Biofuels: Subsidies

(asked on 23rd June 2020) - View Source

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

To ask Her Majesty's Government what was the total level of subsidy given to (1) private, and (2) commercial, users in 2019 to encourage the burning of woodchip; and what was the total level provided to all users from 2015 to 2019 inclusive.


Answered by
Lord Callanan Portrait
Lord Callanan
Shadow Minister (Foreign, Commonwealth and Development Office)
This question was answered on 7th July 2020

Subsidies for burning woodchip are paid under three renewable energy schemes.

The Renewables Obligation (RO) scheme and the Contracts for Difference (CfD) scheme support the generation of renewable electricity. The RO does not pay a direct subsidy; support is through tradeable renewable electricity certificates. The Renewable Heat Incentive (RHI) scheme supports renewable heat technologies.

The table below sets out the spend under each scheme relating to the use of solid biomass (information is not available relating to the burning of woodchip specifically). The RO and CFD schemes do not distinguish between private or commercial users, although the users are mainly commercial. In the CFD scheme there were no payments made for generation from solid biomass before 2016.

The figures for GB are as follows:

Scheme

Spend (£m)

2019

2015-2019

RO – solid biomass[1]

991

4,338

CFD

408

1,063[2]

Renewable Heat Incentive

  • Domestic biomass boiler

52

237

  • Non-domestic solid biomass boiler

373

1,419

  • Non-domestic biomass CHP

47

100

  • Total

471

1,757

Overall total

1,870

7,158

[1] The RO figures are based on Ofgem’s certificate report as at 17 June 2020 from their Renewables and CHP Register

[2] CFD payments for generators using solid biomass are for 2016-2019 as no payments were made before 2016

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