Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Energy and Climate Change, what incentives her Department (a) is providing and (b) is planning to provide for (i) biomass and (ii) gas generation to create additional capacity.

Support is provided for biomass under a range of renewable financial incentives: the Renewables Obligation (RO), Feed in Tariff (FIT), Contracts for Difference (CfD) and Renewable Heat Incentive (RHI). The RO closed to co-firing and conversions last year and any future support will be via CfD.

The government announced it will hold three auctions for Contracts for Difference of up to £730 million this Parliament. Details of the future CFD allocation rounds will be published in due course.

The Government confirmed increased funding for the Renewable Heat Incentive scheme in November 2015 as part of the Spending Review, with the annual budget rising from £430m in 2015/16 to £1.15bn in 2020/21.

Getting new gas-fired stations built is a priority for Government and we are confident that the Capacity Market is the right mechanism to bring forward new capacity as older less efficient plants close. We have announced that we are going buy more capacity in December’s auction, tighten delivery incentives and bring forward the first capacity market delivery year to 2017/18. This should improve the chances of new gas (CCGTs, OCGTS and gas engines) capacity clearing in future auctions. Subject to a forthcoming consultation, closing unabated coal by 2025 will further strengthen investment signals for new gas. In addition, DECC is working with the planning inspectorate to arrange a workshop in June to explain how developers can use the pre-application project planning process to ensure applications for new gas plants are progressed as swiftly as possible.