Consultation on biomass grandfathering expected imminently
A consultation document on renewable obligation grandfathering in relation to biomass is expected before the end of next week, according to the Renewable Energy Association.
It is expected that the document, issued by the Department for Energy and Climate Change, will form part of the Budget announcement.
As reported previously in MRW, the renewable energy industry has expressed ongoing concern over the absence of the grandfathering principle for Renewable Obligation Certificates in relation to biomass, energy from waste and anaerobic digestion facilities.
Without grandfathering, financiers have been reluctant to invest in biomass technologies in case the ROC banding goes down and the facilities are no longer economically viable.
The REA has been working with DECC to try and resolve this issue and in February DECC said it would “look again” at the issue, with a full announcement anticipated before the end of March.
REA head of policy Paul Thompson said: “Obviously, the decision on what option is consulted upon lies with the Minister, but we are optimistic that the industry’s views will be taken into account.
“Once Government has published its conclusions (expected July) we are optimistic that financing discussions can resume.”
It is unlikely that any legislative changes will be necessary as the grandfathering arrangements for all technologies are currently set out in policy rather than legislation.
Thompson said: “The REA is optimistic that the hiatus on financing will soon be at an end, and grateful to DECC for working so swiftly to address the issue.”
It is expected that the statement will also include some further information on the Government’s plans for regulating biomass sustainability.
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