Amending legislation to the terms of support for biomass CHP

The Department for Business, Energy and Industrial Strategy (BEIS) has introduced legislation on the support for biomass-Combined Heat and Power (CHP).

This follows an announcement by BEIS in October 2016 about their intention to amend this legislation.

The 20% power efficiency requirement is reduced for ‘new solid biomass CHP’ plants to 10%. This is relevant to all biomass-CHP plant with a tariff start date on or after the 1 August 2016.

For plants with a power efficiency of below 10%, the level of heat receiving the biomass-CHP tariff will reduce proportionately. The remaining heat will receive the relevant biomass tariff. Participants with plants with a tariff start date between 1 August 2016 and 1 January 2017, and a power efficiency of less than 20%, can choose between either the 20% or the 10% power efficiency requirements. Changes to the power efficiency requirements come into effect from 1 January 2017.

BEIS plans to consult further on future policy in this area shortly.

For further information please contact BEIS at rhi@beis.gov.uk.