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Decc supports U.K. biomass to 2019

July 1, 2013, London - The U.K.'s Department of Energy and Climate Change (Decc) has announced draft strike prices under the new contracts for difference (CFDs) renewable subsidy scheme, guaranteeing the electricity that price generators will receive until 2019 and giving much needed certainty for biomass investment.


July 1, 2013
By Canadian Biomass

Biomass-fired power plant conversions will be guaranteed
$168/MWh under the draft prices from next year until 2019. Dedicated biomass
combined heat and power (CHP) plants will be guaranteed $307/MWh until 2019,
but support for dedicated power-only biomass was not confirmed.

"The policy of whether and how dedicated biomass will be
supported under CFDs will be confirmed within the draft electricity market
reform delivery plan, published in July 2013," Decc said.

Biomass generators with CHP will also be able to apply for
support under the U.K.'s renewable heat incentive (RHI), Decc said, which is
currently $0.02/kWh for large biomass installations – over 1MW – and is being
revised. The draft strike price for CHP plants under the CFD scheme may be
altered once revised RHI tariffs are confirmed.

CFD strike prices will be guaranteed for 15 years once
accredited.

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CFDs will be phased in from April 1, 2014, eventually
replacing the current renewable obligation (RO) subsidies on April 1, 2017.
Generators accrediting in 2014-17 will have the option to accredit under either
scheme.

Under the CFDs, generators will receive top-up payments
above the wholesale power price up to the strike price. If the power price
exceeds the strike price, generators will pay back the difference, guaranteeing
price visibility for generators and investors.


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