British Government proposes support scheme for new CHP-only biomass plants

In UK, a Government’s legislative proposal is planning to limit subsidies via guaranteed minimum power prices only to new dedicated biomass plants that generate combined heat and power, while new power-only plants would not be eligible for this support scheme.

The Renewable Energy Association (REA) is urging the government to reconsider; according to Gaynor Hartnell, chief executive at REA “The lack of a strike price for new build biomass means support for this important technology has effectively come to an end”. “Developers cannot simply add CHP to these projects retrospectively, so they will most likely be cancelled.

The proposal also plans to limit subsidies for biomass to 400 megawatts per plant, in case of new dedicated plants, while the reconversion of coal-fired plants would not be affected.

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