Tuesday, 19 July 2011
On to the Electricity Market Reform which was released on time last week. There was a lot to digest in there, but the most important points for the Tees REP project were:
- Renewables Obligation to stay in place for accredited generators until 2037
- Generators accrediting between 2014 and 2017 will have the option to stay in the Renewables Obligation or switch to a Feed In Tariff (FIT): The Tees REP is one of a small number of plant that will have this option
- ROC prices will be fixed at £41/MWh (real terms) from 2027 onwards
- The Energy Crop banding will be grandfathered from 2017
At the same time as the EMR, the government published the Renewable Energy Road Map. The biomass highlights from this documents are:
- 6 GW of biomass capacity by 2020 (up from 2.5 GW today)
- There is 4.2 GW of new capacity "in the pipeline", so the government is confident of delivery
- The government recognises financing challenges caused by a lack of reference plant for large scale dedicated biomass and uncertainty over the ROC banding and is seeking ways to help
- In order to help deliver the pipeline of biomass projects the government will be publishing a UK Bioenergy Strategy by the end of the year.
- Coal to biomass conversions will be consulted on as part of the banding review
These are interesting times for our industry, we will keep posting here as things develop
Wednesday, 13 July 2011
Tuesday, 12 July 2011
Some very positive points from today's documents, we'll blog more detail as we digest.
Couple of long days ahead for the MGT team.
Monday, 11 July 2011
From the Parliamentary Office of Science & Technology, has come a fine, if rather unexpected, report on carbon emissions from electricity. You can find it here.
While we don't agree with every detail, it is refreshing to see an impartial and balanced piece of work that is grounded in scientific references, and all this produced by a branch of government!
CCC take note.
It's the first time we've seen anyone in government acknowledge that lifecycle emissions from LNG are very significantly higher than regional pipeline gas, but even more significantly (whisper it quietly) that lifecycle emissions from residential solar PV - that greenest of green - are subject to a wide range of values. In fact the UK average for PV, at around 88gCO2eq/KWh, is actually slightly higher than the calculated lifecycle emissions of wood chips from the US South converted to electricity in the Tees Renewable Energy Plant.
Meanwhile the median lifecycle emissions of coal fitted with Carbon Capture and Storage is expected to be about 200 gCO2eq/KWh - well over double MGT's estimated level for port based biomass plant (using sustainable wood chips), and significantly higher than the necessary system average if the UK is to hit its legally binding Greenhouse Gas targets in 2050. Somebody had better tell the Committee for Climate Change.
MGT has been a big supporter of mandatory sustainability criteria and maximum lifecycle GHG emissions for biomass, and we are very pleased to see them pass into law in the UK. All we want now is a level playing field and impartial, critical thinking from those tasked with guiding us towards our low carbon future – too much to ask?
Friday, 8 July 2011
Thursday, 7 July 2011
Yesterday's FT contains a comment that "Investors were valuing Drax's nascent biomass business at about £400m, even though there was little visibility on demand, costs or subsidies". Link here: http://www.ft.com/cms/s/0/c5fc5f38-a79e-11e0-a312-00144feabdc0.html#axzz1RPu5LK65