Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, (a) on what basis his Department decided to begin subsidising the burning of wood pellets at Drax power station, (b) for how long that subsidy has been in place and (c) if he will halt that subsidy and carry out a full review of the evidence basis for the policy.
Sustainable biomass can be used to produce renewable and low-carbon electricity and has system benefits, such as dispatchability and inertia, and stable established supply chains and prices, providing energy security within a net zero consistent energy system.
Drax has been supported under the Renewables Obligation since 2011, and under the Contracts for Difference scheme since 21st December 2016 to generate renewable electricity. There is no cost to the public purse as both schemes are paid for by compulsory levies on electricity suppliers.
The Government only supports sustainable biomass and generators only receive subsidies for biomass that complies with the UK’s strict sustainability criteria.
The forthcoming Biomass Strategy will detail the Government’s assessment of the priority use of biomass across the economy.