A crucial Government decision on the level of subsidy for renewable energy is set to be delayed – dealing a blow to a raft of energy from waste (EfW) projects.
The hotly anticipated announcement on the level of support renewable energy projects are entitled to through the Renewables Obligation Certification (ROC) subsidy mechanism has now been pushed back until the autumn.
A delay on the decision, which had been slated for Spring 2012, has been caused by the high-profile and unresolved row over wind farm subsidies within in the coalition Government, the Telegraph and the Financial Time have said..
EfW projects, including anaerobic digestion, biomass and certain types of gasification and pyrolysis schemes, are entitled to the subsidy and the news will be a blow to the sector.
EfW developers and the Renewable Energy Association (REA) warned earlier this year that delays to the review were putting jobs and financing for schemes could at risk.
Chris Williams, managing director of Green Energy Park, told MRW in May that news on ROCs was “critical” for waste infrastructure developers.
He said it would have a “direct effect on planning and permitting, and an even greater impact on project funding,” he said. “It is of the utmost importance that the review is published as soon as possible.”
REA senior policy analyst Tricia Wiley told MRW in May: “The outcome of the review will govern whether the UK will meet its 2020 renewable energy target and reap the wider benefits which renewables offer.
“Renewable businesses across the power sector are awaiting the outcome of the RO banding review. The longer this takes, the longer investment decisions will be delayed.”
The Department of Energy and Climate Change consultation on plans to revise subsidies for generating renewable electricity closed in January.