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Detail of outcome
In response to the consultation on changes to grandfathering policy for future biomass co-firing and conversion projects in the Renewables Obligation, the government has decided to make the following changes :
- the support rate under the RO for new biomass conversion and co-firing stations and combustion units should no longer be covered by Government’s grandfathering policy. This policy change will also apply to generating stations or combustion units that are already receiving support under the RO and move for the first time into the mid-range co- firing , high-range co-firing or biomass conversion bands;
- Exceptions will apply to protect those who have already made significant financial commitments. These cover
- any station or combustion unit that is the subject of an investment contract awarded through the Final Investment Decision Enabling for Renewables (FIDeR) process and is awaiting State Aid clearance;
- or any station or combustion unit which has moved into the mid or high-range co-firing bands and generated electricity eligible for ROCs under these bands in any month before 12 December 2014.
These changes to grandfathering policy will take effect from the date of the publication of the consultation document (12 December 2014).
The consultation proposes:
that the support rate under the Renewables Obligation (RO) for future biomass co-firing and conversion projects should no longer be covered by our grandfathering policy; and that this change would apply to combustion units that move into the mid-range, high-range co-firing or biomass conversion bands under the RO
that the changes would take effect from the date of the publication of this consultation document
Grace periods for any combustion unit that:
- is the subject of an investment contract awarded through the FIDeR process, where that contract is terminated under the State aid condition in the contract because of a negative or conditional State aid decision, or a delay in a State aid decision being obtained; or
- has in any month before the publication of this document moved into the mid-range or high-range co-firing bands