Plans to convert a major power station to biomass has been “significantly jeopardised” by changes to Department of Energy and Climate Change (DECC) subsidy policy, according to a group of 11 Conservative MPs.
A letter to energy minister Ed Davey, right, warned a recent announcement under the Final Investment Decision Enabling for Renewables (FID) scheme would scupper plans to convert the Eggborough Power Plant to biomass.
DECC’s FID scheme is a mechanism to fund the ‘hiatus’ of investment in low carbon generation before Electricity Market Reform (EMR) legislation comes into effect.
The letter, signed by seven MPs and backed by a four others, said the Eggborough biomass conversion would be the “single biggest construction project in the UK” in the first quarter of 2014 if it went ahead on its start date of 6 January.
MPs warned the project, which had previously been given the green light under FID, was now being blocked by “last minute changes to the project selection criteria”.
The letter read: “If the Government seriously intends to rebalance the UK economy, attract inward investment, support and grow cornerstone industries such as engineering and construction and infrastructure, let alone avoiding significant job losses, projects such as this must be a real priority.”