In October the Scottish government launched a consultation on the levels of the renewables obligation for biomass and solar energy.
Now it has been confirmed that wood fuelled biomass stations with an installed capacity greater than 15MW will only receive support under the renewables obligation if they operate as combined heat and power (CHP) stations.
Where stations lose their combined heat and power status they will remain eligible for reduced support under the renewables obligation for no more than five years, providing some time to regain their CHP status .
Minister Ewing said: "We have consulted widely before making the decisions I have announced today, and we have listened to what industry and stakeholders have told us.
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"We have made clear our concerns over competition for a finite supply of wood, and our belief that there should be a greater focus on biomass in smaller scale energy projects wherever possible, and the responses to our consultation reflected that.
"We are taking action to address these points now – whereas the UK government has ruled out placing any limits on biomass until installed capacity exceeds 400MW.
"We are removing support for those biomass stations over 15 MW that do not provide good quality combined heat and power. This is a slightly higher ceiling than we had proposed, but our forecasts for additional supplies of wood in the market place mean that new capacity which might be built will not affect existing users – and indeed will create opportunities for businesses in the forest supply sector.
"Sustainable biomass provides huge opportunities for the people of Scotland – jobs in construction, jobs in the plants and in the forest supply sector, reduced emissions and reduced energy bills. Providing the forest supply sector with new markets will also allow them to plant more trees.
"We have also proposed limited transition arrangements which will allow combined heat and power stations who lose heat clients have time to replace them before losing their support."
(IT)
