UK government to further incentivize biomass, solar projects

The UK Department of Energy and Climate Change (DECC) has announced its decision to extend funds and incentives towards the development of cost and carbon effective biomass and solar photovoltaic (PV) projects in the country.

Biomass and PV projects developers, consequently, stand to benefit under the government’s Renewables Obligation (RO) initiative.

Building-mounted solar PV projects are set to receive higher incentives as opposed to ground-mounted projects to accelerate large-scale commercial solar installations at factory or warehouse buildings.

New biomass projects will also receive incentive and help secure investments worth £600m for the sector.

DECC Secretary Edward Davey said that the government envisions an increased role of biomass in cost-effective and low carbon renewable power as part of the energy mix.

"We want to see a healthy solar industry that grows in a sustainable way," Davey added.

The Renewable Energy Association (REA) welcomed the RO decision on biomass stating that the DECC has removed restrictions on suppliers to biomass facilities.

REA chief executive Gaynor Hartnell said, "Instead of implementing legislation that would have stopped investment in its tracks, DECC is taking more of a ‘wait and see’ approach, with the option of consulting if deployment exceeds 400MW."

REA On-site renewables head of Mike Landy responded to the RO decision on solar saying that the government heard industry’s evidence and improved support for large-scale solar PV.

"However we do not understand the rationale for limiting large-scale PV to "slow but steady deployment" when much more could be achieved at a cost below that of the Government’s ‘marginal’ renewable technology, offshore wind," Landy added.