Transitional support mechanism for large-scale biomass electricity generators
This consultation is open for responses
Respond to this consultationSummary
DESNZ proposes a transitional support mechanism for large-scale biomass generators converting to BECCS, covering gaps between existing support ending and future BECCS contracts beginning. The mechanism would apply in specific circumstances where generators face interim periods without revenue support. No details provided on mechanism design, duration, or funding source.
Why it matters
This creates a bridge subsidy that removes conversion risk from biomass plant owners while socialising transition costs. The proposal favours incumbents by guaranteeing revenue continuity during conversion, reducing their commercial risk while competitors face normal market exposure.
Key facts
- •Applies to large-scale biomass generators converting to BECCS
- •Covers interim periods between existing support ending and future BECCS arrangements
- •Consultation published January 2024
- •No mechanism design details provided
Areas affected
Related programmes
Memo
The government is considering whether a transitional support mechanism is required to facilitate the move from large scale biomass generation to power bioenergy carbon capture and storage (BECCS). This would apply in certain circumstances where there is an interim period between the relevant generators’ existing support ending and potential future power BECCS arrangements beginning. We are consulting to inform our assessment of whether a transitional support arrangement is appropriate and, if it is, how best to design and implement that support mechanism. Information you provide in response to this consultation, including personal information, may be disclosed in accordance with UK legislation (the Freedom of Information Act 2000, the Data Protection Act 2018, and the Environmental Information Regulations 2004). If you want the information that you provide to be treated as confidential, please tell us, but be aware that we cannot guarantee confidentiality in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not be regarded by us as a confidentiality request. We will process your personal data in accordance with all applicable data protection laws. See our [privacy policy](https://www.gov.uk/government/organisations/department-for-business-energy-and-industrial-strategy/about/personal-information-charter).