The Renewable Energy Association (REA) has commented on the Government’s response to a consultation on Contracts for Difference (CfD) scheme, saying it “severely limits” new biomass CHP projects in the future.
The Government plan to adopt a new GHG threshold of 29 kg CO2e / MWh for new biomass CHP under the CfD scheme, which is lower than the 180 CO2e/MWh threshold that will apply from 2025-2030 for existing biomass generators under the Renewables Obligation.
The new threshold represents a requirement of 95.9% carbon saving compared to the EU fossil power average.
“With this decision the Government has undermined its own energy policies by attacking biomass yet again.”
Commenting on the decision to reduce the Greenhouse Gas threshold for new biomass, Benedict McAleenan, Head of Biomass UK, part of the REA, commented: “With this decision the Government has undermined its own energy policies by attacking biomass yet again.
“Just when we need low-cost, flexible power to back up technologies like wind and solar, this decision risks it all. It will make it harder and more expensive to remove coal from the UK power grid.
“Developing sustainable, efficient renewable CHP plants will be much more difficult, despite the joined-up value they provide across heat and power sectors. With no coherent strategy on decarbonising heat, the Government is undermining a key option. At the same time, just when BEIS and others seem to be waking up to the possibility of negative carbon emissions from Bioenergy with CCUS, they are simultaneously shutting off this market.
“In summary, the Government is shooting itself in the foot on three key policies: energy bills, heat decarbonisation and carbon capture. A triple whammy.”
