Question

To ask the Secretary of State for Energy and Climate Change, what recent estimate his Department has made of the cost per tonne of carbon saved by subsidy to (a) onshore wind, (b) offshore wind, (c) dedicated biomass generation plant, (d) biomass conversion and (e) biomass generation produced by combustion of imports of biomass from the US.

The subsidy cost per tonne of carbon saved by renewable technologies depends on the type of electricity generation displaced. DECC’s 2012 Bioenergy Strategy1 assumed that offshore wind and dedicated biomass displace combined cycle gas turbine plants and biomass conversion plants displace coal plants. Estimates of subsidy cost per tonne of carbon dioxide saved for these technologies are set out in the following table (the Bioenergy Strategy did not include estimates for onshore wind nor explicitly consider exports).

The range for dedicated biomass and biomass conversions reflects the range in possible carbon dioxide savings. It is the responsibility of generators to determine where in their supply chain they make this saving.

Coal to biomass conversions are supported as a transitional technology, to 2027. The table shows that, in the short term, conversions of coal plants can offer better value for money in abatement terms when compared to dedicated biomass plants and offshore wind, which offer longer term benefits.

In line with the 2012 Bioenergy Strategy, we have limited support for new build dedicated biomass electricity (without CHP) by placing a cap of 400MW on the total new-build dedicated biomass capacity. This reflects that the carbon savings are less cost-effective than coal to biomass conversions.

[1] https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48337/5142-bioenergy-strategy-.pdf