The news that subsidies for the Drax power station biomass operation could well be continued beyond 2027 brought an angry response from opponents of this form of biomass technology.
The UK government has decided that ‘after careful consideration of the responses and given the situation inherited from the last government’, there is a case in principle for development of a short-term support mechanism for large-scale biomass generators. This decision recognises, on the basis of the consultation responses and advice received from the National Energy System Operator, that the continued operation of these plants plays an important role in bolstering the country’s security of supply between the late 2020s and early 2030s by providing low-carbon, dispatchable electricity to the grid. This is the primary driving reason for the decision the government has made.
It has introduced two caveats however. First, that any final decisions formally to agree contracts with generators will have to pass strict plant specific, value for money assessments, sustainability checks, and confirmation that eligibility criteria have been met. And second, that any support provided to generators will be for lower volumes of generation than under current arrangements and designed to maximise energy security benefits. Consequently, it expects the resulting total costs to consumers to be significantly lower than those incurred under the existing funding schemes.
Opposition
In response Dr Doug Parr, policy director for Greenpeace UK, said: “Continuing to subsidise huge biomass imports is not a step on the road to a cleaner future, but a dirty compromise with past failures. Trees should be left to grow and not be burnt in a major subsidy-fuelled bonfire.
“The UK’s commitment to Drax has become an albatross, a supposed asset that is looking more and more stranded as the energy market develops. The new criteria should, hopefully, limit the damage done both by restricting its operations and reforming its supply chain, but the government is still far too trusting of big polluters asking for big subsidies to decarbonise. We have cheap, clean power sources available, and we shouldn’t be left to gamble on schemes like this anymore.”
While Susie Elks, senior policy advisor for climate change think tank E3G said:
“E3G’s modelling has shown that the government can hit its 2030 power target without the need for biomass. It is reckless to continue subsidising this industry, which is a false climate solution. It is only carbon neutral on paper due to bogus carbon accounting rules. In reality, Drax is producing carbon emissions now which are as bad as fossil fuels. It is time to end this scandal once and for all and move to sustainable solutions, like green hydrogen, for providing back up power for Britain.”
Research by think tank Ember states that Drax, Europe’s largest biomass power plant, received £946m and £1012m in 2023 and 2024 respectively via ROCs (Renewable Obligation Certificates) and Contracts for Difference claims and is projected to receive £1083m in 2025.
