Solid biomass in the United Kingdom

General

Renewable energy projections according to the National Renewable Energy Action Plan for the United Kingdom
The National Renewable Energy Action Plan (NREAP) for the United Kingdom was submitted in July 2010. The target according to Annex I of Directive 2009/28/EC is 15% for the year 2020 and the projected NREAP share in that year exactly matches the target.  According to the projection, the most important contribution in the year 2020 is expected from wind power (78.3 TWh or 6730 ktoe, 33% of all renewable energy). Second important contribution is expected from biomass (renewable heating and cooling) (3914 ktoe, 19% of all renewable energy). The third largest contribution is from biodiesel (renewable transport) (2462 ktoe, 12% of all renewable energy). Wind power contributes in the year 2020 with onshore wind (14.9 GW and 34.2 TWh) and offshore wind (13.0 GW and 44.1 TWh). For solar photovoltaic the 2020 contribution is projected to be 2.7 GW (2.2 TWh). For solar thermal the 2020 contribution is projected to be 34 ktoe. The two most important biofuels are projected to contribute 2462 ktoe (biodiesel) and 1743 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 20.6 TWh (1770 ktoe) and for biogas it is expected to be 5.6 TWh (479 ktoe). The consumption of renewable heat is expected to amount to 3612 ktoe for solid biomass and 302 ktoe for biogas.

Renewable electricity: solid biomass

The RO is the main support mechanism for renewable electricity projects in the UK. Smaller scale generation is mainly supported through the Feed-In Tariff scheme (FITs) .
The RO came into effect in 2002 in England and Wales and in Scotland and in 2005 in Northern Ireland. It places an obligation on UK electricity suppliers to source an increasing proportion of electricity they supply to customers from renewable sources. For information on how the obligation level is set each year please see the Department of Energy and Climate Change website - link opens in a new browser window.
The RO has undergone a number of reforms and improvements since it was  introduced in 2002. The most significant of these was the introduction of banding in April 2009. This moved the RO from a mechanism which offered a single level of support for all renewable technologies, to one where support levels vary by technology, according to a number of factors including their costs, relative maturity and potential for future deployment.
The enabling primary legislation for RO banding requires the Secretary of State to carry out a review of the bands before new bands are set. The Renewables Obligation Order 2009 provides that a banding review may be commenced in October 2010 and then at four yearly intervals thereafter.
Bands need to be reviewed periodically to ensure that support levels are set as cost- effectively as possible and that they help to bring forward renewable technologies at the capacity needed in an affordable way, delivering value for money for consumers.
Renewables Obligation Certificates (ROCs) are green certificates issued by the Authority to operators of accredited renewable generating stations for the eligible renewable electricity they generate. Operators can then trade the ROCs with other parties, with the ROCs ultimately being used by suppliers to demonstrate that they have met their obligation.
 Where suppliers do not have sufficient number of ROCs to meet their obligation, they must pay an equivalent amount into a ‘buy-out’ fund. The administration cost of the scheme is recovered from the fund and the rest is distributed back to suppliers in proportion to the number of ROCs they produced in respect of their individual obligation.
The UK long term goal is to achieve around 108TWh/y of large-scale renewable electricity generation in 2020, with the remainder of the 234TWh/y overall renewable energy target coming from small-scale renewable electricity, renewable heat and transport. With the support levels proposed in this consultation, we expect large scale renewable electricity to generate around 70-75TWh/y by the end of the banding period in 2017, in line with the deployment trajectory set out in the UK Renewable Energy Roadmap1, published on 12 July 2011.

Renewable heat: solid biomass

Renewable Heat Incentives (RHI) Schemes

The Renewable Heat Incentive (RHI) for non-domestic generators will open for applications on Monday 28 November 2011.
The start of the scheme follows a short delay while DECC (Department of Energy & Climate Change) resolved the scheme’s compatibility with EU state aid rules and resubmitted the draft regulations to Parliament. 
Organisations will be able to apply to Ofgem for support under the scheme from Monday 28 November and will receive payments on a quarterly basis for heat generated over 20 years.  For details on how to apply and find out more about the scheme please see the Scheme Details section below.

Scheme details

The scheme is being introduced in two phases.
In the first phase, long-term tariff support is targeted in the non-domestic sectors, at the big heat users – the industrial, business and public sector – which contribute 38% of the UK’s carbon emissions. Under this phase there is also support of around £15 million for households through the Renewable Heat Premium Payment scheme.
The second phase of the RHI scheme will see it expanded to include more technologies as well as support for households. In light of the later than expected launch of Phase 1, as a result of changes required by the European Commission, we are reviewing the timetable for introducing Phase 2. We will be able to confirm the exact timing early in the New Year.

Scheme to be taken forward in two phases :
- Phase One will provide support at the non-domestic sector for a range of technologies
- Phase Two will extend the scope to domestic installations and look to widen support for a range of technologies and fuel uses.

Two phase approach :
Phase one
Non–domestic tariffs at all scales starting 2011 for a range of technologies, which tariffs paid quaterly over 20 year period.
Small-scale technologies include :
-Biomass boilers
-Ground and Water source heat pumps
- solar thermal
Payments calculated bases on metered use
Installations up to 45 kWth – MCS certification required
Installation since 15 July 2009 eligible
Scheme administrated by Ofgem
Scheme funded through government spending, not a levy.

Annex I - Phase One Tariffs

Future programme changes expected
Phase two of the Renewable Heat Incentives (RHI) Schemes

Sources
DECC website

More information available at this following website :
http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/incentive/incentive.aspx

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: January 2012