Subsidies for Electricity generated from Biomass

It is important that all energy forms we use in our move towards a low-carbon economy are sustainable, so I welcome that the Government only supports sustainable biomass and that generators only receive subsidies for biomass that complies with its sustainability criteria.

On the proposed continuation of transitional support for large-scale biomass electricity generators after 2027, as you will know, the previous Government consulted on this issue in January and February 2024. It said the aim of this was to support the transition of large-scale biomass generators to bioenergy with carbon capture and storage (BECCS).

It emphasised the need to ensure these generators remain in the market ahead of any future transition and said the support mechanism “should be designed to manage the changing circumstances” which could affect this transition.

At the same time, I note that the Climate Change Committee (CCC) has recommended ensuring that “large-scale unabated biomass power plants are converted to BECCS as early as feasible, and are not given extended contracts to operate unabated at high load factors beyond 2027”.

The new Government has said that no decision has been made on whether transitional support arrangements should be introduced for biomass generators when their current arrangements end. It has said it will consider a range of factors to inform the decision it makes. I can therefore assure you that I will continue to monitor this issue closely, keeping in mind the issues you highlight.

More widely, I agree wholeheartedly with the call for greater support for renewable energy and insulating homes. It is for this reason that I back plans to make Britain a clean energy superpower by 2030, as well as delivering a warm homes plan to upgrade the energy efficiency of millions of homes.

I welcome the steps that the new Government has already taken in this regard, including removing the de facto ban on new onshore wind in England, giving approval for enough solar energy to power hundreds of thousands of homes and securing a record-breaking 131 new renewable electricity projects across Britain.