UK DECC begins consultation on the implementation of its biomass cap

On 13 May 2013, the Department of Energy & Climate Change (DECC) began a consultation on its proposed notification process for the allocation of places within its 400MW capacity cap. The cap, originally announced on 18 December 2012, will limit the number of new-build dedicated biomass projects that will be able to receive grandfathered support from the government under the Renewables Obligation (RO). Projects already under the RO scheme and those that are within the cap are guaranteed their subsidy until the end of the scheme in 2017, those that fall outside of the cap are not.

In order to be considered for allocation of a place within the cap, DECC has proposed that applicants will need a grid connection agreement in place, an environmental permit, construction go-ahead and finance in place. In an effort to combat the element of uncertainty created by the limits of the cap, DECC has also proposed a two-stage application process in which, before committing financially, applicants are able to find out whether they have a place secured within the cap, with actualisation of the place being conditional on completion of financial close within a strict time frame…

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