Biomass, anaerobic digestion and energy from waste

Please note the Consultation on the Grandfathering Policy of Support for Dedicated Biomass, Anaerobic Digestion and Energy from Waste Under the Renewables Obligation closed on 28 May 2010.

The purpose of this consultation was to:

• seek views on whether our preferred option is the best way forward
• gather evidence on the costs for dedicated biomass, AD and EfW, and the proportion of costs attributable to non fuel costs
• test our assumptions over investor reaction to grandfathering and therefore the likely amount and timing of investment that would come forward under different
• options
• seek views as to whether there are any other unintended consequences of our preferred option

Following representations from industry, and discussions with banks and equity investors, we announced we would revisit our current grandfathering policy for dedicated biomass, anaerobic digestion and energy from waste. We do not intend to revisit grandfathering policy for any other technology in this consultation.

The Government Response below sets out our decisions in relation to grandfathering these technologies.

Government Response

Impact Assessment

Responses from individuals

Responses from organisations: A-D

Responses from organisations: E-H

Responses from organisations: I-M

Responses from organisations: N-O

Responses from organisations: P-S

Responses from organisations: T-W

Consultation on the grandfathering policy of support for Dedicated Biomass, Anaerobic Digestion and Energy from Waste under the Renewables Obligation

Impact Assessment of grandfathering support for Dedicated Biomass, Anerobic Digestion and Energy from RO

The consultation document states: “We would welcome views with supporting evidence as to what proportion of the current ROC level should be attributable to the non-fuel costs. We have identified two potential ways to determine the support needed for capex and opex elements.” To aid clarity on the meaning of these two potential methodologies, we have decided to express them algebraically in the attached document.

Algebra

Email: rfi@decc.gsi.gov.uk Post: RFI Team

ORED Department of Energy and Climate Change

4th Floor, Area A/B, 3 a?? 8 Whitehall Place

London

SW1A 2HH