RES criticises ‘inconsistent’ policy as it axes biomass plant

RES has axed plans for a 100MW biomass power plant in Northumberland, citing increased policy uncertainty.

The independent renewable energy developer said government’s “inconsistent support” for dedicated biomass energy over the last two years “critically undermined the investment case” for the station.

The £300 million North Blyth project was set to employ 300 people in construction and 50 more to run the plant in the long term.

Gordon MacDougall, RES’ chief operating officer for the UK, said it was “bitterly disappointing” not to be able to go ahead. “However, the gradual erosion of support for dedicated biomass leaves us with no other option,” he added.

In December, the Department of Energy and Climate Change confirmed there would be no subsidy for dedicated biomass power under the new regime. Only coal-to-biomass conversion and biomass with combined heat and power are eligible for support through contracts for difference.

That followed a downgrading of ambition for the sector from 4,000MW to 400MW under the existing support regime, amid sustainability concerns.

RES criticised the move, which it said was “at odds with the urgent need to bridge the looming capacity crunch in the UK energy system”.

MacDougall added: “This is a reminder to government that, without a consistent approach to energy policy, investors and developers will be deterred from delivering the billions of pounds needed to ensure the nation’s energy infrastructure is able to keep the lights on and secure cost effective electricity for British homes and businesses.”

Shadow energy minister and Labour MP Julie Elliot echoed that concern. She said: “Barely a week goes by without more worrying news for clean energy in the UK. This decision is hugely disappointing, not just for Northumberland and the North East, but for the entire low carbon economy…

“The government needs to get its act together fast, or I fear we will continue to see announcements such as this. Investors need long-term certainty, but instead they see a government paralysed by internal rows and chronic indecision.”

The Renewable Energy Association also called on government to back biomass again. Chief executive Nina Skorupska said: “The government used to have a clear policy of supporting the most affordable low carbon technologies, which saw biomass projects attract healthy investment.

“However, recent government actions have eroded investor confidence in the biomass sector. The result is project cancellations totalling hundreds of MWs and millions of pounds of inward investment. This row-back on biomass leaves a huge hole in the government’s plans to keep the lights on with low carbon technology. It is also a missed opportunity for cost-effective emissions savings and thousands of new jobs.”