UK announces Renewable Obligation subsidy levels
The U.K. Department of Energy and Climate Change has published level of financial support that will be available for large-scale renewable power generators from 2013-’17 under its Renewables Obligation subsidies program. An altered definition of biomass conversion and cofiring will increase incentives for existing plants to use more biomass.
Under the new subsidy levels, support for the conversion of coal-fired plants to biomass-fired plants has been maintained at one Renewables Obligation Credit per MWh. The subsidy for cofiring has been modified to stepped levels that more accurately reflect the cost elements of different cofiring levels, and what is affordable for both enhanced and standard cofiring.
Existing plants are able to gain credit for cofiring and conversion on a generating-unit basis, which allows more flexibility for generators to move to full conversion over time.
It is estimated that the revised banding levels could spur between £20 billion ($31 billion)and £25 billion of new investment between 2013 and 2017.