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Just two biomass power projects have applied for the last tranche of guaranteed subsidy, a guidance note from the Department of Energy and Climate Change (Decc) has revealed.
Decc estimated there were up to 1,000MW worth of projects in the pipeline when it introduced a 400MW cap on guaranteed support under the Renewable Obligation last December.
In May, Gaynor Hartnell, former chief executive of the Renewable Energy Association, warned: “There could be a situation where more than 400MW applies to go on the register on the same day.”
That did not transpire. The two schemes to apply, Eco2’s Brigg plant in North Lincolnshire and Eon’s Blackburn Meadows plant near Sheffield, total just 73.5MW.
However, at least one 300MW project, MGT Power’s Tees plant, is believed to still be under active development. If it is allocated support, that will leave little for anybody else.
REA head of policy Paul Thompson said the 1,000MW estimate had always been at the higher end of what was possible and the cap created uncertainty that put off investors. “Decc has gone to a huge amount of effort to ensure that they won’t exceed what they probably would have got at the high end if they had done nothing,” he said.
It is the last chance for power-only dedicated biomass plants to secure a subsidy as government has confirmed Electricity Market Reform will only support converted coal plants and biomass CHP. The REA is continuing to challenge that decision.
Eco2 announced on Tuesday it had signed a 12-year deal to sell power generated at Brigg to Statkraft.
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