Controlling the cost of biomass conversion and co-firing under the RO scheme

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The U.K. government has become aware that the deployment of biomass conversion and co-firing units would be higher than previously estimated, despite changes to the grandfathering policy [1]. The additional deployment under the Renewable Obligation (RO) scheme could result in additional costs of around £110m to £195m per annum [2].

Last month, the U.K. government issued its response to the consultation on cost control for non-grandfathered biomass conversions under the RO scheme, noting it will introduce an amended version of a generator cap. The cap will be applied at the power station level across all ROC units and is set at 125,000 ROCs per RO-eligible non-grandfathered unit per obligation year.

The effects of the response could already be observed shortly thereafter. Drax Group PLC announced in a statement that they will be ...