultation on projects to be supported under Renewables Obligation (RO) scheme has been published the Department for Climate Change (DECC). It was widely expected that DECC would decide to ‘cap’ the number or capacity of new biomass plants that would be supported. But instead a trigger of 400MW has been set- and when it is reached the government will review the state of the Low Carbon and Biomass markets and launch a fresh consultation.
Under the announced support regime, new biomass plants will get 1.5 Renewable Obligation Certificates (ROCs) per MWh from 2013, and 1.4 ROCs in 2016.
Support for standard co-firing of biomass and co-firing of regular bioliquids will be reduced to 0.3 ROCs/MWh in 2013/14 and 2014/15.
The announcement also provided certainty for the support for standard co-firing with combined heat and power (CHP) and co-firing of regular bioliquids with CHP will be reduced to 0.8 ROCs/MWh in 2013/14 and 2014/15.
Allen Creedy the energy specialist at ethical partnership said that “a number of our clients have shelved their Biomass power plant investment proposals pending this announcement – this should be the green light for these to be dusted off and work to start again”
DECC predicts the announcement should unlock investment decisions worth £600 m and create around 1,000 new construction jobs. Allen commented that “ we have secured consents for a number of new biomass fired power stations and these should now start to be constructed so that they can make a significant contribution to delivering cost-effective, low carbon renewable power as part of the UK’s energy mix in the future and in doing so help to provide base-load security.”
The notification process for new dedicated biomass power plants and the criteria for registration are expected to be introduced within a separate Renewables Obligation Order for implementation from October 2013.