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Daily Telegraph: Doubts over E.ON biomass plant


Energy utility E.ON said it was reviewing whether to proceed with building a new biomass plant, for which it received government approval today, in light of proposed cut to subsidies.

The company was given the go-ahead to build a 150MW dedicated biomass power station at Royal Portbury Dock in the Port of Bristol, which could generate enough electricity to power up to 160,000 homes.

The Department for Energy and Climate Change (DECC) hailed the decision as paving the way for the new plant to create up to 325 temporary jobs during construction and 35 full-time jobs.

However, E.ON raised doubts over whether the plant would be built, because of a proposed cut to Renewable Obligation Certificates (ROC), which are subsidies for green power generation.

It said it would "now take some time to review the prospects for the project" in light of the subsidy review and would assess "how it fits with [its] portfolio of renewable energy investments in the UK".

The Government plans to reduce the subsidy level for dedicated biomass plants from April 2016, a decision which has already led to Drax scapping plans for one of its proposed plants.

A consultation on the proposals closed in January and the Government is due to make its final response soon.