Biomass Energy
Debate between David Crausby and Alan Whitehead(8 years, 2 months ago)
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Dr Whitehead
The hon. Gentleman is absolutely correct. There are system integration cost differentials between different forms of renewable energy. My point is that, depending on which report people read, those are not the same as they might appear to be between renewables. Indeed, what is undertaken in how the system works as a whole can substantially mitigate the different costs, so that, as we evolve the system, we can be in a much better position to ensure that the suite of different renewables—which, as my hon. Friend the Member for Ynys Môn mentioned, is so important for future low-carbon deployment—can properly be deployed happily alongside one another, as a suite of measures to ensure that we move towards a decarbonised economy.
I recognise that we have limited time this morning, so I want to turn briefly to the point the hon. Member for Selby and Ainsty made about the level playing field that is necessary for biomass. It is undoubtedly the case, given the measures that are in place at the moment for the enhancement of renewable energy, that there is not a level playing field. There is an overall problem with that suite of measures because of the levy control framework and the extent to which hardly anybody is likely to get a contract for difference for their project over the next period. Indeed, the hon. Gentleman will be aware that some biomass plants got contracts under the early investment decisions, prior to the new form of CfDs coming into being. However, when it comes to the efficiency of biomass, allying that with CHP schemes to ensure that biomass can get 15-year contracts under the CfD arrangements, even if the heat source is not there for 15 years, is an important change that would need to be made to CfD arrangements for the future.
As for the renewable heat incentive, the fact that there are no guarantees for tariffs between commencement and completion of a project if a biomass plant is trying to go for RHI seems to be an omission for the future that should be rectified as far as their admission to those arrangements—
Mr David Crausby (in the Chair)
Order. Dr Whitehead, if we are not careful, we will not hear the Minister, and I really want to hear her.
Dr Whitehead
I appreciate that, Mr Crausby. I will bring my remarks to a close immediately.
My view is that it will be necessary to ensure a level playing field in the future arrangements for low-carbon energy; indeed, whether biomass should be accessible to the capacity market as part of those arrangements might be a consideration the Minister is thinking about. I will be interested to hear from her what arrangements may be made for CfDs and RHI for that level playing field to ensure that biomass plays the role that all of us here this morning want it to play in the future of renewables.