UK ends discrimination against bioenergy projects

The Government has given the go-ahead for a large expansion in bioenergy power projects across the UK: removing a key obstacle to financing projects by guaranteeing levels of support under the Renewables Obligation for 20 years after completion.

Projects fuelled by wood and wastes have a crucial role in helping the UK meet its renewable energy targets. There are currently over 5,000 megawatts of dedicated biomass, energy from waste, gasification, pyrolysis and biogas that have been stalled in the development process.

They range from 300 megawatt plants – able to meet the annual needs of a population the size of Liverpool – to biogas plants on farms, which could together provide distributed energy right across the UK. Output from these projects would be equivalent to around 13,000 megawatts of onshore wind.

The decision will come as a great relief and follows many months of intense discussions between the industry and government, according to Gaynor Hartnell, chief executive of the Renewable Energy Association, which represents renewable energy producers in the UK.

“This brings most bioenergy projects into line with other technologies such as wind,” said Hartnell. “Levels of financial support (ROCs) for completed projects are now guaranteed for 20 years, even if the rules change in the future.”

According to the REA, the move should unlock some £13billion of much-needed private investment in the sector. Lenders, it notes, must have confidence in the support mechanism, which has been lacking until now.

“As well as generating baseload power, these projects bring many other benefits. They can help with waste management objectives, improve fuel security, create jobs and help with rural diversification. There is also great scope for innovation, as some of these technologies are cutting edge.”

However, the Department of Energy and Climate Change has signalled that it needs more time to evaluate whether to extend the same guarantees to electricity generation from liquid fuels. The REA describes this as a small but significant sector of the bioenergy industry.

“These fuels should not be discriminated against,” insisted Hartnell. “These projects can be among the most environmentally friendly and innovative of all. They also have the strongest sustainability regulation - liquid fuels for power will have to meet tough new standards on environmental protection from next year.”