Small biomass power plants in the UK face an uncertain future after the government confirmed that it will not introduce a new subsidy scheme when their existing support expires from 2027, Bioenergy Insight reported.
The Department for Energy Security and Net Zero said subsidies provided under the Renewables Obligation (RO) scheme will begin expiring from April 2027, with support for individual plants ending at different points over the following decade.
The government estimates that withdrawing successor support could save consumers around £1 billion a year.
In a letter to the Energy Committee, Energy Minister Michael Shanks said the government did not intend to provide replacement subsidies for the affected biomass plants.
Shanks said the decision was the right approach for energy consumers because small-scale biomass generation is relatively expensive compared with other electricity generation technologies.
The decision has drawn criticism from the biomass and waste sectors, which warned that the withdrawal of support could force some plants to close.
Richard Coulson, biomass lead at the Wood Recyclers’ Association board, said the government had failed to account for the role biomass plants play in managing millions of tonnes of waste wood generated in the UK each year.
He warned that without support for the facilities, waste wood could increasingly be exported or sent to landfill, while some material could end up being dumped or sent to illegal waste sites.
Coulson said biomass plants should not be assessed solely on their contribution to electricity generation because they also provide a domestic outlet for waste materials.
The Department for Energy Security and Net Zero defended the decision, saying the Renewables Obligation was designed as a time-limited scheme and that the industry had known from the beginning that support would last for 20 to 25 years.
The department said any future subsidy would have to demonstrate value for money for consumers, adding that keeping energy bills under control remains central to government decisions.
