The U.K. Competition and Markets Authority on May 30 announced it has accepted a request from the U.K. Department of Energy Security and Net Zero to evaluate a proposed subsidy for Drax Group plc that aims to provide transitional support for biomass power operations while the company develops its bioenergy with carbon capture and storage (BECCS) project. &nbsp;Large-scale biomass plants, including Drax Power Station, are an important part of the U.K.’s renewable energy mix. Current government support for large-scale biomass power plants ends in 2027.&nbsp;The DESNZ in February announced plans to move forward with a short-term support mechanism for large-scale biomass generators. The extended subsidies aim to both support the move to BECCS and support the U.K.’s energy security. &nbsp;Biomass currently supplies approximately 5% of U.K. electricity generation.&nbsp;The U.K. government has indicated that transitional support for biomass power will be for lower volumes of generation than under current subsidies and will be designed to maximize energy security benefits. The transitional support will be offered as a contract for difference (CfD) with a generation collar. The new subsidies will be limited to biomass generators that have a minimum electricity export of 100 megawatts (MW). Eligible generators will also have to meet biomass sustainability criteria. In addition, the government has set a greenhouse gas (GHG) threshold at t 36.6 gCO2e/MJ, which aligns with the EU Renewable Energy Directive (RED III).According statements issued by &nbsp;Drax earlier this year, the transitional subsidies will be available for all four biomass units at Drax Power Station with an aggregate collar of c.6TWh pa (and a minimum of c.5TWh pa). The subsidies will be available from April 2027 through March 2031.&nbsp;The SAU is an agency that assists public authorities by providing independent non-binding reports in relation to subsidies or subsidy schemes that meet certain statutory requirements.&nbsp;In its June 4 announcement, SAU said it will prepare a report evaluating DESNZ’s assessment of whether the proposed subsidy complies with subsidy control requirements. The report is scheduled to be published by July 10.Additional information is available on the SAU <a href="https://www.gov.uk/cma-cases/referral-of-the-proposed-subsidy-to-drax-power-limited-by-the-department-for-energy-security-and-net-zero">website</a>.&nbsp;

The Drax Power Station in Selby, U.K., is converting to biomass. 

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The U.K. Competition and Markets Authority on May 30 announced it has accepted a request to evaluate a proposed subsidy for Drax Group plc that aims to provide transitional support for biomass power operations while the company develops BECCS.  

UK competition watchdog to review proposed transitional subsidies for Drax

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