Financial incentives for the generation of heat and electricity

Renewables Obligation

The main support for biomass electricity is through Renewables Obligation Certificates (ROCs). These are tradable certificates issued under the Renewables Obligation for electricity generated from renewable sources.

Support for dedicated biomass electricity plants, energy from waste with combine heat and power and advanced conversion technologies under the Renewables Obligation has been “grandfathered”, that is, it is fixed for 20 years, subject to the 2037 end date of the Obligation. This provides revenue certainty for investors.

The Government carries out regular reviews of the banding levels under the Renewables Obligation. The timetable for the 2013 Banding Review is being speeded up to give investors and developers greater certainty and confidence to plan ahead,
More information on the Renewables Obligation is available on the Renewables Obligation page of the DECC website.

Feed-in-Tariffs Scheme

The Feed-in-Tariffs Scheme aims to encourage deployment of small-scale low carbon electricity generation, particularly by organisations, businesses, communities and individuals who are not traditionally engaged in the electricity market.
It makes a guaranteed payment per kWh of electricity generated. An additional tariff is paid where the electricity is exported to the National Grid.

Anaerobic digestion is the only biomass technology supported under the Scheme, and plants up to 5MW are eligible.

More information on the scheme is available ont the Feed-in Tariffs pages of the DECC website. 

Renewable Heat Incentive

The forthcoming Renewable Heat Incentive (RHI) will for the first time provide long-term guaranteed financial support for renewable heat installations.
The aim is to launched the scheme in Summer 2011. More information is available on the Renewable Heat Incentive (RHI) page of the website. 

Electricity Market Reform

The Electricity Market Reform proposals include a new support mechanism for all low carbon generation. More information is available on the Electricity Market Reform (EMR) White Paper 2011 page of the website. 

SUPPORT FOR THE SUPPLY OF BIOMASS FUEL

Energy Crops Scheme

In England, the Energy Crops Scheme provides grants for establishing short rotation coppice (willow, poplar, ash, alder, hazel, silver birch, sycamore, sweet chestnut and lime) and miscanthus in appropriate locations. The scheme, part of the Rural Development Programme for England (RDPE), is administered by Natural England.


FORMER GRANT SCHEMES NO LONGER OPEN FOR APPLICATIONS

Bioenergy Capital Grants Scheme and Bioenergy Infrastructure Scheme

The Bio-energy Capital Grants Scheme supported the installation of biomass-fuelled heat and combined heat and power (CHP) projects in the industrial, commercial and community sectors in England.

The Bio-energy Infrastructure Scheme helped growers and other businesses to process and supply biomass to heat and electricity end users.

Funding for the Schemes ended on 31 March 2011. We intend to publish a review of each scheme shortly. These will contain details of the funded projects.

Anaerobic Digestion Demonstration Programme

The Anaerobic Digestion Demonstration Programme, jointly funded by DECC and Defra under the Environmental Transformation Fund, has supported four anaerobic digestion demonstration projects. These demonstrate the innovative use of anaerobic digestion technology for a range of feedstocks.

More information is available on the website of WRAP (Waste & Resources Action Programme)

Repayment of Bioenergy Capital Grants

If you would like to repay your Bioenergy Capital Grant, please see the application form for further information, including terms and conditions:

Please note that if you are repaying your Bioenergy Capital Grant in order to apply for the Feed-in Tariff or Renewable Heat Incentive (RHI), DECC will not provide advice on whether grantees are eligible for support. You should instead refer to the Ofgem guidance which is available on the Ofgem: RHI - How to apply for accreditation web page. 

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