Question

To ask the Secretary of State for Energy and Climate Change, what audit requirements are (a) in place and (b) planned for generating stations over 1Mw in size that use solid biomass or biogas.

The Renewables Obligation (Amendment) Order 2014, which came into force on 1 April 2014, requires generating stations with a total installed capacity of 1MW and above that use solid biomass or biogas to provide an annual sustainability audit report in respect of the biomass that they use. There are exceptions for landfill gas, sewage gas, municipal waste, manure and for other fuels which do not meet the specific definition of biomass within the Renewables Obligation (RO).

The audit report must be prepared to ISAE3000 standard or its equivalent, and must be prepared by a person who is not the owner or operator of the station or a connected person. In the case of biomass which is not waste or derived from waste, the audit must cover the information provided by the operator of the station in respect of the land criteria or Timber Standard, and greenhouse gas sustainability criteria. In the case of biomass which is waste or derived from waste, the audit must cover the information provided by the operator of the station that the biomass was waste or wholly derived from waste. Other detailed requirements for the audit report are set out in article 54B of the Renewables Obligation Order 2009, as inserted by article 15 of the Renewables Obligation (Amendment) Order 2014.

A similar audit requirement is planned to apply to Combined Heat and Power (CHP) stations receiving support under the Renewable Heat Incentive (RHI) if they choose not to source fuel from the RHI Biomass Suppliers List (BSL), a list of suppliers selling sustainable fuel, but instead report against the RHI sustainability criteria to Ofgem.

It is intended that the Contracts for Difference (CfD) awarded for bioenergy under the first Electricity Market Reform Delivery Plan will follow the same approach on sustainability audit as set out under the Renewables Obligation.

Ofgem, as the administrator of the Renewables Obligation, carries out a programme of audits of accredited generating stations, primarily to guard against fraud and error. This can include stations over 1MW in size that use solid biomass or biogas. They also ensure that a generating station remains an eligible renewable generating station for the purposes of the RO, that Ofgem holds the most up-to-date information for a station, and that the correct number of Renewables Obligation Certificates (ROCs) has been issued to the generator in question. The audits are carried out on a rolling basis, with targeted audits where it is deemed necessary. The CfD Counterparty company will be empowered under the Contracts for Difference to audit any generating station it chooses, with 1 business day's written notice, to check compliance with agreed Fuel Measurement and Sampling procedures.